State Life Insurance
Founded in Indianapolis in 1894, State Life is a mutual company offering a variety of life insurance products including term, whole, and universal policies as well as annuities and disability income insurance. They are especially known for offering products that combine life insurance or annuities with long-term care benefits. As a mutual company, State Life is owned by its policyholders, allowing it to focus on understanding the needs of its customers and providing service and products to match. State Life is licensed to sell insurance in all 50 states and had nearly $12 billion in life insurance in force at the end of 2016. Its parent company, OneAmerica, is financially sound and backed by more than 140 years of experience.
Life Insurance with Long-Term Care Benefits
While many people still choose to purchase traditional long-term care insurance policies, recent years have seen increased interest in what are known as hybrid policies. State Life Insurance is commonly recognized as the leader in this field. Their State Life Asset-Care I policy is a combination life insurance and long-term care policy. Policies like this are designed for maximum flexibility, allowing policyholders to put a portion of their death benefit towards long-term care while they are still alive. Any funds not used for this purpose will then go to their heirs as usual after the policyholder passes away. While a hybrid strategy such as this is typically more expensive than traditional long-term care insurance, it also helps to ensure that you are getting the most out of your investment. It is also worth noting that unlike traditional long-term care insurance, the premiums for hybrids are guaranteed, meaning that they will not increase over time.
One of the things that sets State Life apart from other companies in the long-term care insurance industry is the fact that it offers a lifetime benefit option. With this option, there are no limits on the number of years that your long-term care expenses are covered or the total amount of long-term care benefits that you can receive. This is especially great for those dealing with neurodegenerative diseases, as such patients often require care for longer periods of time than most policies will cover. And if long-lasting coverage isn’t your first priority, you can always choose a more limited benefit period and save some money. Other notable features and options for the Asset-Care I policy include a return of premium option, a second to die benefit, and various levels of inflation protection. State Life also offers other Asset-Care products for those who want long-term care benefits built into a different kind of policy.
Reputation and Financial Strength
State Life’s parent company, OneAmerica, is financially sound and has received an A+ (superior) rating from A.M. Best and an AA- (very strong) from Standard & Poor’s. Scores from independent ratings agencies such as these are important because they help predict whether a company will be able to pay out claims in the future, though of course it is important to judge a company on more than just its financial strength. While there have been some complaints about delays in receiving benefits, State Life has a good reputation with customers as well and has received relatively few negative reviews.
Be sure to take a look at our other articles to learn more about the various companies offering LTC insurance and LTC/life insurance hybrids. You can find further information on the benefits and drawbacks of hybrid policies in our first article on alternatives to traditional long-term care insurance. Remember – these policies and the companies that issue them can differ greatly, so it really does pay to do your research and shop around.
More Useful Links:
Forethought Life Insurance