Aflac Life Insurance: Is It Worth The Cost?

Aflac is a well-known insurance company that offers a range of insurance products, including life insurance. Founded in 1955 as the American Family Life Insurance Co. of Columbus, the company now serves over 50 million customers worldwide. In this article, we will explore the topic 'Is Aflac good life insurance?' by examining the types of life insurance policies Aflac offers, the benefits and drawbacks of their policies, and customer reviews to provide an overview of their life insurance offerings.

Aflac's term life insurance

Aflac offers term life insurance with 10-, 20- or 30-year terms and a maximum coverage of $500,000 for individuals aged 50 and below. The coverage amount decreases to $200,000 for people between the ages of 51 and 68. The company provides four types of term life insurance policies: fixed term, increasing term, decreasing term, and annual renewable.

• Fixed term life insurance is the most basic option, where you choose a policy term and pay a fixed premium for the duration of the policy.
• Increasing term life insurance increases the death benefit and premiums over time, potentially resulting in a larger payout for beneficiaries.
• Decreasing term life insurance is the opposite, with both premiums and the death benefit decreasing over the life of the policy.
• Annual renewable life insurance is a short-term option that must be renewed each year, with premiums increasing at each renewal. This type of policy is best suited for filling gaps between other life insurance policies.

Riders for Customization

Aflac allows policyholders to customize their term life insurance policies with riders, which are additional benefits or features. These riders come at the cost of higher premiums. Here are some of the riders offered by Aflac:

• Child Term Life Insurance Rider: Provides $15,000 in life insurance coverage for each insured dependent child up to the age of 25.
• 10-Year Term Life Rider: Added to a whole life insurance policy, Aflac will pay up to 50% of the policy's face amount for the policyholder.
• Accidental Death Benefit Rider: Pays an additional sum equal to the face amount of the policy if the insured dies in a covered accident within 180 days of the incident.
• Waiver of Premium Benefit Rider: If the policyholder becomes completely disabled, as defined in the rider, Aflac will waive the insurance premiums.

Whole life insurance pros and cons

Aflac is a solid choice for term and whole life policies and other types of insurance that you can buy individually or through your workplace. Policy amounts are lower than some of its competitors, but you can add several riders to help create a policy that best fits your individual needs. Aflac has a solid A+ A.M. Best rating, meaning it is well-positioned to pay out benefit claims. Its downside is customer service, which has received criticism from both customer reviews and third-party rankings.

Whole life insurance is a permanent policy that offers lifelong coverage. This means that it will pay out to your loved ones no matter when you pass away. Here are some pros and cons of whole life insurance:

Pros

• Lifelong coverage: Whole life insurance can provide lifelong coverage, no matter how old you are when you pass away. Unlike term life insurance policies, there is no termination date.
• Fixed premiums: Once you receive a premium amount, you won't have to worry about it changing. Your premiums will stay the same, making it easy to budget for them.
• Cash value growth: A whole life insurance policy offers a cash value growth component. As your cash value increases, you can withdraw funds or borrow against them to help cover expenses or meet financial goals. Depending on the company, whole life insurance may be eligible for dividends, which can be redeemed for cash.

Cons

• Higher premiums: Due to the lifelong coverage and cash value component, whole life insurance comes with higher premiums. It may be challenging to cover these premiums if you're young or don't have a lot of extra cash.
• Complexity: Compared to other types of life insurance, whole life insurance can be complex and more difficult to understand. You may need to review your policy multiple times or speak to a company representative to ensure you know how it works.

Customer reviews of Aflac life insurance

On Reddit, several users have shared their experiences with Aflac's supplemental insurance policies, which can be purchased in addition to life insurance. Some have found the policies beneficial, particularly when facing serious illnesses like cancer. For example, one user shared that they received approximately $30,000 from Aflac over the course of their cancer treatment, which helped keep them afloat financially. Another user with four Aflac policies noted that while their husband had heart and kidney problems, they hadn't received any money from the company.

Trustpilot reviews of Aflac are predominantly negative, with numerous complaints about claim denials, poor customer service, and long processing times. Some customers also reported unexpected policy cancellations and difficulty reinstating their coverage. However, a few positive reviews highlighted successful claim experiences, particularly when all necessary documentation was provided.

Overall, while some customers appreciate the additional coverage that Aflac's supplemental policies offer, many are dissatisfied with the company's customer service and claims handling.

Juvenile life insurance

There are several types of juvenile life insurance policies, including whole life, universal life, and variable universal life. Whole life insurance provides coverage for life as long as premiums are paid, and the premiums are locked in, meaning they won't increase over time. It also offers a guaranteed cash value component that the child can access later in life. Universal life insurance provides lifelong coverage and cash value growth at a minimum interest rate, with the added flexibility of adjusting premium payments. Variable universal life insurance is similar, but the cash value growth is tied to the market performance of investment subaccount options, which can impact cash value positively or negatively.

Pros of Juvenile Life Insurance

Cons of Juvenile Life Insurance

One of the main drawbacks of juvenile life insurance is the poor rate of return, as children typically have lower mortality rates. Additionally, there are long-term expenses associated with life-long premium payments, and the coverage amounts tend to be low, which may not be sufficient once the child becomes an adult.

When considering juvenile life insurance, it is essential to weigh the benefits against the potential limitations and explore all options to choose the best plan for your family.

Guaranteed issue life insurance

Aflac offers some guaranteed issue life insurance plans, including term and whole life insurance options for seniors with enhanced benefits. These plans are beneficial for those who may usually have difficulty getting life insurance, such as individuals with serious health issues. The policyholder can scale the death benefit, usually between $2,000 and $25,000, and the plan includes a waiting period of 2 to 3 years.

Aflac's guaranteed issue life insurance is a good option for those who want coverage but have pre-existing medical conditions or are seniors with new health conditions.

Frequently asked questions