Life insurance provides peace of mind for people of any age and health status. If the worst happened, and you were to pass away unexpectedly, a life insurance policy is a guaranteed way to provide for your family. Finding the right policy for your needs is a big decision. Finding the right company matters, too.
Our impartial reviews of life insurance companies will point you in the right direction, and today we have a spotlight on 5Star, a company you likely haven’t heard of before.
Our 5Star Life Insurance Company review offers a complete look at their products, services, financial health and more. Is this the life insurance carrier for you?
Let’s find out.
A 5Star Life Insurance Company History Brief
5Star Life Insurance Company is only about 20 years old, which makes them the new kid on the block within the insurance industry. Although a young company, they’ve shown tremendous growth in a very short period of time. Total life insurance in force is over $42 billion, and lives insured exceeds 800,000.
One significant reason for 5Star’s relatively sudden success?
They’re a closely related enterprise to the Armed Forces Benefit Association (AFBA). Created in 1947, the AFBA was designed to help service members. Previously, there were no options for life insurance which paid out upon death in a war zone.
Since 1947, AFBA offered 5Star life insurance policies to all of their members. Many of their insurance products related to final expense and burial expenses are popular with members of the military. In just two decades, 5Star basically cornered the market on these types of burial policies.
Establishing the AFBA was no simple task. In fact, the program was spearheaded by Dwight D. Eisenhower, then the General of the Army.
While 5Star’s final expense plans are their most popular products, they also offer a variety of insurance policies for groups and individuals. Their workplace insurance policies can be deducted directly through payroll. They also have a variety of individual policies which are popular among seniors.
5Star doesn’t try to appeal to every demographic. They focus mainly on military service members, workplaces and seniors. This narrow, almost specialized appeal is designed to serve the needs of their core customers.
5Star’s Financial Ratings
The credit rating of a life insurance company is an important indicator of their long-term health.
The credit rating agency A.M. Best currently rates 5Star as an “A-” due to their relationship with AFBA. 5Star’s rating is based entirely upon their continued relationship with the AFBA, and would likely change drastically if the two organization were to separate. While this is unlikely to happen, A.M. Best does make it clear the relationship is integral to their rating.
Standard Analytical Services, Inc. publishes extensive reports on insurance companies. They rate 5Star as better than average in terms of surplus and liquidity. They also have a high percentage of investment grade ratio in their portfolio.
Life Insurance Products From 5Star
5Star offers several types of policies for both groups and individuals. Although the total range of policies is relatively small, the policies they do offer are highly specialized.
The Family Protection Plan provides coverage with little fuss. Applicants must answer just seven medical questions. No medical exam or database check is required. Successfully applications can be processed and coverage issued in just a few days.
Pricing stays level up to the age of 100.
Both children and grandchildren up to the age of 23 can also be insured.
Silver Premier Choice Plan for Final Expenses
Their most popular plan is the Silver Premier Choice Plan. This is their feature final expense option and the plan selected by many through the AFBA. This is a cash value whole life plan. Available for anyone between 50 and 85, the plan has a minimum face of $5,000 and a maximum of $25,000.
There are two types of the Silver plan:
- Preferred – Payable from day one
- Graded – Payable in full after the third policy year
Both have premium payments with level benefits which last for the entire duration of the policy. Policy lasts up to the age of 121.
Workplace Payroll Deduction
Many people prefer to purchase life insurance through their place of employment. Premiums are automatically deducted from payroll. This is an easy way to ensure your policy is always active.
5Star’s Basic Life and AD&D combo product is their most popular workplace policy. This policy covers both life as well as accidental death and dismemberment. No questions or medical exams are required, although a minimum of 10 people are required to be on the plan.
These policies are portable. If the policyholder leaves their place of employment, they can take the policy with them.
Riders are also available for a variety of common situations including:
- Coverage for spouse and children
- Coverage for critical illness
Keeping with their theme of specialization, 5Star offers a variety of useful features for managing group policies. Employers can quickly go online to find employer agreement forms, claim forms, group life applications and enrollment forms.
Filing any type of claim is easy and straight-forward. You can fill out a contact form on your website and receive a call back. You can also call the company directly through their 800 number.
There’s not a lot of information available about charitable giving. Since most insurance companies do donate to charitable causes, we’re not sure if 5Star’s giving is non-existent or just not well publicized.
On the other hand, their entire business model was created to help military families in needs. The Armed Forces Benefit Association offers a variety of assistance programs for military veterans and their loved ones. Aside from life insurance, AFBA members also have access to financial planning, auto and mortgage programs, emergency assistance and more.
Their first office was in the basement of the Pentagon. Over the years, they’ve never wavered from their commitment to the Armed Forces. This is even reflected in their company motto “Serving those who serve this great nation.”
The Final Verdict on the 5Star Life Insurance Company
As their namesake suggest, 5Star Life Insurance does provide five-star insurance products and service, though their product line isn’t very diverse. 5Star offers a limited series of insurance products, designed mainly for military service members and group insurance plans.
Employers should check out their group plans, which are very customer focused. Group plans can be easily created and managed online.
5Star is one of the newest insurance carriers in the industry, but they’ve made a big impression in just a short time. Their association with the Armed Forces Benefit Association offers a lot of appeal to active duty military members and their family. Their final expense and burial policies are still some of the best options on the market.
The insurance products here aren’t for everyone. If you’re part of their key demographic, however, you’re probably going to like what the 5Star Life Insurance Company has to offer.