Few insurance carriers have as much recognition as Aflac, one of the most well-known companies in America, by name. (Can you hear the “AFLAC!” duck in your head?!)But does simply having a well-known name mean you should trust the company to maintain your life insurance policy? In this American Family Life Assurance Company review, we break down all the different aspects of the company, from history to financials, to products in the marketplace today. Before you purchase any product from any carrier, always do your homework. Make sure to match the product to your needs, your budget, and your level of comfort. If you have questions, feel free to contact us, or continue your research on Aflac below.
OUR COMPREHENSIVE AFLAC REVIEW FOR
2017 1955 marked the beginning of the very well known insurance company, Aflac, which was originally named American Family Life Insurance Company. By 1964, it had been renamed to American Family Life Assurance Company of Columbus, although it wasn’t coined as Aflac until 1989.Although it isn’t one of the longest standing insurance companies in America, it has without a doubt made a long-standing footprint in multiple insurance industries in its time. It is one of the most reputable life insurance companies in America from a supplemental policy standpoint, working with countless businesses, big and small. In fact, almost its entire business model is now structured through work-site (also called payroll deduction) avenues, where employers offer a line of benefits to their employees which is paid directly through the employees’ paychecks. The line of benefits includes life, health, cancer (which it was a pioneer for), accident, disability, and more. Aflac is a publicly held company, meaning it offers stock to shareholders on the New York Stock Exchange (or NYSE) under the ticker profile AFL.
Aflac is financially strong as much as it is brand strong, boasting great ratings from the major rating institutions A.M. Best, Moody’s and Standard & Poors. With “A” ratings or better from three of the four major ratings agencies, an “AA-” from R& I (Japanese), and a Comdex score of 95 (out of 100), it’s clearly able to withstand the choppy economic waters of the financial industry, and has an excellent outlook for future expansion and growth. While these ratings are not guarantees of any kind, they are clear indications of solvency and claims-paying ability. The company has become a giant, now the largest supplier of supplemental insurance (including all types) throughout the United States. With 4,500 direct employees and 75,000 affiliates, it hosts a large network of strategically planned partners.
A lesser well-known aspect of Aflac is its presence in Japan, where its business has reached empire-sized success. Aflac claims “nearly 90% of all companies listed on the Tokyo Stock Exchange offer Aflac products to their employees.” This also leads to their market share of households in Japan to more than 25%.
A major sponsor of many large-scale events, including major sporting events, Aflac also has provided million in benefits to charities for childhood cancer treatment and cancer research. They include:
- Contributing beyond $100 million towards many children’s oriented cancer research and programs
- Aflac SmartGreen® initiatives, sparking a companywide focus on renewable, recyclables, and cleaner workspaces
- Sponsorships for well-known events like the Grammy’s, and the PGA Tour
AFLAC PRODUCTS AVAILABLE
Life insurance from the American Family Life Assurance Company (AFLAC) touts a few benefits many consumers are starting to enjoy, like:
- NO medical exams and NO blood tests
- Portability, meaning you don’t leave your insurance if you leave your workplace
- Juvenile policies for children
- Additional riders, like an Accidental Death Benefit Rider
While these do sound great, do understand there is an integrated price increase for policies such as these, where no underwriting or exam is required. These guaranteed types of life insurance allow you to get covered regardless of your health risks, so the insurer has to account for non-healthy applicants among the healthy groups. There are other companies who offer life insurance without an exam, so you may want to consider them if you’re healthy enough to be approved. In addition to life insurance, Aflac also provides access to:
- Accident Insurance
- Cancer Insurance
- Critical Illness Insurance
- Hospital Insurance
- Short-Term Disability
- Dental/Vision Coverage
For those looking to secure many different types of insurance all in one place, Aflac may be an intelligent consideration within your insurance portfolio.
IS AFLAC RIGHT FOR YOUR FAMILY?
The Aflac brand wouldn’t be what it is today without the Aflac Duck, which debuted at the new millennium, and it still spearheads all the major marketing for Aflac today. Aflac has made itself not only a household name in branding through its massive marketing campaigns with the Aflac Duck but has issued in excess of 50 million policies of all insurance types in the U.S. alone showing its effectiveness to offer its products in addition.