Federal Life Insurance Company, a provider of insurance and annuity products, has teamed with global reinsurer Hannover Re, and later life insurance specialists Vidale Marketing Group, to bring a later life annuity solution to US consumers.
The new solution, MyImmediateCarePlan (MyICP), is a medically underwritten single premium immediate annuity available to those aged between 70 to 95, which guarantees an income for life.
“When it comes to paying for care, a large percentage of Americans will simply draw down from their existing assets with no real guarantees as to how long those assets will last. This becomes a gamble against longevity where loved ones can only hope those requiring care don’t outlive their money,” commented Knut Olson, chief executive officer for Federal Life.
With life expectancy rising, and global economic volatility, it is quite clear that this issue demanded a unique solution.
As a result, product specialist teams from Federal Life, Hannover Re and Vidale Marketing have worked eagerly throughout the last two years to bring this innovative product to the US market.
“We are happy to support our partner Federal Life in launching the MyICP in the U.S. market by contributing our longstanding expertise in the areas of risk transfer and actuarial knowledge,” said Claude Chèvre, a member of Hannover Re’s executive board with responsibility for life and health reinsurance.
“As a highly experienced global market leader in the field of longevity, our goal is to continually grow and diversify our portfolio. MyICP is well established in the U.K. market, and we are delighted to bring this product to the U.S. market.”
An important part to highlight however, is, that as the plan is a fully underwritten annuity, the monthly income payments may be greater for a less healthy applicant requiring care than a traditional single premium immediate annuity.
“A large swathe of Americans are wholly unprepared for the possibility of a care event occurring in later life. The MyICP can help those people use their assets to create a stop-loss for their ongoing care expenses,” added Dave Walbrun, Federal Life’s chief commercial officer
He continued: “This product creates choice and can give real peace of mind at a time when it really is needed. From a purely financial perspective, this has to be better than depleting their lifetime savings or relying on Medicaid.”
“Federal Life continues to pursue bold innovation in the insurance industry to provide the next generation of dynamic solutions to protect families and improve people’s lives,” added Olson.
