AUL introduces survivor purchase option for whole life policies
Option provides flexibility in addressing estate tax liquidity needs
Contact:
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
For Immediate Release:
Indianapolis (March 1, 2011) – Clients who face uncertainty with regard to estate tax issues can now achieve significant flexibility for important estate decisions by purchasing a new survivor purchase option on a whole life insurance policy. American United Life Insurance Company® (AUL), a OneAmerica company, announced that it has added the option for 2011. The option gives clients the flexibility to reassess their financial situation at a future point in time versus making irrevocable decisions today.
AUL’s survivor purchase option differs from traditional survivorship insurance by giving the surviving policy beneficiary (typically a surviving spouse) the option to receive a cash death benefit or apply part or all of the death benefit toward the purchase of insurance on the insured beneficiary (e.g. surviving spouse). The death benefit from this new policy could then be used to fund any anticipated estate tax needs upon the death of the second spouse. The underwriting and cost of the new policy will be based on the insured beneficiary’s health at the time the initial policy was purchased.
“For customers with estate tax concerns, the survivor purchase option offers an innovative approach that could help address their estate liquidity needs now or in the future,” said Mark Wilkerson, senior vice president of individual operations for AUL. “With continued uncertainty around the long-term future of federal estate taxes, we feel many customers will be looking for the sort of flexibility the survivor purchase option presents.”
While the typical scenario involves a married couple doing estate planning and potentially facing a significant estate tax liability at the death of the surviving spouse, the survivor purchase option can be used in other situations as well. An example of this might be business continuity situations where a chief executive officer (CEO) would be the base insured and the chief operating officer (COO) would be the insured beneficiary. Upon the death of the CEO, the business could use the death benefit for current business needs or to fund life insurance on the COO.
With the AUL survivor purchase option, at the time of the insured’s death, the surviving “insured beneficiary” can decide to use the life insurance proceeds to address immediate cash needs or convert the benefit to a new policy with ongoing or single premiums. If opting to exercise the survivor purchase option, the insured beneficiary receives the same underwriting ratings classification that he or she had at the time of the original policy’s purchase, meaning he or she is guaranteed the ability to purchase a new policy based on underwriting that may have been done years ago. This means that even if the health of the insured beneficiary has deteriorated, the cost of the new policy will be based on his or her health when the original policy was purchased.
The survivor purchase option is available on AUL’s Legacy, Legacy 121 and Liberty Select whole life policies.
Anyone interested in learning more about AUL’s survivor purchase option can contact an AUL financial professional.
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.
We deliver on our promises when customers need us most.
Note: Legacy, Legacy 121 and Liberty Select policy series L-59 and survivor purchase option LR-219 may not be available in all states.
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