OneAmerica® Adds New Limited-Pay Whole Life Insurance Product

New product includes rider to prevent unintentional lapse

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May 31, 2018, 03:30 ET

INDIANAPOLIS, May 31, 2018 /PRNewswire/ -- OneAmerica^® has launched a new whole life insurance product that provides an opportunity to help the insured build strong cash values for their long-term goals, while also providing protection against unintentional policy lapse.

The new Whole Life Select offers a Loan Interest Rate Limitation Rider, one of the industry's only provisions to help prevent unintentional lapse of the policy due to loans and loan interest on the policy. Whole Life Select also has five premium-payment options designed to offer more flexibility to policy owners than traditional permanent options.

"Our Whole Life Select policies offer an option for fully paid policies that can maximize cash distributions in retirement for policyholders," said Dennis Martin, senior vice president, Individual Life and Financial Services, OneAmerica. "At the same time, the Loan Interest Rate Limitation Rider offers peace of mind that the policy will be there when the insured needs it most."

The rider, offered at no additional cost on all Whole Life Select policies, works by offering policyholders the option to keep the policy in force if the total loan amount reaches 95 percent of the policy's value. If the policyholder chooses to activate the rider, the policy will remain in force, ensuring a death benefit is paid to heirs and preventing a cancellation that could result in unintended tax consequences on gains to the policy.

Whole Life Select also is available with the OneAmerica Indexed Dividend Crediting Option Rider, which allows policyholders to participate in market upswings without sacrificing whole life guarantees, including a steady cost of insurance and increasing cash value.

"Many times, people look to their whole life policies as a source of distribution income in retirement, without realizing that a lapsed policy could result in unfavorable tax consequences," said Martin. "We believe Whole Life Select will be attractive to financial professionals as an insurance option to help clients prepare for their long-term goals in retirement, while offering flexibility in premium options in the short-term."

Whole Life Select pay options include single pay, 10-pay, 20-pay, pay to age 65 and pay to age 70. Whole Life Select is available in all states except California, Delaware, North Dakota, South Dakota and Washington, D.C.

To learn more about OneAmerica products and to find a financial professional, visit www.oneamerica.com.

About OneAmerica^®

A national leader in the insurance and financial services marketplace for more than 140 years, the companies of OneAmerica have helped customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources who are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit OneAmerica.com/companies.

OneAmerica^® is the marketing name for the companies of OneAmerica. Products issued and underwritten by American United Life Insurance Company^® (AUL), Indianapolis, IN, a OneAmerica company. Whole Life Select policy form number 60 and L60SP. Not available in all states or may vary by state. All guarantees are subject to the claims paying ability of AUL. Withdrawals and loans from a life insurance policy reduce the death benefit and cash value, may increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Dividends are not guaranteed, past performance is not indicative of future results, and actual results may vary. Life insurance should be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance is not a retirement plan, investment, or savings account.

SOURCE OneAmerica