This article will contain everything that you need to know from an Aflac life insurance review. Aflac offers a number of middle-market accidental, critical illness, and life insurance solutions. We will discuss the Aflac life insurance rating, their history, and if Aflac is worth adding to your insurance portfolio!.
Is Aflac among the best life insurance companies operating in the United States? That depends on what you are looking for. If you are considering purchasing life insurance with Aflac, do not move forward without reading this review.
Shall we begin?
Aflac was founded in Columbus Georgia in 1955 by the Amos brothers as the American Family Life Insurance Company of Columbus. In 1964, the company dropped insurance from their name and swapped it out for assurance. It wasn’t until 1990 that the company adopted the Aflac acronym that is now a household brand name in the United States and Japan.
Aflac was on the cutting edge of cancer insurance in 1958. In 1964, Aflac began focusing on worksite sales where employers sponsor policies funded through payroll deductions. Today the vast majority of Aflac policies sold in the United States are issued on a payroll deduction basis.
Now, you cannot talk about Aflac’s history without mentioning the Aflac duck and his unforgettable quacking of the Aflac name. The Aflac duck is one of the most recognizable advertising campaigns in the history of branding and marketing.
The Aflac duck was introduced to the public in 1999 and is still going strong almost 20 years later! That puts the Aflac duck up there with Ronald McDonald and MetLife’s Snoopy as one of T.V.’s most recognizable characters.
Aflac built its brand around being client-centered. Aflac has a reputation in the industry as paying out its claims quickly and efficiently. Often, policyholders can receive their benefits within one day of getting sick. Now 24 hours is fast, but in the insurance world, that is grease lightning!
Today Aflac is a multinational Fortune 500 company. Aflac is publically traded on the New York Stock Exchange ticker symbol AFL. Aflac has almost over $128 billion in assets under management. Additionally, Aflac is a champion of charity and corporate responsibility and has donated over $100 million to children’s cancer research.
Aflac Financial Strength Ratings
In the life insurance industry, brand recognition is critical. People need to feel confident that their life insurance company will pay when the time comes. Aflac has been in business since the 1950s and has an iron-clad financial strength. Aflac has been awarded some of the highest marks from rating agencies like A.M. Best, S&P, Moody’s and Fitch.
These rating agencies provide their opinions on an insurer’s ability to meet its obligations to its policyholders. All of Aflac’s financial strength ratings are considered investment grade, which is an important consideration when choosing a life insurance company.
Aflac is also an A+ accredited business with the Better Business Bureau since 1958, which is the BBB’s highest rating. While no company can get it right 100% of the time, Aflac has demonstrated that negative customer experiences are the exception rather than the rule. This is why Aflac appeared on Fortune magazine’s list of The World’s Most Admired Companies 13 times.
Aflac Voluntary Insurance Products
Aflac started selling to families like the best life insurance companies still do today. However, Aflac primarily sells their insurance policies through the workplace. Aflac offers quality life, accident, and supplemental health insurance policies through employers nationwide.
These Aflac voluntary insurance policies are not mandatory, unlike auto insurance. However, they can supplement health expenses that major medical insurance may not cover or can provide a valuable death benefit to replace your income if you were to pass away prematurely. These voluntary insurance policies are attractive to people with high health insurance deductibles or who have other people relying on their income financially.
So how does Aflac work exactly? Most Aflac policyholders purchase their policies through their employer and pay their premiums through payroll deduction. After you file a covered claim, benefits are paid directly to you the policyholder quickly unless you otherwise assign the payments. You, the policyholder, decide how and when you spend the money, unlike major medical insurance that pays your healthcare provider directly.
Aflac Life Insurance
While Aflac may offer individual life insurance policies in some states and circumstances, Aflac specializes in a very specific type of life insurance called group life insurance. Group life insurance is offered through your employer as an employee benefit.
Aflac’s group life insurance policies include both group term insurance and whole life insurance solutions. Other great benefits of Aflac group life insurance are that your premiums are deducted directly from your payroll. This ensures that as long as you get paid, you will never miss a premium payment and unintentionally lapse your coverage.
Because most Aflac life insurance policies are group plans, they usually will guarantee your insurability in the group plan up to $50,000. There typically are no exams or medical questions required for guaranteed life insurance coverage. However, if you are looking for higher no-exam life insurance death benefits, you may want to check out our Sagicor Life Insurance Review for a company that specializes in that type of no-exam coverage.
This makes Aflac life insurance an affordable hassle-free option for people with health conditions that may have a difficult time qualifying for life insurance individually. Once you go above $50,000 of Aflac life insurance coverage, you may be subject to underwriting requirements up to a maximum of $500,000 of life insurance coverage.
Finally, Aflac life insurance plans are portable if you leave your job. Some group plans can be quite expensive if you elect to keep your coverage if you leave the group.
Aflac Life Insurance Policies
|Product Type||Coverage Range||Eligible Ages|
10-year Term Life
$50,000 - $500,000
18 - 68
20-year Term Life
$50,000 - $500,000
18 - 60
30-year Term Life
$50,000 - $500,000
18 - 50
Whole Life Insurance
$10,000 - $500,000
18 - 70
Universal Life Insurance
$100,000 - $300,000
18 - 70
Juvenile Life Insurance
$10,000 - $30,000
Up to Age 18
*age, policies available, and coverage may vary slightly by state and products
Term life insurance is temporary. Aflac allows you to select a term of your life, usually 10, 20, or 30 years, to purchase life insurance protection depending on your needs and budget.
Term life insurance is a cost-effective way of achieving higher death benefits temporarily. Term insurance is a great solution for replacing your income, covering your mortgage, or providing funds for higher education upon your passing.
Aflac’s term life insurance includes an accelerated benefit rider that will pay 50 percent of the death benefit if you are diagnosed with a terminal illness. This accelerated payment can assist you and your loved ones with the expenses such as health care, nursing care, and hospitalization. If accelerated benefits is an important feature to have on your life insurance coverage, you should check out our Phoenix Life Insurance review for a company that specializes in living benefits.
Also, Aflac’s term life insurance policy has a built-in term conversion option that will allow you to exchange your term policy with a permanent life policy without evidence of insurability. You must exercise the conversion option before the end of your term period or on or before the policy anniversary date following your 65th birthday.
Having a conversion option gives you great flexibility in the future if you want to maintain some life insurance coverage, but your health otherwise excludes you from purchasing a new policy. There are no medical exam or health questions required to do a conversion, only some simple paperwork.
If you decide that you do not want to convert your Aflac term policy into an Aflac permanent life insurance policy, you do have the option to maintain the coverage past the level-term period. You can renew your policy on an annual basis.
This is done very little in practice due to the cost of paying year-by-year. However, renewing the policy annually may make sense in certain situations, so it is a good option to have nevertheless.
Aflac’s term life insurance policy also offers additional optional riders that you can add on for an additional cost:
Aflac Whole Life Insurance
Whole life insurance is a form of permanent life insurance. Whole life insurance is designed for permanent life insurance needs like final expenses and burial costs or estate planning. Whole life insurance provides lifelong death benefit protection with the most guarantees of any life insurance policy.
Whole life has guaranteed cash accumulation, guaranteed level premiums, and guaranteed death benefits. The cash value can also be borrowed against through tax-advantaged loans in a pinch.
Some whole life policies called participating policies may also receive non-guaranteed dividend payments that can be reinvested within the policy to purchase additional death benefit or reduce premiums. However, Aflac’s is not a participating policy, which means Aflac’s whole life policy does not pay dividends to the policyholder.
Aflac’s whole life insurance includes an accelerated benefit rider that will pay 50 percent of the death benefit if you are diagnosed with a terminal illness. This accelerated payment can assist you and your loved ones with the expenses such as health care, nursing care, and hospitalization.
Aflac’s whole life insurance policy also offers additional optional riders that you can add on for an additional cost:
Aflac Universal Life Insurance
Aflac also offers universal life policies, which is another type of permanent life insurance policy. Universal life insurance was designed to offer permanent death benefit with flexibility. For example, you can select the monthly premium that you wish to pay with universal life insurance.
However, these types of policies usually come with fewer guarantees than whole life insurance. The owner of the policy assumes the investment risk of the cash value. If the policy was not funded adequately, then the coverage could lapse.
Aflac’s universal life insurance policy has a maximum death benefit of $300,000, unlike Aflac’s term and whole life policies that allow a $500,000 maximum. However, Aflac’s universal life insurance policy does offer a unique living benefit.
Aflac’s universal life insurance policy offers an accelerated death benefit that pays a monthly benefit equal to 4 percent of your listed death benefit up to 25 months for long-term care. As you use your policy’s accelerated benefit for long-term care needs your death benefit is reduced proportionally. However, Aflac does have benefit restoration and extension options.
Aflac Juvenile Life Insurance
Aflac offers juvenile life insurance, which is one of the few policies that Aflac offers that can be purchased without going through your employer. Juvenile life insurance policies ensure that your children are insurable as an adult.
Aflac’s juvenile life insurance policies last until your child reaches the age of 18. At that point, your child would have to convert the juvenile policy into their own adult policy. This gives your child a headstart on financial responsibility at a young age.
Other Aflac Group Insurance Products
Aflac life insurance is just one of the many benefits that Aflac offers to its policyholders. High-deductible health plans are increasing the out-of-pocket healthcare costs of many Americans who are enrolled in those types of plan. Aflac provides supplemental benefits to provide cash to help soften the blow when the unexpected happens.
Aflac Hospital Insurance
It is rare to have a major medical insurance plan that covers all your out-of-pocket expenses. There are copays, coinsurance, and deductibles that need to be met before the insurance company fits the bill. Aflac’s hospital confinement indemnity insurance can supplement those out of pocket expenses by providing you cash quickly after a covered claim.
Aflac Vision Insurance
Many employers do not include vision coverage in their health plans. For someone with 20/20 vision, this might not be an issue. However, if you wear glasses like me, eye care can be a considerable annual expense. Aflac’s vision insurance was designed to provide voluntary coverage for those who need it. Aflac’s policy includes a allows for a free annual eye exam. In addition, the plan also covers certain surgeries, procedures, and eye treatments.
Aflac Dental Insurance
Dental insurance, like vision insurance, is not commonly offered in health plans. Even if you do have a dental plan, Aflac will still pay your dental benefits regardless. Aflac’s dental insurance plan has no network, precertification requirements, or annual deductibles. You can choose any dentist that you want to work with.
Aflac dental insurance plans clearly list all the covered dental procedures ranging from orthodontic and cosmetic services to cleanings, x-rays, and annual checkups. You and your dentist can decide what the best procedure is for you. If it is listed on your Aflac dental insurance plan schedule, Aflac pays the cash benefit associated with it. It is really that simple.
Aflac Critical Illness Insurance
Critical Illness Insurance is quickly increasing in popularity. Currently, heart disease is the leading cause of death in the United States. Strokes affect approximately 795,000 people each year according to the American Heart Association. Aflac’s critical illness plan was designed to help supplement the treatment costs of these types of serious illnesses and health events.
Aflac’s critical illness insurance is designed to pay you cash quickly if you have a hard-hitting illness such as a heart attack or stroke. All critical illness plans have slightly different triggers, terms and conditions so be sure to read your policy carefully. One standout feature of Aflac’s critical illness insurance plan is that there is no lifetime maximum if you have a recurrence or another illness after using the benefit, which offers great flexibility to the policyholder.
Aflac Cancer Insurance
Odds are that you know someone whose life has been affected by cancer either directly or indirectly. If you do, then you know the toll that it takes on them physically, emotionally, and financially. While Aflac cannot take away the physical or emotional pain that comes with a cancer diagnosis, Aflac pioneered cancer insurance as a way of softening the financial blow.
Aflac’s cancer insurance pays out a cash benefit upon your initial diagnosis of a covered cancer and other benefits throughout the cancer treatment itself. Remember, these cash benefits are paid to you directly not the hospital so you can use the cash to pay out-of-pocket expenses associated with your treatment or cover monthly bills like rent or groceries. It’s up to you!
Aflac Accident Advantage
Accidents can happen to anyone at any time. Aflac provides accident insurance that covers you if you are injured or killed as a result of an accident, unlike pure accidental death insurance coverage that only pays out if you die accidentally.
Aflac’s accident-only insurance features include:
The Final Word: So is Aflac good or bad?
Aflac has a long company history of serving their policyholders Aflac offers a unique mix of products that compliment major medical insurance nicely and can be a great middle-market solution for people with health plans that contain high out-of-pocket expenses.
Aflac’s life insurance policies are conveniently paid through payroll deduction, which helps ensure that you do not miss a premium payment accidentally and lapse your coverage. Aflac also offers a portability feature that allows you to take your coverage with you in the event you lose or change your job.
That being said, Aflac might not be the best life insurance company for you if you have a pre-existing medical condition or are looking for life insurance death benefits over $500,000. Additionally, if you are looking for a participating whole life insurance policy or a universal life insurance policy with a focus on cash accumulation, there are better options out there.
If you need to contact Aflac, the Aflac life insurance phone number is 1-800-992-3522, which can be found on the Aflac website. If you have questions on how to file a claim with Aflac or how to cancel an Aflac policy, their customer service team can provide you with all the forms and instructions required.
Bottom line, if you are considering Aflac life insurance coverage to protect your family, you should compare the marketplace before you make a final decision. Give one of our veteran agents a call or request a free no-obligation life insurance quote today. A simple phone call could potentially save you thousands of dollars 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.