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5 Star Life Insurance Review

5 star life insurance review

About 5 Star Life Insurance Company

Considering some of the oldest and most popular life insurance companies date back over a century and some even 150 years, a company being founded in 1996 can be considered ‘young’.  However, 5 Star is not an independent company, but instead an enterprise from the Armed Forces Benefit Association (AFBA). With headquarters in Alexandria, Virginia, the AFBA was founded in 1947, with help from Dwight D Eisenhower.

Over time, the AFBA has been protecting those who serve the nation and is still growing today. In the mid-1990s, they diversified into the life insurance market and have been successful ever since. Nowadays, the business has many offices across the US and insures around 800,000 people, totaling over $40 billion worth of insurance.

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Using independent brokers, 5 Star Life Insurance Company focuses on helping as many people as possible and is known for its flexibility in customizing insurance policies for clients. However, before choosing a life insurance company, it is important to consider all options to ensure that you are making the right decision. While 5 Star Life Insurance Company might be the right fit for some individuals, it is essential to research and compare other options to make an informed decision about the best company for your specific needs.

5 Star Life’s Official Ratings

Whenever you consider an insurance company, particularly one with a shorter history than some of the more established insurers, it’s crucial to review their official ratings. These ratings can indicate the company’s financial standing and how well they treat their customers.

In the end, a company may offer top-quality products at unbeatable rates, but it’s all for naught if the majority of their customers have had negative experiences.

A.M. Best Rating: A- (Excellent)

Back towards the end of 2015, 5 Star Life Insurance Company was awarded an ‘A-’ rating for the first time in their history. Not only did this grant them an ‘Excellent’ classification, it meant that they moved up to the fourth highest grade from a possible 16.

BBB Rating: A

Next up, we have the rating from the Better Business Bureau (BBB). With a rating of ‘A’, it’s fair to say that you will have nothing to worry about with their treatment of customers and ability to resolve any problems that may occur.

According to the BBB, there has been a total of 20 complaints for the company in the last three years. Whilst over half of these relate to the products on offer, there were also complaints for billing, advertising, and the warranty.

Aside from this small handful, 5 Star Life Insurance Company has built a happy customer base that continues to grow each and every year.

5 Star Life Insurance Policies

5 Star Life Insurance Company offers various policy options to cater to different needs. They not only provide basic policies but also allow insurance through employers and offer various supplemental products.

The company has gained popularity for its simplified issue final expense and critical illness policies in recent times. With these policies, there is no requirement for a medical exam, making the process faster and easier for customers.

Silver Premium Choice Plan

As part of the Silver Premier Choice Plan – their main final expense burial insurance policy – there are two different types available.

With ‘graded’, the full coverage will not be available until two full years have passed. This means that the beneficiary will not receive the full death benefit if you were to pass within the first two years. However, the policy does pay out 30% of the death benefit in year one and 70% of the death benefit in year two.

There is also ‘preferred’ which sees the death benefit active from the very first day of coverage. With this policy, there is a maximum coverage amount of $25,000. As long as you are between the ages of 50 and 85, you will qualify for the policy.

Regardless of which one you choose, the premiums will remain fixed from the first day to the last as well as the death benefit.

Silver Premium Choice Plan snapshot:

  • $5,000 – $25,000 face amounts
  • Level death benefit
  • Fixed premiums
  • Cash value whole life insurance

Life Insurance Riders

Depending on which policy you choose, you may also have an option to add particular riders to the policy. If you have never heard of these before, they are small caveats that place certain conditions upon a policy. For an extra fee, the rider will be attached to the policy and come into effect whenever necessary.

Most commonly, people choose the spouse, critical illness, and employee’s children riders as they seem to have the largest benefit.

  • Quality of Life – If the insured is involved in an accident or suffering from a chronic condition that needs constant attention, a certain percentage of the death benefit will come as an advance. If done correctly, around 75% of the death benefit can be received by the insured.
  • Terminal Illness – With this rider on your policy, you will receive up to 30% of the death benefit if you were to be diagnosed with a terminal illness. Sometimes, there is confusion as to how this is measured and how they decide whether people qualify but it is normally achievable if you have been given a predicted lifespan of 12 months or less. In addition to a life-threatening type of cancer, this could also include strokes, heart attacks, and various other diagnoses.
  • Waiver of Premium – Finally, another popular choice seems to be the waiver of premium which will see all premiums waived on a policy should you be disabled due to an accident or illness. However, it is important to note that you will need to wait six months before claiming.

Family Plan

Finally, we should also note their Family Protection Plan as this is another popular option. Although there is no medical exam nor a database check, there are some simple health questions to answer. However, the application is very simple and people can normally have their policy in place in under a week.

Up to the age of 100 years, the premiums will remain level and there is a critical illness rider built in to the policy automatically. As the name suggests, this policy allows the addition of children and perhaps even grandchildren.

Pros to Choosing 5 Star Life

As with all life insurance companies, there are some benefits to choosing 5 Star Life Insurance Company and this starts with the lack of medical examination. If you have previously been declined by another company, you will have a great opportunity for coverage here since they don’t always ask questions and you can avoid the medical exam.

Furthermore, you also have a good choice for coverage which is something that cannot be said for all insurers. Since the company seems to place a lot of emphasis on their final expense option, we should concentrate on this too. With coverage of up to $25,000, this should be more than enough to cover the average funeral costs, medical bills, and any other expenses that may arise.

Also, the riders available give you a little freedom and control over your policy. If you were to come down with an illness or be involved with an unfortunate accident, these riders will ensure that you can receive some money early or that the premiums will be waived for a certain period of time. Although this will cause an increase in your premiums or upfront costs, they provide peace of mind and keep you in a strong position moving forward.

Potential Drawbacks

To provide you with a well-rounded view, we must also outline some drawbacks to choosing 5 Star Life Insurance Company. Firstly, it is important to note that they are a smaller company with less brand recognition than some of their competitors. As a result, you may not receive the same level of support or long-term security as you would with a larger insurer. However, it is worth noting that 5 Star Life Insurance Company is growing each year, and their financial ratings are consistently improving. Furthermore, their smaller size means they can offer more personalized attention to their policyholders.

It is also worth mentioning that 5 Star Life Insurance Company’s primary focus is on final expense policies. As a result, if you are well below the lower age limit or are seeking a more extensive coverage option, 5 Star Life Insurance Company may not be the best fit for you. Ultimately, as with any insurer, the decision to choose 5 Star Life Insurance Company comes down to your individual needs and circumstances.

Final thoughts…

While 5 Star Life Insurance Company has many benefits, including simplified issue policies and customizable coverage options, it is important to consider all of your options before making a decision. Every individual has different needs and preferences when it comes to life insurance, so it is crucial to evaluate what matters most to you.

There are many other life insurance companies to consider, each with their own unique advantages and drawbacks. By taking the time to research and compare multiple providers, you can make an informed decision that best suits your needs and budget.

Ultimately, while 5 Star Life Insurance Company may be the right fit for some individuals, it may not be the best choice for everyone. By exploring all of your options, you can feel confident in your decision and secure your family’s financial future.

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