Annuity Care® now available with Pension Protection Act provisions
Annuity Care® now available with Pension Protection Act provisions
Indianapolis -- March 6, 2007
As a result of the changes brought by the Pension Protection Act of 2006 (PPA), the long-term care professionals at The State Life Insurance Company, a OneAmerica® company, are pleased to report that Annuity Care®, State Life's annuity with long term care coverage, has been updated to be able to take advantage of this new legislation. These updates will grant a significant tax advantage for customers who file claims after Jan. 1, 2010 (the date the provisions take effect).
State Life has a business model fully focused on the growing asset-based LTC insurance market; and its leadership has specialized in this segment since the late 1980s.
Under the new PPA provisions, withdrawals from certain annuities intended to pay for specific, tax-qualified, long-term care expenses or long-term care insurance will no longer be considered taxable income as of Jan. 1, 2010. This change will allow qualifying long-term care withdrawals from the contract to be distributed tax-free as a reduction of basis.
"This new federal law is a great advancement for the asset-based long-term care industry," said Richard Merrill, president, State Life. "It really opens the door to new and better long-term care options that can provide current and future customers with more tax advantages."
Introduced in 1997, Annuity Care® is a deferred annuity that allows access to the cash value for qualifying long-term care expenses, with a higher credited interest rate for these funds. Annuity Care® also offers an option that provides lifetime long-term care coverage. Premiums for Annuity Care® and the lifetime option are guaranteed never to increase.
About State Life
With the acquisition of Golden Rule Financial Services (GRFS) division in October 2005, The State Life Insurance Company is now the exclusive wholesaler of the Care Solutions® portfolio, including: Asset-Care® (life insurance with LTC benefits), Annuity Care® (annuity with LTC benefits), ImmediateCare® (immediate annuity for individuals currently receiving long-term care) and Legacy Care® (senior-focused deferred annuity). These products are still issued through Golden Rule in states where the State Life portfolio has not yet received state approval.
About OneAmerica
OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica can trace their solid foundations back more than 125 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 plans, products and services; individual life insurance, annuities, long-term care solutions and employee benefits. 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 who are committed to maximizing value to our policyholders by helping them plan to meet their financial goals.
