Alfa Life Insurance Review
- Alfa Life Insurance covers more than 1 million customers in the southern United States. Learn what this long-standing financial services can offer consumers.
Alfa Life Insurance is a southern-based financial services company that offers coverage to local individuals and businesses. The company, which was founded in 1946, now satisfies the insurance needs of more than 1 million customers in the region.
About Alfa Life Insurance
Alfa Life Insurance, which operates under the umbrella of Alfa Insurance Companies, has more than 350 service centers located throughout 11 southern U.S. states, with core operations in Alabama, Mississippi and Georgia. It aims to deliver a personalized customer service experience and uses technology to enhance the knowledge and productivity of its employees.
Alfa Insurance Companies supports local communities through the Alfa Foundation, which backs high-impact local organizations, and its Alfa Cares initiative, which promotes education, agriculture and community development. It also maintains the Alabama Farmers Agriculture Foundation, an organization dedicated to advancing local agriculture through research and education.
What Life Insurance Products Does Alfa Life Insurance Offer?
Although Alfa Insurance Companies was initially created to provide fire insurance to local farmers, it now offers an array of coverage options in the following categories:
- Personal umbrella
Under the Alfa Life Insurance brand, the company also offers term and permanent life insurance plans and annuities.
Term Life Insurance
Term life insurance plans provide coverage for a set period of time, typically ranging between 10 and 30 years, and they're generally more affordable than permanent policies with comparable death benefits. Alfa Life Insurance offers three unique term life products:
- Level term insurance: Alfa Life Insurance’s level term plans are available in 10, 15, 20, 25 and 30-year options, with coverage beginning at $80,000. A medical exam is required prior to approval, and policies may be converted to permanent coverage before the policyholder turns 65.
- 30-Year return-of-premium insurance: This return-of-premium policy refunds payments and policy fees if the insured is still alive upon the term's expiration. Because coverage spans 30 years, this coverage is designed to insure individuals between the ages of 6 and 50 who think they may outlive their policy. Death benefits start at $50,000, and a medical exam is required prior to approval.
- Rapid-issue term life insurance: This simplified option features an easy application process and approval isn't contingent upon a medical exam. Buyers may purchase 10, 20 or 30 years of coverage with a death benefit ranging between $50,000 and $75,000. The policy may be converted to a permanent plan during the period specified in the contract.
Permanent Life Insurance
Alfa Life Insurance’s permanent plans help individuals accrue wealth while providing a guaranteed death benefit after they die. The company offers an array of products designed to suit customers’ unique needs. Available plans include:
- Whole life insurance: Whole life plans through Alfa Life Insurance offer consistent coverage with level premiums and a guaranteed cash value component. Death benefits start at $15,000, and purchasers can choose from several payment options, including lifetime payments, a single premium or a 10-year payment plan. A medical exam is required as part of the underwriting process.
- Interest-sensitive plans: These plans include an interest-earning cash accumulation component, which may be used to pay premiums as the value increases. Death benefits start at $15,000, and a medical exam is required as part of the underwriting process.
- Flexible universal life insurance: For individuals who anticipate changing coverage needs, flexible universal life plans offer options to vary premiums, adjust the death benefit and suspend payments for short periods of time. Death benefits begin at $25,000, and plans include an interest-sensitive cash value component. A medical exam is required as part of the underwriting process.
- Guaranteed-acceptance life insurance: Available to individuals between ages 40 and 80, these policies guarantee coverage regardless of an individual's health and other risk factors. Plans feature guaranteed premiums and a limited cash value component, and death benefits can be as much as $25,000.
- Final expenses insurance: Plans offer purchasers a modest death benefit, between $5,000 and $15,000, which is suitable for covering end-of-life expenses such as medical and burial costs. Policies have guaranteed premiums and a limited cash value, and no medical exam is required as part of the underwriting process.
- First Step life insurance: Designed for children up to age 14, Alfa’s First Step plans offer coverage of $15,000 or more and have flexible payment options. Policies are interest sensitive, and no medical exam is required as part of the underwriting process.
For investors who want to supplement their retirement savings, Alfa Life Insurance offers several annuities. These products function like tax-deferred savings accounts and have a guaranteed, competitive interest rate. The company offers two unique products:
- Single-premium deferred annuities: Funded by a lump-sum payment, these plans feature a guaranteed interest rate. Allowable contributions typically range between $5,000 and $500,000 annually, and after 10 years of policy ownership, you’ll incur no surrender charges when withdrawing up to 10% of the cash accumulation value annually.
- Flexible-premium deferred annuities: Policyholders can pay into these plans on a regular or irregular basis, with contributions ranging between a minimum of $50 and $10,000 monthly for a maximum contribution of $500,000 annually. After 10 years of policy ownership, you’ll incur no surrender charges when withdrawing up to 10% of the cash accumulation value yearly.
The Pros and Cons of Alfa Life Insurance
Alfa Insurance Companies has sold financial products for more than 75 years and is consistently rated highly by gold-standard industry ratings agencies such as AM Best. The company is financially stable and offers a variety of coverage options, including several life insurance policies that don’t require medical exams. Clients who maintain multiple policies through Alfa Insurance Companies may qualify for a relationship discount for cost savings.
However, there are downsides to Alfa Life Insurance, most notably that the company operates in only 11 states. In addition, the company is not accredited by the Better Business Bureau.
Alfa Life Insurance Reviews: What People Are Saying
Reviewers of Alfa Life Insurance remark on the company’s helpful staff, easy-to-navigate website and transparent pricing. Several consumers also note the company’s small-town feel and stable financial background. However, some reviewers cite difficulties getting claims paid efficiently and note a lack of responsiveness.
Is an Alfa Life Insurance Policy Right for You?
Alfa Life Insurance is a regional life insurance provider that combines a small-town feel with the benefits of modern technology. Consumers who like doing business with a community-minded company may want to consider a policy through Alfa Insurance Companies, which has its own charitable organization to support local causes. The company also offers several life insurance products that require no medical examination, making it a good choice for individuals who have underlying conditions that leave them at risk for denial of coverage.