At Good Life Protection, we review all of the top life insurance companies in the U.S. This 5Star Life Insurance review will be no different.
Is 5 Star Life Insurance one of the best life insurance companies you can choose?
Most likely not.
In this post, you are going to get a look at our 5 Star Life Insurance Review and if they are the best company you can choose for your coverage needs.
Purchasing life insurance is one of the toughest financial decisions you will ever have to make in your life, especially because it will affect the financial future and security of your family and loved ones.
That is why it is recommended to thoroughly research any insurance company you are interested in purchasing insurance products from before making an investment.
This will effectively allow you to compare your pricing and coverage options with all of the life insurance companies you know and trust and have you 1 step closer to making the best possible decision for you and your family’s needs.
There are hundreds of different insurance carriers in the market in the United States, which makes it tougher for people to select a life insurance company that they know, trust and understand.
We have reviewed hundreds of different insurance companies in the United States, including some of the biggest and best names in the industry.
Our focus today is on a relatively new insurance carrier, which offers no medical life insurance policies.
Of course, you are already familiar with their name 5 Star Life Insurance or AFBA Life Insurance otherwise you wouldn’t have ended up in this article.
This review is on 5 Star Life Insurance Company (AFBA Life Insurance), and we will be covering their insurance products, financial strength, and customer service ratings.
It is important that you always compare insurance policies and products before buying them, so you can make an informed decision that is in your best interests.
Here are the details.
5 Star Life Insurance Review (AFBA Life Insurance) 2019
5 Star Life Insurance Review of Company History
5 Star Life Insurance Company works in partnership with the Armed Forces Benefits Association, which is also known as AFBA.
This is why you may read or see us referring to this review as an AFBA Life Insurance Review as well (just as a heads up)
The insurance carrier mainly focuses on introducing voluntary insurance products, which are payroll deducted in workplaces.
They also offer a lot of insurance products for seniors, which is known as final expense insurance.
The company has a niche market, and it has introduced insurance products to serve people in these markets.
The insurance carrier has only been in the industry for only 20 years, but in that space of time, they have sold more insurance policies and products than some of the biggest insurance companies in America.
5 Star Life Insurance Company has insured more than 800,000 people, and their total in-force life insurance is more than $42 billion.
That makes them one of the best performing insurance companies in the past decade.
The insurance carrier works in partnership with AFBA, which has been offering armed services members with life insurance policies from 1947.
The AFBA has been playing a dominant role in ensuring they provide benefits to people killed in action, and their life insurance policies are designed to pay out when a serviceman dies during active duty.
The underwriting of these insurance policies is done by 5 Star Life even if they are sold through the parent company AFBA Life Insurance.
The main offices of 5 Star Life are in Virginia, even though the company has been domiciled in Baton Rouge, Louisiana.
The insurance carrier has more than $42 billion in-force policies and has incredibly strong financial numbers and ratings.
5 Star Life Insurance Review Timeline and The Beginning
There are a lot of different insurance carriers in the market, but very few are considered niche companies that only target specific markets.
5 Star Life is a niche company since it only offers life insurance policies and products in markets where the company is most suited, like workplaces in America.
The company was founded in 1996 and has achieved massive growth in a little over 2 decades, which clearly shows how well they have been performing.
The AFBA was formed in 1947, by Dwight D. Eisenhower, who was the General of the Army and wanted to help service members that couldn’t purchase life insurance to receive a death benefit for their family who was outside the war zone.
The first offices of AFBA were in the basement of the Pentagon, and even after 70 years of being in business, the AFBA has been providing life insurance coverage and policies to members of the Armed Forces.
The mission of the AFBA is to serve the men and women who serve the United States of America.
The 5Star Life Insurance Company uses independent broker sand producers to sell and distribute its life insurance policies all over the United States.
The best thing about their insurance products is that they can customize coverage to accommodate the needs of their policyholders.
5 Star Life Insurance (AFBA) Review of Financial Strength and BBB Ratings
5 Star Life has been awarded great ratings from one of the leading insurance rating agencies, A.M. Best in the United States.
They received an “A-” rating, which is excellent and clearly indicates that the insurance carrier has policies that are in the best interests of policyholders.
One of the main reasons why they have strong financial number is because of their partnership with the AFBA, which has helped improve their own financial status.
The insurance carrier has been growing and expanding rapidly in recent years and has been offering insurance products and policies through brokers and independent agents.
The insurance carrier is also BBB accredited and has been awarded the “A” rating from the Better Business Bureau.
Their financial numbers are strong as well, and they are better on average when it comes to liquidity and surplus.
5Star Life Insurance Review of Insurance Products Offered to Consumers
5Star Life is a niche market insurance carrier and primarily offers insurance products to service members and their families.
They offer unique insurance solutions to workers on an employer-sponsored or voluntary basis.
That is known as worksite marketing in the insurance industry, and the company is known for specializing in marketing insurance policies for small and mid-size organizations.
Common Life Insurance Solutions With 5 Star Life Insurance (AFBA Life Insurance Company)
Family Protection Plan
The family protection plan is an affordable term life insurance policy.
It is designed to protect the policyholder and their family with top-notch insurance coverage, which is selected by the policyholder.
Term Life with Terminal Illness Rider
This is a term life insurance product that comes with a terminal illness rider, which is offered to employees and their families.
Their policies tend to pay a lump-sum death benefit and is available for paying out 30% of the face amount to the policyholder if they have been diagnosed with a terminal illness that will result in their death within 12 months.
Term Life insurance with Terminal Illness Coverage to Age 100 Rider
This is another affordable term life insurance product that pays out a death benefit if the policyholder dies or they will get a terminal illness benefit if they are suffering from a terminal illness.
The coverage of the policy goes up until the age of 100 for the policyholder.
Quality of Life Rider
This is a rider that comes with the Family Protection Plan and is designed to provide the policyholder with a monthly benefit paid by the insurance carrier.
It is only in effect if the policyholder can’t perform 2 out of 6 activities of daily living without assistance, or if they suffer from a severe cognitive impairment.
The monthly benefit of the policy is going to about 3% to 4% of the death benefit, which would mean you get around $3,000 per month from the policy.
Critical Illness Rider
The critical illness rider is a great add-on for any insurance policy.
It guarantees that the insurance carrier will pay a lump sum amount, which will be 30% of the death benefit if the policyholder suffers from a heart attack, stroke, cardiac bypass or transplant, life-threatening cancer, or another type of critical illness.
The payment from the policy can be used by the policyholder for any reason.
Basic Life and AD&D Group Term Insurance
The Basic Life with AD&D insurance is a part of the employer’s benefits program.
The policy offers guaranteed issue to everyone in the program and is portable, so it will leave with the employee if they leave their current workplace.
The policy also allows policyholders to add children and spouse for coverage if it is required.
Group Accident Insurance
The Group Accident Insurance policy is meant to act as a supplement for traditional health insurance.
A lot of health plans include deductibles, co-insurance requirements, and copayments.
The Group Accident Plan offers insured employees to get a cash benefit if they suffer an accidental injury.
The coverage is offered in a lump sum payment and is meant to cover gaps in health insurance coverage, to cover expenses related to the accident, and replace lost income.
Healthcare Indemnity Plan
The healthcare indemnity plan is another great insurance policy from 5Star Life, which is meant to supplement existing health insurance coverage, should it fail to cover medical expenses due to hospitalization.
The coverage is paid out directly to the policyholder but can also be designated to the hospital.
The coverage is meant to provide relief to the employee and isn’t meant to cover medical expenses, so employees can use the cash as they want.
5 Star Life Insurance No Exam Life Insurance
5Star Life Insurance Company also offers no exam life insurance products and policies to individuals in the United States, so they can acquire affordable life insurance coverage as well.
Let’s check out they are no exam life insurance policy for individuals:
Silver Premium Choice Plan
The Silver Premium Choice Plan offered by 5Star is a simple issue whole life insurance policy that comes with a guaranteed death benefit, and level premiums going up till the age of 121.
The policy is ideal for final expense insurance and is designed for seniors who want life insurance but don’t want to undergo a medical exam.
The death benefit offered in the policy ranges from $5,000 to $25,000, and the policy is only offered in two different plans, which are:
- Preferred – offers an immediate death benefit
- Graded – offers a 2-year graded benefit
This insurance policy is ideal for all seniors and is one of the most popular insurance products offered by 5Star Life Insurance Company.
Other Products Offered by 5 Star Life Insurance
5Star Life Insurance Company is a niche market company, which means they offer insurance products in only select targeted markets.
The company has only been around for over 2 decades, and currently, they don’t offer any additional products apart from life insurance.
They do offer worksite plans and final expense whole life insurance coverage to seniors but don’t sell any retirement or investment products.
When Does 5 Star Life Insurance Make Sense to Purchase?
5 Star Life Insurance (AFBA) is typically only a good option when you are in a bind and can’t be approved for life insurance coverage through other traditional term life insurance companies which are rare when working with an independent life insurance agency.
We also believe that you can certainly do better leaning on other no questions asked life insurance options such as guaranteed issue life insurance.
AIG Life Insurance offers a superior product on the market currently to fill this gap.
The Bottom Line, 5 Star Life Is Good For Certain Circumstances
Don’t look any further for the best 5 Star Life Insurance Review.
There are bigger and better companies in the market than 5Star Life Insurance Company.
It has only been around for a short while but has already made a massive impression on the market.
They have a lot of in-force insurance policies, but they still have issues with death benefit size and ease of underwriting.
However, the one great thing about the insurance carrier is they grant approvals with less underwriting and no medical insurance is a hit with everyone.
The insurance company is a reputable carrier and a great choice for people looking for no exam coverage and for seniors.
The premiums they charge are affordable, and their range of riders offered with different insurance policies is also decent.
The insurance carrier can clearly improve in some aspects of their insurance products, but they are a growing company and a good option for a lot of people that are looking to buy life insurance policies in the United States.
Our recommendation as always is to carefully compare any life insurance policy you are looking to buy before you make an investment.
5 Star Life Insurance Company is a decent insurance carrier with strong financial numbers and a good range of products and coverage.
Did you enjoy our 5 Star Life Insurance Review?
Let us know below.
We would love to hear from you.
FILED UNDER – INSURANCE COMPANY REVIEWS