State Life breaks sales record for asset-based life insurance with long-term care benefits

The State Life Insurance Company, a OneAmerica company, announced today that 2012 was its best ever year for sales of Asset-Care^®, the company’s life insurance product with long-term care benefits. Based on first year premium, State Life achieved growth of 28 percent over its previous record set in 2011. State Life also sold more policies in 2012 than any other previous single year.

“Many of us have seen first-hand the financial devastation that can occur for a family when an individual requires long-term care,” said Chris Coudret, executive vice president of State Life. “More and more consumers are looking to guarantee their long-term care protection and are turning to asset-based long-term care products like Asset-Care.”

Asset-based long-term care products like Asset-Care are often referred to as “hybrid” or “combo” products. With Asset-Care, when long-term care is needed the life insurance death benefit can be accessed federal income tax-free to pay for qualifying expenses.

Consumers and their financial professionals are attracted to Asset-Care because of two main advantages over health-based long-term care insurance products: (1) a life insurance payout is made to beneficiaries at the time of death if the policy has not been exhausted for long-term care expenses, and (2) premiums are guaranteed never to increase. The popularity of Asset-Care is also being driven by a patented joint care option, where a couple can purchase one policy that provides long-term care funding for both people.

According to LIMRA, half of the top 20 companies offering individual health-based long-term care insurance in 2005 (based on new premium) have since exited the market. Also, a majority of the companies that have offered these products in the past have had to request rate increases in recent years. Conversely, State Life’s record 2012 has helped maintain an average 37 percent annual growth rate from 2009-2012.

“There is a lot more awareness now among consumers and financial professionals that the long-term care funding options they are most familiar with are sometimes either less than ideal or not even available anymore,” said Coudret. “However, with asset-based long-term care products like Asset-Care, they’re finding the value and predictability they desire.”

About State Life
The State Life Insurance Company, a OneAmerica^® company, is focused on providing asset-based long-term care products. State Life is a recognized leader in providing these products, 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. (www.oneamerica.com), headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 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.

Follow OneAmerica on Twitter at @OneAmericaNews.

Products underwritten and issued by The State Life Insurance Company, Indianapolis, IN. Asset Care Policy Form series numbers: L301, R501 and R518. May not be available in all states. Guarantees are subject to the claims paying ability of State Life.