Have you seen the new ad campaign for American Family Insurance? American Family Life Insurance offers comprehensive coverage options tailored to meet your unique needs, no matter what stage of life you’re in. Whether you’re seeking term, whole, or universal life insurance, we’re here to help protect what matters most, so you can live confidently knowing your family’s future is in good hands
Here, we take a look at the products, reputation, and relevant company history of American Family’s Life Insurance.
Brief Intro on What is American Family Life Insurance?:
American Family offers permanent and term life insurance products, including plans for children and seniors. Agents can bundle life with auto, home, and other insurance policies in some states and save some money.
Business Insider has compared American Family Life Insurance to the Best life insurance companies in the USA and found it to be a standard offering.
History of American Family’s Life Insurance
The American Family Life Insurance Company is a subsidiary of American Family Insurance. The Wisconsin-based parent company is sometimes called AmFam. It began in 1927 when its owner sold auto insurance to farmers.
Today, American Family Insurance is a Fortune 500 company that sells a wide range of products. These include homeowners, car, snowmobile, flood, travel, and life insurance.
According to their 2016 annual report, approximately 9.6% of their 8.3 million active policies are for life insurance. That makes life insurance a small part of their business.
It can be difficult for a company to manage risk when it doesn’t hold many of one type of policy. Higher Insurance premiums are a common solution to this problem. American Family doesn’t make its life insurance rates public. Due to this, we can’t know for certain if this scenario applies to them.
Who is eligible for American Family insurance?
Age eligibility for American Family life insurance depends upon the type of policy you’re interested in buying. For example:
- Term Life: 18 to 70 years old
- Simplified Term Life and DreamSecure EasyProtect Term: 18 to 60 years old
- Whole Life: Birth to 80 years old
- Children’s Whole Life: Birth to 17 years old
- Senior Whole Life: 50 to 80 years old
American Family Auto Insurance Coverage
Know American Family Insurance offers standard types of car insurance, as well as the following optional protections:
- Gap insurance: Optional gap coverage helps pay the difference between what you owe and what your car is worth if your vehicle is totaled in a crash.
- Rental car reimbursement coverage: American Family offers this coverage to help pay for a rental car while your car is in the shop after a covered accident.
- Emergency road service coverage: This includes towing services, battery jumps, tire changes, gas and oil deliveries, locksmiths, and roadside repairs.
- Accidental death and dismemberment coverage: This option helps pay in the event of death or certain injuries resulting from a car accident no matter who’s at fault.
American Family’s Life Insurance Plans Available
Affordable life insurance for families is a savvy way to financially (and proactively) protect the people you love in the event of your death. American Family offers these policy options:
American Family Term Life Insurance
A term life insurance policy delivers coverage for a specific period. Coverage remains in effect for the contracted term (10, 15, 20, or 30 years). If the policy is active at the time of the insured individual’s death, a benefit will be paid. While qualified applicants may renew the policy at the end of the term, renewal premiums will be higher than the term policy’s scheduled payments.
Any conversion to a whole life insurance product goes through the same application as a new life insurance policy. Qualified applicants can apply for a no medical exam life insurance policy. However the death benefit could change, and acceptance is not guaranteed. A term life policy carries no cash value.
American Family Simplified Term Life Insurance
Enjoy quick and easy application (no medical exam life insurance) and approval (subject to health history) with this no-nonsense option. Applicants can protect the financial future of loved ones with minimal hassle. Since life insurance policies are based on age and health, the earlier you act, the better. This option comes with customizable coverage ranging from $50,000 to $150,000, available over standard terms of 10, 15, 20, or 30 years.
American Family Whole Life Insurance
A whole life insurance policy offers coverage for an individual’s entire life. This means a death benefit is promised to the beneficiary. This policy type accumulates cash value, meaning policyholders can use it for current financial needs during their lifetimes. For example, money can be borrowed as a loan when purchasing a home or facing college tuition. Whole-life policy premiums with the American Family remain constant over the policy’s life, regardless of age or health changes.
American Family Child Whole Life Insurance
Parents can purchase additional life insurance for children at specific milestones without a medical exam or further health questions. A trio of coverage options ($25,000, $50,000, and $75,000) coupled with two payment options (10- and 20-year plans) means coverage continues through significant life events, including marriage and homeownership long after the final monthly premium is paid.
American Family Senior Whole Life Insurance
This simple, affordable policy is designed for adults between 50 and 80. While no medical exam is required, policy issuance is based on answers to health-related questions. Plus, coverage comes in small amounts. Policies are available with only $10,000 or $50,000 in death benefits. The limited payout makes it a good fit for final expense coverage.
American Family Flexible Life Insurance
This long-term, flexible coverage is designed to evolve with your life. Both premiums and coverage are adjustable to meet changing needs across various life stages with a single life insurance policy. Living benefits are another attractive feature only available with American Family’s flexible life insurance plans. Unlike traditional death benefits, living benefits allow the buyer to pull money out to pay medical bills and living expenses in the event of a severe illness or accident. However, this reduces your death benefit later on.
American Family Life Insurance Reviews
While many people think of life insurance as a death benefit, at its core, purchasing life insurance is an investment in an uncertain future. Life insurance loans, accumulated cash value, and accelerated death benefits can assist policyholders throughout their lives.
American Family offers life insurance primarily to care for beneficiaries after the policyholder’s death, but some plans also include accelerated death benefits.
The broad range of policy options at American Family runs the gamut from term to whole and simplified to flexible. These options make the company accessible to a diverse range of people as long as you’re in relatively good health and a U.S. citizen. However, the American Family does not offer life insurance for foreign nationals.
Like other major life insurance companies, American Family Insurance has an age cutoff that varies between policy types. At a certain point, term policies cannot be renewed or converted to whole-life policies. So while it offers small senior plans, options become limited and disappear when you wait too long to apply. In addition, riders like American Family’s accelerated death benefits are unavailable on some plans.
Pros and Cons of American Family’s Life Insurance
Pros:
- Financial Stability: The best rating of A signifies strong financial health.
- Diverse Options: Offers both term and whole life policies, including no-medical exam options.
Cons:
- Higher Premiums: Costs may be higher compared to other insurers.
- Limited Range: No universal life or return of premium term policies.
- Term Restrictions: Limited to 10, 15, 20, or 30 years.
- Coverage Limits: Maximum coverage and options for non-citizens are restricted.
Closing Thoughts on American Family’s Life Insurance
When it comes to life insurance, American Family’s Life Insurance is a small company. That could make it difficult to get the best premium rates and/or conditions of coverage.
People who hold other kinds of insurance policies with American Family Life might receive a small discount. However, it is unlikely to be significant considering the size of the company’s block of life insurance business.
So, is American Family Life the best insurance company to protect and support your dreams? Comparison shopping based on your specific circumstances is the best way to find out.
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FAQs
You can insure the entire household with one policy that bundles coverage, either as a joint policy or with riders that add coverage for other individuals.
Yes. If your car is in the shop or not drivable due to a covered loss, you can take advantage of rental reimbursement coverage, which helps pay for a rental while your car is repaired. Reimbursements include ride-share, taxi, city bus, light rail, and commuter train travel.
American Family Insurance (AmFam) is less expensive on average than other providers like Allstate and Farmers. AmFam’s national average of $2,700 per year for full coverage is right around the national average of $2,681. However, compared to Geico, State Farm, and USAA’s average rates, AmFam is more expensive.
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