PRODUCT: Group Whole Life and Group Term Life

COMPANY: Aflac

BEST RATING: A+ (Superior)

AVAILABILITY: The group whole life product is available on an open-brokerage basis. The group term life product is available to Aflac-appointed brokers.

FOCUS: According to the Life Insurance and Market Research Association’s 2016 Trends in Life Insurance Ownership study, 30% of American households do not have life insurance coverage—and nearly 60 million Americans have an average life insurance coverage gap of $200,000.

Stephanie Shields, vice president of product innovation and marketing at Aflac, says this is the driving force behind the carrier’s focus to expand and refresh its life portfolio—especially since life products are integral insurance building blocks. “We’re passionate about being able to provide refreshed or innovative life products with options that meet the needs of our distribution channels and our customers,” Shields says.

Aflac’s new group whole life product includes greater plan maximums and gives customers the opportunity to build cash value over time and accumulate savings at a guaranteed rate of return. Another key feature rolled out in the latest refresh is a living benefit rider: It pays a benefit if an individual is limited by two or more of the activities of daily living.

The group term life product offers a combination of employer-paid, supplemental buy-up and voluntary coverage. It’s a flexible option that offers three accidental death and dismemberment levels and 19 additional benefits. Agents can offer clients a waiver-of-premium benefit and an accelerated death benefit if the insured is diagnosed with a terminal illness.

Aflac strives to increase benefit maximums, so employees can stay protected if their needs expand to include, for example, spouse or family coverage. The products are also portable, so individuals can keep them for the long run.

“Many employees understand life insurance, but there is still that need for employee education and engagement,” Shields says. “Agents and brokers are using this product as a core to their portfolio, but also as a key element in delivering a message and starting a discussion around life coverage. It’s all about making sure that employees understand how much they need, why they need it and help them make better-informed decisions.”

Shields says Alfac is working on an early 2018 product enhancement: When a life product is sold alongside any of Aflac’s four voluntary products in its group portfolio, clients will have the opportunity to add an additional lump-sum term life benefit on the critical illness, accident, hospital product.

“We want to tie these benefits together so there’s a synergy for having these product lines with Aflac so that together they deliver incremental value,” Shields says.

UNDERWRITING: The group whole life plan includes a maximum death benefit of up to $300,000. Aflac can customize the product for the unique needs of any workforce, including various classes of employees such as full- and part-time and executive carve-outs.

“We continue to drive higher guaranteed issue, which means that we don’t ask as many questions and don’t ask medical questions at the point of enrollment,” Shields explains, adding that a large portion of Aflac business is enrolled through simplified electronic platforms. “We want to make sure everyone has access to coverage.”

MINIMUM PREMIUM: N/A.

TARGET: Employers with 100 employees or more. Although Aflac frequently writes life products in the jumbo national account space, its group whole life and group term life products are available to businesses of all sizes and all industries.

COVERAGE TERRITORY: All U.S. states.

CONTACT: Stephanie Shields, vice president of product innovation and marketing; Aflac, 1932 Wynnton Road, Columbus, GA 31999; 803-461-4301.

Ronimarie Acord is an IA contributor.