Products and financial services provided by American United Life Insurance Company® a OneAmerica® company

Values and virtues of whole life insuranceThe journey to financial freedom

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Contents

Why whole life insurance might be right for you 4

How companies determine the cost of whole life insurance 5

How dividends and cash value benefit you 6

How the death benefit protects your loved ones 8

Tax advantages of whole life insurance 11

What whole life insurance can do for you 12

Protecting your value 14

Journey with OneAmerica 17

Supporting you and your options 18

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Your life’s journeyLife insurance can be an important part of your financial picture, but you may not like to talk about death or losing a loved one. Moreover, you may consider the life insurance you have at work as enough, and you want to spend your hard-earned money on something else. But maybe you should think again.

Consider these common objections to purchasing life insurance:• “I don’t see the point.”• “It provides no other value.” • “ The application process has too many

personal questions and is invasive.”

There are reasons for the objections. Let’s explore them.

Information overload and past experiences Life insurance comes in many forms. You may find it difficult to understand the benefits and the type that works for your situation. All of the information available on the Internet can create confusion, giving you conflicting messages and leaving with unsure where to turn for direction and accurate information.

Where to go from here OneAmerica® is here to help. Together we’ll explore whole life insurance — understanding what it is and how it can help you navigate toward your financial goals. This guide can help replace your fears with facts, your concerns with confidence and your uncertainty with understanding. Our goal is to equip you with information so you can make an educated decision that suits you.

OneAmerica can help you navigate toward your financial goals.

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OneAmerica has been providing whole life insurance for over 135 years — this means that we’ve kept our promise to provide lifetime protection to countless families and individuals for generations. As a mutual insurance holding company, we focus on the best interests of our policyholders. Our policyholders are our first priority, and we’re committed to being there for them when they need us most.

Whole life insurance exploredWhole life insurance is an agreement between you and the insurance company; it’s a promise we make that if something happens we’ll be here to help. Payments are submitted in exchange for financial protection. Whole life insurance is also an asset. As long as the policy is active at the insured’s death, a death benefit is paid to beneficiaries. This benefit payment generally occurs free of federal and state income taxes.

Benefits during your lifetime and at death With whole life insurance, you can use benefits as you navigate through life. You can purchase an option to protect against disability. If you later become disabled, the option allows you to maintain your coverage at no cost to you. If you want to use assets to address your financial goals, you can take a loan against your policy’s cash value.

The most recognized benefit of whole life insurance is the death benefit you can leave your loved ones or business. Whole life insurance offers a wealth of additional benefits for every stage of life. Simply put, whole life insurance is a way for you to address financial goals while you’re alive and a way for your loved ones to have financial security after you’re gone.

Why whole life insurance might be right for youWhole life insurance provides protection for your whole life. As long as the premium is paid,

you have permanent insurance protection for your entire life, with a benefit for your loved

ones at your death. Plus, a whole life insurance policy has tax advantages and can accumulate

cash value, also called “living benefits,” you can use during your lifetime.

How whole life insurance works

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Benefits you can activate during your lifetime — some with value you can use at your discretion

Proceeds to your beneficiary to use as he/she wants — generally free of federal and state income taxes

Duringlifetime

At death

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How companies determine the cost of whole life insurance Life insurance companies strive to provide affordable product solutions for your unique situation and personal goals. When determining the cost, companies consider the following components:• The number of individuals who have coverage and

pass away• Administrative and marketing costs• The amount of cash to reserve for

unanticipated events, such as catastrophes

The cost of your individual policy also takes into account:

— The type and amount of life insurance protection — Additional fees for optional features that you select — Factors/behaviors that increase the chance of death based on your medical condition, lifestyle habits (such as alcohol consumption), age and gender

Life insurance is less expensive for younger adults than older adults and less expensive for women than men. Why? The insurance company typically has more time to spread the risk for younger adults, and women generally are expected to outlive men.

Clients who qualify for the best risk class for their age and gender are able to secure the lowest cost for coverage.

Note: Throughout this material, the term “life insurance” is used. Please know that this term implies: 1.) The contract actually qualifies as life insurance according to Internal Revenue Code (IRC) Section 7702. 2.) The contract is not a modified endowment contract, or MEC, as defined in IRC Section 7702A. 3.) If it meets all of the requirements of Section 7702A, most of the distributions from your policy will be taxed on a first-in/first-out basis. 4.) If you choose to take loans or partial withdrawals, the death benefit payable to your beneficiaries will be reduced and surrender charges may apply to partial withdrawals. 5.) If the policy is a MEC, any distributions taken from the policy will generally be taxable and subject to a 10 percent tax penalty if you’re age 59½ or younger.

If a life insurance policy lapses with loans outstanding, the loan amount becomes subject immediately to federal income tax, and an insured younger than 59½ maybe subject to an additional 10 percent tax penalty.

Whole life insurance helps individuals protect what matters the most. Read on and connect with your OneAmerica company financial professional to see how whole life insurance can be an integral part of your financial strategy.

Whole life insurance guarantees

Whole life is the only form of life insurance that can offer these guarantees for your entire life:

1. Guaranteed cost that will not increase

for the base policy (standard features)

2. Guaranteed benefit paid at death to

the beneficiaries (the individuals you assign to receive the proceeds) as long as the required cost is paid

3. Guaranteed accumulation of

cash value that policy owners can use at any time for any reason, including making future payments

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Declared dividends can increase the cash valueamount you can use through life or the legacy you leave:• Lower probability of death for the insured group• Lower corporate expenses• Greater investment return on company assets

Mortality explored Mortality, the number of deaths for the insured group, varies from year to year. In general, American United Life Insurance Company® (AUL), the distributor of whole life insurance policies for the companies of OneAmerica, has experienced excellent mortality on the lives of individuals insured by our whole life insurance policies. In most years this positive experience has been reflected in either no change or a reduction to the mortality factor of the dividend formula.

Corporate expenses explored People look for ways to keep expenses down. OneAmerica does the same by effectively managing expenses and implementing more efficient ways to serve our policy owners. As a result, we have not increased the expense component of the dividend formula since 1996.

Interest rates explored Interest rates have declined over the past two decades; this has had an impact on dividends. However, over that time frame our investment division has consistently outpaced industry average yields. We are proud of the investment division’s management of our asset portfolio. The investment philosophy and experience contribute to a strong earned rate we use in the interest component of the dividend formula.

When dividends can begin Dividends from a whole life insurance policy purchased from the companies of OneAmerica generally begin at the end of the second policy year.

Ways you can use anticipated dividends• Receive your dividend in the form of a cash payment• Reduce the cost you pay for coverage • Keep in your policy with accumulated interest • Purchase additional life insurance that is

fully paid• Reduce any loans you have taken from the

policy cash value

Please be aware that dividends are not guaranteed.

The choice of how to use your dividend income is yours, and you can change how you receive it.

How dividends can benefit youA dividend is a return of a portion of your policy cost that can accelerate the cash value

and death benefit over time. As a mutual insurance holding company, OneAmerica can

declare dividends through its board of directors each year.

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Section

Guaranteed cash value growthWith a Legacy whole life insurance policy, you pay the cost for coverage to the insured’s age 100. At that age, OneAmerica guarantees that the cash value will grow to the base coverage amount. It’s comforting to know in times of economic uncertainty that your policy will increase in value and you cannot lose any money.

Non guaranteed cash value growthAlthough not guaranteed, dividends can provide a way for you to increase your cash value accumulation with no additional out-of-pocket expenses. The companies of OneAmerica cannot predict future dividend payments; however, we have paid dividends to our policyholders every year since 1877.

If you elect to use dividends to purchase additional insurance that is fully paid, the result is that your overall cash value increases. That means more cash value for you to use during your lifetime to address your financial goals.

The graph below shows how it works. You can compare guaranteed and non guaranteed cash value growth and see the potential a Legacy policy can offer you.

Please be aware that any loans reduce the death benefit dollar for dollar and are taken at interest.

How cash value can benefit youLife insurance companies design whole life insurance policies to accumulate cash value over time.

As long as the required cost for coverage is paid, companies guarantee cash value accumulation.

Whole life insurance example

Cash value growth

With one form of whole life insurance protection, the guaranteed cash value equals the base coverage amount at the insured’s age 100. That’s comforting to know in times of economic uncertainty. Non guaranteed cash value can enhance your overall value.

Assumptions• Male, age 35, preferred non tobacco

rates (best risk class)• $200,000 base coverage with no

optional features• $2,370 annual cost• Dividends purchasing paid-up

additional insurance• 4% credit rate

Policy yearThe non guaranteed cash value exceeds the base coverage amount in policy year 36 ($200,996 vs. $200,000).

In policy year 65, the non guaranteed cash value is $805,566 (vs. $217,404 guaranteed cash value).

Paid-up additions cash valueBase policy cash value

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Note: All numeric examples listed are hypothetical, not guaranteed and provided for explanatory purposes only. These examples are not intended to represent typical cost or performance. Please obtain a complete illustration and carefully consider before purchasing a policy.

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How the death benefit protects your loved ones

Guaranteed death benefit protectionOneAmerica provides guaranteed death benefit protection. Your financial professional can help you determine the benefit amount for your situation.

Non guaranteed death benefit protectionSimilar to non guaranteed cash value accumulation, dividends can increase the death benefit amount. Again, this can occur with no additional out-of-pocket expenses and can allow you to leave a bigger legacy to your loved ones than you originally planned.

The hypothetical graph below represents a potential legacy that could be left to loved ones. In the example the insured’s beneficiaries are left with a legacy of $200,000 at a minimum. Any non guaranteed cash value awarded has the potential to greatly increase that amount.

Please remember that any loans reduce the death benefit dollar for dollar and are taken at interest.

Whole life insurance example

Death benefit growth

With one form of whole life insurance protection, the cash value is guaranteed to equal the base coverage amount at age 100. The internal rate of return in this scenario is 0.76 percent. Although OneAmerica cannot predict dividends in the future, based on present illustrations, dividends have the potential to greatly increase the amount you can leave.

Assumptions• Male, age 35, preferred non tobacco rates (best risk class)• $200,000 base coverage with no optional features• $2,370 annual cost• Dividends used to purchase paid-up additional insurance• 4% credit rate

Note: All numeric examples listed are hypothetical, not guaranteed and provided for explanatory purposes only. These examples are not intended to represent typical cost or performance. Please obtain a complete illustration and carefully consider before purchasing a policy.

Policy yearIn the 30th policy year, the non guaranteed death benefit is $294,683 ($94,683 more than the guaranteed amount). In policy year 65, the non guaranteed death benefit is $788,162 (which is nearly four times the guaranteed amount)!

Paid-up additional insuranceBase policy death benefit

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

05 10 15 20 25 30 35 40 45 50 55 60 65

Leaving a legacy to your loved ones can assure that they can pursue their goals if

something happens to you.

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Promise to payOneAmerica operates with a promise to pay a death benefit to your beneficiaries, delivering value to your family or business when needed the most.

Based on the assumptions shown on the left, the beneficiaries are guaranteed to receive the $200,000 proceeds as long as the policy is active at the time of the insured’s death, whether OneAmerica received payment for one month or for several decades.

Cash value loans are available during the insured’s lifetime. Please be aware that the life insurance company will deduct any outstanding loans before distributing proceeds to beneficiaries.

Your financial professional can help you determine the guaranteed legacy you can leave your loved ones and the potential to leave even more.

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Tax-free growth and access to the cash value As you pay for your whole life insurance coverage, your policy increases in value and you are not subject to any current taxation.

The total amount you pay is known as the policy “cost basis.” If you take a dividend withdrawal or policy loan from the cash value, the amount you withdraw up to the cost basis is free from taxation. The interest charged on a whole life insurance policy loan also may be less than the interest you would pay if you applied for a loan at a financial institution. The application process is simple, so you can rest assured you can receive funds when you want.

Tax-free proceeds to your beneficiaries Let’s say you purchase a $500,000 base policy, you submit all payments and you don’t take any loans or withdrawals. Your beneficiaries will receive $500,000; that amount is generally free of federal and state income taxes. Dollar for dollar, your loved ones can receive what you planned for them to receive. Now how’s that for a plan?

If properly structured with the help of your attorney, income tax is not the only tax-free benefit of a life insurance policy for your beneficiaries. Your policy also can be estate tax-free and state death tax-free. Furthermore, naming policy beneficiaries assures that your loved ones avoid the publicity of the probate process.

You can have comfort knowing that whole life insurance has protection against taxation; taxes won’t erode your policy cash value or death benefit.

Tax advantages of whole life insuranceLike most people, you want the most bang for your buck. This also means you want to get out

of a financial product what you put into it — and even more. You can have comfort knowing

that whole life insurance has protection against taxation, in addition to the other benefits

already described in this guide.

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You may have life insurance protection already; perhaps you have a personal policy or

coverage through your employer. Is it enough to address your plans for the future? Whole life

insurance has value for you, your loved ones and your business.

The value of whole life insurance for you and your loved ones

Your life’s worthYou really can’t put a price tag on your life, but you do have value for those who depend on you. Do you own auto insurance to protect your vehicle or a homeowner’s policy to protect your residence from loss? Why not own a whole life insurance policy to protect the value you provide to others? That would include the amount you will contribute to your loved ones or business in the future — or the financial loss your family or business would experience if something happened to you.

Whole life insurance provides funds to help your family continue without financial interruption if something happens to you.

Your family worthYou work hard to provide for your loved ones and make sure their needs are met. How would a loss of your income affect your family’s ability to meet future living expenses and financial goals?

Let’s look at a typical family expenditures in a year. Actual allocations in each category will vary for each family.

Sample of typical family expenses

Categoriesn Housingn Transportationn Foodn Personal insurancen Healthcaren Entertainmentn Apparel and servicesn Cash contributionsn All other expenditures

6%3%

3%

34%

8%

18%13%

11%

5%

What whole life insurance can do for you

Source: Bureau of Labor Statistics; Economic News Release: Consumer Expenditures — 2010 — Mid-year Update; Released April 2, 2015; www.bls.gov/news.release/cesan.nr0.htm

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You can’t put a price tag on your life, but you have economic life value for your loved ones and/or business.

The value of whole life insurance — for your business

For business partnersAre you a business partner? What would your business face if something happened to you? Whole life insurance can help a surviving business partner purchase the deceased person’s share.

The unexpected can happen to anyone at any time. Why not have strategies that can guide you, your loved ones or your business to financial freedom?

For small business ownersAre you a small-business owner? Do you have a plan for the unforeseen? A whole life insurance policy can replace your income and accomplish a lot more.

No matter your business size, you can craft a whole life insurance policy to fully fund a succession strategy or reward key employees.

Top business reasons consumers purchase life insurance

Source: James T. Schanlon, Neal Shah; Sizing Up Small Business Owners, LIMRA 2015, page 25Note: Percent mentioning, multiple responses possible

0% 10% 20% 30% 40% 50%

Estate liquidity of owner

Cover loss of key person

Buy-sell or stock redemption

Repay businesss loans or mortgage

Coverage for the owner

Retirement income

42%

30%

20%

38%

24%

7%

Business reason percentages

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You know the lifestyle you want. You know the legacy you want to leave. And if you’re a business owner, you know you want to keep your business booming. Adequate resources, including money, are what it takes to get there. You can put your money to work for you with whole life insurance.

Preparing for the now and laterWhether you purchase whole life insurance for personal or business reasons, you can feel confident knowing you can:• Use policy benefits during your lifetime, if needed• Purchase options that provide added

protection, such as having your payments waived if you become disabled

• Direct your assets to people you care about by naming your beneficiaries

Now that we’ve established that whole life insurance has value, let’s see how. The guaranteed cash values during your lifetime and the benefit you leave beneficiaries can place you on a preferred financial path.

Please note: The life insurance company will deduct any outstanding loans before distributing proceeds to your beneficiaries.

To learn more about how you can protect your value, request Your Economic Worth Consumer Brochure I-24033 from your financial professional.

Using cash value benefits during your lifetime• Purchase an option to keep your insurance in

force at no cost to you if you become disabled• Take cash value loans to help

meet your financial goals: — Give a sizeable donation to charity during your lifetime

— Put your Retirement in MotionSM by potentially increasing your retirement income in a tax-favored way

Using the death benefitProtecting your family• Provide income if something happens to you

so your loved ones can pursue their dreams• Set the death benefit to equal your assets.

You can spend down your other assets and find security knowing your loved ones will receive the death benefit amount.

Preserving your estate• Distribute your assets to your beneficiaries

with fairness• Pay the costs to settle your estate• Provide income to your surviving spouse

Protecting your business• Help your business stay in business if something

happens to you• Provide funds to keep the business focused on

growth if something happens to a key employee• Prepare for the sale or transfer of the business

Giving to charity• Help organizations get the funds to continue

their efforts• Leave funds to support a charitable cause if

something happens to you

Protecting your valueThe value of whole life insurance lies in what it can do for you. After all, you’re not interested

in whole life insurance itself, but in how it can address your future personal or business plans.

Whether you view your financial goals as “needs” or “wants,” whole life insurance can help

you meet your goals.

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Additional value

Two more ways whole life insurance may benefit you

1. Use the policy cash value to secure a loan

The cash value of a whole life insurance policy can be used as collateral to secure a loan at a financial institution.

2. Use the cash value to pay for the policy

You can use the cash value of your whole life insurance policy to offset a portion of your cost. This can be beneficial especially if you ever experience loss of income.

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With more than 135 years in the insurance and financial services marketplace, OneAmerica is committed to providing long-term value when customers need us most.

Journey with OneAmerica

The American flag waves atop an 80-foot pole on the 38-story OneAmerica Tower in downtown Indianapolis. Constructed of Indiana limestone, the building is the second tallest in Indianapolis, known as the Crossroads of America. The city is home to a small number of mutual-structured companies, where policy owners have voting rights and a majority share of company ownership. The star-spangled banner in the skyline and the mutual structure symbolize American values and an allegiance to good corporate citizenship.

OneAmerica’s financial strengthGreat product offerings help make OneAmerica strong. With more than $45 billion in combined total assets, the companies of OneAmerica have a longstanding history of financial strength. The family of companies employ a conservative investment philosophy to meet commitments to customers. Financial strength is evident in high ratings given by independent insurance and financial services agencies.

OneAmerica has a long-standing history of financial strength.

Who we areThe OneAmerica family of companies are united under a mutual insurance holding company structure with the goal to blend the strengths of each company and achieve greater collective results.

American United Life Insurance Company® (AUL)The founding member of American United Mutual Insurance Holding Company and its stock holding company, OneAmerica Financial Partners, Inc.

McCready and Keene, Inc.One of the nation’s largest independent actuarial (calculator of risk for insurance purposes) and employee benefits consulting firms

OneAmerica Securities, Inc.A full-service broker/dealer and registered investment advisor offering stock and bond trading, mutual funds, variable annuities, variable life insurance, fee-based asset management and fee-based financial planning

Pioneer Mutual Life Insurance Company (PML)A stock subsidiary of American United Mutual Insurance Holding Company

The State Life Insurance CompanyA distributor of unique, asset-based long-term care products with patented features

AUL Reinsurance Management Services, LLCA provider of services that allow insurance companies to decrease their risk by spreading some risk to other insurance companies

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Support from your financial professionalYour financial professional is there to help you make good financial decisions every step of the way. Through open and honest dialogue, he or she can help you design a solution that addresses your goals for the future.

Your financial professional can help you answer these questions:• Why do you want to purchase whole life insurance? • How much coverage do you currently have?• How much coverage do you want for your

financial security?• Which product and options best address your

financial goals?• How much will your coverage cost?• How can you pay for your coverage?

NoteIf you take a loan against the cash value of a whole life policy and decide not to repay the amount, the insurance company will deduct the outstanding loan from the death benefit and then distribute the proceeds to your beneficiaries.

You should consult a tax advisor regarding the tax implications of life insurance.

All guarantees are subject to the claims paying ability of the issuing company.

Some choices to how you receive dividends require you to answer questions about your current health.

Legacy policy form number series L-59 and all features are subject to state availability. See your financial professional for details.

All numeric examples listed are hypothetical and provided for explanatory purposes only. These examples are not intended to represent typical cost or performance.

Continue working with your financial professional so you can journey to the financial freedom that you deserve.

Supporting you and your optionsWith guaranteed cash values and a death benefit, whole life insurance can provide options for

you and your loved ones or business.

Whole life insurance and the collective journey

When can you use the value of your benefits?

Financial optionsn You can tailor a whole life insurance policy to build early guaranteed values you can use at any time and for any reason.n The death benefit can be used later as your beneficiaries see fit.

Loved ones /business

You

Now Later

About OneAmerica OneAmerica Financial Partners, Inc., headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 years in the financial services marketplace.

The OneAmerica companies offer a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services; individual life insurance, annuities, asset-based

long-term care solutions and employee benefit plan products.

The products of the OneAmerica companies are distributed through a nationwide network of employees, agents, brokers and other distribution sources that are committed to increasing value to policyholders by helping them prepare to meet their financial goals. To learn more about our products, services and the companies of OneAmerica, visit oneamerica.com/companies.

American United Life Insurance Company®a OneAmerica® companyOne American Square, P.O. Box 368Indianapolis, IN 46206-0368 (317) 285-1877www.oneamerica.com

I-24011 09/13/15

© 2015 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica® and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc.

The companies of OneAmerica®: American United Life Insurance Company®, The State Life Insurance Company®, OneAmerica Retirement Services LLC, McCready and Keene, Inc., OneAmerica Securities, Inc. and Pioneer Mutual Life Insurance Company®, which is a stock subsidiary of American United Mutual Insurance Holding Company