5 Star Life Insurance Company Review

The 5 Star Life Insurance Company has been in the business of providing its 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 a 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, 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.

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 smoker’s 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 worksite market. These products offer competitive premium rates, and they are primarily geared toward 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 worksite basic lives 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 worksite/voluntary coverage.

Including 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 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 toward paying for funerals 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 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 of 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 expenses 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.

Including:

• 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 fewer 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 policyholder.

• 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 the insured has a heart attack, life-threatening cancer, stroke, or other specific diagnoses.

The Bottom Line – 5 Star Life Insurance

Navigating through the pivotal aspects of life insurance, the 5 Star Life Insurance Company emerges as a stalwart, meticulously tending to the needs of varied demographics, from the military to the senior citizenry.

Its historical roots, deeply intertwined with the noble endeavor of aiding military members during exigencies, reflect its enduring commitment to providing reliable financial solutions in life’s unpredictability.

Through a suite of bespoke offerings, ranging from work site insurance products to pragmatic final expense life insurance, the company not only ensures a financial safety net but also promises ease and flexibility in its customer interactions.

The simplicity in premium payments, coupled with dedicated case management and an array of plan riders, attests to its reputation of being not just an insurer but a considerate partner in securing futures.

How We Review Insurance Companies: 

Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability. Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation. Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer.