If you’re a member of the military, the federal government, or you work as a first responder, you may be offered a workplace life insurance policy from 5Star Life Insurance.
An emerging player in the ever-growing group of companies offering no medical life insurance policies, the AFBA provider should be on your radar.
In the review below, we’ll give you a snapshot of what 5Star has to offer, looking at its standout features and its drawbacks to help you decide if it could be the right provider for you.
You’ll also find alternative companies which offer similar products so you can compare all of your best options.
Our 5Star Life Insurance Company (5Star Life) Review
The primary underwriter for life insurance from the AFBA, or Armed Forces Benefit Association, 5Star Life Insurance Company found its start in 1996, continuing the AFBA’s proud heritage of over 70 years of serving and protecting the military.
5Star is focused primarily on offering voluntary insurance products which are payroll deducted through workplaces; however, they also have select products geared towards individuals, namely seniors.
With such a narrow focus, 5Star is equipped to serve its niche markets better than anyone else.
While 5Star is a relatively new provider when compared to its competitors, its connection to the AFBA lends it exceptional credibility, as the organization has been offering members of the armed services life insurance policies since 1947.
The AFBA has played a prominent role in the lives of hundreds of thousands of military families, standing out for their stance on benefits for those who are killed in action.
While many other policies would not pay out if the insured was killed in the line of duty, the AFBA stands by its policyholders in times of both war and peace.
Financial Strength and Ratings
Though 5Star’s history sounds promising, you also need to evaluate the company’s current financial standing to determine its viability.
While 5Star hasn’t been around nearly as long as most other life insurance companies, the provider has already accumulated more than 800,000 policyholders, with the amount of life insurance in force totaling nearly $42 billion.
Several companies have been around much longer and appeal to much wider demographics but have yet to accomplish this level of success.
Credit ratings are another valuable tool to help assess a life insurance provider’s financial strength, measuring their likelihood to pay out their policies as promised.
5Star has been awarded the rating of “A-“, or excellent, from A.M. Best, one of the most notable credit rating agencies in the nation, suggesting a promising financial outlook.
In addition to this rating, the Alexandria, Virginia-based company is BBB-accredited and boasts an “A+” from the Better Business Bureau.
From a financial standpoint, 5Star touts better than average liquidity, surplus, and a high percentage of investment-grade ratio within their portfolio, according to Standard Analytical Service, Inc., who publishes extensive reports on insurance companies.
You can depend on the company to meet its financial commitments.
5Star Life Insurance has a suite of life insurance policies, from those offered through employers as an added benefit to supplemental products spanning several policy types.
They also have critical illness products, final expense products, and life insurance requiring no medical exam, called simplified issue.
Let’s take a quick look at what their life insurance policies encompass.
A large portion of 5Star’s business is attributed to its voluntary payroll deduction policies.
Their core life product, called the Basic Life and AD&D, is a combo product offering term life protection as well as accidental death and dismemberment.
This product is available on a guaranteed basis, meaning there are no questions or exams, as long as at least 10 people are on the plan.
You can also add riders to the policy for critical illness, spouses, and the employee’s children.
Additionally, this policy comes with portability, meaning the policy can remain intact even if you leave your current place of employment.
5Star’s simplified product, which is perhaps their most intriguing policy option to date, is the Family Protection Plan – TI.
With this policy, you can protect your spouse, your dependent children, and yourself.
You could secure coverage after answering a few health questions with no medical exam requirement, and the policy can be issued in just a matter of days.
The price is level up to age 100 (though the coverage may decrease after 10 years), and it has a critical illness component already included.
Children, and even grandchildren, can be insured as well, from ages 0 to 23.
5Star’s Silver Premier Choice Plan, their featured final expense option, has two different availabilities: preferred and graded.
With Silver Premier Preferred, you can get the full death benefit of your policy from day one.
The Silver Premier Graded option provides you with graded benefits, meaning it doesn’t pay in full until the third policy year.
The maximum face amount is $25,000, and the policy is available for anyone between the ages of 50 and 85.
Both tiers have level benefits and premium payments for the life of the policy, up to age 121.
5Star could be worth your consideration if you need one of the policies mentioned above.
Here are some of its most notable features:
- Financial strength: 5Star is in solid financial shape, as you can tell from its strong performance and credit ratings.
- Family protection: With 5Star’s family protection plan, you can cover yourself and other members of your family, with a quick and easy application.
- No exam: Not all companies offer no exam coverage, but 5Star’s simplified policies allow you to skip the doctor’s appointment and instead answer a few quick questions.
- Reasonable underwriting: 5Star’s underwriting is simple, straightforward and fair. Their rate classes are based on age, with no differentiation between smokers and non-smokers.
While 5Star has a lot to offer applicants, it might not be the company for you.
Consider the drawbacks to 5Star Life Insurance below:
- Cost: Overall, 5Star’s policies aren’t likely to come with the lowest premiums. You can probably find lower rates elsewhere.
- Product lineup: If you’re looking for something other than term or final expense insurance, like universal or whole life insurance, you’ll have to apply elsewhere.
- Small policies: Like many workplace life insurance plans, 5Star’s policies aren’t likely to be substantial enough to fully meet your life insurance needs.
- Availability: If your workplace doesn’t offer insurance through 5Star, you’ll only be able to access their final expense policies for seniors.
While 5Star isn’t a massive company or a household name just yet, it is beginning to make a solid footprint among the life insurance marketplace in its focus areas.
5Star is a reputable carrier and a strong choice for seniors and a select few applicants looking for no exam coverage.
With comparable premiums and the typical riders most used by consumers, 5 Star’s workplace policies could be worth considering to supplement your life insurance needs.
To be sure you get the best rates, whether from 5Star or another top provider, take a few moments to compare quotes today.