Life insurance is a key piece of many people’s overall financial plans. This is because the proceeds that are received by the beneficiary (or beneficiaries) can be used for a wide variety of needs. These include paying final expenses, paying off large debts, and / or paying for ongoing living expenses, so that loved ones do not need to face financial hardship, especially at an already difficult time for them.
When you purchase a life insurance policy, there are several criteria that should be considered. These not only include the type and the amount of life insurance coverage that you are buying, but also the company that you are purchasing the coverage through. This is because you will want to be sure that you are dealing with a top insurer is strong and stable financially and that it also has a good reputation for paying out its claims. One company that fits into this criterion is 5 Star Life Insurance Company, an enterprise of the Armed Forces Benefit Association.
The History of 5 Star Life Insurance Company
The 5 Star Life Insurance Company has been in the business if providing their customers with quality life insurance coverage since 1996. The company is an enterprise of the Armed Forces Benefit Association (AFBA), and it is headquartered in Alexandria, Virginia.
Its parent company, AFBA, was initially founded in 1947, with the assistance of Army General, Dwight D. Eisenhower. This company was established to help with easing the strain on military members, as well as their families, during times of war. At that time, members of the U.S. military were not allowed to buy life insurance that would pay out the death benefit proceeds if the member was killed in a war zone.
AFBA had its initial headquarters in the basement of the Pentagon building in Washington, DC, and for the next 70 years, the company served the Armed Forces during times of both war and peace. The motto of AFBA is, “Serving those who serve this great nation.”
The Armed Forces Benefit Association is still considered to be growing company. This insurer provides supplemental and voluntary life insurance coverage to the work site/group markets. It also offers individual life insurance via the senior market.
5 Star Life Insurance Company Review
Being a related enterprise of AFBA, 5 Star Life Insurance Company has its main offices in Virginia (although it is considered to be domiciled in Baton Rouge, Louisiana. Today, this company has approximately $41 billion of insurance in force, and it insures more than 800,000 lives.
Based on the 2016 Independent Comparative Report, the company is considered to be strong and stable financially, and it exceeds life insurance industry averages regarding its liquidity ratio, net premiums to capital, capital and surplus to liabilities, and percent of investment portfolio investment grade.
The 5 Star Life Insurance Company has a key focus on providing life insurance coverage. It does so via independent brokers and producers. This coverage can be customized to fit the needs of its policyholders.
Insurer Ratings and BBB Grade
As of December 2015, 5 Star Life Insurance Company has been assigned a rating of A- by A.M. Best Company, and this rating was reconfirmed in March 2016. This rating signifies “Excellent,” and it is the fourth highest out of a possible 16 total ratings that are provided by A.M. Best. (A.M. Best ratings range between A++ (Excellent) through S (Rating Suspended).
The company has also been an accredited member of the Better Business Bureau (BBB) ever since January 25, 2003. On the BBB’s overall grade scale of A+ through F, 5 Star Life Insurance Company has been given the grade of A.
Throughout the past three years, the company has closed out 20 total customer complaints through the BBB. Of these 20 total complaints, 13 have had to do with the company’s product and / or service. Also, five were pertaining to billing and / or collection issues, one had to do with advertising and / or sales, and another one was regarding the company’s guarantee / warranty issues.
Life Insurance Products Offered By 5 Star Life Insurance Company
The 5 Star Life Insurance Company has a focus on offering its products in two specific markets. These include offering term life insurance coverage to employer groups. This coverage can help with providing financial protection to employees’ families.
The company also has a key focus on providing simplified issue whole life insurance in the senior market. This coverage can help with covering the insured’s funeral and other final expenses. It is also good for people who are in poor health or who may be looking for a smokers life insurance policy without the higher rates.
Work Site Insurance Coverage Offered Via 5 Star Life Insurance Company
The company offers a specific suite of coverage for the work site market. These products offer competitive premium rates, and they are primarily geared towards small and mid-sized employers. All of these products are sold through an employer or an association.
The primary product that is offered is the Basic Life and AD&D (accidental death and dismemberment). Adding these products can help employees to enhance the group life insurance that they already have. It does so by offering additional benefits, along with coverage for a spouse and / or children.
Some of the highlights of these work site basic life and AD&D include the fact that the coverage is guaranteed issue. This means that if at least ten employees apply, then an individual cannot be turned down for the coverage – even if he or she has an adverse health condition.
The coverage also offers an emergency death benefit payment. This means that up to $15,000 will be mailed out to the policy’s beneficiary within one business day of notification to help loved ones with immediate expenses.
This particular coverage is portable, meaning that even if the employee or member leaves the group, the coverage can continue – without the individual having to provide evidence of insurability (provided that the premium continues to be paid).
There are some nice advantages for employees or members who apply for this work site / voluntary coverage. These include the following:
- There are dedicated case managers at 5 Star Life Insurance Company who will work with insureds and their beneficiaries. This can make the process of coverage and claims easier for people, as there is just one specific point of contact for all of their questions or concerns.
- The billing is also easy when it comes to the payment of the premium. There are up to 15 different premium modes that are available, which include direct billing for ported policies.
- For the employer or association that is offering this coverage, the company offers tailored reporting and billing reconciliation that can conveniently fit the employer’s needs.
- Individuals are also allowed to enroll and to pay their premiums online.
Final Expense Life Insurance Products Offered By 5 Star Life Insurance Company
The company also offers final expense life insurance. These policies are geared towards paying for funeral and other final expenses – and the coverage can be extremely helpful for a person’s loved ones.
Today, the cost of a funeral can exceed $10,000 in some areas. This is especially the case when adding in items such as a burial plot, a headstone, flowers, transportation, and other related costs. In many cases, a person may also not have medical expenses that are not covered by his or her regular health insurance policy. So, a final expense life insurance policy can also help loved ones to pay off these bills.
The 5 Star Life Insurance Company offers several plans under the name of Silver Premier Choice. These are focused on insureds who are typically between the ages of 50 and 85 years old.
Some of the key highlights of these plans include:
- Death benefit protection of between $5,000 and $25,000. The amount of the coverage on these plans is guaranteed never to go down – even in light of the insured’s increasing age and / or if they contract an adverse health issue.
- The premiums on these plans are also quite affordable. The premium is also guaranteed never to increase, regardless of the insured’s age and / or health condition going forward.
- As long as the premium is paid on these policies, the insurance company cannot cancel the coverage for any reason.
- The Silver Premier Choice plans are whole life in nature. This means that they will not only provide death benefit coverage, but they will also build up cash value. The cash is allowed to grow on a tax-deferred basis. This means that there is no tax due on the gain that takes place inside of the policy unless or until the funds are withdrawn.
- There is no medical examination required to qualify for these plans. In fact, many people who apply for this coverage can be approved directly over the phone. And, once they are approved, the coverage will begin on that day.
- Coverage can last up to a person’s age 121.
- As with the worksite life insurance plans, these policies also offer an emergency death benefit. This can help to provide funds quickly to loved ones when they need it for final expense and other related costs.
There are two final expense plans that are offered by 5 Star Life Insurance Company. These include the Preferred and the Graded. With the graded plan, the death benefit will not all be paid out at the time of the insured’s passing, if they have only owned the policy for a short time.
As an example, if the insured dies in Year 1, then 30% of the selected death benefit will be paid to the policy’s beneficiary. If the insured dies in Year 2, then 70% of the death benefit will be paid. Once they reach Year 3 – and any time after that – then 100% of the selected death benefit will be paid out when the insured passes away.
There are also several different riders that may be added to the life insurance products offered by 5 Start Life Insurance Company. These include:
- Terminal Illness Rider – This plan will pay out 30% (in most states) of the death benefit in a lump sum if the insured is diagnosed with a covered terminal illness and is given a limited life span of less than 12 months.
- TI Air Rider – This is an automatic coverage increase rider that can be purchased for as low as an additional $1 per week by the policy holder.
- Quality of Life Rider – This rider will accelerate a portion of the death benefit on a monthly basis – 3% or 4% – each month if the insured is faced with a chronic medical condition that requires continuous care. The insured can receive up to 75% of the death benefit in total.
- Waiver of Premium Rider – If the insured is totally disabled due to sickness or accident, then after a six-month waiting period, the policy’s premiums will be waived.
- Critical Illness Rider This rider will pay out 30% of the policy’s coverage in the event that they insured has a heart attack, life-threatening cancer, stroke or other specific diagnoses.
Other Products That Are Offered
At this time, there are no additional products that are offered by 5 Star Life Insurance Company in addition to its worksite plans and the final expense whole life insurance coverage that is offered to seniors.
How to Find the Best Life Insurance Quotes
When seeking the best life insurance quotes, it is a good idea to work with an independent agency that has access to more than just one life insurance carrier. If you are seeking the best premium, we can help, as we work with many of the top life insurers. If you are ready to proceed, fill out the quote form on this page.
We can also be reached via phone, toll-free, by calling 888-836-7071 if you have any additional questions. We can walk you through the process easily and conveniently. So, contact us today – we’re here to help.