InsuredBetter's 5Star Life Insurance Score
3 Stars
We award 5Star Life Insurance a final rating of 3 out of 5 stars. The carrier’s affiliation with the AFBA and strong financial strength are huge pros within the insurance industry, but a concerning number of customer complaints clearly demonstrates that 5Star Life still has plenty of room to grow in certain areas. Additionally, 5Star Life’s rates are said to be higher than comparable coverage options from other carriers. The carrier’s official website also leaves much to be desired, as does their customer service availability. Most other modern insurance carriers offer claims filing online through their website, which makes 5Star Life feel a bit stuck in the past. However, the fact that 5Star Life offers no-exam life insurance policies makes them an ideal choice for customers who just want coverage without having to undergo a doctor’s visit. The carrier also offers payouts to the families of service members who are killed in the line of duty, and offers protection for policyholders’ family members, which certainly makes them a respectable choice for life insurance coverage.
5 Star Life Insurance At a Glance:
- Founded in 1996
- Offers life insurance for military service members
- Part of the Armed Forces Benefit Association (AFBA)
- “A-” (excellent) rating by AM Best
- “A+” (excellent) rating by the Better Business Bureau
- Strong financial stability
- Offers employee, group, and individual policies
- Offers no-exam life insurance
- Coverage available to individuals and employees
- Network of independent insurance agents
5Star Life Insurance Pros and Cons:
| Pros: | Cons: |
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Offers coverage to military members and federal government workers, as well as first responders
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Coverage only offered to military service members, federal government employees, and first responders
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Great ratings from both AM Best and the BBB
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Rates are higher than some comparable carriers
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Strong financial strength and stability
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Carrier has not been around as long as many others
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Offers payouts for service members who are killed in the line of duty
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Coverage not offered through every employer
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Coverage is available to service members’ family members as well
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Carrier does not offer universal or whole life insurance
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Offers no-exam coverage
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Concerning volume of poor ratings from customers
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Does not penalize applicants for smoking or other choices that could influence health
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Works with independent insurance agents
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What Type of Insurance Does 5Star Life Offer?
A specialty insurance company, 5Star Life focuses their efforts on life insurance. Their coverage offerings include:
- Basic life and AD&D insurance: A combination of term life insurance and accidental death and dismemberment coverage.
- Family protection plan: Includes terminal illness coverage for spouses and dependent children.
- Group accident plan: Covers treatment for employees after an accident resulting in an injury. Can also be applied to the employee’s family members.
- Group critical illness insurance: Provides payouts upon the diagnosis of illnesses in specific categories, including cardiovascular conditions and cancer diagnoses.
- Healthcare indemnity insurance: Provides cash benefits to employees who are hospitalized.
If you’re an individual or employee who is a military service member, first responder, or federal government employee and you’re in the market for life insurance, 5Star Life may be the right carrier to meet your needs.
What to Know about 5Star Life
5Star Life was founded in 1996 as a part of the AFBA, which started offering life insurance coverage to service members in 1947. Though 5Star Life is a relatively new carrier, being the primary life insurance underwriter for the AFBA, which has more than 70 years of experience in the insurance industry, aids its credibility considerably.
Coverage is offered nationwide through 5Star Life. The carrier now has more than 800,000 policyholders, and nearly $42 billion of in-force insurance. 5Star Life has also been evaluated as having better-than-average liquidity and surplus. The carrier’s LinkedIn page states that they have between 51 and 200 employees in their workforce.
The history of the AFBA and 5Star Life’s high ratings through both the BBB and AM Best aid the carrier’s reputation as a financially stable insurance provider. AM Best, the leading global credit rating agency monitoring the insurance industry, gives 5Star Life an “A-” rating, indicating the carrier is an excellent choice for insurance customers. The “A-” rating assures customers that 5Star Life Insurance is capable of offering guaranteed, secure coverage from a trustworthy and reputable carrier.
Established in 1899, AM Best is one of the oldest rating companies in the world. Reviews from AM Best indicate an insurance company’s financial strength and creditworthiness, and are based on comprehensive evaluations of the company’s operating performance, business profile, and balance sheet. For customers who aren’t as familiar with insurance companies’ reputations, AM Best’s rating system allows them to make an informed decision about who they can trust to meet their needs in the short term, and also to remain a strong, financially sound company in the long term.
What Discounts Does 5Star Life Offer?
Though 5Star Life doesn't readily provide information about any specific discounts offered, there are several discounts and ways to save money on premiums that are commonly offered to customers who purchase life insurance. These discounts and premium-saving hacks can include:
- Healthy blood pressure discount: Offered to life insurance customers who have what’s considered to be a healthy blood pressure upon evaluation.
- Healthy BMI discount: Offered to life insurance customers who are found to have a healthy body mass index (BMI) upon evaluation.
- Safe hobbies discount: Offered to life insurance customers who do not partake in dangerous hobbies such as sky diving, rock climbing, etc.
- Safe occupation discount: Offered to life insurance customers who work in safer occupations that are not typically life-threatening.
- Non-tobacco use discount: Offered to life insurance customers who report not using tobacco products in any form.
An independent insurance agent can help you find out for certain which specific discounts are available through 5Star Life, in order to help you get the most bang for your buck out of your coverage.
5Star Life Customer Service
5Star Life allows customers to handle customer service issues over the phone or online. The following customer service options are available:
- Claims reporting via phone or email only.
- Customer service department is available during the following hours:
| Days | Hours (EST) |
| Monday-Friday | 8:00 am - 6:00 pm |
5Star Life sells insurance through a large network of brokers, including independent insurance agents. These agents are also available to handle claims and insurance concerns for you, making customer service even easier.
5Star Life FAQs
What is 5Star Life's average claim response time frame?
5Star Life provides a toll-free phone number for customers to report claims. Unfortunately, the carrier does not offer a specific claims response time frame on their official website or through their social media, though their Facebook page states that they typically respond to inquiries within one day. The carrier’s official website states that after you contact 5Star Life, they will respond “as soon as possible.”
What is 5Star Life's customer service availability?
5Star Life offer restricted customer service hours and is only available via phone Monday-Friday. However, customers can fill out the contact form on the carrier’s website or submit email inquiries at any time. The carrier also accepts and responds to messages through its Facebook and Twitter pages.
What is 5Star Life's claims process?
5Star Life handles claims primarily over the phone. Separate phone numbers are provided for family protection plan, critical illness, and group life claims, and for final expense claims. Multiple claims forms are also available through the carrier’s website. Unfortunately, however, the carrier’s official website provides virtually no other information about their claims process, including a response or reimbursement time frame, how to check a claim’s status, etc.
Does 5Star Life create a user-friendly experience for customers?
For both current and prospective insurance customers, 5Star Life’s official website leaves a lot to be desired. The website is not laid out in the most intuitive way, and a disturbing amount of pertinent information seems to be missing entirely. Further, the carrier’s options for contacting them seem extremely limited and don't induce confidence about receiving a prompt response or help with an inquiry. Claims cannot even be filed through the carrier’s website.
However, for fans of social media, 5Star Life has a presence on Facebook, Twitter, and LinkedIn, which does increase their accessibility. Overall, 5Star Life is lacking in the user-friendly department.
Sources
5starlifeinsurance.com
ambest.com
https://www.bestliferates.org/companies/5star-life-insurance-company/
https://www.bbb.org/us/va/alexandria/profile/life-insurance/5-star-life-insurance-company-inc-0241-7002888/customer-reviews
