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American Family Insurance offers permanent and term life insurance products, including plans for children and seniors. Agents can bundle life with auto, home, and other insurance policies in some states.
American Family Life Insurance Review
At its core, purchasing life insurance is an investment in an uncertain future. The diverse range of life insurance policies helps buyers prepare for an unexpected death, accident, illness, and sometimes retirement. The Wisconsin-based American Family Insurance boasts award-winning insurance coupled with best-in-class customer service. It's a powerful punch designed to help individuals across the country protect what might be their most valuable asset: future dreams for those they love.
While many people think of life insurance as a death benefit, life insurance loans, accelerated death benefits, and other options are available. For example,
The company, founded in 1927, has proudly served 12 million customers (and counting!) in the ensuing nine decades. It's currently listed among Forbes' best insurance firms.
The broad range of policy options at
Like other major life insurance companies, American Family Insurance has an age cutoff that varies between policy types. At a certain point, term policies cannot be renewed or converted to whole life policies. So while it offers small senior plans, options become limited and disappear when you wait too long to apply. In addition, riders like American Family's accelerated death benefits are unavailable on some plans.
American Family Life Insurance Plans Available
Life insurance is a savvy way to financially (and proactively) protect the people you love in the event of your death. Consider these DreamSecure options when shopping for a policy with
American Family Term Life Insurance
A term life policy delivers coverage for a specific time. Coverage remains in effect for the contracted term (10, 15, 20, or 30 years). If the policy is active at the time of the insured's death, a benefit will be paid. While qualified applicants may renew the policy at the end of the term, renewal premiums will be higher than the term policy's scheduled payments. Any conversion to a whole life insurance product goes through the same application as a new life insurance policy. Qualified applicants can apply for a no medical exam life insurance policy. But the death benefit could change, and acceptance is not guaranteed. A term life policy carries no cash value.
American Family Simplified Term Life Insurance
Enjoy quick and easy application (no medical exam life insurance) and approval (subject to health history) with this no-nonsense option. Applicants can protect the financial future of loved ones with minimal hassle. Since life insurance policies are based on age and health, the earlier you act, the better. This option comes with customizable coverage ranging from $50,000 to $150,000, available over standard terms of 10, 15, 20, or 30 years. In addition, each premium is guaranteed to remain unchanged for the whole period, after which the policy expires if it is not converted to a whole life insurance policy (commonly referred to as permanent life insurance).
American Family Whole Life Insurance
A whole life policy delivers life insurance coverage for an individual's entire life. This means a death benefit is promised to the beneficiary. Additionally, this policy accumulates cash value, meaning policyholders can use it for current financial needs. For example, money can be borrowed as a loan when purchasing a home or facing college tuition. Whole life policy premiums with American Family remain constant over the policy's life, regardless of age or health changes.
American Family Child Whole Life Insurance
Parents can purchase additional coverage at specific milestones without a medical exam or further health questions. A trio of coverage options ($25,000, $50,000, and $75,000) coupled with two payment options (10- and 20-year plans) means coverage continues through significant life events, including marriage and homeownership long after the final monthly premium is paid.
American Family Senior Whole Life Insurance
This simple, affordable policy is designed for adults between 50 and 80. While no medical exam is required, policy issuance is based on answers to health-related questions. Plus, coverage comes in small amounts. Policies are available with only $10,000 or $50,000 in death benefits. The limited payout makes it a good fit for final medical and funeral expenses after your death. Keep in mind American Family can also reference medical records.
American Family Flexible Life Insurance
This long-term, flexible coverage is designed to evolve on par with your life. Both premiums and coverage are adjustable to meet changing needs, across various life stages, with a single life insurance policy. Living benefits are another attractive feature only available with American Family's flexible life insurance plans. Unlike traditional death benefits, living benefits allow the buyer to pull money out to pay medical bills and living expenses in the event of a severe illness or accident. Of course, this reduces your death benefit later on.
Additional Coverage Options Offered by American Family Life Insurance
Some
- Premium waiver for disability benefit rider: This add-on eliminates premiums if the insured experiences an accident or life event rendering them disabled. In other words, you keep your benefit without future payments.
- Accelerated death benefit/living benefits: This add-on allows a policy owner to receive partial death benefits if the policyholder is diagnosed with a terminal illness. This rider was referenced above as "living benefits" available with the flexible life insurance plan.
- Guaranteed purchase: This option allows customers to purchase additional whole life coverage without answering further medical questions or scheduling a physical exam. Increased benefits are only available at certain preset milestones.
- Children's insurance rider: This option offers coverage of $15,000 for biological, adopted, and step-children.
The type and amount of coverage you need are unique to your family's circumstances. A licensed life insurance agent is always the best resource for purchasing an appropriate life insurance plan. But the following equation can give you a basic idea of the minimum death benefit you might want to buy:
Expenses (inclusive of current/future debts, childcare expenses, education, and income replacement)-assets (spouse's income, investments, and any existing life insurance policy) = estimated life insurance needs
How Much Does American Family Life Insurance Cost?
Generally, term coverage is less expensive than permanent (whole life policy) coverage. The main caveat is the latter comes with a guaranteed benefit/payout while the former does not. In addition, a term policy expires at a specific time, meaning you're betting you'll die before that point or be healthy and financially stable enough to convert your policy to a whole life insurance policy. But, of course, your insurer is betting neither of those situations will apply. Remember, because you'd be applying at a later age with more health conditions, premiums will likely rise if you convert your term policy to a whole life policy.
That said, the cost life insurance may be less expensive than you think if you buy early. Age, gender, health, and coverage amount are the main factors determining premium costs. So the younger and healthier you are, the lower your policy premium will be. In addition, when accounting for fixed premiums when you buy early instead of converting your term life insurance later, you could save money in the long run.
What Does "No Medical Exam" Mean with American Family Insurance?
Some life insurance policies require a physical exam.
How to File a Claim with American Family Life Insurance
The easiest way to file a claim with American Family Insurance is to contact your agent or call 1-800-MYAMFAM (1-800-692-6326), ext. 78080.
Because the process of starting a death benefits claim begins with the insured person (and not the beneficiary), have the following information available:
- Their first and last name
- Their date of birth
- Their state of residence
- Their state of death
The following list of additional information may expedite the processing of your death benefit claim:
- Policy number
- Date and cause of death
- Contact details for each beneficiary
- Date of birth for each beneficiary
- Relationship of each beneficiary to the policyholder
Ultimately, you will be required to provide a copy of the death certificate and contact information for the funeral home handling arrangements.
American Family Life Insurance Frequently Asked Questions
Does American Family have life insurance policies?
Yes, American Family has several life insurance policies, including both term policies with end dates and whole policies that don't expire.
Is American Family good at paying claims?
On the Better Business Bureau website, many American Family customers mention issues with getting claims paid. However, keep in mind that customers are generally more likely to leave a review when they have an issue than when they are satisfied. According to the National Association of Insurance Commissioners (NAIC), American Family has 53% more complaints than average, but some complaints may not be related to claims.
Is American Family Insurance financially stable?
Yes. According to AM Best, which rates insurance companies based on financial stability, American Family has an A (Excellent) rating.
American Family Life Insurance Competitors
Learn more about American Family life insurance and how it compares against the top life insurance companies.
American Family Life Insurance vs. Mutual of Omaha Life Insurance
As an industry giant, Mutual of Omaha offers more diverse life insurance plans than
Mutual of Omaha Life Insurance Review
American Family Life Insurance vs. State Farm Life Insurance
According to J.D Power's yearly life insurance survey,
Its whole life policies come with living benefits for accidents or serious illnesses. A key thing to remember with State Farm is living benefits payments are restricted to four withdrawals ($500 minimum each) per year.
State Farm Life Insurance Review
Why You Should Trust Us: How We Reviewed American Family Insurance
We compare life insurance companies based on product quality, insurance riders available, net performance scores, pricing, and customer service. In addition, we look at the diverse range of life insurance products to compare death benefit plans with life insurance designed for long-term financial planning. Our opinions are wholly based on facts gathered.
Disclaimer: The information provided here is intended for review purposes only. Utilizing a licensed insurance agent to shop for life insurance is the best way to ensure you'll get the right policy, one inclusive of appropriate coverage (at a competitive price) that best meets the needs of you and your loved ones. Once an individual is denied a life insurance policy with any company, this information is reported within a more extensive network. Any denial exponentially increases the likelihood that future applications will be denied. A licensed insurance agent can help you prepare your application and review your options to apply for plans that make sense for you and the insurance company.