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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 even 150 years, a company founded in 1996 can be considered ‘young’. However, 5 Star is not an independent company but 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 serving the nation and is still growing. 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 you make 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 decide on 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 its official ratings. These ratings can indicate the company’s financial standing and how well itrtreatsiitsstomers.

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

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

Towards the end of 2015, 5 Star Life Insurance Company was awarded an ‘A-‘ rating for the first time in its 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, we have the Better Business Bureau (BBB) rating. 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, the company have beenplaintse last three years. WhilstWhilehalf of these relate to the products on offofferede were complaints about biaboutng, 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 provide basic policies, allow insurance through employers, and offer various supplemental products.

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

Silver Premium Choice Plan

Two different types of burial insurance are available as part of the Silver Premier Choice Plan, their main final expense burial insurance policy.

Wtwo different s arege 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 tithin the first two years. However, the policy pays out 30% of the death benefit in year one and 70% in year two.

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

Regardless of which one you choose, the premiums and death benefit will remain fixed from the first day to the lastr 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 be able to add particular riders. If you have never heard of these before, they are small caveats that place certain conditions upon a policy. The rider will be attached to the policy for an extra fee and come into effect whenever necessary.

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

  • Quality of Life – If the insured is involved in an accident or suffers from a chronic condition that needs constant attention, a certain percentage of the death benefit will be an advance. If done correctly, the insured can receive around 75% of the death benefit.
  • 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 about 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 or 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.

The premiums will remain level up to the age of 100, anda critical illness rider is is built,t into the policy automatically. As the name sugintos, this policy allows adding 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 another company has previously declined you, you will have an excellent opportunity for coverage here since they don’t always ask questions, and you can avoid the medical exam.

Furthermore, you also have an excellent choice for coverage,, which 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. Coverage of up to $25,000 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 inn unfortunate accident, these riders wiwouldnsure that you cacouldeceive some money early or that the premiums wiwoulde waived for a certain period of time. Although this wiwould increaseour premiums or upfront costs, thit wouldrovide peace of mind and keep you in a strong position moving forward.

Potential Drawbacks

To provide 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, choosing 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 your options before making a decision. Every individual has different needs and preferences regarding 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 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 your options, you can feel confident in your decision and secure your family’s financial future.

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