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Allstate's Workplace Division Introduces Two New Group Voluntary Critical Illness Policies
JACKSONVILLE, Fla., August 28, 2006 – To meet a growing need in the marketplace, Allstate Workplace Division (AWD) announced today that it will introduce two new voluntary group critical illness policies, New Generation and My Lifeline, on Sept. 5, 2006. Both plans offer Guaranteed Issue based on group size, participation and benefit amount selected. The demand for specialized coverage like critical illness has been on the rise as other employer-sponsored health insurance plans have become increasingly restrictive.
The two policies from AWD are designed to satisfy two different employer group rating preferences:
• New Generation – A composite-rated critical illness product for employee groups of 200 or more.
• My Lifeline – An age-at-issue banded critical illness product for employee groups of five or more plan participants.
The AWD critical illness policies are designed to lessen the financial blow of serious life threatening illnesses, such as heart attack, cancer or stroke. Unlike traditional healthcare policies, benefits are paid in a lump sum upon diagnosis; and are paid in addition to other coverage – and regardless of treatment choices. Moreover, policy benefits may be used for any purpose.
“Allstate Workplace Division’s group critical illness policies are particularly attractive because they do not terminate after one diagnosis,” explained Jim Baum, vice president, Group Operations, Allstate Workplace Division. “In contrast, many companies will only pay for one covered illness upon diagnosis.”
For example, if an Allstate group critical illness policy is issued at a $15,000 benefit, then $15,000 is payable under Category 1 covered illnesses, $15,000 is payable under Category 2 covered illnesses, and $15,000 is payable under Category 3 covered illnesses, totaling $45,000 maximum for a $15,000 policy. (See below for illnesses covered within each category.)
Several features set the new AWD group voluntary critical illness policies apart from other similar products:
1. Portability – The My Lifeline and New Generation group voluntary critical illness policies are entirely portable at no change in benefits or premium, regardless of whether the insured remains with the employer or the group remains intact as an entity.
2. Ease of underwriting – A choice of four underwriting levels are available, based on account size, benefit amount selected and participation range. The levels include: Guaranteed Issue, Modified Guaranteed Issue, Simplified Issue and Full Underwriting.
3. Full benefits in up to three categories – Benefits are paid in three categories, with 100 percent of the benefit available for a covered diagnosis in each category.
4. Platform flexibility – Independent agents and group brokers can choose the platform that best satisfies their customers’ needs. New Generation is issued on a group platform allowing for composite rating based on account census data. My Lifeline is structured as age-at-issue. Account census data is not required unless applying for Guaranteed Issue underwriting.
In addition to the above features, employers have flexibility in choosing from a range of benefit amounts. The minimum issue amount is $5,000, and the maximum is $100,000. When family coverage is selected, the coverage for dependent adult (spouse or domestic partner) and dependent children is 50 percent of the primary insured’s benefit amount. There is no reduction in benefits as the insured ages and there is no survival period requirement.
Both AWD group voluntary critical illness policies cover a broad spectrum of illnesses. Coverage categories include the following:
• Category 1: heart attack, heart transplant, stroke, coronary artery bypass;
• Category 2: major organ transplant (excluding heart transplant, which is included as a Category 1 benefit), end stage renal failure, Alzheimer’s disease, paralysis (not as a result of a stroke, which is included as a Category 1 benefit); and
• Category 3: invasive cancer, carcinoma in situ.
A Wellness option with screening benefits for cancer and heart disease and a Recurrence Benefit option are available for both My Lifeline and New Generation group voluntary critical illness plans.
The new AWD Group Voluntary Critical Illness policies are available to large and small employer groups, associations and unions in most states. To learn more, please visit http://www.allstateatwork.com
Allstate Workplace Division is the marketing name used by American Heritage Life Insurance Company, Jacksonville, Fla., a wholly owned subsidiary of The Allstate Corporation. American Heritage Life Insurance Company is licensed in 49 states, District of Columbia and Puerto Rico.
Now celebrating the 75th anniversary of the founding of Allstate Insurance Company, The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,100 exclusive agencies and financial professionals in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. EncompassSM and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.