Unique product allows policyholders to say “I DO” to market upswings without sacrificing whole life guarantees
INDIANAPOLIS – (February 7, 2017) – OneAmerica® today introduced the Indexed Dividend Crediting Option (IDO) Rider – a unique product that allows Legacy and Legacy 121 policyholders to participate in market upswings without sacrificing whole life guarantees, including a steady cost of insurance and increasing cash value.
With IDO, a policyholder may earn up to double their dividend in any given year by selecting all or a portion of their dividend to be connected to S&P 500® performance. If the market underperforms, all whole life guarantees remain in place, and the dividend can never be negative.
“OneAmerica is the only company to offer a potential increased dividend based on an external index, and we are proud to introduce this innovative product to the marketplace,” said Pat Foley, President of Individual Life and Financial Services at OneAmerica. “Financial professionals are always looking for a way to accelerate cash growth on whole life policies. IDO offers this opportunity without imposing extra premiums or sacrificing the guarantees that make whole life an attractive option.”
Here’s how it works:
Dividends are scheduled to grow each year, based on policy value and the length of time the policy is kept in force. If a policyholder elects to index all or part of their dividend, the dividend will grow or decrease based on market performance.
If the market performs well and a policyholder fully participates in IDO, they could earn double their dividend. If market performance is positive, but does not meet the level for doubling, then the dividend earned is determined by an index factor. If market performance is negative, the dividend has down-side protection and will never be negative. Policyholders may choose to allocate a portion of their dividends to IDO, and the remaining portion will earn the scheduled dividend.
A national leader in the insurance and financial services marketplace for 140 years, the companies of OneAmerica help 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 are issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company, Indianapolis, IN. Policy form series L-59 and Indexed Dividend Crediting Option Rider form number series LR-238 may not be available in all states or may vary by state.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by OneAmerica. The IDO is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.