American Family Insurance Life Insurance Review (Companies + Rates)
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UPDATED: Mar 13, 2020
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|Key Info||Company Specifics|
|Current Executives||CEO - Telisa Yancy|
President - Bill Westrate
|Number of Employees||11,975|
|Total Sales / Total Assets||$10,177,770,000 / $27,502,251,000|
|HQ Address||6000 American Parkway|
Madison, WI 53783
|Premiums Written - Individual Life||$338,113,000|
|Best For||Individual Life Insurance|
Are you trying to find the cheapest life insurance available to meet your needs?
If so, you’ve probably heard of American Family Insurance before. This insurance company offers a variety of plans at affordable prices.
Whether you’re a senior citizen looking for a plan that will cover your family’s needs after you are gone, a young person who wants to make sure your loved ones are covered in the event of your premature death, or a new parent who wants to help solidify your child’s financial future, American Family Insurance probably has a plan to meet your needs.
Read on to learn what American Family Insurance can do for you.
Ready to get some life insurance quotes? Check out our FREE tool to get started.
American Family Insurance’s Ratings
Most credit rating agencies give American Family Insurance high marks. The company is generally considered to be financially stable, which means that it is likely to have the money to pay out claims as needed.
A.M Best is the oldest credit reporting agency in the world. It gives American Family Insurance Company a credit rating of A. This means that it considers American Family Insurance to be financially stable and a good credit risk.
For policyholders, this is good news because it means that American Family Insurance is likely to have the money to pay out life insurance benefits as needed. The company is also not likely to close its doors any time soon.
Investor rating service Moody’s last rated American Family Insurance Group in 2007. At that time, it provided a rating of Aa3.
This is the fourth-highest rating Moody’s offers. It means the company is financially stable and is a low credit risk.
In American Family Insurance Group’s case, the rating also reflects that it may sometimes incur losses due to weather catastrophes such as tornadoes.
Moody’s offers no more current information than the 2007 rating, but since American Family Insurance generally has high ratings and its assets and net income continue to grow, it’s likely that this rating is still accurate.
NAIC Complaint Index
NAIC reports three closed complaints against American Family Insurance Group during 2019.
One of the three complaints was related to whole life insurance, and two of the three complaints were relevant to claims against insurance, though it’s not clear whether the insurance in question was life insurance or another type of insurance.
NAIC only reports one complaint against American Family Insurance in 2019.
In contrast, NAIC reports six complaints against American Family Insurance in 2018, and four of those were related to individual life insurance policies.
Two of the six complaints were settled via a compromise with the company, and in two instances the company’s position was overturned. While this may seem like bad news, NAIC points out that American Family Insurance has far fewer complaints than the industry as a whole.
According to NAIC’s complaint ratio report, the national median complaint ratio for individual life insurance policies is 2.22, while American Family Insurance’s ratio is .45.
In other words, there are fewer complaints than you would expect for a life insurance company with American Family Insurance’s market share.
American Family Insurance Company is one of the newer insurance companies in the market, having been founded in 1927.
Herman Wittwer, the founder, was an insurance salesman who believed farmers were safer drivers than their urban peers. So Wittwer created an automobile insurance company specifically for rural customers and based his company in Wisconsin, one of the primary areas for farming in the United States.
In 1958, the company began offering life insurance through a subsidiary, American Family Life Insurance.
This was such a popular product that American Family Insurance was able to expand to offer life insurance coverage in 10 states within a year.
The following year, American Family Insurance purchased its first computer, which allowed it to process applications and claims within hours.
American Family Insurance continued to grow, and by its 50th birthday in 1977, it had provided 2.5 million insurance policies. By this point, it was offering health, homeowners, and accident insurance in addition to life and automobile insurance.
Today, American Family Insurance is one of the largest companies in Wisconsin, is on the Fortune 500 list, and has over 10,000 employees servicing policyholders in 19 states.
American Family Insurance’s Market Share
American Family Insurance has consistently ranked in the middle of NAIC’s top 125 life insurance companies for market share.
|Year||NAIC Ranking||Market Share|
American Family Insurance Group is itself a subsidiary of American Mutual Holdings. American Family Insurance Group’s subsidiaries include:
- American Family Mutual Insurance Company
- American Family Brokerage, Inc
- American Family Insurance Company of Ohio
- American Family Life Insurance Company
- American Family Securities, LLC
- American Standard Insurance Company
- American Standard Insurance Company of Ohio
- Ameriprise Auto and Home
- AmFam Com Inc.
- HomeGauge ®
- HomeSite Group Incorporated
- The Main Street America Group
- MoonRise Inc.
- Networked Insights
- PGC Holdings Corporation
As mentioned above, American Family Insurance has held onto a small but stable corner of the market between 2016-2018, ranking between 66th and 67th and holding about 0.25 percent of the market.
American Family Insurance’s market share went up slightly in 2018 and it rose from 67th to 66th in NAIC’s rankings. Both A.M. Best and Moody’s indicate that this company is financially stable.
American Family Insurance’s financial stability is good news for policyholders, as it means the risk of the company not being able to pay out claims as needed is small.
The number of life insurance premiums American Family Insurance has written has risen each year. This is good news because the more premiums American Family Insurance writes, the more money it takes in.
The rising premiums also account for American Family Insurance’s slight rise in its NAIC rank.
American Family Insurance writes an average of $413 million worth of life insurance premiums per year. In contrast, Northwestern Mutual, which holds the number-one spot, writes over $10 billion worth of premiums each year.
|3||New York Life||5.68%|
|66||American Family Life Insurance||.26%|
American Family Insurance reported a net gain of $295.3 million in 2018. This represents an 89 percent gain over its net income in 2017.
In 2017, American Family Insurance’s net income represented a loss of 52.1 percent over 2016, even though it still made a profit. The company appears to have bounced back in 2018.
|Year||American Family Insurance||Industry|
This is especially good news since the insurance industry as a whole lost income in 2018.
American Family Insurance’s Position for the Future
American Family Insurance’s financial position is stable, as evidenced both by its consistent market share and the high ratings credit reporting sites such as Moody’s and A.M. Best give the company.
In addition, American Family Insurance’s Fortune 500 ranking has been steadily climbing since 2016. For 2019, Fortune 500 ranked it at 315, its highest rank to date.
If you’re wondering what all this means, Fortune 500 ranks what it considers to be the 500 most profitable companies in the world every year.
American Family Insurance’s ranking is slightly above the middle of this list, which means that it’s doing well compared to many strong companies. Since it’s held this position for several years, its ranking is proof of financial stability.
For policyholders, this is important because one of the things you need to consider is how likely the company is to pay out claims.
American Family Insurance’s financial stability and expectation that it’ll continue to do well in the future suggest that it has plenty of money on hand to pay out current and future claims. Also, it most likely won’t have problems in the future when your family needs insurance benefits.
American Family Insurance’s Online Presence
American Family Insurance offers a user-friendly, easy-to-navigate website.
The company’s homepage provides general information about insurance, easy-to-find links to each type of insurance the company offers, services for current customers, a blog post about how to save money on insurance, and a link to its mobile app.
The life insurance homepage features tools such as a calculator, information about different life insurance plans, and an online quote tool.
The site is geared toward both potential policyholders and current customers. There is a wealth of information about life insurance for people who are looking to buy and easy-to-find links for making claims or paying a premium.
This company’s site also offers live chat as well as making its phone number easy to find so that potential and current customers can get in touch with an American Family Insurance representative easily.
American Family Insurance’s Commercials
American Family Insurance’s mission is to help customers make their financial dreams come true, and that commitment is reflected in their commercials. One line of commercials features famous athletes, such as J.J. Watt, helping ordinary people.
For example, the Watt commercial shows some people working to clean up a river where everyone has been throwing trash, and Watt shows up to help them accomplish this.
Throughout the commercial, Watt talks with the other men about their dreams for their community and what they hope to achieve. The message behind the advertisement is that anything is possible with the right insurance.
Another commercial, also featuring Watt, simply has him talking about his history and how he made his dreams come true.
American Family Insurance also has more standard commercials talking about values such as sacrifice and hard work that go hand in hand with making dreams come true.
One such commercial shows various families saving money in tip jars, repairing old clothes, and driving to a second-shift job to make the money they need for their dreams.
A voiceover narrator acknowledges the sacrifice people are making for their dreams and introduces American Family Insurance as a partner in making dreams come true.
Like the celebrity endorsement commercials, these ads focus on being inspirational and encouraging people to follow their dreams in partnership with American Family Insurance. This is a different approach than many insurance companies take, but it’s in line with their branding as the company that makes dreams come true.
American Family Insurance in the Community
American Family Insurance offers a community space called DreamBank.
This space is free and open to the public. People can use whiteboards to plan ideas, network with others to help them make their dream a reality, and create or attend events such as lectures and seminars in the space.
The DreamBank website gives community members all the info they need to get started. You can learn about events in your community or reserve the space for an event of your own via the site. Anyone interested in becoming a speaker can also sign up via the website.
American Family Insurance also has a nonprofit foundation called the Dreams Foundation. This foundation offers community grants of $2,500 each to nonprofit organizations that support community members in important ways. The Dreams Foundation is especially interested in supporting organizations that assist with two important areas of community assistance
- Lifelong learning, including educational programs, training, and improving access to job opportunities
- Basic needs such as food security, housing, transportation, and child care
Every year, organizations can apply by sending a letter of intent to the Dreams Foundation.
The Dreams Foundation asks top contenders to submit additional information and awards grants in the summer. For 2020, the foundation is accepting letters of intent from February 3 to February 27.
One hundred nonprofit organizations received a grant in 2019.
American Family Insurance also raises money for charity through sponsoring an annual golf championship. This championship sometimes includes other events, such as a 4K run for cancer charities or concerts that attendees can participate in.
Legendary golfers such as Jack Nicklaus sometimes attend these events.
American Family Insurance also is a leader in the movement for environmental protection and sustainability. It has redesigned many of its buildings to be environmentally and worker-friendly and offers a full report of its environmental protection activities online.
American Family Insurance’s Employees
American Family Insurance employees rate it an average of 3.4 stars out of 5 on Glassdoor.com. Employees overwhelmingly feel that the company offers them a lot of support and that there is a family-like atmosphere in the office, though some employees complain that their offices are short-staffed.
Employees enjoy benefits such as flexible work hours, 4 percent employer matching on their 401(k) contributions, and health insurance that pays 90 percent of employee health care costs. American Family Insurance also matches up to $3,000 worth of employee donations to nonprofit organizations each year.
American Family Insurance prides itself on its commitment to diversity.
It offers several Business Resource Groups, or BRGs, to employees who belong to a variety of groups. These groups allow employees to provide their perspective on issues that non-members of a particular group might not be aware of.
American Family Insurance’s current BRGs include:
- Veterans and military
American Family has received several awards both for diversity and for business excellence, including:
- Ranking 311 on the Fortune 500 list for 2019
- Earning a score of 100 percent on the Human Rights Campaign’s Corporate Responsibility Index
- “W” recognition from 2020 Women on Boards for having 31 percent of their board being composed of women
- Green Masters Certificate honoree from the Wisconsin Sustainability Business Council
Shopping for Life Insurance
American Family Insurance offers a variety of individual life insurance policies in line with its mission to help consumers reach their financial and other dreams. Its marketing efforts are focused on helping viewers understand how insurance fits into their life goals.
Life insurance is one of the most important things you can buy. More than a third of consumers would feel the financial impact within three months if a loved one were to die unexpectedly, so you’ll want to make sure you’re getting the right protection for your family’s needs.
If you’re under the age of 35, you might be worried about the cost of life insurance or wonder whether you really need insurance.
The answer is that nobody knows when a catastrophic illness or deadly accident will occur.
You need to have life insurance no matter your age or health so that your family is protected if something happens to you.
The most important question to ask when purchasing life insurance is whether it’ll cover your family when they need it most. Keep your unique financial circumstances in mind when deciding what type of coverage to buy so that you can make the decision that best meets your family’s needs.
American Family Insurance offers a variety of term and whole life insurance plans to meet policyholders’ unique needs, help them reach their financial goals, and make sure their families have the coverage they need when they need it most.
Types of Coverage Offered
American Family Insurance offers several types of life insurance. Chief among them are whole life insurance policies, including policies tailored to meet the needs of specific age groups, and term life insurance policies, which are time-limited and often require policyholders to pay lower premiums than whole life insurance policies.
Term life insurance covers the policyholder for a specific period of time, usually between 10 and 30 years. You are only covered during the lifetime of the policy. For this reason, buying a term life policy can be risky.
If you die after the insurance policy expires, your family won’t receive any benefits. However, in many cases you can convert a term life policy to a whole life policy at the end of the term.
American Family Insurance offers two types of term life insurance. In addition to traditional term life insurance, it offers simplified term life insurance is a time-limited life insurance policy that doesn’t require a medical exam. You simply fill out a form and answer a few health-related questions to get started.
Simplified term life insurance has the advantage of being cheaper than other life insurance products. In addition, the lack of a medical exam makes it ideal for people who have pre-existing health conditions. However, like basic term life insurance, simplified term life insurance expires at the end of the specified term.
Whole life insurance is a permanent life insurance policy. With this type of insurance, policyholders are guaranteed coverage throughout the remainder of their lives.
American Family Insurance offers five different types of whole life insurance.
DreamSecure Whole Life
This is a standard whole life insurance policy. American Family Insurance stretches premiums out until the age of 100, which means that you pay less each month than you would with other whole life insurance policies.
DreamSecure 15 Pay Whole Life
This policy perfectly bridges the gap between term and whole life insurance. Like a term life insurance policy, it’s fully paid for in 15 years. However, the policy doesn’t expire. You just no longer need to pay premiums because you’ve paid for the entire cash value of your policy.
DreamSecure Pay to 65 Whole Life
Pay to 65 Whole Life Insurance provides you with a plan to pay off the total value of your policy by the age of 65. This reduces financial stress as you reach retirement age, as you won’t have to worry about paying your premiums each month.
Senior Whole Life
Senior Whole Life offers coverage for policyholders aged 50 through 80. Unfortunately, however, if you are someone who is looking for insurance when you are over the age of 85, you’ll need to look elsewhere.
You don’t have to have a medical exam and you pay small monthly premiums, sometimes less than $40 per month. You can buy either $10,000 or $15,000 worth of coverage.
Children’s Whole Life
While children under the age of 18 can’t buy life insurance, parents and grandparents can buy it on their behalf. Children’s Whole Life offers policies that can be used to help secure your child’s financial future in addition to providing them with lifelong coverage at low rates.
Children’s Whole Life policies build in cash value over time so that they are worth a lot more by the time your child grows up and takes over the policy.
Your premiums will likely be far lower because of your children’s ages than they would be if they bought their first policies as adults.
You can buy a 10- or 20-year policy for your child. Twenty-year policies offer slightly cheaper premiums. Depending on your needs, you can buy $10,000, $25,000, or $75,000 worth of coverage for your children.
Universal life insurance allows you to pay flexible rates and build cash value in your insurance policy.
American Family Insurance offers DreamSecure Flexible Life for people who are interested in this option. This type of policy allows you to plan financially for different needs at different stages of life. There are two ways to pay for this type of coverage.
Many people choose to use a flexible life insurance policy to build cash value. You’d pay for a specific amount of coverage and not change that coverage amount.
Your cash value will grow over the policy’s lifetime. This is a good option if you have the money to pay for flexible life insurance and are concerned about leaving a sizable inheritance for your loved ones.
You can change your coverage over time to help you meet your financial goals. For example, you might purchase a high amount of coverage because you have a mortgage, student loan debt, or other obligations, but reduce your coverage later when you have fewer financial obligations.
This guarantees that your family will be able to pay off your debts if you die before they are repaid while allowing you to save money when you have fewer financial obligations and need less coverage.
Riders are extra benefits that you can pay for alongside your life insurance coverage. American Family Insurance offers several riders
The Children’s Insurance Rider provides $15,000 worth of coverage to your children, including stepchildren and those who are legally adopted. With this rider, you pay the same amount in premiums regardless of how many children you cover.
The Premium Waiver for Disability Benefit Rider allows you to waive your premiums if you become totally disabled. For example, if you are paralyzed or unable to work following a stroke or heart attack, you can get your premiums waived. This helps reduce the financial stress if you are unable to work and have serious medical issues.
The Accelerated Death Benefit Rider allows you to get some of your death benefits while you’re still alive if you’re diagnosed with a terminal illness. The purpose of this is to allow you to pay your medical bills and provide for your family during the last months of your life.
This rider comes with every policy and can be added to the policy whenever you need it.
The guaranteed purchase option rider allows you to purchase additional permanent life insurance without a medical exam during specific life events. For example, you might be able to buy additional permanent life insurance when you retire.
Factors That Affect Your Rate
If you’re searching for the cheapest life insurance rates, it helps to understand the different factors that American Family Insurance and other life insurance companies take into account when setting rates.
Every life insurance company has its own policies regarding this, but several factors generally affect your rate.
Age is one of the primary factors influencing your life insurance rate. Although anyone can develop a serious illness or suffer a tragic accident, the fact is that the older you are, the more likely it is to happen to you. For this reason, older people generally pay more for life insurance than younger people.
It’s often considered best to lock in your life insurance rate before your 35th birthday if you want low rates, though it’s possible to get a good rate even if you’re older.
Gender is another important factor in determining your life insurance rate. On average, women outlive men by five years, so women usually pay slightly less for life insurance than men, although older women will pay more than younger women.
Finally, American Family Insurance may take your marital status into account. Married people tend to live longer than those who are single, so you’ll probably pay higher rates if you are divorced, widowed, or unmarried.
Current Health & Family Medical History
American Family Insurance takes your health and your family’s medical history into account because if your risk of serious illness is high, you’re more likely to die early.
Unless you buy Senior Whole Life or Simplified Term Life Insurance, American Family Insurance will require you to undergo a medical exam. During this exam, doctors will check your cholesterol level, blood sugar, blood pressure, and other important signs of health.
Even if you’re healthy, American Family must also take your family’s health history into account. If a parent or sibling has a history of cancer, heart disease, diabetes, or other serious illnesses, that increases the risk that you’ll develop one of those illnesses too. In this case, your insurance rate will be higher.
Whether or not you are required to take a medical exam, American Family Insurance will have access to your prescription records and may look at your Medical Insurance Bureau records if they want.
Your MIB records are not copies of your full medical records, which are confidential. When you apply for insurance, you are required to allow MIB to access encrypted medical information. Underwriters can then use the encrypted information to help them make their decision about your insurance rate.
If you have a serious health issue, it’ll affect your rate. Most insurance companies also consider smoking to be a risk factor. So if you smoke or use e-cigarettes, you’ll probably pay higher rates than non-smokers.
Your insurance rates will be higher if your occupation presents regular risks to your health and well-being.
If you’re a police officer or firefighter, fly planes for a living, work as a stunt double, or otherwise risk your life regularly on the job, you can expect to pay higher rates than if you sit behind a desk in an office all day.
Smoking is not the only habit that can lead to rate increases.
If you engage in any habit that could shorten your life, your insurance rates will go up. For example, if you enjoy skydiving, bungee jumping, or mountain climbing, you’ll probably pay higher rates for life insurance because these hobbies put you at a greater-than-average risk of early death.
If you smoke or use recreational drugs, your insurance rates will also be higher. If you have a history of drug abuse, you’re also considered a higher insurance risk even if you’ve been clean for a long time.
Finally, your driving record can affect your insurance rates.
If you have a poor driving record, particularly if you’ve ever been arrested for DUI or have a history of accidents, your insurance rates will be higher because your risk of dying in a car crash is higher.
Veteran or Active Military Status
Those who are on active military duty can expect to pay higher rates for life insurance than civilians.
This may seem unfair considering the sacrifices they make for their country, but from an insurance standpoint, it makes sense. Remember: insurance rates are calculated based on your risk of dying, and if you’re stationed in a war zone now or have been in the past, your risk is greater.
Veterans often return from service with physical and mental health issues, and sometimes they’ve been exposed to diseases that don’t manifest until years after the fact. For these reasons, veterans also pay higher life insurance rates than non-veterans.
Getting the Best Rate with American Family Insurance
American Family Insurance is available in 19 states. This is important because rates may vary from state to state. While NAIC proposes model laws for states to base their insurance rates on, the final decision is left to state legislatures, who make laws governing maximum insurance rates and factors insurance companies may take into account.
Many states model their laws after New York’s law, which takes mortality, interest rates, and expenses related to running an insurance company into account when setting insurance rates. However, states are not bound by these criteria and can choose different factors to consider if they wish.
Insurance companies such as American Family Insurance base their rates primarily on the factors discussed above that may impact your life expectancy.
If you’re looking to save money, term life insurance is usually cheaper than whole life insurance. However, you should keep in mind that term life insurance expires. Your family won’t be covered if you die after the end of your term life insurance policy, so it may be worth it to spend some extra money upfront for a whole life insurance policy.
It’s also cheaper to buy life insurance when you’re younger, which is one reason American Family Insurance offers options if you want to insure minors. The older you are, the higher your rate is likely to be, so you’ll want to lock in the lowest rate possible for yourself by buying as soon as possible.
The best ways to save on life insurance with American Family Insurance include:
- Taking the best care of your health that you can. Staying in good health can help you get lower rates, so do everything you can to achieve optimal health. See your doctor regularly and follow all of their suggestions for improving your health, including changing your diet, exercising more, or stopping unhealthy habits like smoking or staying up too late.
- Avoiding smoking. Smoking is one of the biggest factors contributing to high life insurance rates as well as affecting your health. If you smoke, cut back or quit to help lock in a lower rate. And if you don’t smoke, don’t start.
- Paying your premium on time every month. Late or missed payments can result in extra fees as well as putting your policy at risk of termination. Make sure you pay your premium early or on time each month. If you are having financial problems, contact American Family before your premium due date to discuss your options so you don’t get hit with fees.
- Buying the correct amount of insurance upfront. It’s cheaper to buy the right policy the first time than to change or add on to your policy later. So do your research before you buy.
- Buying insurance sooner rather than later. The older you are, the higher your rate is likely to be. Don’t procrastinate— buy your insurance as soon as possible so you can lock in lower rates.
American Family Insurance prides itself on helping policyholders with diverse needs meet their financial goals and make their dreams come true.
This insurance company is especially good for seniors and people with young children, as it offers policies and riders designed to make life insurance affordable for these groups.
American Family Insurance’s Programs
American Family Insurance offers several resources for potential policyholders on its life insurance page.
You can type your ZIP code into a box on the top of the page to get a quote, put your information into a life insurance calculator, or read about life insurance basics such as what life insurance is and why you should consider buying it.
American Family Insurance’s life insurance page also includes information about each type of life insurance policy they offer and an interactive table that allows you to compare different policy types at a glance. You can also find a local agent to speak to face-to-face or chat with an agent online via the website.
Canceling Your Policy
With any luck, you’ll be happy with your American Family Insurance policy. However, sometimes a policy may turn out not to be the right one for you and your family. If you find your policy is no longer working for you, you can cancel it. You may also consider converting a term life insurance policy to whole life if that meets your needs better.
In general, term life insurance policies are easier to cancel. However, you can and should cancel any policy that doesn’t meet your needs. Technically, you can cancel a term life policy by failing to pay your premiums as required so that American Family Insurance terminates it for non-payment.
However, this is not the best idea because it’ll affect your credit rating and make it harder for you to get a different policy in the future.
It’s better to contact American Family Insurance if you have concerns or problems related to your life insurance.
Your life insurance premiums may or may not be refundable if you cancel. If you have a whole life or flexible insurance policy, you may be able to get back the cash value of the policy upon termination.
How to Cancel
American Family Insurance doesn’t provide information about cancellation or an easy way to cancel on its website. However, it does provide contact info for the company, and contacting them should be your first step if you want to cancel.
#1 – Contact American Family Insurance by Phone
American Family Insurance has an online chat feature, but it’s better to contact the company by phone so that you can make sure all your concerns are addressed. Call American Family Insurance at 1 (800) 692-6326 and tell the agent that you’d like to cancel your policy.
#2 – Request All Needed Forms
Ask the agent to send you any forms you need to fill out to cancel your insurance. Find out if you can get these forms emailed or faxed to you, as those options are faster than postal mail.
#3 – Fill Out Forms and Send Them Back
Once you receive your forms, fill them out as soon as possible. Make copies of the completed forms and send them back.
#4 – Call American Family Insurance to Confirm Receipt
Call American Family Insurance to confirm that they’ve received the forms and find out if they need anything else before they can process your cancellation.
#5 – Double Check Your Bank Statements for the Next Few Months
Keep an eye on your bank statements to make sure you aren’t still being charged for premiums after cancellation. If you are charged, call American Family Insurance and ask for them to refund your money.
How to Make a Claim
When a loved one dies, you might not want to think about filing a claim. But it’s important to take this step despite your grief so you can get the benefits you’re entitled to and make sure funeral costs and other financial obligations are covered.
#1 – Get the Death Certificate
The first thing you need to do is get at least two certified copies of your loved one’s death certificate. You’ll want to get two copies because you need a copy for your records as well as one for American Family Insurance.
Never send your only copy of the death certificate or any other needed documents in the mail. Items occasionally get lost after being mailed, so you don’t want to risk your only copy.
Some funeral homes help people with getting death certificates for their loved ones after the funeral. You can also get them by contacting your state’s Department of Vital Records. Every state has one, though some states use a different name, such as the Department of Births, Marriages, and Deaths.
You can find your state’s Department of Vital Records via the Centers for Disease Control and Prevention’s website.
As the screenshot indicates, the Centers for Disease Control and Prevention is a good place to look if you aren’t sure whom to contact. Depending on state law, you may need to pay a small fee to obtain the death certificate.
#2 – Gather Needed Information
It will be less stressful if you get all the information you need together before you contact American Family Insurance. The information you’ll need to file a claim includes:
- Your loved one’s personal information, including their first and last name, date of birth, date of death, the state they lived in at the time of death, and the state they died in
- The life insurance policy number
- Contact information for all beneficiaries
- Relationship of beneficiaries to the insured
- Dates of birth for beneficiaries
- The death certificate
#3 – Contact American Family Insurance
There are three ways to file a claim. You can either call American Family Insurance at 1-800-692-6326 ext. 78080, call your local American Family agent directly or fill out your claim paperwork online.
American Family Insurance allows policyholders to file life insurance claims online.
Regardless of which method you use, you’ll have to provide the information listed in Step 2.
Some people prefer talking to a live person while others may find it easier to submit paperwork via an online form during this difficult time. Choose the method that works best for you.
#4 – Choose a Payment Option
American Family Insurance offers several options for benefit payments.
A lump-sum payment allows beneficiaries to get the entire benefit amount at once. The advantage of using this method is that you’ll get the cash you need right away. However, it may have consequences for your taxes if you get a large payment all at once, so you may want to talk to a financial advisor before electing to do this.
A retained asset account works like a checking account. The entire benefit amount is deposited into the account and you can withdraw funds as needed. You’re required to withdraw at least $500 from the account within a certain period of time. Ask your claims representative for more information if you’re interested in this option.
Settlement payments involve getting periodic payments until your benefits are fully paid. You can choose from several plans.
- Interest income – American Family Insurance holds onto the principal paid into the life insurance policy and sends you the accrued interest on an annual basis. You can request a full pay-out instead whenever you’d like and can also make withdrawals against the value of the policy.
- Fixed period – You choose a specific period of time and receive a fixed amount of money each month. You can choose a period between five and 30 years.
- Life income options – This is a payment plan in which American Family Insurance provides periodic benefit payments that last throughout the rest of your life.
- Fixed amount – You get a set amount each month until your benefits are paid in full. Unlike the fixed period option, benefits don’t have to be fully paid within a specific period of time.
You’ll choose a payment option when you file your claim. If you’re talking to an agent or representative, they can help you understand your options and make a decision.
American Family doesn’t provide any information about how long it takes to process claims after they are filed.
Most insurance companies take between one week to two months to issue payments, depending on whether they need any additional documents after you submit your claim.
How to Get a Quote Online
American Family Insurance offers online quotes to prospective policyholders. Just fill in some basic info to get your quote.
#1 – Click the Quote Button
You’ll find a button near the top of the life insurance page that is marked “Get Started”.
American Family Insurance offers an easy way to get life insurance quotes online.
Click this button to begin the quote process.
#2 – Choose the Level of Help You Need
American Family Insurance offers you guidance on using its quote system. You can either choose “I Got This” if you know exactly what you’re looking for or “Guide Me” if you want additional help as you develop your quote request.
The difference between these two options is that you’ll be asked more questions if you choose “Guide Me”. For example, the Guide Me option asks questions about how many people depend on you financially and what your assets are, while the I Got This option does not.
Either way, once you click on the level of help you want, you’ll be redirected to the Life Insurance Calculator page.
#3 – Enter All Requested Information
Enter information into the Life Insurance Calculator such as your ZIP code, date of birth, and whether you smoke. As you answer each question, you’ll be given the next one. Continue entering information until you get to the end of the calculator.
You need to enter personal information such as your birthdate to get a quote.
American Family Insurance is not available everywhere, so if your ZIP code is not one that the company services, it’ll give you a list of other insurance companies in your area.
#4 – Get Your Quotes
When you get to the end of the calculator, it’ll take a minute or two to load results. You’ll get quotes for the insurance programs you qualify for.
American Family Insurance will give you quotes for several life insurance products.
If you’d like to get a different amount of coverage, you can edit the number on top and the calculator will recalculate your quotes. You can also click “Read More” to learn about a product that interests you.
If you’re interested in buying, you can then click on “Find An Agent” to get in touch with an agent near you.
Design of Website/App
American Family Insurance’s website is extremely user-friendly.
The website’s home page has easy-to-find links to the life insurance page as well as the ability to request a quote for life insurance or any other type of insurance you may be interested in, and you can also get to the life insurance page by hovering over the link on the top menu for insurance.
If you use the top menu, make sure you only hover over the word “Insurance” and click the words “Life Insurance” underneath. Don’t click on “Insurance” unless you want to see the general homepage for all of American Family’s insurance products.
If you click this by mistake, it isn’t a big deal because you can get to the life insurance page from the insurance page. However, this creates an extra step.
The life insurance page itself is well-organized.
It’s mostly geared toward potential policyholders and offers information about different life insurance policies, general information about what life insurance is, and a life insurance calculator so that you can get quotes.
You can chat with an agent online on the website if you have any questions, and current customers can pay their bill or file their claims online.
American Family Insurance also offers an app both for Android and iPhone. The MyAmFam app is meant for current customersand allows you to file claims, make payments, or access insurance documents online. The app is not specific to life insurance and can be used to access proof of car insurance, homeowner’s insurance, or other products American Family Insurance offers.
Pros & Cons
There are pros and cons to any life insurance company. Here are a few things to consider with American Family Insurance.
- A wide range of insurance products to meet customer needs
- Website is designed well and with customers in mind, including features like online chat with agents and online claims filing
- Offers the ability to buy life insurance for your minor children
- Get quotes in a matter of minutes, making it easy to decide which product (if any) you want to buy
- Only available in 19 states
- So many options that first-time buyers might feel overwhelmed
The Bottom Line
If you’re looking for affordable life insurance and good customer service, American Family Insurance may be the right company for you.
This company offers a ton of options and is one of the most customer service-oriented life insurance companies in existence. Although it has only been around since 1927, it’s one of the most financially stable life insurance companies there is, and its strong financial outlook is probably a reflection of its commitment to customer service.
American Family Insurance also offers options to help you and your family plan for retirement and other life changes. Its Flexible Life Insurance plan can help you save, and you have the option of insuring your children so that when they grow up, they already have a cheap life insurance plan that has cash value.
Unfortunately, American Family Insurance is only available in 19 states, so you might not be able to take advantage of everything this company has to offer. However, you can quickly find out if you can use its services by putting your ZIP code into the life insurance calculator.
Ready to purchase life insurance? Get quotes using our FREE tool.
American Family Insurance’s FAQs
#1 – I have a chronic health issue. Will American Family Insurance still insure me?
American Family Insurance has several no-exam options available for people who have chronic health conditions. All insurance plans also come with an accelerated death benefit rider so that if your condition becomes terminal, you can access benefits to help defray your medical costs.
#2 – I am a grandparent considering how best to financially support my grandchildren. What benefit is there if I buy Children’s Whole Life Insurance for them?
There are several benefits to purchasing life insurance for children.
- You lock in a low life insurance rate for them so that when they are adults they don’t have to first worry about finding life insurance at an affordable rate.
- You make sure that when they grow up they have life insurance. This is important because many young people think they don’t need life insurance or don’t want to spend money on it, and either don’t have it when they need it or end up paying more later on in life
- You provide them with a nest egg to start their adult life with. Whole life insurance policies gain cash value over time, so if you buy one for a child now, when they are an adult it’ll be worth thousands of dollars
#3 – What can I do if American Family Insurance isn’t available in my state?
If American Family Insurance isn’t available in your state, you’ll have to buy coverage from another provider. However, you can contact American Family Insurance and let the representative know that this company would be your first choice if it was available. As the company grows, it may expand into more states, especially if it knows there’s a demand in a certain area.
#4 – With so many plans available, how do I know which one is best?
Every situation is different, so it’s best to talk with a financial advisor before buying life insurance. You can use the Life Insurance Calculator to get quotes for all the plans you qualify for and then talk to your American Family Insurance agent to find out which one is best.