OneAmerica introduces fixed indexed annuity
April 2, 2012 by Jim Gavin
New product’s features and benefits considered solid option for choppy market environment
Contact:
Jim Gavin, Media Relations Manager
317-285-4168 or jim.gavin@oneamerica.com
Indianapolis (April 2, 2012) – Consumers who are reluctant about returning to the equity markets can benefit from potential market gains without facing any potential for loss if the market dips with the newly announced Freedom Builder fixed indexed annuity issued by the American United Life Insurance Company® (AUL), a OneAmerica company.
“We see tremendous opportunity in the fixed indexed annuity market as it offers the type of risk and reward scenario many consumers are seeking in an investment environment that continues to make them uneasy,” said Mark Wilkerson, president of individual life and financial services for the OneAmerica companies. “If consumers are concerned about another market downturn, but still want some potential for growth in their portfolio that could outpace inflation, Freedom Builder could be right for them.”
A client has many options including a five-, seven- or nine-year surrender charge product – and can choose to allocate premium to a fixed account and four indexing strategies that are tied to the S&P 500® Index. A Freedom Builder fixed indexed annuity will not lose value due to market performance. In years the index goes up, the account will be credited a certain amount of the gain.
The product offers an enhanced lifetime income rider that is included with each contract at no additional charge. With the rider, a client can choose to use all or a portion of the account to create a lifetime income stream at any time. Any portion of the account not converted can still grow in value based on interest credits, should the S&P 500 Index increase, and any growth is tax-deferred until it is withdrawn or converted into an income stream.
“We believe this benefits clients tremendously given the interest rate market that exists as well as lingering concerns about market volatility,” added Wilkerson. “Putting more money to work for our clients is good practice. With Freedom Builder, you can have it both ways: keeping a conservative approach with zero exposure to loss due to market performance while still having your money in a product that can grow if the market does.”
About AUL
American United Life Insurance Company® (AUL) is the founding member of OneAmerica® and is focused on providing a strong portfolio of products for individuals, families and small businesses. AUL uses a national network of experienced professionals utilizing an extensive menu of financial products, including life insurance, annuities and employee benefit plan products. The company helps consumers prepare for tomorrow by helping to protect their financial futures.
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica® can trace their solid foundations back more than 130 years in the insurance and financial services marketplace.
OneAmerica’s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results.
The products of the OneAmerica companies are distributed through a network of employees, agents, brokers and other distribution sources that are committed to increasing value to our policyholders by helping them prepare to meet their financial goals.
Freedom Builder fixed indexed annuity form number series LA-32, Enhanced Lifetime Income Rider form number series LR-227, Premium Bonus Rider form number series LR-226 and Waiver of Contract Withdrawal Charges for Long Term Care Facility and Terminal Illness Benefit Rider form number series LR-172 are subject to state availability.
Riders are optional and carry an additional cost. The long-term advantage of an optional benefit will vary with the terms of the benefit option, the investment performance of the variable investment options selected and the length of time the annuity is owned. As a result, in some circumstances, the cost of an option may exceed the actual benefit paid under the option.
A fixed annuity contract and a fixed life insurance policy are both long-term products. Annuities are tax-deferred insurance contracts designed for retirement. They can allow you to create a fixed stream of income through a process called annuitization and also provides a fixed rate of return based on the terms of the contract. Fixed life insurance is not an investment, retirement account or savings account and should only be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance requires medical underwriting and the cash values of a policy are not considered liquid and cash value policy loans are taxable if the policy is surrendered or terminates before the insured’s death and the cash value exceeds the policy’s cost basis.
Fixed annuities and insurance policies both have limitations. If you own an annuity and decide to take your money out early, or you own a life insurance policy that lapses with loans outstanding, you may face fees called surrender charges and the loan amount becomes subject immediately to federal income tax. Additionally, if you’re not yet 59½, you may also have to pay an additional 10 percent tax penalty on top of ordinary income taxes. An annuity contract and a life insurance policy’s tax treatment ultimately depend on a variety of factors. You should also know that both fixed annuities and life insurance contain guarantees and protections that are subject to the issuing insurance company’s ability to pay for them.
