OneAmerica – IMPORTANT: Upcoming Asset Care Changes Effective 9/25!

THE TWO CHANGES BEING IMPLEMENTED:

1. Single-Premium Asset Care: The first is a pricing adjustment to the base life insurance portion of the contract and is ONLY on our cash/cash equivalent single premium funded Asset Care. There are no pricing adjustments being made to the COB rider or the inflation options.  It’s important to know that this pricing adjustment is only on the Single Premium solution and isn’t applicable to the recurring premium Asset Care or the Annuity Funding Whole life Asset Care.

1. Annuity Funding Whole Life Asset Care (Qualified Money approach): The second change is a reduction to the bonus on our “Annuity Funding Whole Life” Asset Care strategy (used when funding with lump sum qualified dollars or to convert a individual life contract into a joint Asset Care).  Currently there is a 20% bonus applied to the funds transferred in and that will be reduced to a 10% bonus.

Very Important:

To hold current pricing on our single premium funded Asset Care (cash or 1035 life policy) and/or the 20% bonus on our Annuity Funding Whole Life Asset Care (qualified dollar strategy), all applications must be received in our home office by 5pm EST on Friday, September 24^th.  I’ve attached a PDF on the transition rules as well as the official announcement below!

Finally, many of you are likely aware of the “WA Cares” LTC Trust Tax that’s transpiring in Washington State.  You may also know that we were one of the last major carriers left standing until we too finally temporarily suspended sales of our hybrid LTC solutions in WA effective August 14^th.  Unlike many carriers who only provided a few hours’ notice, we provided a 4 day notice which resulted in an enormous amount of submitted applications as you can imagine.  This has certainly caused processing delays as we work to get this massive influx of business entered in the system and through the pipe.  My hope in stating this is that it might help you to set realistic expectations with your clients.  I truly believe it can actually work to everyone’s advantage as these delays are not only a result of but also draw attention to the fact we now have the first state to implement an LTC tax on those who don’t own private LTC insurance, which only helps to reaffirm the importance of addressing the extended care risk!

Updates and changes to our Asset Care^® portfolio