Aflac Life Insurance Review 2022
Aflac sells two types of life insurance—term life and whole life insurance.
Level term life insurance has a set cost for a certain period of time. Aflac offers 10-, 20- or 30-year terms. You can renew a term life policy annually after the term ends, but rates will be higher every year you renew and can quickly become expensive.
Whole life insurance is intended to cover you for the duration of your life and also builds cash value in the policy.
Term life insurance is far less costly than whole life insurance, partly because term life offers no cash value.
Aflac term life insurance
Here are the types of term life insurance available from Aflac:
- Fixed term. Lasting 10, 20 or 30 years, premiums for a fixed term life insurance policy stay the same throughout the level term period.
- Increasing term. This kind of term life insurance policy boosts the value of the death benefit over the course of the policy term. Premiums can go up during the policy period, but they can deliver a bigger payout to your beneficiaries.
- Decreasing term. Aflac’s decreasing term life policy has premiums that go down over time, along with a decreasing death benefit.
- Annual renewable. This type of policy supplies coverage that must be renewed each year. Premiums go up every time the policy is renewed, so this short-term coverage is best suited for filling short gaps between other life insurance policies.
In some states, Aflac offers term life insurance without the need for a medical exam.
Rates 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 those age 50 and under. For people ges 51 to 68, Aflac’s 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 buying guaranteed issue term life insurance may be a convenient way to get coverage if you have medical conditions that make buying other types of life insurance cost prohibitive. But guaranteed issue life insurance typically is more much expensive than other types of life insurance.
Aflac whole life insurance
Whole life insurance is a type of permanent life insurance. Whole life insurance blends a cash value component with life insurance coverage. Because the policy covers someone’s “whole life,” the coverage tends to cost more than term life insurance.
Whole life insurance offers a guaranteed death benefit, premiums that stay the same throughout the policy term and a guaranteed minimum return on the policy’s cash value.
Part of your whole life premiums usually go into a tax-deferred investment account. You may be able to take out a loan against the policy’s cash value or make a partial withdrawal of that money. It’s important to note that the death benefit paid to beneficiaries can be reduced by loans or withdrawals against the cash value.
Coverage up to $250,000 is available for applicants ages 18 to 70.
Aflac offers whole life insurance that doesn’t require a medical exam. Among factors that go into determining rates for Aflac’s whole life insurance are age, medical history and coverage amount.
Aflac juvenile life insurance
In addition to selling term life insurance for adults, Aflac offers whole life and term life coverage for children. No medical exams are required.
Whole life coverage can be purchased for a child who’s anywhere from 14 days old to age 17. Coverage amounts are $10,000, $20,000 or $30,000. The coverage amount doubles on the policy anniversary following the insured person’s 18th birthday, without the premium going up.
Loans on the cash value of the whole life policy can go toward college tuition, a down payment for a first home or other needs.
Term life coverage can be purchased for a child who’s anywhere from 14 days old to age 17. Coverage amounts are $10,000, $20,000 or $30,000. A juvenile term life policy covers the child until age 25. At that time, they can convert the coverage to an individual term life insurance policy.
Related: Pros And Cons Of Life Insurance For Kids