Not every life insurance policy is created equal. In fact, there are many options at your disposal, so it’s a good idea to explore a variety of products so you can find the best fit. Aflac offers several life insurance policies you can choose from, including term and whole life insurance. Keep reading to learn about your life insurance options and how you can choose the right policy.
A life insurance policy can help protect your loved ones financially in the event you unexpectedly pass away. If you die while the plan is still active, they may file a claim and collect a death benefit, as long as you’ve named them as your beneficiaries.
The death benefit payout can help alleviate financial stress and allow loved ones to grieve properly. It’s usually flexible, meaning the funds can be used for funeral costs, debt, everyday bills, college, and virtually any other expenses.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Some common types of life insurance policies include:1
Term life insurance can give you coverage for a set period of time and pays out a death benefit to your beneficiaries upon your passing. In many cases, term life policies expire after 10, 20, or 30 years. Aflac offers term life insurance with affordable premiums.
Whole life insurance is designed to cover you for life. This means it will remain active for as long as you live, assuming you keep paying premiums. In addition to the death benefit, this policy type usually features cash value that grows tax-deferred. Aflac whole life plans can give you the added protection you need, with portability and lifelong coverage.
Universal life insurance offers a death benefit and cash value component. The cash value account earns interest that’s based on the market. Once your cash value has grown large enough, you can use the funds to help pay premiums or take care of other financial goals.
Final expense life insurance, which is available through Aflac, is intended for end-of-life expenses. Upon your passing, your loved ones can put the proceeds towards funeral and burial costs, out-of-pocket medical bills, and legal and accounting fees.
Guaranteed issue life insurance doesn’t require you to take a medical exam or answer health questions. Instead, this type of policy guarantees approval, just like its name implies. Aflac’s guaranteed issue life policies might make sense if you want fast, convenient coverage.
These tips can help you choose the ideal life insurance policy:
Think about who relies on your income. Is it just your spouse, or do you have a large family you support financially? The more dependents you have, the larger, more expensive policy you’ll typically need.
Maybe you only want coverage for 20 years while your children are still at home, and you could benefit from the affordability of term life insurance. Or perhaps you prefer lifelong coverage and don’t mind paying extra for whole life insurance.
If you have large debts, like a mortgage or student loans, you might want more robust coverage than someone with minimal to no debts. You may be better off with a smaller, more affordable policy if you’re debt-free.
Take a look at your monthly budget to figure out how much you can and want to spend on your premiums. In general, term life insurance premiums are less expensive than whole life insurance premiums.
If you won’t have many end-of-life expenses and simply want to provide your family with money for your funeral and a few other costs, final expense insurance is likely your best bet. But if you know your loved ones will be left to cover bigger expenses, you may want to consider a traditional term life or whole life policy.
Life insurance is not one-size-fits-all. The right policy depends on your unique needs and budget.1 Therefore, the life insurance product your friend or neighbor chooses isn’t necessarily the best option for you. Do your research, weigh the pros and cons of all your options, and use the tips above to find the ideal type of life insurance.
Fortunately, there are many life insurance products on the market. As long as you educate yourself on all your options and comparison shop, you can find the perfect policy for your particular situation.
Aflac offers both term and whole life insurance at affordable rates. For a quote or more information, start chatting with an agent today.
Explore your life insurance options.
1 Nerdwallet - 5 Different Types of Life Insurance. Updated March 28, 2023. https://www.nerdwallet.com/article/insurance/types-of-life-insurance. Accessed May 5, 2023.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Life (A68000 Series) - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term and Whole Life (B60000 Series) - In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life (Q60000 Series) - In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX. Group Term Life (Q60000 Series) - In Delaware, Policies Q60200M. In Arkansas, Idaho, Oklahoma, Oregon & Texas, Policies ICC18Q60200M, ICC18Q60300C, ICC18Q60400C.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
Tier One Coverage
Life (Final Expense Life) - In Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
Tier One coverage is underwritten by Tier One Insurance Company.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999.
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211