American Family Insurance: Do They Provide Life Insurance Policies?

American Family Insurance offers a range of life insurance options, including whole life insurance and term life insurance. Their whole life insurance policies provide permanent coverage with premiums that remain fixed for the duration of the policy. The company also offers DreamSecure Term Life Insurance, which provides coverage for a specific period, such as 10 or 20 years, and is more affordable than whole life insurance. Additionally, American Family Insurance allows customers to customize their coverage and offers a life insurance calculator to help determine the appropriate level of coverage and provide premium estimates.

Whole Life Insurance

American Family Life Insurance Company offers whole life insurance, which provides permanent coverage for you and your family. Whole life insurance is a lifelong policy with premiums that remain the same and include living benefits like cash value. This type of insurance is designed to be affordable and is a simple, convenient way to protect your family's future.

Your whole life insurance rates are determined by your age, medical history, and coverage goals. These factors allow insurance companies to create a plan that suits your needs. Once decided, the premiums are fixed throughout your plan, and the death benefit is certain. Some insurance companies allow you to make payments monthly, quarterly, or biannually.

A portion of your premiums is usually put into an investment account to grow throughout the life of the plan. When the plan ends, the accrued cash value of the plan will be paid out to the beneficiary. If you name your beneficiary as an irrevocable life insurance trust, you may be able to lower the tax liability.

Benefits of Whole Life Insurance

There are several benefits to having a whole life insurance plan:

• Premiums are consistent unless you want to raise the cash value of your plan.
• The death benefit will be paid to the beneficiary when the coverage ends.
• Your policy builds cash at a constant rate, tax-free, in a secure account.
• You do not need to choose a term length—your life insurance coverage lasts your whole life.
• You may be able to access the cash value of your plan before it expires.

Term Life Insurance

There are several other types of term life insurance:

• Increasing term life insurance allows you to scale up the value of your death benefit over time, but your premiums will slightly increase. These policies tend to cost more but usually deliver a larger payout.
• Decreasing term life insurance reduces premium payments over time, which can result in a smaller death benefit. This type of insurance is often chosen by those who predict they will have fewer financial obligations as they age.
• Annual renewable term life insurance provides coverage on a yearly basis and must be renewed by the policy end date to continue coverage. The premiums usually increase each time the plan is renewed, making this option best for those needing short-term coverage.
• Group term life insurance is purchased through your employer and functions as a workplace plan that deems all employees eligible for coverage.

American Family Life Insurance Company offers term life insurance in different term lengths, such as 10, 15, 20, and 30 years, with coverage starting at $50,000. Your premium is guaranteed to stay the same for your chosen term length.

DreamSecure Flexible Life Insurance

American Family Life Insurance Company offers DreamSecure Flexible Life Insurance, a type of universal life insurance that provides long-term, flexible protection. This policy is adjustable, allowing you to change your premium and coverage amount to meet your evolving life insurance needs.

This policy also features living benefits, such as cash value accumulation. The cash value grows over time, allowing you to borrow against it in the form of a loan. If you no longer need the coverage, you can surrender the policy and take the cash value.

Additionally, you can add coverage for your children with the Children's Insurance Rider, providing $15,000 of term life coverage for eligible children. The premium remains the same, regardless of the number of children covered, and the coverage can be converted to a long-term policy.

For added protection, consider purchasing the Waiver of Monthly Deductions for Disability Rider, which waives certain monthly deductions if you become totally disabled.

Senior Whole Life Insurance

American Family Life Insurance Company offers whole life insurance for seniors, called DreamSecure Senior Whole Life Insurance. This policy is designed for applicants aged 50 to 80 and provides lifelong coverage with level premiums and a simple application process. The coverage options are $10,000 and $15,000, and the death benefit will be paid to beneficiaries if the policy is active when the insured passes away.

DreamSecure Senior Whole Life Insurance offers peace of mind and financial protection for seniors and their loved ones. The policy includes living benefits such as cash value, which can be borrowed against in case of emergencies or unexpected costs. The premiums remain the same, regardless of changes in health or age, providing security and stability for seniors.

The application process for DreamSecure Senior Whole Life Insurance is hassle-free and convenient. It does not require a medical exam but only a few health questions to determine eligibility. If approved, the policy can be issued within a week.

American Family Life Insurance Company's whole life insurance for seniors is a permanent coverage option with guaranteed level premiums. It is designed to be affordable and provides long-term financial protection for families. The premiums will never increase, even with changing health conditions, ensuring no surprises or increased financial burden.

With its whole life insurance for seniors, American Family Life Insurance Company aims to meet the needs of applicants in this age group, providing them with the security and peace of mind they deserve.

Children's Life Insurance

American Family Life Insurance Company offers life insurance policies for children. The company provides customizable life insurance policies, allowing customers to pick the coverage that best fits their needs.

Whole Life Insurance for Children

American Family's DreamSecure Whole Life Insurance for children offers permanent coverage with guaranteed level premiums that are stretched out until the age of 100. The policy provides long-term coverage, with premiums that never increase, even if the child's health changes.

Benefits of Whole Life Insurance for Children

• Guaranteed Future Insurability: The policy allows children to be covered as long as premiums are paid, regardless of their future health. This is especially beneficial if the child develops a serious medical condition, which could make life insurance as an adult more difficult to obtain or cost-prohibitive.
• Access to Cash Value: Some life insurance policies for children allow early access to cash value, which can be used for college tuition, a down payment on a first home, or other essential needs.
• Final Expenses: While no one wants to face the loss of a child, life insurance can help provide peace of mind and assist with funeral costs during a devastating time.

Considerations for Whole Life Insurance for Children

• Poor Rate of Return: Children typically have lower mortality rates, which can result in a poor rate of return on whole life insurance plans.
• Long-Term Expenses: Whole life insurance policies for children may require lifelong premium payments, and premiums may remain consistent for the entire life of the policy.

Factors Affecting the Cost of Children's Life Insurance

The cost of children's life insurance depends on age, medical history, lifestyle, and location. It is important to note that minors may not be able to have their own life insurance plans or directly receive life insurance payouts, so it is essential to explore all options and choose the right plan for your child's specific circumstances.

Frequently asked questions