OneAmerica subsidiary reports record sales in 2010
As traditional LTC market stumbles, State Life’s asset-based offerings drive 55 percent increase
Contact:
Jim Gavin, Media Relations Manager
(317) 285-4168 or jim.gavin@oneamerica.com
For Immediate Release:
Indianapolis (May 10, 2011) – The State Life Insurance Company, a OneAmerica company, spent 2010 capitalizing on favorable tax law changes, a recovering economy and a wavering long-term care market. While other companies offering long-term care coverage faltered or even got out of the market altogether, State Life rode the success of its Asset-Care® and Annuity Care® products to have its best year ever. The company announced today that overall sales increased 55 percent over 2009.
“As baby boomers continue to move into their retirement years, it is becoming increasingly important that more viable funding options for long-term care be found and championed,” said Mark Wilkerson, president of State Life. “2010 was a solid year for State Life, which is well-positioned to meet the needs of customers seeking the protections of asset-based long-term care. We will continue to introduce more innovative options and funding strategies in coming years that will make long-term care protection available to even more people.”
State Life enjoyed unprecedented sales gains in 2010 with its Annuity Care® line of products, which are single-premium deferred annuities that clients can access for qualifying long-term care expenses. Sales of Annuity Care® were up 139 percent over 2009. Starting January 1, 2010, the Pension Protection Act of 2006 allowed withdrawals from certain annuities intended to pay for specific long-term care expenses or insurance to be tax-free.
Also contributing to State Life’s successful 2010 were the sales of its Asset-Care® products, which were 76 percent higher than in 2009. Asset-Care® uses the structure of whole life insurance, but if needed, the full death benefit can be accessed to pay for qualifying long-term care expenses.
Unlike traditional health-based long-term care (LTC) insurance, State Life’s asset-based products preserve the full death benefit or annuity amount to be paid to beneficiaries after the death of the policy holder if long-term care is never needed. Some companies in the traditional market announced in 2010 that they will stop offering LTC insurance products, while others are attempting to require existing policy holders to pay much higher premiums to keep up with rising costs.
“State Life customers are responding in record numbers to the promises that come with Asset-Care and Annuity Care – immediate coverage, no increases in premium ever and a full death benefit if LTC is not needed,” said Dayton Molendorp, chairman, president and CEO for OneAmerica. “This is not use-it-or-lose-it coverage, and that adds a great deal of value for customers and their families that they are not getting with other forms of long-term care coverage.”
About State Life
The State Life Insurance Company, a OneAmericaâ 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.
We deliver on our promises when customers need us most.
Products underwritten and issued by The State Life Insurance Company, Indianapolis, IN. Asset Care Policy Form series numbers: L301, R501 and R518. Annuity Care Policy Form series numbers: SA34, R508. May not be available in all states. Guarantees are subject to the claims paying ability of State Life.
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