UPDATE: Grace period extended through July 1 for premium payments
At OneAmerica, we continue to monitor the financial impact of the COVID-19 pandemic on our communities and our life insurance policyowners. We understand that some policyowners may currently be struggling to pay their premiums on time. To meet this immediate need, OneAmerica has again automatically extended the grace period on all individual life insurance coverage through July 1, 2020. After July 1, 2020, OneAmerica will consider extended grace periods on a state-by-state basis.
What does this mean?
- Effective immediately, OneAmerica will automatically extend the grace period on all individual life insurance coverage through July 1, 2020. No action is required from you or the policyowner — this will be done automatically. Please see below for details about how this will be reflected in our administrative systems.
- After July 1, if the policyowner’s resident state has lifted the extended grace period, any available non-forfeiture options will be triggered and placed into effect, such as Automatic Payment Loan, Reduced Paid Up, or other such options if contractually available.
- After July 1, if the policyowner’s resident state has lifted the extended grace period and non-forfeiture options are not available or have already been depleted, all back premium is required, or the policy will lapse, and coverage will terminate.
- If after July 1, the policyowner’s resident state has not lifted the extended grace period, OneAmerica will consider the extended grace period on a state-by-state basis by policyowner’s resident state.
Will the policy show as lapsed or in grace?
If a life insurance policy lapsed AFTER the policyowner’s resident state issued a moratorium on lapses but BEFORE the automated solution was in place, then the policy will continue to show as lapsed in the administrative systems, Accounts Services, and OSO. The status of these policies will not be updated in the systems — they will continue to show as lapsed, though as noted above, they will remain in the extended grace period.
For policies in grace that have not yet lapsed, we implemented an automated solution in April to allow our administrative systems to reflect the grace period extension and show the policy as inforce. Starting when this solution was implemented for each of our administrative platforms, these policies will show as inforce within our systems, not as lapsed.
In both cases, we will mail letters to ILFS policyholders who are impacted by this extension and producers will receive copies of these letters.
Questions?
Please reach out to the AUL/PML Sales Desk team at 877-999-9883 or the State Life Sales Desk team at 844-833-5520 with any questions. You can also access COVID-19 related OneAmerica resources for both consumers and financial professionals on OneAmerica.com.
UPDATE: Grace period extended through July 1 for premium payments
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