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OneAmerica Review

OneAmerica Review

Finding the right tools to grow and protect your wealth – and those you love

Making sure that you have the right financial tools in place can be somewhat tricky. While there are countless “gurus” on television, print, and social media who tout on about various options and opportunities, in many cases, what they’re advertising is made to sound like a “one-size-fits-all” answer.

But the truth is that there is no such thing!

Prior to purchasing any financial or insurance offering, it is essential that you understand both how and why it could be a good fit for you. It can also help you know what to anticipate in the short- and long-term time horizon.

Even if a particular financial vehicle is a good addition to your portfolio, it is also critical to know whether or not the company that is offering it is strong and stable financially and that it will stand behind the claims that it is suggesting.

In this review of OneAmerica, you will learn about the company and its foundation, as well as attain a better understanding of the products and services it offers, and whether they may or may not be right for you and your specific needs and objectives.

History of OneAmerica

OneAmerica is a national provider of insurance and financial services. It has a track record that extends more than 140 years, and the organization is one of the fastest growing mutual insurance holding companies in the United States.

This entity offers high quality financial and insurance products that can help individuals, families, and companies reach their goals and protect their financial futures. The company’s core offerings include life insurance, annuities, long-term care solutions, and employee benefit plan options. OneAmerica is headquartered in Indianapolis, Indiana.

As of year-end 2021, OneAmerica held more than $104 billion in assets under administration, and it brought in $3.1 billion of revenue. The overall 2021 net income for OneAmerica equaled nearly $206 billion.

OneAmerica Companies and Affiliates

OneAmerica includes a family of financial and insurance companies. As a mutual organization, OneAmerica has no shareholders. This means that its top priority is to serve its clients and policy holders.

The affiliated OneAmerica entities include:

  • American United Life Insurance Company – American United Life Insurance Company, or AUL, is the founding member of OneAmerica. This carrier offers a diversified portfolio of life insurance and annuities, along with employee benefits and retirement savings and investment options.
  • The State Life Insurance Company – The State Life Insurance Company provides asset-based long-term care products. These include options that utilize life insurance plus certain types of annuities that also contain long-term care insurance riders.
  • OneAmerica Retirement Services LLC – This OneAmerica affiliated company offers defined contribution retirement savings options with a strong focus on customized planning solutions.
  • McCready and Keene, Inc. – McCready and Keene, Inc., is an actuarial and retirement benefits consulting firm that designs, installs, and administers customized savings plans.
  • OneAmerica Securities, Inc. – OneAmerica Securities, Inc., is a full-service broker/dealer and registered investment advisor (RIA). This affiliated OneAmerica company offers a wide range of investments such as stocks, bonds, and mutual funds, as well as variable life insurance and annuities, and fee-based financial planning services.
  • Pioneer Mutual Life Insurance Company – Through Pioneer Mutual Life Insurance Company, consumers can purchase fixed universal life insurance options to save for the future and protect those they love.
  • OneAmerica Asset Management, LLC – This OneAmerica affiliate is a registered investment advisor (RIA) that provides advisory services to select clients.
  • AUL Reinsurance Management Services, LLC – AUL Reinsurance Management Services, LLC, is a full-service reinsurance management operation that provides administration and management of various reinsurance pools and facilities.

All of these affiliated entities make up the OneAmerica family, and they provide diversity in the products and services they offer.

Products and Offerings from OneAmerica and Its Affiliated Companies

OneAmerica services both consumers and businesses. Not everyone’s needs and objectives are the same. So, offering a variety of financial vehicles can ensure that more customers get what they need. In addition, customers’ needs can change over time, as people and companies change. With that in mind, OneAmerica can also grow along with its clients.

Some of the primary financial and insurance vehicles that OneAmerica and its affiliated entities offer to individuals and families include the following:

Life Insurance

OneAmerica offers term life insurance policies, as well as whole life and variable life. The reasons why people purchase life insurance coverage can vary a great deal, so having a comprehensive suite of coverage options can help consumers to find a plan that is a good fit for them.

Annuities

Annuities can offer a steady, reliable stream of income in retirement – and depending on the payout option that you choose, you could count on this cash flow for a specific amount of time, or for the remainder of your lifetime, regardless of how long that may be.

There are numerous options when it comes to annuities. The fixed annuities that are provided through OneAmerica are less risky than others (such as variable annuities, where you could end up losing your principal and previous gains). Fixed annuities do not lose principal value in any type of stock market or economic environment. They can also provide you with a fixed rate of return and growth that takes place tax deferred.

Asset-Based Long-Term Care

Because people are living longer today than they did several decades ago, the need for long-term care services is growing rapidly. But this type of care is expensive, regardless of whether it is received in a facility or at an individual’s home.

OneAmerica offers innovative alternatives to stand-alone long-term care insurance coverage known as asset based long term care insurance. These plans are based on life insurance and annuities. So, if you never require long-term care services, you or your loved ones can still receive a benefit, rather than paying a significant amount of premium for a plan that is never used.

Securities

The financial professionals who are affiliated with OneAmerica can help you to identify your short- and long-term investment needs. Prior to doing so, though, they will closely review your specific circumstances and goals. Just some of the security-based products that are available through OneAmerica representatives include mutual funds, general securities, unit investment trusts (UITs), variable annuities, and variable life insurance (VUL).

In addition, you can prepare your finances for the future through OneAmerica’s pension services, college financial planning, estate preservation strategies, and cash management accounts.

Financial and Insurance Services

OneAmerica also works with companies of all sizes to give their employees access to financial and insurance services. The company serves businesses through the offering of:

  • Workplace benefit plans – Workplace benefit plans can comprise a wide array of investment and protection strategies, such as disability and life insurance, as well as savings plans.
  • Workplace retirement plans – The workplace retirement plans that are offered via OneAmerica can be customized using various investment and savings options.
  • Group Life Insurance – Life insurance through a group plan may be paid for in full or in part by an employer that offers it. The benefit from these plans is paid out to one or more named beneficiaries, and it is typically received income tax free. These funds can be used to pay off debt, replace income, and/or put towards future needs like a child’s college funding.
  • Accidental Death & Dismemberment Plans (AD&D) – If death or dismemberment occurs as the result of an accident, a covered employee or their beneficiary will receive additional funds through an AD&D policy.
  • Group Disability Insurance – If an employee becomes ill or injured and is not able to work and earn an income, disability insurance can help. These policies pay out a certain amount of income on a regular basis for a specified period of time. Having this coverage can eliminate the need to dig into savings or other assets to pay bills.
  • Other Value-Added Solutions – Other services for employees can also be offered through OneAmerica. These may include travel assistance and/or an employee assistance program that provides rehabilitative methods – oftentimes at no cost to the individual.

OneAmerica’s Financial Strength and Stability

While putting insurance protection in place is a key component of most any financial and retirement plan, it is also critical to determine whether or not the underlying carrier is strong and stable financially, and that it has a good reputation for paying out it’s policyholders’ claims.

As a financially secure mutual insurance holding company, OneAmerica is considered financially adept. The company also has a track record of more than 140 years. In addition, OneAmerica is more focused on its policy holders, as it has no stockholder to cater to.

Further, even though dividends are not guaranteed, many mutual insurance carriers will share these funds with their clients (versus building up wealth for shareholders). It is estimated that OneAmerica paid out more than $27 million in dividends to its policy holders in 2022.

These financial strength claims are backed up by the insurer ratings agencies, based on the high marks that OneAmerica has attained. These include a(n):

  • A+ (Superior) from A.M. Best
  • AA- (Stable) from S&P Global
  • A- (Stable) from Fitch Ratings

Other accolades for OneAmerica include it’s A+ rating from the Better Business Bureau, and its long-term accreditation with the BBB since 1991.

Products of Note from OneAmerica

While OneAmerica and its affiliated companies offer a long list of products and services, there are some offerings that may be particularly beneficial to those who are planning for the future. These include the:

  • Whole life insurance (through American United Life Insurance Company)
  • Hybrid long-term care protection (through State Life Insurance Company)

Whole Life Insurance Coverage through American United Life

The whole life insurance coverage that is offered through OneAmerica affiliate American United Life Insurance Company provides lifetime coverage and cash value build-up that will not be reduced, even in a significant market or economic downturn. In addition, the premium on these whole life insurance policies is locked in and will not increase.

American United Life Insurance Company whole life insurance policies are also eligible for dividend payments, which can further increase the gains in the whole life insurance cash value (although they are not guaranteed). The cash also grows tax deferred, meaning that there is no tax due on the gain unless or until these funds are withdrawn.

Whole life insurance can offer a type of “cushion” to other market sensitive items in consumers’ retirement plans. This is because the cash value in whole life insurance is not correlated with stock market performance.

Hybrid Long-Term Care Protection with State Life Insurance Company

Over time, many consumers have purchased stand-alone long-term care insurance coverage. But, while these financial vehicles can help with paying the cost of a care need, if the insured never needs these types of services, then the premium will go unused.

This is why “hybrid” long-term care alternatives can provide a more flexible way to plan. Hybrid financial and insurance products offer different ways to use the benefits in the policy.

For instance, a plan that offers both a life insurance death benefit and a long-term care rider can be used to pay for care if it is needed. But if care is not required, the insured’s beneficiary(ies) can still obtain a benefit from the plan.

The State Life Insurance Company, which is an affiliated OneAmerica company, offers several hybrid long-term care payment options. These include:

  • The Asset-Care product line. The Asset-Care products use the guarantees of life insurance to provide future protection to an insured’s loved ones. These plans are available using either single or multiple premium payments.
  • Annuity Care. The Annuity Care products offer two different options that combine annuities with long-term care coverage benefits. In this case, if some or all of the funds in the plan are not used for a care need, they can instead be paid out as an income stream through the annuity.

Are You on Track to Protect the Things and People that Matter Most?

If you are seeking ways to grow and protect wealth, one or more of the product options from OneAmerica may be viable solutions for you. But because your objectives, time frame, and risk tolerance can differ from other investors and retirees, it is recommended that you first discuss your goals with an insurance specialist who can help you narrow down which – if any – of these products are right for you.

At Insurance and Estates, our mission is to ensure that our clients grow and protect wealth, and in turn, the people and things that are most important to them. We offer a variety of savings, income, and protection vehicles – and we can assist you with coordinating a plan that works for your specific needs. We also provide our clients with guidance and support every step of the way. This means that we are here to help as you move through various life changes.

So, if you would like to learn more, we invite you to set up a time to talk with us by calling today. Or, feel free to email us with any questions that you may have. We look forward to helping you build and protect your current and future financial security.

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