5Star Life is but one of many companies that offer life insurance. At TermLife2Go, we focus on the niches of each company. That is what led us to create our top ten best life insurance companies article, focusing on the best exam and no exam life insurance companies. In the following review, we will cover the pros and cons of 5Star Life. Is this company the right fit for you?
5Star Life Review
About 5Star Life
Founded in 1996, 5 Star Life Insurance Company has only existed for roughly 21 years, but 5Star has grown immensely and now insures more than $41B worth of policies for 687,000 people.The company is part of the Armed Forces Benefit Association (AFBA). AFBA provides provides supplemental and voluntary life insurance.
For a specific market segment, 5Star Life comes in as one of the top final expense and burial insurance companies in the U.S.
A.M. Best Company Rating
A.M. Best Company is one of the most renowned life insurance rating agencies. As of July 2017, A.M. Best re-confirmed 5 Star Life with an A- (excellent). This rating is exceptionally high, particularly in comparison to other life insurance companies of comparable size and scope.
According to a 2017 Independent Comparative Report, the company exceeds life insurance industry averages in liquidity ratio, net premiums to capital, capital and surplus to liabilities, percent of investment portfolio rated investment grade.
Why should I care about life insurance companies ratings?
The ratings help you to know which companies have the ability to meet financial obligations. Since you are buying life insurance that may one day pay out a death benefit to your beneficiary it is important to choose a company with a strong rating. Based on the A.M. Best Company rating given to 5Star Life, you can know that the company currently has the ability to meet its present obligations and the strength to meet its long term financial obligations as well.
Family Protection Plan – Term Insurance to 100
5 Star offers a term life insurance policy with critical illness coverage to age 100. The policy offers a guaranteed level premium (i.e. fixed) to age 100.
The critical illness benefit will pay 30% lump sum if the insured suffers a heart attack, terminal cancer, stroke, heart transplant or cardiac bypass, or terminal illness.
Although the premium is fixed, the death benefit is structured to remain level for the first 10 years of the policy after which time the group death benefit may decrease. However, the coverage amount cannot be decreased on an individual basis.
Silver Premium Choice Plans
For individuals, 5 Star Life offers the Silver Premier Choice life insurance policy. This is a simplified issue cash value whole life policy. Face amounts range from $5,000 to the maximum value of $25,000. The plan is valid until the insured is 121 years old. The plan is offered in both a preferred and graded death benefit option.
Preferred simply means the policy’s death benefit is available from day one that the policy is put in force.
A graded death benefit means the full death benefit does not go into affect until after a set period of time.
Additional Benefits of 5 Star Life Insurance
Because 5 Star Life Insurance works primarily with employer groups, they really have this market down, and can make life extremely simple for those who want group policies. They do a great job of providing all the resources you will need online, including things like employer agreement forms, claim forms, and group life applications and enrollment forms. They also provide employer groups with necessary marketing collateral.
As an individual, when you choose 5Star Life for a life insurance policy, things are pretty straight forward and no-nonsense. The policy offers you the security you need so that your family will have the money required for your final expenses. In the event that you require it, the policy also accumulates a cash value.
With 5Star Life, there aren’t too many options that things become confusing—it’s pretty easy to understand the policies offered. If you have minimum coverage requirements, then 5 Star Life Insurance may definitely be the way to go.
Drawbacks of 5 Star Life Insurance
5 Star Life Insurance excels at final expense insurance. Of course, if you are looking for a different type of life insurance policy, with more extensive coverage that will supplement your family’s income, 5 Star Life might not be for you. Really, what it comes down to are your specific needs. 5 Star is great at what they do, but if that’s not what you need, then it won’t work for you.
How do I know if 5 Star Life Insurance is right for me?
When it comes time to choosing from among the different types of life insurance policies, there are a lot of things to consider. You need to spend time thinking about how much life insurance coverage you can afford, and how much life insurance coverage you need. You also need to understand how various life insurance providers underwrite their policies. If this sounds confusing, don’t worry, this is what we’re here for. So what are you waiting for, give us a call today and see what we can do for you!
We have absolutely no motivation to sell you one policy over another. We are an independent company working to help life insurance seekers to find the policy that is best for their specific requirements. We have a thorough understanding of the policies offered by dozens of top rated companies in the United States. We understand that every life insurance company and policy has pluses and minuses—what is right for your friend might not be right for you!
We take the time to get to know you and your personal situation, and then we make customized recommendations. We completely believe in the products 5Star Life Insurance offers—and may even see it as the best option for you. However, if we feel you have different needs that another life insurance company can better provide for, then we’ll recommend that.
So, what are you waiting for? Give us a call today or visit our Online Life Insurance Quotes page and see what we can do for you!