State Life redesigns annuity-based long-term care product to thrive in low interest rate environment
April 3, 2013 by Jim Gavin, Media Relations Manager
Indianapolis (April 3, 2013) – The State Life Insurance Company, a OneAmerica company, is now offering an updated version of its popular asset-based long-term care annuity product, Annuity Care® II. The product – an annuity from which withdrawals can be made free from federal income tax for qualifying long-term care (LTC) expenses – has been redesigned to perform well in a sustained low interest rate environment.
Annuity Care II is designed as a single-premium annuity offering long-term care benefits. When LTC expenses are incurred, the consumer uses annuity value money first. When that value is exhausted, a special continuation of benefits (COB) fund is available. The recent enhancement ensures clients can carry a long-term care benefit that will never decrease due to interest rates and/or insurance charges and is guaranteed to provide at least five years of LTC protection.
“By making these adjustments, we are ensuring that an industry leading annuity with long-term care benefits remains strong and available to consumers,” said Bruce Moon, CLU, ChFC, CASL, vice president of product management. “This change benefits consumers during the low interest rate climate, which may last a few more years. In a time when other LTC options are shrinking from the marketplace, we believe the work to reposition a proven product was worth the effort.”
Annuity Care II eliminates ongoing premiums with its single-premium chassis and is guaranteed to have no future premium rate increases. Longer COB options (six or nine years) are also available with guaranteed insurance costs.
About State Life
The State Life Insurance Company, a OneAmericaâ company, is focused on providing asset-based long-term care products. State Life is a recognized leader in providing these products, which utilize life insurance, fixed-interest deferred and immediate annuities. The company’s extensive Care Solutions portfolio of products helps consumers prepare for future long-term care needs by helping to protect their assets.
About OneAmerica OneAmerica Financial Partners, Inc. (www.oneamerica.com), headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 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.
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Product may not be available in all states. Policy form series #SA-35.
All guarantees are subject to the claims paying ability of the issuing insurance company.
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
