AFBA Life Insurance was founded in the basement of the Pentagon in 1947 to offer service veterans with death benefits that no one else offered. It was formed with the intention of protecting those who serve.
In this article we will learn all there is to know about the AFBA Life Insurance, what it offers and how to cancel. We may also get to pick out some Pros and Cons that should be taken into consideration.
If you serve in the military or government and you’re seeking for a life insurance company, then keep reading.
Table of Contents
What is AFBA Life Insurance all about?
The AFBA which stands for Armed Forces Benefit Association, is a life insurance company for military personnels.
It offers life insurance terms to military members, veterans and other armed force persons and their family.
If you qualify for the AFBA Life Insurance term, you are likely to get the life coverage at lower rates.
One other thing to note is that AFBA only offers the ‘Term Life Insurance’ coverage, but does so in different variants.
What is Term Life Insurance?
Term life insurance is common as it is less expensive than a variety of life insurance, however it offers only short coverage.
You simply select a policy term, and if you die during that period, your loved ones get a death benefit. However, if you die after the period has expired, your loved ones will get nothing.
What type of insurance does AFBA offer?
As stated above, AFBA only offers the ‘Term life insurance’, however, it gives 4 different variations for clients to choose from. These types of term insurance include:
1. Better Alternative Term
Instead of selecting a set term, the Better Alternative Term coverage will last until you reach the age of 70 if you consistently pay your premiums on time.
In-service soldiers, retirees, and veterans can all benefit from better Alternative Term coverage. You are likely to get coverage ranging from $50,000 to $400,000.
If you, however, choose a coverage level less than $250,000 and are above the age of 50, you will be required to take a medical test.
2. Group Level Term
AFBA has policies designed particularly for multiple people in form of groups. In all, these are group level term insurance with coverage of up to $500,000.
Also if you’re under 50, no medical screening is necessary for coverage rates up to $250,000, and your plan will endure till you are 70 as far as your premiums are paid on schedule.
3. Children Term
A solo children’s term policy allows you to acquire up to $50,000 in basic term insurance for your children aged one to seventeen. If you keep paying the premiums, the policy will be valid until the child reaches the age of 70.
Nonetheless, premiums are consistent till the insured child hits the age of 45; beyond that, rates rise as the youngster enters other age bands.
4. Smart Start Child Term
If you wish to provide basic life insurance protection to a kid or grandkid, the Smart Start kid plan offers up to $15,000 in coverage. The kids, however, have to be within the ages of 14 and 18 years old, and the policy is valid until they reach the age of 25.
This plan requires only one premium payment. You can get $10,000 worth of coverage for $150, or $15,000 worth of coverage for $225.
When the child reaches the age of 25, they can change the policy to an entire life insurance policy and get up to five times the initial benefit amount without having to take a medical test.
The Pros and Cons of the AFBA insurance
Every company or firm irrespective of their policies and strategies have some good and bad sides. Here let’s take a look at some of the pros and cons of using the AFBA Life Insurance.
Pros of AFBA life Insurance
Here are some of the qualities that makes AFBA stand out from other life insurance companies.
1. Easy policy
Many life insurance policies will require you taking a medical test for blood examination before you get coverage.
AFBA, however, offers you the life coverage without necessarily demanding for a medical examination. Unless need be.
2. No War exclusion policy
The ‘war or terrorism exclusion’ policy is one which companies use to indicate that their coverage doesn’t include incident that occur in war or as a result of a terrorist attack.
Unlike other life insurance companies, AFBA seems to be the best choice of insurance for active military personnels.
This is because they don’t have the war exclusion policy, hence as an active military person you still have coverage if anything happens in a war.
3. Emergency Death $15,000 Compensation
This particular quality is more beneficial to the family of the client involved. A sum of $15,000 is usually mailed to the family, a day after AFBA receives news of the client’s death.
This particular act of kindness is very helpful especially for the family who have to plan the burial of the client.
Cons of AFBA life Insurance
These are the most common downside of this company’s insurance policy.
1. Maximum Coverage Limit
Even though a lot of insurance companies can offer coverage values of over a million dollar, AFBA doesn’t.
This is one of it’s major downside, as it has a maximum coverage limit of $500,000 only.
2. Policies are not available for everyone
From what we’ve learn so far, this should not come as a surprise anymore, because it’s basically what AFBA Life Insurance is all about.
It offers its policies only to military or ex-military personnels. Hence, only special people like the military, veterans or government officials are eligible for this insurance.
How to get the AFBA Life Insurance?
You may acquire prices and policy details for AFBA plans online. Whenever you’re ready, you may register via AFBA or through an insurance agent.
AFBA can be reached through this number: 800-776-2322 from 8 a.m. to 6 p.m. EST Monday through Friday. You can also reach out to customer service via an encrypted message.
However, if you desire face-to-face support, contact AFBA and request to be linked to a field service specialist. Simply call the customer service number and request to speak with an agent.
AFBA insurance rate structure
Basic quotes can be obtained on the web. To obtain specific rate information, you must call AFBA or chat with a representative.
When applying for insurance with AFBA, you must pick either “male” or “female” as your gender. Although being nonbinary does not prohibit you from obtaining life insurance.
However, you ought to be warned that most insurance firms have not modified their underwriting methods to incorporate modern gender difficulties.
How to cancel the AFBA Life Insurance?
AFBA, like other firms in the USA, offers a 10-day free trial period. During that period, you may cancel the plan without penalty and receive your money back from AFBA.
You are also able to cancel your AFBA policy at any moment once the trial period expires. However, you will not be refunded for any expenses made. To cancel your coverage, call AFBA’s customer service department at 800-776-2322.
Conclusion
As a military personnel, veteran or a government official, you can enjoy a trustworthy life insurance at a cheaper rate with AFBA. This article gives a thorough review on what AFBA Life Insurance is all about. It also tells you the pros and cons to consider before deciding whether you want to try it out or not.
