The American Family Life Insurance Company, which would later shorten its name to Aflac, was founded in Georgia in 1955 by three brothers looking to provide people with financial protection in the wake of an emergency. The company started out selling only life insurance but quickly expanded from there, pioneering cancer insurance in 1958. In the more than 60 years since then, Aflac has grown to become a major leader in the insurance industry, particularly in the field of supplemental insurance. Today, they serve more than 50 million customers worldwide and aim to provide quality, affordable insurance and a quick, effective claims process. Aflac’s plans are available to employers, individuals, and families, though some types of coverage are only available through the workplace.
Aflac’s primary focus is supplemental insurance, also called voluntary benefits when offered through an employer. It is important to note that these are not comprehensive policies – rather, they are designed to work alongside more traditional health coverage and fill some of the gaps that those policies may leave behind. Supplemental coverage makes payments directly to the enrollee to help ease the financial difficulties that often come with accidents, sudden illness, and so on. These payments can be used to help pay deductibles and copayments from one’s traditional health insurance plan or make up for lost wages due to time spent in recovery. Many of Aflac’s policies offer enrollees the option of receiving these payments as a lump sum or as smaller amounts over time depending on the situation.
Specific kinds of supplemental insurance offered by Aflac include accident, cancer, critical illness, dental, hospital, short-term disability, and vision coverage. Standalone vision and dental plans are also available. Aflac’s dental plans are deductible-free and have no provider networks, meaning enrollees are free to visit the dentist of their choice. Last but certainly not least, Aflac still offers the life insurance that got the company started in the first place. Both term and whole life insurance policies are available through Aflac, and no medical questions need be answered to enroll. These policies are also portable, meaning that you can take them with you even if you leave the employer you originally purchased them through.
Financial Strength and Customer Satisfaction
Aflac has excellent financial strength, as recognized by leading independent ratings agencies: A.M. Best gave them an A+ (superior), Standard & Poor’s gave them an AA- (very strong), and they received an A3 (good) from Moody’s. Rankings such as these are important, as they illustrate a company’s financial strength and thus its ability to pay out claims in the future – something which is especially important when dealing with life insurance, as it will likely be many years before a claim has to be made.
Customer reviews and satisfaction ratings for Aflac are average to positive, and in 2017 the National Association of Insurance Commissioners reported that the company had fewer than average complaints for an insurer of its size.
Aflac has been a leading provider of supplemental insurance for more than 60 years and remains a reputable and financially strong insurer to this day. They offer affordable coverage in a variety of forms and can be invaluable in getting you or your loved ones through tough times following an accident or other emergency. Their focus on supplemental coverage does mean that they are not the best choice for customers looking for a one-stop shopping experience where health and other types of insurance can be purchased from a single source, and the fact that some of their policies are only available through the workplace means that their availability may depend on what your employer chooses to offer. Overall, though, if you are in the market for life insurance or are looking to round out an existing health insurance policy, Aflac is definitely worthy of consideration.