Aflac is a respected life insurance company based in Columbus, Georgia. They were founded in 1955 as the American Family Life Assurance Company, which was later abbreviated as Aflac. They offer a broad range of life insurance policies throughout the United States. They also have affiliates in Japan, which enables them to sell their policies there. In addition to their life insurance policies, they also offer some forms of supplemental medical insurance. This includes things like dental insurance, vision insurance, and pet insurance. Aflac is publicly traded on the New York Stock Exchange.
Types Of Life Insurance Offered by Aflac
Aflac offers a few different types of life insurance to choose from. Not every type of life insurance will be available to every customer, as Aflac does require customers to go through an application process.
Term Life Insurance
Aflac has term life insurance policies that are available to most customers. These policies are available in 10-year increments and expire after the specified term. Right now, they have 10, 20, and 30-year terms available. Their policy limits are also adjustable – they go up to $500,000 for those under 50 and up to $200,000 for those over 50. There are some riders that could allow you to get a higher payout. Most of Aflac’s term life insurance policies are tied to your job. If you want a term life insurance policy and think you’ll switch jobs at any point, you’ll need to opt for one of Aflac’s portable term policies.
Whole Life Insurance
Unlike term life insurance, whole life insurance does not expire. Premiums for whole life insurance policies are typically much higher than their term life counterparts as a result. Aflac has the same $500,000 payout limit for their whole life policies. These policies are transferable from job to job and also have a cash value component.
Juvenile Life Insurance
Aflac also offers juvenile life insurance, which is specifically for children under the age of 18. When the child turns 18, they can opt to convert it to an adult life insurance policy if they would like. Many people choose this option for their kids because it allows them to get life insurance coverage at extremely low premiums.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is an insurance policy that doesn’t require an application. It typically comes with a low payout rate that is designed to cover funeral costs. Aflac has been known to offer guaranteed issue life insurance through specific employers, but you can also find it directly on their website. Right now, they offer a payout rate of up to $50,000 for guaranteed issue policies.
Aflac offers a number of different life insurance riders to choose from. You can use these riders to customize your life insurance policy, adding extra coverage to suit your unique needs. Here are the most notable riders that Aflac provides.
Accidental Death Rider
This is one of Aflac’s most popular rider options. You can pair this with a term or whole life insurance policy to get a higher payout for your beneficiaries if you die in an accident. This includes automobile accidents as well as certain other types of accidents. Aflac has a very specific definition of accidental death, so you should make sure you understand what types of accidents qualify before using this rider.
Child Term Life Insurance Rider
If you use this rider, you can get coverage for your children through your policy. This is different than taking out a separate juvenile life insurance policy. This rider provides up to $15,000 in coverage for each of your children under the age of 25 that you opt to add to this rider.
Disability Income Rider
Aflac is most well known for its disability policies, which provide income to insured people in the case of short or long-term disability. Many people may not know that you can also add a disability policy to a life insurance policy! If you experience a partial or complete disability, this can help you replace lost income from not being able to work. This benefit is also available as an addition to life insurance policies, in the form of a rider called Disability Income. This rider can be quite expensive, so if you do not need the additional disability income you should not purchase it. It may be somewhat less expensive to add this rider to a life insurance policy than holding a separate disability policy, however.
Spouse Term Life Insurance Rider
This rider is very similar to the one Aflac offers for children, but it allows you to get extra death benefits for your spouse as well. This is a good option if your spouse doesn’t need an entire life insurance policy of their own, but you still want a small amount of coverage for them in case of an emergency.
Long Term Care Rider
All of Aflac’s term and whole life insurance products offer the option of accelerated death benefits, which means that you will get some of your death benefits in advance if you are diagnosed with a terminal illness. However, the long-term care rider provides even more coverage in the event that you need any form of long-term healthcare. Since nursing homes and other long-term care can be very expensive, this can provide you and your family with a bit of extra stability.
Waiver of Premium Rider
The waiver of premium rider is designed to protect you financially if you become disabled. It allows you to keep your policy but stop paying premiums if you develop a disability that stops you from working. This rider is included on many life insurance policies for free.
10-Year Term Insurance Rider
This unique rider allows you to adjust your benefit for different parts of a multi-decade term life policy. For example, say you have a term life policy that lasts for 30 years. However, you want the first 10 years to come with a higher payout because you are still paying down your mortgage and your children will still be under 18. This rider will allow you to set a higher payout for the first portion of your life insurance policy.
Unique Features of Aflac
One of the most unique features of Aflac’s life insurance policies is that you can often get them from your workplace instead of going directly through Aflac. The company has a long history of partnering with employers to provide affordable life insurance. However, this means that some of their life insurance policies will be tied to your job, meaning that you could lose them if you leave that job.
Aflac’s life insurance also comes with a few unique benefits. One of these benefits is that every single policy comes with quick payout options. This means that your beneficiaries can get up to $5,000 right away when they file a claim, which can help with immediate funeral expenses. Additionally, every term and whole life policy comes with the option of accelerated death benefits for terminal illnesses.
Finally, Aflac offers a variety of other types of insurance that you can pair with your life insurance. When you have two or more types of insurance on the same policy, you may be eligible for a discount. These include both long-term illness and short-term disability insurance as well as vision, dental, and hospital insurance, and even pet insurance for your furry friends.
Aflac Financial Ratings
Aflac’s financial ratings are generally strong, which means you can trust them to make their payments regardless of current economic conditions. They have an A+ rating from AM Best, a highly trusted organization that rates the financial strength of insurance providers. They also have strong ratings from similar organizations like S&P and Moody’s. Aflac has a very long history of financial stability, which helps breed trust among customers.
According to national data collected over several years, Aflac has an average number of complaints for an insurance company of its size. Aflac is also accredited by the Better Business Bureau and has an A+ rating from them. However, the reviews that customers have left with the BBB have been less than positive. They cite poor communication and customer service, especially with long-term policyholders.
Aflac’s Application Process
If your employer doesn’t offer Aflac insurance, you’ll need to apply directly through the company. Unfortunately, the Aflac website does not provide much direct information about their life insurance policies, although they do offer a calculator tool to help you determine how much coverage you need. If you’re interested in getting a quote, you can fill out a short contact form on their website and an agent will get back to you.
There are a few other ways to reach an agent as well. You can call Aflac’s toll-free number to talk to a customer service representative and learn more. You can also use their directory tool to find an agent in your area and contact them.
If you opt for Aflac’s guaranteed issue life insurance policy, you won’t have to answer any medical questions. However, you will still have to complete a short application. If you opt for term or whole life insurance, you’ll need to fill out a longer application form and you may also need to complete a health examination. After your application is approved, your agent will help you finalize the policy, at which point you can make your monthly payments online.
Is Aflac Legit?
Aflac is a very established and trustworthy life insurance company. They have a long history of financial stability and offer a wide variety of policies to protect you and your family financially. They have plenty of riders that you can use to customize your policy as well, and they offer unique employer-supported policies. Overall, Aflac is a legit life insurance company that you can trust.