At American United Life Insurance Company®, a OneAmerica company, we take your financial future as seriously as you do. That’s why as a term life insurance policyholder, we offer you the right to convert your coverage to permanent life insurance protection up until two years before the term ends.
The following resources will help you understand your term conversion privileges and how to take the next step toward lifetime protection for your family.
Read about how you can "Protect What Matters Most" (PDF, 860 KB). You can request a copy by contacting your financial professional.
Check out the differences between term insurance and permanent insurance by watching the “Rent vs. Own” video.
Have questions? Connect with your OneAmerica company financial professional for more information or call our Customer Care team at 1-800-537-6442.
If you think you’re ready to take the next steps, but still have some questions, read below for answers to commonly asked questions.
[Top]Compare term and permanent life insurance
There are a few key differences between term and permanent life insurance. One way to evaluate the two types of coverage is by looking at their different features. The table below compares term insurance with whole life insurance, a type of permanent life insurance.
|Term Life Insurance||Whole Life Insurance|
|Level premium payments only for a fixed period||X|
|Premium guaranteed not to increase||X|
|Guaranteed lifetime protection||X|
|Accumulate guaranteed cash values||X|
|May receive dividend payments||X|
|Use cash value to help meet additional financial needs||X|
[Top]Convert to whole life insurance
- The companies of OneAmerica will help you save some money by applying a credit from the premium you paid for your previous year’s term insurance premium to your new premium amount
- Even if your health has changed, you have the ability to convert without going through additional medical exams and underwriting
- The premiums you pay are guaranteed to benefit you or your family – it’s not a use it or lose it proposition
- Your life insurance premiums are guaranteed to remain level – they won’t ever increase
- Your premium dollars are guaranteed to accumulate cash values that can be used to help reach your financial objectives throughout the different stages in your life – cash values could be used to help fund an education, ensure you have liquidity for a “rainy day” and even supplement your retirement.
If the benefits of converting your term insurance to a permanent product are fitting to you, the next steps you need to take are easy. Simply contact your financial professional with the companies of OneAmerica. They’ll be happy to review your situation and discuss the benefits and costs of permanent life insurance ownership.
It is difficult to predict how your life insurance needs will change over time. Converting your term insurance now can help you prepare for life’s journey ahead.
[Top]Which policy can I convert to?
You can convert to any permanent life insurance policy offered by American United Life Insurance Company®, Pioneer Mutual Life Insurance Company or The State Life Insurance Company. You can select a whole life insurance, universal life insurance or asset-based long term care that can help you address your long term needs.
[Top]Do I need to have another medical exam?
No. You will not have to undergo additional medical tests or underwriting to convert your term policy. Converting can be as simple as working with your financial professional to complete a few forms. That's it!
[Top]If I convert, what will my conversion credit amount be?
Your conversion credit will be equal to the current year's annual base premium of the term coverage for full term conversions.
[Top]Do I have to convert all my coverage at once?
No. You can convert a portion of your term coverage now and the rest at a later date. You can work with your financial professional to determine a conversion schedule that works best for your unique situation.
Dividends are not guaranteed. When discussing loans it is important to remember that the contract is not a modified endowment contract, or MEC. If the policy is a MEC, then any distributions taken from the policy will generally be taxable to the extent there is gain in the contract and subject to a 10% tax penalty if the policyowner has not yet attained age 59 ½. If a life insurance policy lapses with loans outstanding, the loan amount becomes subject immediately to federal income tax and if the insured is under age 59 ½, they may be subject to an additional 10% tax penalty.
All guarantees are subject to the claims paying ability of American United Life Insurance Company®, Pioneer Mutual Life Insurance Company and The State Life Insurance Company.
As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges that include costs of insurance that vary with gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs.