Are you considering Ohio National life insurance to protect your life? Before you go ahead an commit to Ohio Nation, you need to read our Ohio National Life Insurance Review.
There are thousands of life insurance companies in the United States and Ohio National is a quality one. However, settling on the best company for your family is a big decision.
You should look at things like their pricing, their life products, and their credit ratings, which our Ohio National life insurance review will cover in great detail. This information and more will allow you to make your final decision with the confidence that you have arrived at the right choice.
Ohio National Insurance History
The Ohio National Insurance Company was founded in 1909 in Cincinnati, OH. The company was born in a single boardroom in downtown Cincinnati at 111 East Fourth Street. By 1910 the first policy was issued.
The Great Depression hit the insurance industry hard but not Ohio National. Ohio National actually grew during the great depression through acquisition. By 1949, the company assets reached $100 million!
In 1959, Ohio National celebrated its 50th anniversary. Ohio National completed its mutualization and is now owned by its policyholders. Ohio National, up to this point, had paid dividends to policyholders but 1959 marked the completion of the mutualization process.
Through the 60s, 70s, 80s, and 90s, Ohio National experienced steady growth. Ohio National acquired other companies and expanded its life insurance product offerings as the industry innovated. Ohio National added disability insurance, universal life insurance, and variable annuities into their product mix.
Today, Ohio National is a nationally recognized brand when it comes to life insurance. In 2009, Ohio National marked its 100th anniversary. For the 94th consecutive year, Ohio National paid $92 million in dividends to participating whole life policies and continues to focus on their customers throughout their lives.
The Ohio National Insurance Company Rating
Ohio National is rated an “A+” (Superior) by A.M. Best. A+ is an investment grade rating. Ohio National is currently in excellent financial strength and has the ability to make good on its promises with high confidence.
Ohio National has received an A as well from Standard & Poor’s. Standard & Poor’s is in agreement with A.M. Best that Ohio National is a low credit risk. Additionally, The Ohio National Comdex score is 87. The higher an insurance companies Comdex score the more financially secure they are. 87 is considered a great score.
Ohio National Credit Rating Snapshot
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Ohio National Insurance Company has been accredited by the BBB since 1938. Ohio National has an A+ rating by the BBB. You cannot get any higher than A+, which indicates that Ohio National has a solid reputation for conducting business with a high level of professionalism.
Ohio National Insurance Solutions
Ohio National offers term life, universal life, and whole life insurance along with additional financial services and lines of insurance, like annuities, investments, and disability insurance. We will focus on Ohio National’s life insurance fundamentally in our review since that is are wheelhouse.
Ohio National Term Life Insurance
When you hear term insurance, you need to think temporary. Term is best when used to cover temporary needs in your life. Once the kids are grown, retirement is around the corner, or the house is paid off, you can reevaluate your life insurance needs.
Ohio National offers term life insurance in 10-year, 15-year, and 20-year term options. Your monthly premium will remain fixed for whichever term period you select. Additionally, there is no savings component or cash value associated with term insurance. All of Ohio National’s term insurance solutions are available with either a basic or plus conversion option.
The basic conversion option provides the lowest-cost pricing and a limited conversion option. If you never intend to purchase a permanent life insurance policy, the basic conversion option may be the better option for you since it lowers your cost.
The plus conversion option offers expanded conversion options to an Ohio National permanent life insurance product including their whole life, universal life, or variable universal life insurance policies for an additional cost.
If you intend to purchase permanent protection in the future, the plus conversion option may be the better option for you. It gives you valuable flexibility in the future for minimal additional cost today.
Ohio National Whole Life Insurance
Whole life insurance is a kind of lifelong life insurance. Whole life insurance is designed for permanent life insurance needs. Our agency commonly recommends whole life for final expenses or certain estate planning scenarios due to having more guarantees than universal life insurance.
Whole life has guaranteed cash accumulation, guaranteed level premiums, and guaranteed death benefits. The policy can also receive non-guaranteed dividend payments that can be used to purchase additional paid-up death benefit or reduce your monthly premiums. The cash value can also be accessed through tax-advantaged loans if you ever decide that you want to take money out of your policy.
Ohio National offers various payment options. You can structure your policy to be paid up in 10 years, at age 65, at age 100 or choose a lifetime premium. The choice is yours.
Ohio National Universal Life
Ohio National also offers universal life policies. Universal life insurance still has meaningful guarantees, but you can dial those back for flexibility. For example, you can select the monthly premium that you wish to pay with universal life insurance.
However, the owner of the policy, not this life insurance company assumes the investment risk of the cash value. If the universal life insurance policy is not funded well enough, then the cost of your life insurance can spike in later years.
Ohio National offers the following types of universal life insurance:
Universal Life Insurance
Ohio National still offers a traditional universal life insurance policy, which not many life insurance companies do anymore due to low-interest rates. Universal life insurance has a declared rate that can change periodically higher or lower. Most universal life insurance policies come with a minimum rate of interest that the policy will guarantee regardless of the interest rate environment.
Ohio National’s universal life insurance policy offers great flexibility. It has a flexible death benefit, flexible premiums, and policy cash values. However, death benefit increases may be subject to additional underwriting approval.
Indexed Universal Life Insurance
Indexed universal life insurance is the newest type of universal life insurance and in recent years, has grown in popularity. Ohio National’s indexed universal life insurance policy provides lifetime death benefit with the potential to accumulate cash value.
The cash value in an indexed strategy is credited interest based on fluctuations in a market index, for example, the S&P 500. Your cash value is protected from investment loss due to the floor in the index. However, the index interest credit has a ceiling as well that will cap the amount of interest credited to your account.
Ohio National’s indexed universal life insurance also has flexible death benefits and flexible premiums. However, increasing the death benefit may be subject to additional underwriting.
These types of policies should be monitored on a periodic basis to assure that they are being funded sufficiently. If the indexed strategy doesn’t produce returns as projected, the policy could potentially lapse or dramatically increase in cost.
Variable Universal Life Insurance
Variable universal life insurance offers people permanent life insurance protection with the ability to generate cash value in various market portfolio strategies. Your cash value grows tax-deferred within the policy depending on the performance of investment strategies in sub-account(s) that you invest in.
Keep in mind that your cash value is directly invested within whichever sub-account investment strategy you choose. So if you invest in a risky sub-account strategy and that strategy loses money, your cash value would decline with it. However, if the strategy outperforms, your cash value will increase with it with unlimited upside.
Because of the investment risk associated with the sub-accounts, these types of policies should be prudently analyzed and monitored regularly. If the subaccounts underperform, the policy could potentially lapse due to underfunding.
Like their other universal life insurance policies, Ohio National’s variable life insurance offers flexible premiums and flexible death benefits. However, increasing the death benefit may require additional underwriting.
Ohio National Rates
Ohio National does not display their rates to the public on their website. As a result, you would need to reach out to an Ohio National financial professional or agent in order to get a quote.
Keep in mind that life insurance is something you need to qualify for and some companies have as many as 11+ rate classes. By discussing your situation with an agent, it increases your chances of you get a realistic quote as opposed to a price that you may be ineligible for.
The Final Word: Is Ohio National the Right Choice?
Ohio National has a long company history of making good on its promises to its policyholders. The Ohio National Insurance Company phone number is (800) 366-6654 or you can visit them on the web at www.ohionational.com.
Today, Ohio National offers life insurance, disability insurance, and investments to their customers. Overall, Ohio National’s life insurance is a solid option on paper and they are best known for their participating whole life insurance.
From an independent agents perspective, I have mixed reactions about working with Ohio National. They recently made headlines by attempting to buy back contracts from existing variable annuity clients and eliminating servicing broker compensation for their Ohio National variable annuities. While we do not currently represent Ohio National, these recent actions have made us skeptical about recommending their products and services if that is how they treat their clients and people who work for them.
Additionally, If you have a pre-existing medical condition or are looking strictly for the lowest term life insurance rate out there, it always makes sense to compare multiple life insurance companies. Give one of our veteran agents a call or request a free no-obligation quote. Give our team a chance to save you thousands on your life insurance.
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.