State Life introduces unique new annuity strategy for long-term care protection
Annuity Care® III becomes latest in Care Solutions portfolio; allows qualified money to be converted over a period of four years with only one-time, up-front underwriting required
Contact:
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
Indianapolis (Nov. 7, 2011) – The State Life Insurance Company, a OneAmerica company, has introduced the Annuity Care III strategy as the next in its highly successful line of tax-advantaged asset-based life insurance or annuity products with long-term care benefits. With Annuity Care III, a client can convert a portion of his or her qualified money portfolio -- not set aside for income -- into a single-premium deferred annuity over a period of four years, similar to a Roth IRA conversion.
As with State Life’s other Annuity Care products, clients can access the cash value of the annuity for qualified long-term expenses if needed, and extended benefits are available. With Annuity Care III, as additional conversions are made and as cash value accumulates, long-term care benefits grow. Underwriting approval is only required at the time of the initial application and guarantees insurability throughout the four-year conversion period.
“Annuity Care III is poised to expand the market for annuities with tax-privileged long-term care benefits even further, meaning even more options for long-term care protection for clients,” said Chris Coudret, executive vice president for State Life. “Annuity Care III builds on State Life’s history of innovation and market leadership in a product line that’s seen extraordinary growth in recent years.”
Annuities with long-term care benefits first appeared in the late 1990s. Their market significantly expanded in the last few years due to the Pension Protection Act, which allows the growth in cash value to be used for qualifying long-term care expenses without being subject to federal income tax. Any cash value in the annuity that is not needed for long-term care is passed along to heirs at the time of death.
With the Annuity Care III strategy, each premium paid (conversion) is deposited into a new policy with benefits based on attained age and subject to a new surrender charge schedule. Interest rates and monthly insurance charges will be based on the prevailing rates at the time each premium is received. While underwriting is only required at the outset and guarantees insurability during the entire conversion period, the right to purchase additional policies without underwriting terminates if any additional purchase right is not exercised.
Annuity Care III can provide long-term care protection for a husband and wife on the same annuity.
"For many Americans, tax-qualified funds are their largest asset class,” said Bruce Moon, vice president, individual products. “Annuity Care III gives consumers a new option to pay for long-term care protection using these dollars. The fact that we are using a fixed interest annuity as the vehicle for this protection offers peace-of-mind as well as predictability."
About State Life
The State Life Insurance Company, a OneAmerica® company, is focused on providing asset-based long-term care solutions. State Life is a recognized leader in providing these solutions, 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., 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.
The policy used to fund the Annuity Care III strategy is a single premium deferred annuity, medically underwritten and issued by The State Life Insurance Company, Indianapolis, IN. It may credit additional interest to amounts withdrawn for qualifying long-term care expenses. Policy Form # SA-35 (or state variation). Not available in all states and may vary by state.
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