| Care Solutions product change notification
OneAmerica® continues to be an industry leader in providing asset-based long-term care solutions. As this business grows, so does our commitment to providing sustainable solutions in the marketplace.
In this unprecedented interest rate environment, it is necessary to make decisions to ensure our product offerings are responsible, while continuing to meet the needs of the consumer as well as our distribution partners. To this end, several Asset-Care® and Annuity Care® product changes will take place on March 1, 2013.
Asset-Care
- 3% and 4% acceleration options will no longer be available with the lifetime Continuation of Benefits (COB) rider. All other Asset-Care options and riders remain unchanged.
Annuity Care
- The lifetime Continuation of Benefits (COB) rider will no longer be available.
- The 36 month COB will continue to be offered.
- Street-level compensation will be reduced by 1.00% for all issue ages.
- A phone interview will no longer be necessary for applications where the COB option is not selected.
- In these instances, underwriting will be completed from the application only. Phone interviews will continue for applications where the COB option is applied for.
There are no changes to Annuity Care II
Transition process
In order to ensure a smooth transition between current product offerings and these revised product offerings, the following guidelines will be in place:
- We will continue to issue all current product offerings, with current compensation levels, if the case is submitted in the home office no later than Thursday, February 28, 2013, and fully funded (and has an effective date) no later than Tuesday, April 30, 2013. IMPORTANT: Any attached COB riders must also be fully funded prior to April 30 and cannot be added after issue.
- Policies submitted after February 28, or fully funded after April 30, will be subject to the new product restrictions and compensation as described above.
- New illustration software version 5.8 (to be released 3/1/13) will reflect these new product offerings which will be in effect for Asset-Care and Annuity Care policies submitted after February 28, 2013.
In conclusion, the low interest rate environment continues to be the catalyst for changes to the Care Solutions portfolio. Despite these changes, we emphasize our singular focus on the asset-based long-term care. A prime example of our commitment is the recent release of a retooled Annuity Care® II that ensures a level LTC benefit, even in today’s challenging marketplace. |
