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ProdMod: OneAmerica to Lower Pricing on its Asset Care Product Portfolio

FROM ONEAMERICA…

For the second time in 2022, OneAmerica is announcing a price decrease on our Asset Care product portfolio across the country, effective Dec. 9, 2022. 

Transition Rules

Please note that all cases issued between Nov. 9-Dec. 9, 2022 will be eligible for new pricing.

  • Dec. 9, 2022: The Asset Care price decrease goes into effect on all cases issued on or after Dec. 9, 2022. This will impact the following Asset Care product portfolio funding options
    • All States except California
      • Single Premium, including the Return of Premium option and Single Premium Drop-in Rider
      • Annuity Funding Whole Life: Income Benefit Rider Bonus increasing to 25%.
      • Recurring Premium: 5-pay and 10- pay only; No change on 20-pay or pay-to-95
    • California
      • Asset-Care I
      • Asset-Care II/III
      • Asset-Care IV: No Change
  • Dec. 9, 2022
    • Quote software reflects new pricing. Neither the software nor the home office can generate quotes with the new pricing prior to this date.
    • Advisors may begin submitting requests to reissue eligible policies via email or OneSource Online. Sending a new, unsigned illustration with the request is preferred but not required.
    • Reissue requests will be worked as quickly as possible. It is our desire to maintain service levels on all new applications, so reissue requests pertaining to this price change may fall outside our normal service standards.
  • By Dec. 20, 2022: Requests for reissue must be received by OneAmerica® no later than Dec. 20, 2022 via email or OneSource Online. Sending a new, unsigned illustration with the request is preferred but not required.
Important notes
  • Commission statements will reflect a chargeback when the original policy is terminated. The commission for the new policy will then be applied when processing is complete.
  • New policy pages will be generated, and new delivery requirements will apply as well. These must be signed by the applicant and returned to the home office as directed.

Find out more about these changes from OneAmerica…

ProdMod: OneAmerica Announces Price Reduction for its Asset Care Portfolio

FROM ONEAMERICA…

Effective May 26, 2022, our Asset Care product portfolio will experience a price decrease nationwide.

OneAmerica was one of the first companies to increase prices on our asset-based LTC product back in 2019. While not popular, that decision made our product more resilient and created a solid future to serve our customers.

Because of this approach, this product has remained a strong option in the asset-based long term care market and we are now one of the first companies to be able to offer a decrease in our pricing structure on our Asset Care offering nationwide.

Transition Rules

The Asset Care price decrease goes into effect on all cases issued on or after May 26, 2022. This will impact the following Asset Care product portfolio funding options:

All states except California:

  • Single Premium: Includes Return of Premium option and Single Premium Drop-in Rider
  • Recurring Premium: 20-pay and Pay to 95 only; no change on 5- or 10-pay
  • Annuity Funding Whole Life: Income Benefit Rider Bonus returning to 20%

California:

  • Asset-Care I
  • Asset-Care IV: 10-pay, 20-pay and Pay to 100

Cases issues between Apr. 25 – May 25, 2022 eligible for new pricing:

May 26, 2022:

  • Quote software reflects new pricing. Neither the software nor the home office can generate quotes with the new pricing prior to this date.
  • Advisors may begin submitting requests to reissue eligible policies via email or OneSource Online. A new, unsigned illustration is required along with the request.
  • Reissue requests will be worked as quickly as possible. It is our desire to maintain service levels on all new applications, so reissue requests pertaining to this price change may fall outside our normal service standards.

Jun. 15, 2022:

  • Requests for reissue must be received by OneAmerica no later than Jun. 15, 2022.

Important Notes:

  • Commission statements will reflect a chargeback when the original policy is terminated. The commission for the new policy will then be applied when processing is complete.
  • New policy pages will be generated, and new delivery requirements will apply as well. These must be signed by the applicant and returned to the home office as directed.

Learn more about new business submission rules leading up to the new price effective date of May 26, 2022.

Find out more about these changes from OneAmerica…

ProdMod: OneAmerica to Change Interest Rates Effective April 15, 2022

FROM ONEAMERICA…

New business interest rates for some OneAmerica Care Solutions products are changing effective Friday, April 15, 2022. The impacts are not expected to be significant but will price more competitive on Annuity Care II and Indexed Annuity Care.

  • Annuity Care, Annuity Care II and Indexed Annuity Care rates are increasing.
  • All other rates remain the same.

Care Solutions Interest Rates (effective April 15, 2022)

Annuity Care

  • LTC Fund: Current Interest Rate = 2.50%
  • Cash Fund = Current Interest Rate = 2.00%

*Current cash fund rate varies by state. 

Annuity Care II

  • LTC Accumulated Value Single/Joint Annuitant: Current Interest Rate = 1.80% (+0.65% increase expected)
  • Accumulated Value Single/Joint Annuitant: Current Interest Rate = 1.75%

Indexed Annuity Care 

  • Point-to-Point Cap: Current Rate = 2.65% (+0.65% increase expected)
  • Point-to-Point Par: Current Rate = 20.00%
  • Monthly Average Cap: Current Rate = 2.80%
  • Monthly Average Par: Current Rate = 35.00%
  • Fixed Account: Current Rate = 1.50%

Most Beneficial Rate:

Indexed Annuity Care offers your clients the opportunity to receive the best declared interest (or cap, or par) rate available between the date their application is received in the Home Office, and the effective date of the contract, if fully funded within 60 days of application. This feature is intended as an easy-to-do-business provision to provide you and your clients the peace of mind to know that they can receive the best declared rates during the application process. Annuity Care also offers this feature for 1035/transfer monies only.

Please see OneAmerica’s current rates for additional details.

Find out more about these changes from OneAmerica…

AdminUpdate: OneAmerica New Business Service Update

FROM ONEAMERICA…

Update on year-end processing for Care Solutions applications, including Washington state business

As the end of the year approaches, we want to update you on our progress in responding to the significant influx of new business OneAmerica® received, driven in part by pricing and regulatory changes.

As we prioritize applications to most efficiently work through them, our New Business and Underwriting teams are currently focused on processing applications received prior to the pricing changes on our Asset Care product line that were announced on Aug. 25. Our focus will then shift to applications received for our new, repriced Asset Care products. These cases will be processed in the order in which they were received.

What you can expect for applications submitted on or prior to Sept. 24, 2021

  • To remain compliant with the new 7702 federal tax code requirements, applications submitted with pre-7702 pricing changes for Asset Care products can no longer be offered in 2022. Our goal is to issue as many cases as possible before year-end.
  • If processing extends into early January, backdating will be required to put the coverage in force. IMPORTANT NOTE REGARDING QUALIFIED FUNDS AND 1099s: A 2021 1099 will NOT be issued for those policies issued in 2022 but backdated to 2021. Instead, the 2022 1099 will be reflective of distributions for both 2021 and 2022, as a result of the backdating.
  • At this time, we expect these remaining cases will be issued in January and early February.
  • For applications submitted in the state of Washington: Based on the state’s timeline, the deadline to have coverage in force was Nov. 1, 2021. We’re evaluating the remaining volume of business currently in-house to determine how best to proceed. We’ll send a separate communication to those affected that outlines our decision.

What you can expect for applications submitted on or after Sept. 25, 2021

  • Applications not already in process are projected to start in mid- to late- December and continue into early February.
  • We anticipate that the strain on underwriters and vendors will continue through the first quarter, likely extending processing timeframes for fully underwritten cases. At this time, it’s estimated that our surplus volume should be fully processed by the end of March.

Find out more about these changes from OneAmerica…