Based out of Lincoln, Nebraska, Assurity Life Insurance Company is a mutual insurance organization consisting of 800 employees in 49 states. Originally three companies that merged in 2007, Assurity’s roots run deep with the founding companies having a presence in the field of life insurance since the end of the 19th century. Insurance products on offer include disability income, critical illness, accidental death, life insurance, and annuities. Along with these individual policies, worksite policies are also available: accident expense, cancer expense, and critical illness are only a few of those in Assurity’s portfolio. Whole life, term life, and universal life insurance are also offered under the worksite policy umbrella.
Table of Contents:
- Types of Insurance Offered by Assurity
- Assurity Life Insurance for Businesses
- Riders Available at Assurity
- Unique Features of Assurity
- Assurity’s Financial Strength Rating
- Assurity’s Customer Reviews
- How to Apply for Assurity Life Insurance
Types of Insurance Offered by Assurity
Assurity Life Insurance Company specializes in life insurance and related products; they do not deal with auto or home insurance.
Life Insurance for Individuals
For individuals, the insurance products offered include:
Life insurance protects the financial security of your loved ones if you die. There are three types a customer can choose from: term life, which is protection over a set period with no cash value, whole life, which accumulates cash value and is protection for the entire life of the insured person while premiums are paid, and universal life which is permanent coverage like that of whole life, but with more flexibility. All three offer a death benefit, but term life insurance has lower per-month costs, stable premiums, and can later be converted into a permanent policy. Whole life also has stable premiums, access to cash value, and living benefits. It may also pay annual dividends. Universal life insurance has access to cash value and living benefits as well, but premiums may vary. Now that the generalities are out of the way, let’s look at the specific life insurance products.
Assurity Term Life Insurance with Accelerated Underwriting
In the past year, Assurity has discontinued some of its term life insurance products and has replaced them with Assurity Term Life Insurance with Accelerated Underwriting. The application process is done real-time electronically in minutes, with approval in days rather than weeks. What makes this product interesting for the consumer is that a medical exam may not be necessary. About 50% of applicants are approved, and those who are approved can select periods of 10, 15, 20, or 30 years. However, while the ten-year policy is available to those 18-75 years of age, the maximum age for applicants decreases as term length increases. In other words, the 30-year option is only available for those 55 and under.
Interestingly, term life insurance with Assurity can be converted to permanent life insurance if done so within the policy’s rules. Furthermore, for those who are not accepted with accelerated underwriting, they can apply again with traditional underwriting. This will take more time and may require a medical exam.
Assurity Life Scape (aka universal life insurance)
If growing a cash-value product is a priority, universal life insurance might be what you are looking for. The guaranteed interest rate is 3%, but coverage and premiums are not guaranteed and can change. However, there are some riders described below which may be applicable, depending on where you live and the coverage you require.
Life Scape Whole Life Insurance
If you prefer a life insurance policy that offers cash value and stability with premiums and coverage, Life Scape Whole Life Insurance is a product worth looking into. Assurity gives policyholders three guarantees: the premium won’t change, the coverage won’t change, and the policy’s cash value will continue to grow.
Another detail for this product is that because it is participating, it may receive dividends. These can be paid in cash, or premiums may be reduced, among other options.
There is also Life Scape Joint Whole Life Insurance where two married people are on one policy. A joint policy will save on premium costs, and if both spouses pass away at the same time, two death benefits are paid out. The coverage is similar to that of the Life Scape Whole Life Insurance and is also participating. It also increases in cash value.
For both of the above products, the minimum death benefit is $10, 000, while the maximum can be over one million dollars.
Assurity Life Scape Single Premium Whole Life Insurance
The Single Premium version of whole life insurance on offer is basically the same as the two whole life insurance options already described, but instead of premiums being paid monthly, it is paid in one single shot. For those who are looking to increase their estate value quickly and enjoy tax-deferred cash growth, this is a product to consider. In this case, the minimum death benefit is $5,000 but the maximum can still go over one million.
Other Products from Assurity
If you are injured or sick and it affects your ability to work, disability income insurance can help replace part of your normal income. The cost of this type of insurance is between one and three percent of your salary. Coverage can be flexible and according to your needs; generally, you want it to cover about 70 percent of your gross earnings.
This type of insurance pays your family money if you die in an accident. This type of insurance is ideal for those who don’t qualify for traditional life insurance or those who want to supplement their existing life insurance policy. To get an idea of how much coverage you need, consider all of the things that would need to be paid if you died unexpectedly and your family had no time to prepare. The mortgage, loans, car payments, future costs such as education, and even groceries should be included in your calculation.
If you’re diagnosed with a covered serious condition, this type of insurance will pay you money until you recover. You receive the money directly to pay for the things you need, unlike medical insurance. Assurity recommends this type of insurance because even a smaller coverage policy can make a big difference to a family facing a serious illness.
If you are worried that you may outlive your income, then consider an annuity. This product protects against that risk by acting as a personal pension plan. Annuities convert an accumulated value (what you’ve paid) into an income stream, meaning you’ll have an income you cannot outlive when you retire. You can choose how to receive your money, but it is strongly recommended to speak with a financial advisor regarding tax laws and taxation.
Minimum and Maximum amounts
The amounts of coverage available range from a minimum of $5000 in a whole life insurance policy with the Single Premium Whole Life product to a maximum of $10,000,000 on certain term life offerings. While this information is somewhat difficult to find online, contacting a representative through the website is easy and impressively quick.
Assurity Life Insurance for Businesses
Because so many Americans can get group life insurance products through their employers, Assurity has a broad range available for businesses so that they and their employees are protected.
This type of group insurance is to protect employees by paying a benefit for commonly occurring accidents. Its principal function is to cover any gap that may exist between medical costs and coverage that the employee may already have.
Another type of group insurance, critical illness coverage helps employees diagnosed with a covered illness offset expensive medical treatment.
Employees often worry about returning to work during a short-term illness rather than focus on recovering. Short-term disability income insurance pays employees directly so that their income remains stable.
Yet another product to protect employees at no extra cost to the employer, hospital indemnity provides direct payment to the employee who is in hospital so that the focus can be on recovery rather than a too-hasty return to work.
As for individuals, whole life insurance is permanent life insurance coverage for employees. Interestingly, whole life insurance is portable, which means the employee is covered even if he or she changes jobs.
Riders Available at Assurity
Very briefly, riders are additional benefits that are added to an insurance policy. An example of a rider on a life insurance policy is a critical illness benefit, in which the insured individual will receive benefits if they are diagnosed with a covered illness and have less than a year to live.
The riders available at Assurity depend on the policy purchased. However, some of the riders mentioned on the website include:
- Guaranteed Insurability Rider
- Critical Illness Benefit Rider
- Automatic Benefit Increase Rider
- Catastrophic Disability Benefit Rider
- Residual Disability Benefit Rider
- Own Occupation Rider
- Non-Cancelable Rider
- Supplemental Disability Income Rider
- Return of Premium Benefit Rider
- Retroactive Injury Benefit Rider
Take note that not all riders are available for all products or in all states. While the product guide found in the hyperlink above can provide state-specific and product-specific information, a future client’s best bet is to contact an Assurity representative directly with their questions.
Unique Features of Assurity
Assurity Life Insurance Company at first glance looks like a relatively new player on the insurance market, it’s founding companies have been around since the 1890s and have acquired more than a century of experience offering protection to individuals and businesses alike. However, because it’s an old company doesn’t mean it uses obsolete technology. Everything from asking for a quote to buying a policy and making a claim can be done online or by phone if an internet connection is unavailable. Furthermore, Assurity only offers life insurance products, unlike other companies that offer home, automobile, and umbrella insurance as well. This means that the client is served by representatives who specialize in life insurance and really know their proverbial stuff. If expertise is a priority for you as a customer, Assurity could be the provider you are looking for.
Assurity’s Financial Strength Rating
But how reliable is Assurity? Is there any chance they might go under leaving their premium-paying clients high and dry? The answer is no, not at all. According to AM Best, the insurance provider rating company, Assurity Life Insurance Company is rated as a stellar A-, Excellent company. This means that their ability to meet their reoccurring and ongoing obligations related to insurance is excellent. Their financial strength is nothing to worry about, then, but what do actual customers have to say?
Assurity’s Customer Reviews
Customer reviews are mostly positive, however, some who have disability insurance find their claims are slow to process or are outright refused. Applying and processing claims appear to be easy because they are done online, but one of the major complaints is that the policies are written in legalese which is very difficult for the average person to understand.
Assurity’s website also appears to be only available in English, potentially losing out on a large Spanish-speaking American clientele base.
In all, though, customer reviews are good with most review websites awarding Assurity 4 out of 5 stars, and commenting on the fair, affordable pricing.
How to Apply for Assurity Life Insurance
One of the things customers view favorably is how easy it is to apply. You can get a quote online, fill out the forms provided, and apply online, keeping in mind that coverage and riders vary from state to state. Accelerated application and approval are available, meaning that certain clients can be approved within a day or two without having to go through a medical exam. Even clients that do need a medical exam and do not have access to accelerated approval find that the entire process was speedy, taking several days while other companies take several weeks.
The Verdict: Is Assurity Life Insurance Company Legit?
With all things said and done, Assurity Life Insurance Company is indeed a legitimate company; it has an excellent financial strength rating, good customer service, and fair pricing. Although making disability claims may be difficult for some and the jargon used in policies may be confusing, Assurity is highly regarded by clients and businesses alike. If you’re looking for something more than a basic life insurance policy and want a product that is more suited to your specific needs, Assurity Life Insurance could be the company you are looking for.