NU Online News Service, May 20, 10:12 a.m. – Pan-American Life Insurance Company, New Orleans, has hired two executives who once worked for Columbia Universal Life Insurance Company, Austin, Texas, to start a new senior markets division in Austin.
Mike Pinkham, previously president of Columbia Universal, will be the senior vice president in charge of the senior markets division.
Frank Allen, a senior vice president at Columbia Universal, will be the division’s vice president of marketing.
Allstate Financial Corp., Northbrook, Ill., acquired Columbia Universal from American Heritage Life Insurance Company, Jacksonville, Fla., in 1999.
Pan-American says its senior markets division will start by selling simplified-issue life insurance to consumers between the ages of 50 and 85. The policies will pay death benefits ranging from $2,500 to $25,000.
The division will also sell “graded death benefit” whole life policies to applicants who are not healthy enough to qualify for the simplified-issue policies. The graded policies will pay 30% of the face amount if the insured dies in year one, 70% if death occurs in year two, and the full face amount after year two, Pan-American says.
The simplified-issue policies will be available in 22 states, and the graded death benefit policies in 19 states.
Pan-American notes that the senior markets division will be organizing new broker networks as well as developing new products.