Aflac Life Insurance Review – Forbes Advisor
Aflac sells two types of life insurance: term life insurance and whole life insurance.
Level term life insurance has a fixed cost for a certain period of time. Aflac offers terms of 10, 20 or 30 years. You can renew a term life insurance policy each year after the term ends, but the rates will be higher each year you renew and can quickly become expensive.
Whole life insurance is intended to cover you for the duration of your life and also creates cash value in the policy.
Term life insurance is much less expensive than whole life insurance, in part because term life insurance offers no cash value.
Afac Term Life Insurance
Here are the types of term life insurance available from Aflac:
- Determined time. With a duration of 10, 20 or 30 years, the premiums for a fixed term life insurance policy remain the same for the duration of the contract.
- Ascending term. This type of term life insurance policy increases the value of the death benefit over the term of the policy. Premiums may increase during the policy period, but they may provide a larger payout to your beneficiaries.
- Descending term. Aflac’s decreasing term life policy has premiums that decrease over time, as well as a decreasing death benefit.
- Renewable annually. This type of policy provides coverage that must be renewed annually. Premiums increase each time the policy is renewed, so this short-term cover is best suited to fill short gaps between other life insurance policies.
In some states, Aflac offers term life insurance without the need for a medical exam.
Prices for Aflac’s term life insurance policies are primarily based on age, lifestyle, medical history and desired coverage. Coverage up to $500,000 is available for people age 50 and under. For people between the ages of 51 and 68, Aflac term life coverage is limited to $200,000.
Aflac Guaranteed Issue Term Life Insurance
Aflac offers guaranteed issue life insurance with death benefit choices of $20,000 and $25,000 for 10, 20 and 30 year term policies.
You don’t have to complete a medical questionnaire for guaranteed issue life insurance, so purchasing guaranteed issue term life insurance can be a convenient way to get coverage if you have medical conditions that make purchasing other types of expensive life insurance. But guaranteed issue life insurance is generally more expensive than other types of life insurance.
Aflac whole life insurance
Whole life insurance is a type of permanent life insurance. Whole life insurance combines a cash value component with life insurance coverage. Since the policy covers the “whole life” of a person, the coverage tends to cost more than term life insurance.
Whole life insurance offers a guaranteed death benefit, premiums that remain the same for the life of the policy, and a guaranteed minimum return on the cash value of the policy.
A portion of your whole life insurance premiums are generally paid into a tax-deferred investment account. You may be able to take out a loan against the cash value of the policy or make a partial withdrawal of that money. It is important to note that the death benefit paid to beneficiaries may be reduced by loans or cash surrender value withdrawals.
Coverage of up to $250,000 is available for claimants between the ages of 18 and 70.
Aflac offers whole life insurance that does not require a medical exam. Some of the factors that go into determining Aflac whole life insurance rates include age, medical history and amount of coverage.
Aflac juvenile life insurance
In addition to selling term life insurance for adults, Aflac offers whole life and term coverage for children. No medical examination is required.
Whole life coverage can be purchased for a child aged 14 days to 17 years. Coverage amounts are $10,000, $20,000 or $30,000. The amount of the guarantee is doubled on the anniversary of the contract following the 18th birthday of the insured, without the premium increasing.
Loans against the cash value of the whole life insurance policy can be used for tuition, a down payment for a first home, or other needs.
Term life insurance can be purchased for a child aged 14 days to 17 years. Coverage amounts are $10,000, $20,000 or $30,000. A juvenile term life insurance policy covers the child until age 25. At that time, he can convert the coverage to an individual term life insurance policy.
Related: Advantages and disadvantages of life insurance for children