An emerging player in the ever growing group of companies offering no medical life insurance policies, 5Star Life Insurance Company is a new force to be reckoned with. But this doesn’t mean they don’t have drawbacks.
Below is our review of 5Star Life Insurance Company, also referred to as 5Star Life, and we’ll break down when and why you may want to consider this carrier against the many life insurance companies available.
As always, our take is independent, and we offer more than 50 carriers for you to choose from. Make sure you do your due diligence before applying. Let’s get into it.
Our 5Star Life Insurance Company (5Star Life) Review
A related enterprise to the AFBA, or Armed Forces Benefit Association, 5Star Life Insurance Company has a focus primarily on voluntary insurance products which are payroll deducted through workplaces, however they also have products geared towards individuals, namely seniors.
They make a point to have these narrow focuses to better serve these niche markets better than anyone else.
Though they’ve been around just 20 years, a very short time when compared to most other life insurance companies, they have already accumulated greater than 800,000 insured lives, and the total life insurance in force totals nearly $42 billion. There are several companies who have been around much longer and appeal to much wider demographics who have yet to accomplish this.
Part of this is their relationship to the AFBA, who has been offering members of the armed services life insurance policies since 1947.
The reason the AFBA has played such a prominent role since then is their stance on benefits to those who are killed in action; previously, other life insurance policies would not pay out under this cause of death. 5Star Life is the company who underwrites a majority of these policies.
5Star’s Financial Ratings
5Star has been awarded the rating of “A-” from A.M. Best, one of the most notable credit rating agencies. However, they do currently have a negative outlook. One of the reasons they have as strong of a rating already is because of their relationship with the AFBA, so keep this in mind when evaluating the long term financial status of the carrier.
While growth does seem promising with newer outlets through brokers and independent agents, growth doesn’t always mean solvency. However, any company who achieves and “A” or better rating from A.M. Best is seen as a top tier insurer.
In addition to this rating, this Alexandria, Viriginia based company boasts an “A” from the Better Business Bureau.
Financially speaking, they do tout better than average liquidity, surplus, and a high percentage of investment grade ratio within their investment portfolio according to Standard Analytical Service, Inc., who publishes extensive reports on insurance companies.
Products from 5Star Life
5Star Life Insurance has a suite of life insurance policies, from those offered through employers as an added benefit, to supplemental products spanning all policy types. They also have critical illness products, final expense products, and life insurance requiring no medical, called simplified issue.
The Silver Premier Choice Plan, their featured final expense option, has two different availabilities: preferred, which acts as a policy able to pay from day one, and graded, which 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.
For the voluntary payroll deduction crowd, their core life product is the Basic Life and AD&D (which stands for accidental death and dismemberment) combo product. It’s available on a guaranteed basis, meaning there are no questions or exams, as long as at least 10 people are on the plan.
Riders are available for critical illness, spouses, the employee’s children, and has portability, meaning the policy can be kept even after the employee has left their current place of employment.
Finally, the simplified issue product from 5Star, perhaps their most intriguing to date, is the Family Protection Plan – TI, which has just 7 medical questions and that’s it.
- no database check
- 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 even has a critical illness component already included. Children, and even grandchildren, can be insured, as well, from ages 0 to 23.
Final Thoughts on 5Star Life Insurance Company
While not a massive company or even household name, 5Star is beginning to make a solid footprint among the life insurance marketplace, at least in the areas they focus in.
We currently see 5Star Life as a reputable carrier and a strong choice for seniors and a select few looking for no exam coverage. Their premiums are very comparable they offer the typical riders most used by consumers. We often look strongly at value of product, and 5Star definitely shows value in their product line.
It will be interesting to see how they continue to develop over the next couple of years. For now, we are very comfortable in recommending a policy with the 5 Star Life Insurance Company.
|Company Name (and Subsidiaries)||5Star Life Insurance Company|
(AFBA) Armed Forces Benefit Association
|Company Ratings||A.M. Best (A-)|
Moody’s Investors Services (N/A)
Standard & Poor’s (N/A)
|Headquarters (Address, Phone, Web)||777 Research Dr|
Lincoln, NE 68521
|Policy Types Available||Term|