Life Insurance: Amfam's Comprehensive Coverage For Peace Of Mind

American Family Life Insurance Company, also known as AmFam, is a popular US insurance brand that has been in the business for over 90 years. AmFam offers a range of insurance products, including life insurance, and is known for its commitment to inspiring and protecting the dreams of its customers. The company provides customizable life insurance policies, including whole life and term life insurance, to fit the unique needs of individuals and families. With a strong financial rating and exceptional customer service, AmFam helps individuals and families secure their financial future and protect their loved ones.

Whole Life Insurance

There are several types of whole life insurance policies, including level payment, single premium, limited payment, and modified whole life insurance. Level payment policies have unchanged premiums throughout the duration, while single premium policies are funded by a one-time large premium. Limited payment policies involve a limited number of higher premium payments, and modified whole life insurance offers lower premiums in the first few years, followed by higher-than-standard premiums later on.

Simplified Term Life Insurance

American Family Life Insurance Company offers a Simplified Term Life Insurance policy. This is a type of term life insurance policy that is easier to apply for and obtain compared to standard term life insurance. It is a good option for individuals who are healthy and need a policy quickly, or for those who want to skip the medical exam usually required for life insurance.

The simplified application process involves filling out a questionnaire to provide health-related information and other personal details such as name, age, height, weight, and address. This allows individuals to bypass the lengthy underwriting process, which can take up to 60 days for traditional life insurance policies. With simplified term life insurance, approval can be obtained in minutes, and coverage can begin shortly after completing the application and making the first policy payment.

It is important to note that approval is not guaranteed, and certain medical issues, high-risk occupations, or hobbies may disqualify an applicant. Additionally, due to the simplified approval process, these policies might cost more, have a smaller coverage amount, and a shorter term. The coverage amount for simplified term life insurance is typically capped at $40,000 to $50,000. The premiums tend to be higher compared to traditional term life insurance or whole life insurance because the insurance company is taking on more risk.

Children's Life Insurance

American Family Life Insurance Company offers customizable life insurance policies to meet your unique needs. The company provides both whole life insurance and term life insurance. While the former offers lifelong protection with fixed premium amounts, the latter is available in different term lengths, such as 10, 15, 20, and 30 years.

• Lifetime protection: Children's life insurance provides coverage for the entire life of the insured, from childhood through adulthood, regardless of future health or occupation.
• Locked-in premiums: The premiums for children's life insurance are locked in at low childhood rates and never increase, guaranteeing affordable coverage throughout their life.
• Accumulation of cash value: Children's life insurance policies accumulate cash value over time, which can be used for various purposes, such as a down payment on a home, college tuition, or retirement funding.
• Guaranteed future insurability: This type of insurance ensures that even if the child develops a serious medical condition or has a family history of medical issues, they will remain insurable in the future.
• Death benefits: In the unfortunate event of a child's death, the life insurance policy can provide financial support to the family and help cover funeral and burial costs.
• Tax advantages: Under current law, the cash value accumulated in a life insurance policy is tax-deferred, and the death benefit received by beneficiaries is typically not taxable.

When considering children's life insurance, it's important to weigh the pros and cons. While it offers guaranteed future insurability and access to cash value, it may also come with long-term expenses and poor rates of return due to the low mortality rates among children.

Life Insurance for Seniors

Types of Life Insurance for Seniors

Term Life Insurance

Term life insurance is a good option for seniors who are in good health and still have major financial obligations, such as a mortgage or credit card debt. It is temporary and generally more affordable than other types of insurance. However, your coverage will lapse if you outlive the policy term, and life insurers may restrict term lengths for older adults.

Whole Life Insurance

Whole life insurance is a form of permanent life insurance that lasts for the entirety of a policyholder's life. It is a good option for those who want to ensure their family receives benefits upon their death, as the benefits will typically be payable to your beneficiary regardless of when you pass away. Whole life insurance also includes a cash value feature that can be used to take out loans or pay premiums. However, it is more expensive than term life insurance.

Universal Life Insurance

Universal life insurance is another form of permanent life insurance that offers a guaranteed payout. It is more expensive than term life insurance and includes a cash value feature.

Burial/Final Expense Insurance

Burial or final expense insurance is a type of whole life insurance designed to cover funeral expenses. It is a good option for those who only want a low-cost policy to cover funeral costs. This type of insurance offers smaller coverage amounts, but the policy will remain active for your entire life.

Simplified & Guaranteed Issue Life Insurance

Simplified and guaranteed issue life insurance have fewer or no health restrictions, making them a good option for those with health conditions that might disqualify them from conventional life insurance. The application process is quick, but these options generally cost more and offer less coverage than conventional life insurance.

How to Choose the Right Life Insurance

When choosing a life insurance plan, consider your coverage needs and budget. Think about why you want life insurance—for example, you may want to cover burial costs or provide income for a partner. Compare policy types and consider working with a life insurance advisor, who can help you find the best policy for your circumstances.

Flexible Life Insurance

Life insurance is a crucial tool for providing financial security for your loved ones after you pass away. American Family Life Insurance Company offers a range of policies, including flexible life insurance, to meet your unique needs.

DreamSecure Flexible Life Insurance is an adjustable policy that can change as your life evolves. It offers long-term, flexible protection and builds cash value over time. You can increase or decrease your premium and coverage amount to fit your life insurance needs at different stages of your life.

Benefits of Flexible Life Insurance

The flexibility of this policy gives you more control over your coverage. For example, if you have a young family who depends on your income, you may need a higher coverage amount. Later in life, when you're retired and your children are financially independent, you can reduce your coverage.

Additional Riders

You can further customize your flexible life insurance policy with various riders, which are available for an additional cost. For example, the Children's Insurance Rider provides term life coverage for eligible children, and the Waiver of Monthly Deductions for Disability Rider waives certain monthly deductions if you become totally disabled.

Comparison with Term Life Insurance

Term life insurance provides coverage for a specific period, typically ranging from 5 to 30 years. It often offers more affordable premiums compared to flexible life insurance, but it may not provide the same level of adjustability and living benefits.

Ultimately, the choice between flexible and term life insurance depends on your individual needs and preferences. Consult with a licensed agent or financial advisor to determine which type of policy is most suitable for your circumstances.

Frequently asked questions