AFBA Life Insurance Reviews: What You Need to Know

This articles talks about AFBA Life Insurance Reviews.

Are you in search of a life insurance company that caters to military service members, veterans, first responders, and government employees?

Enter the Armed Forces Benefit Association, or the Armed Forces Benefit Association, a non-profit organization providing life insurance and other benefits to members and their families.

But is AFBA the right fit for your life insurance needs?

This article reviews AFBA’s life insurance products, customer service, and financial stability, shedding light on its pros and cons and suggesting alternatives.

AFBA Life Insurance Reviews
Infographic: AFBA Life Insurance Reviews

Background of AFBA Life Insurance

Established in 1947 by General Dwight D. Eisenhower to offer life insurance during the Korean War, AFBA filled a crucial gap left by commercial policies with war exclusions.

Its mission remains unchanged:

promoting the welfare of members and their families by providing high-quality, low-cost life insurance products and other financial benefits and services in peace and in war.

The Armed Forces Benefit Association has boasted 650,000 members and over $2 billion in death benefits since its inception.

Its life insurance policies, underwritten by 5Star Life Insurance Company with an A- (excellent) rating from AM Best, operate from headquarters in:

  1. Alexandria
  2. Virginia

It also has regional offices in:

  1. Colorado
  2. Georgia
  3. Texas

Contact Information for AFBA Life Insurance

For all things AFBA, reach out using the following details:

How AFBA Life Insurance Works

AFBA provides both group and individual term life insurance policies for members, their spouses, children, and grandchildren.

Term life coverage lasts 10, 20, or 30 years, offering a lump-sum death benefit to beneficiaries if death occurs within the term.

Group policies, available through employers or associations, require no medical exam and cover amounts ranging from $10,000 to $500,000 based on age and occupation.

Individual term life policies, offered directly or through agents, require applications online or by phone.

Health questions or a medical exam may apply, with coverage amounts ranging from $25,000 to $400,000. Some policies are renewable and convertible to permanent plans.

Is AFBA Life Insurance a good company?

AFBA is a reputable company that has been serving members for over 70 years and enjoys a strong financial position, high customer satisfaction, and a positive industry reputation.

Accredited by the Better Business Bureau (BBB), AFBA holds an A+ rating.

Here are the advantages of AFBA:

Is AFBA Life Insurance a good company_
Infographic with illustration: Is AFBA Life Insurance a good company?

 

What AFBA Life Insurance Covers and Does Not Cover

Here is a breakdown of what AFBA‘s life insurance policies cover and do not cover:

infographic illustrating what What AFBA Life Insurance Covers and Does Not Cover
infographic illustrating what Armed Forces Benefit Association Covers and Does Not Cover

 

Regulatory Compliance of AFBA Life Insurance

Regulated by state insurance departments in operating states, the Armed Forces Benefit Association holds licenses to sell life insurance nationwide.

Adherence to federal laws like ERISA, HIPAA, and the USA Patriot Act ensures regulatory compliance.

AFBA prioritizes member privacy and security, detailing its practices in privacy and security policies accessible on its website.

AFBA Life Insurance Customer Reviews and Testimonials

Customer reviews for AFBA vary, with positive mentions of low rates, easy enrollment, fast claims, and friendly service. Negative feedback includes complaints about poor communication, delayed refunds, and challenges in policy cancellation.

Sample customer reviews found online include:

“I have been with AFBA for 10 years. I have my kids and grandchildren covered. I am a first responder and have seen the claims pay out within my department.”

“Terrible customer service! They won’t let me cancel, and it’s been 3 months. Go with any other life insurance, because this one ****! They just ignore you. Terrible customer service.”

“I’m an army veteran. I always told my family that AFBA was an honest company. My daughter died. No benefits were paid. A denial was made on another dead person’s information. Don’t ever do business with this company. They are horrible and have denied her children any financial security from death benefits. Stay away.”

“I would never recommend this company to anyone. They have made it so difficult to receive a refund and terminate my coverage. It has been nothing but a headache. Not to mention, it’s also impossible to get ahold of someone as I’m still at work when they close.”

READ ALSO:

AFBA Life Insurance AM: Best Rate and Financial Stability

Underwriter 5Star Life Insurance Company
AM Best Rating A- (Excellent)
Rating Basis Capacity to meet ongoing obligations
Financials (as of December 31, 2020)
Assets $2.1 billion
Liabilities $1.8 billion
Surplus $300 million
Risk-Based Capital Ratio 487%

AFBA Life Insurance Claims Processing and Customer Service

Here are the positives and negatives in claims processing and customer care

Efficient Claims Processing and Customer Care
Efficient Claims Processing and Customer Care

Conclusion

Armed Forces Benefit Association life insurance specifically targets military personnel, veterans, first responders, and government employees.

Creating affordable premiums and adaptable coverage is their mission.

They stand out for not exempting war or terrorism from their plans.

Many value AFBA’s comprehensive insurance and proven financial strength.

Customer satisfaction levels and positive industry reports indicate they deliver on promises.

Even so, AFBA’s niche focus means their offerings may not suit every lifestyle or budget.

Eligibility hinges on being part of their core constituent groups.

Other carriers could better fit, depending on your stage of life or specific coverage needs. Before joining, compare AFBA’s rates and products to competitors’ offerings.

An independent agent can provide objective insight as well.

Though AFBA admirably serves their target demographics, individuals must still weigh all options against personal priorities.

The right life insurance exists for those willing to do some homework first.

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