5 Star Life

Planning for your future | Life Insurance

5 Star Life Insurance Review

An Indepth Review of 5 Star Life Insurance Company

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. There are hundreds of different insurance carriers in the market in the United States, which makes it tougher for people to select an insurance company that is financially stable.

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. This review is on 5Star Life Insurance Company, 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.

So, let’s check out our comprehensive 5 Star Life Insurance Company review.

5Star Life Insurance Review

Company History

5 Star Life Insurance Company works in partnership with the Armed Forces Benefits Association, which is also known as AFBA. 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 niche market, and they have 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. 5Star Life 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 payout when serviceman dies during active duty. The underwriting of these insurance policies is done by 5Star Life.

The main offices of 5Star 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.

Company Overview

There are a lot of different insurance carriers in the market, but very few are considered niche companies that only target specific markets. 5Star 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 achieve 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 were 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.

Financial Stability and Customer Service Ratings

5Star 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 improved their own financial status.

The insurance carrier has been growing and expanding rapidly in recent years and have 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 Products and Features

5Star Life Insurance Products

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 to small and mid-size organizations.

Here are some of the most popular life insurance products offered by 5 Star Life.

Ø  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.

Ø  Term Life with Terminal Illness Rider

This is 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.

Ø  Term Life insurance with Terminal Illness Coverage to Age 100 Rider

This is another affordable term life insurance product that pays out death benefit if the policy holder dies or they will get a terminal illness benefit, if they are suffering from a terminal illness. The coverage of the policy goes up till the age of 100 for the policyholder.

Ø  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.

Ø  Critical Illness Rider

The critical illness rider is a great add-on for any insurance policy, as 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.

Ø  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 guarantee 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.

Ø  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.

Ø  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.

No Exam Life Insurance for Individuals

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 their no exam life insurance policy for individuals:

Ø  Silver Premium Choice Plan

The Silver Premium Choice Plan offered by 5Star is a simple issue whole life insurance policy that comes with 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

5Star Life Insurance Company is a niche market company, which means they offer insurance products in only a 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.

5Star Life Insurance Company Summary

The Bottom Line

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 in 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 their 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.