Optimus Life Designs · LifeBridge LTC Case Design

Funding & Withdrawal Logic

How every dollar moves through the model — where income is produced, how premiums are paid, and how care is funded — for product-accuracy review.

Joint case · OneAmerica AnnuityCare + 5-pay IUL · funding & withdrawal methodology

Qualified (IRA / 401k)

Non-Qualified (brokerage)

Cash

Policy (AnnuityCare + COB rider)

Funding the policy

The $255K AnnuityCare is always an IRA transfer; the IUL premium order is advisor-selectable. Premiums end after year 5; the policy self-funds its LTC premium thereafter.

AnnuityCare single premium$255,000 · Year 1

1Qualified→ 2Non-Qual→ 3Cash

IRA → annuity transfer. Not taxed and not grossed up — a direct rollover of qualified money.

IUL premiumsYear-1 balance + Years 2–5 (5-pay)

1Qualified→ 2Non-Qual→ 3Cash selectable

Default qualified-first; advisor-selectable. A tax gross-up applies to the portion drawn from qualified (IRA) money.

Producing income

Guaranteed income is applied first; the portfolio funds only the remaining gap.

Guaranteed incomeSocial Security + pension

✓Offsets the need first

Social Security starts at its elected age and tracks income inflation; pension is held flat taxable. Both reduce the portfolio withdrawal before any account is touched.

Portfolio incomethe remaining gap = need − SS − pension

1Cash→ 2Non-Qual→ 3Qualified

Default order, advisor-selectable. Can be switched to Qualified → Non-Qual → Cash per case.

Paying for long-term care

The benefit (joint LTC, increased each year by the inflation rider) is a hard cap. The order care above it is drawn is advisor-selectable per client — default cash-first.

LifeBridge — care within the benefitup to the inflating benefit cap

1AnnuityCare ~30 mo→ 2COB rider

AnnuityCare value funds roughly the first 30 months taxable, then the COB rider pays tax-free. Investment buckets untouched; the IUL death benefit is not reduced.

LifeBridge — care above the capor after the tier's pool is exhausted

1Cash→ 2Non-Qual→ 3Qualified selectable

Only the amount above the annual benefit (or after the 7.5-yr / 5-yr pool is used up) comes from the client. Grossed up for tax on IRA withdrawals.

Self-insured — all carethe "do nothing" comparison

1Cash→ 2Non-Qual→ 3Qualified selectable

Default cash-first; advisor-selectable per client. Both sides use the same order, keeping the comparison apples-to-apples. Grossed up for tax.

The 5-year refund

Applies only to the 5-Year + Refund benefit level.

$200,000 partial refundYear 16 · 5-Yr + Refund tier

→Into Non-Qualified

Non-taxable return of premium (full cost basis), reinvested into the brokerage account. The policy's death benefit steps down by roughly the same amount at that point.

Order of operations — applied each policy year

1 Premium / refund→ 2 Income need→ 3 LTC claim→ 4 Account growth→ 5 Net inheritable (after tax)

Net inheritable = after-tax account values + policy value − tax on the annuity gain portion + the income-tax-free IUL death benefit. Deductions are taken before growth each year, per the validated model. Hypothetical, for review. Values follow a OneAmerica illustration dated June 8, 2026; verify each rule against the current compliant product before use.