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LIFEUSA INTRODUCES FIRST ANNUITY TO ADJUST INCOME IF DISABILITY STRIKES DURING RETIREMENT YEARS

 LIFEUSA INTRODUCES FIRST ANNUITY TO ADJUST INCOME
 IF DISABILITY STRIKES DURING RETIREMENT YEARS
 MINNEAPOLIS, Feb. 4 /PRNewswire/ -- LifeUSA Insurance Co. today introduced a revolutionary new annuity that adjusts monthly income upward in the event disability strikes during retirement years.
 Called IDEASM -- Individual Disability Escalating Annuity -- it is the first annuity designed to help protect consumers from the economic consequences of becoming disabled during retirement, and from the risk of "living too long" without adequate income.
 "IDEA fulfills a shortcoming that has been common with all annuities. LifeUSA's IDEA is the first annuity that increases income if the insured becomes disabled," said Robert W. MacDonald, chairman of LifeUSA. Traditional annuities can guarantee income for life, but should a person become disabled, expenses are likely to increase while income remains fixed. The result: a lower standard of living.
 Currently, only 13 percent of the U.S. population is now age 65 or older. In the year 2050, projections show 23 percent of the population will be age 65 or older, with 20 percent of the population needing health care because of a disability. Many of these individuals may find it necessary to fund their own health care needs.
 A single premium deferred annuity, LifeUSA's IDEA continues the company's tradition of offering annuity products designed to provide long-term benefits and lifetime income. The escalating income benefit works like this: if, after receiving annuity income payments for at least two years, an individual becomes partially or fully disabled, monthly income benefits increase by 30 percent or 60 percent, respectively.
 For example, if an annuity holder receives $2,000 per month as income, and then becomes partially disabled, the income increases to $2,600. If the annuitant becomes fully disabled, monthly income increases to $3,200. The increased income continues for as long as the individual remains disabled.
 The concept and initial research for the IDEA annuity was conducted by David Christopherson, associate professor of risk management and insurance at St. Cloud State University, St. Cloud, Minn., and the director of insurance issues research for the Minnesota Risk Management Center.
 "My personal experience with my father was the motivation behind IDEA," said Christopherson. "It led me to develop the concept of an insurance product that could protect a person who is confronted with functional impairment and extended longevity.
 "There is a wide range of annuities that offer income that will last through one's retirement years, and long-term health care coverage is constrained by specific medical or social service requirements in order to receive benefits. An individual isn't allowed to make personal health care decisions. IDEA gives individuals that option," Christopherson added.
 To determine disability, LifeUSA evaluates an annuity holder on the basis of nine "activities of daily living" (ADLs), which are recognized by the health care industry as a standard for measurements of disability. The inability to perform two of the nine ADLs will determine if an individual is partially disabled and trigger a 30 percent increase in monthly income. If unable to perform five of the nine ADLs, an individual is considered fully disabled, and monthly income is increased by 60 percent.
 The disability benefit built into IDEA is a guaranteed benefit. Protected under a registered copyright, IDEA is offered exclusively by LifeUSA, and, under a limited administrative agreement, by North American Life and Casualty Co., Minneapolis. LifeUSA has been approved to sell the IDEA annuity in 37 states.
 LifeUSA Insurance Co., which offers both life and annuity products, is employee and agent-owned. Represented nationally by more than 30,000 agents, total insurance in force exceeds $4 billion. LifeUSA's investment portfolio is 100 percent investment grade, with an average rating of AAA.
 -0- 2/4/92
 /CONTACT: David Hakensen of Padilla Speer Beardsley, 612-871-8877, for LifeUSA, or Robert W. MacDonald of LifeUSA, 612-546-7386/ CO: LifeUSA Insurance Co. ST: Minnesota IN: INS SU:


AL -- MN009 -- 6763 02/04/92 13:54 EST
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Date:Feb 4, 1992
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