A U.S. arm of Hannover Re thinks backing life insurance-based long-term care (LTC) products can be a good business.
The Hannover Re arm, Hannover Life Reassurance Company of America (Hannover Re US), has agreed to reinsure Asset Care products written by a unit of OneAmerica, Hannover Re and OneAmerica announced today.
The State Life Insurance Company, a unit of OneAmerica, uses the Asset Care products to provide LTC benefits through an arrangement that combines whole life insurance, built-in death benefit acceleration features, and an LTC benefits extension option.
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The Asset Care product can provide for lifetime coverage for LTC services, with guaranteed premiums, according to OneAmerica.
The Hannover Re US reinsurance agreement will apply to Asset Care business written starting Jan. 1, 2018.
Hannover Re US and State Life will “share all actuarial risks inherent in the OneAmerica product suite of Asset Care products,” the companies say.