Ohio National Life, the 100 some odd year old life insurance company from Cincinnati known for having a good…well…almost everything.
Most of the time, we can segment companies by being rockstars with certain products. For example, we know Berkshire Life and the Standard for their industry leading and extremely benefit rich disability insurance contracts.
We regard Banner Life and Genworth for their fiercely cheap term insurance rates, we know of Jackson National Life for their amazing annuity products. Ohio National tends to be a different story.
Instead of being known for it's one great product, it's honestly really good at just about everything it touches. Solid whole life contracts, a current assumption universal life contract that many revere as the industries best, a highly respected variable annuity (for people who care about variable annuities…ew), and really great term rates.
Term rates that are very uncharacteristic for a mutual life insurer. Idiosyncratic term rates aside, we wanted to know if their term product was a good choice as a top contender for your financial life.
Though the die hard Northwestern Mutuals, Guardians, etc. among us will scoff at the labeling of Ohio National Life as a “mutual” (due to the fact that they are in fact a mutual holding company, details on what that's all about forthcoming, not today unfortunately) ONL (as it's commonly referred to) is every bit as dedicated to the mutual cause as far as we can tell.
The only “un-mutual” like thing they do is write term life insurance business that will actually find its way near the top of a list of lowest cost premiums on a spreadsheet.
Typically, the mutuals write term insurance for one reason…to convert it to their whole life contracts.
And Ohio National is aware of this feature and very much happy to talk about it. But unlike the other big name mutuals (if such a thing really exists) term insurance from Ohio National Life doesn't come with the same annoyingly arrogant price that insureds need to pay for the privilege to convert to permanent life insurance at the big old mutuals.
Instead, ONL offers the privilege to convert to its permanent products at a price that gives the likes of Banner and Genworth a real run for their money (they also have a pretty slick permanent life underwriting policy for recently insured individuals that we'll discuss in later weeks when we review their universal and whole life products).
This is a very noteworthy approach, and we applaud them for taking this stance.
For some time, the trend on term life insurance was buy now, and buy again a few years from now. This was working out pretty well as insurers were easing into the new CSO tables and rates for term insurance were decreasing pretty consistently year over year.
Unfortunately for agents and brokers, the feeding frenzy has ended and the slide in prices has pretty much come to a halt, if not backed up just a bit.
However, Ohio National just recently released its latest line up of term products and with it, came a repricing that brought on even lower prices than before.
There latest term round up–known as Flex Term Series 8–comes in level 10, 15, and 20 year periods (no 30, they've never really been a player on that market, plus they have the industries lowest priced universal life product that sometimes beats out 30 year term rates, impressive we know).
In addition to the Flex Term series, Ohio National Life also has an annually renewable term product (they never sell it and you'll hear few people ever talk about it) and a nifty product known as Recap Term (more on that in a bit).
Ohio National has 3 term products:
Conversion period of the level products are available until the end of the level period or age 70 whichever comes (no extension for cases issued after age 70).
Riders available on Ohio National's Term products are:
Ohio National Life has a few liberalized underwriting practices concerning private pilots and cigar smokers. Private pilots with at least 100 hours under their belts who fly no more than 150 hours per year and are Instrument Panel Verified.
Cigar smokers are traditionally not given tobacco rates.
ONL also has a preferred smoker rate so cigarette users who are otherwise in good health can get slightly better rates. Some people have criticized ONL for some time for stiff underwriting.
Don't believe the hype. This is more rumor mongering among those who don't have ONL as an arrow in their quiver.
All in all a pretty well rounded line up of term products. On top of that, ONL has superlative financials to boot. So, for extremely competitive term rates from a mutual with amazing financials and size, Ohio National Life is a top choice provider.
Brandon launched the Insurance Pro Blog in July of 2011 as a project to de-mystify the life insurance industry. Brandon was born in Northern New England, and he currently calls VT home. He attended Syracuse University and graduated with a triple major in Economics, Public Administration, and Political Science.