Aflac expands consumer-directed portfolio in U.S. with addition of Final Expense Whole Life and Medicare Supplement Insurance

Rhea-AI Summary

Aflac Incorporated has introduced two new consumer-directed insurance products: Aflac Final Expense Whole Life Insurance and Aflac Medicare Supplement Insurance. These offerings, underwritten by Tier One Insurance Company, aim to support individuals and families facing end-of-life expenses and gaps in Medicare coverage. The Final Expense insurance helps cover significant costs such as medical fees, legal expenses, and funerals, with policies available for ages 45 to 80. The Medicare Supplement policies cover expenses not included in Medicare, allowing seniors to enjoy retirement with less financial stress.

Positive

• Introduction of Aflac Final Expense Whole Life Insurance and Aflac Medicare Supplement Insurance expands product offerings.
• Final Expense insurance addresses high out-of-pocket costs that average nearly $10,000 per year.
• Medicare Supplement plans reduce financial burden for seniors, allowing more freedom in choosing healthcare providers.

Negative

• None.

New products, underwritten by Tier One Insurance Company, help provide protection for individuals and their families when, where and how they need it most

COLUMBUS, Ga., Aug. 4, 2022 /PRNewswire/ -- Aflac Incorporated today announced the introduction of two new consumer-directed products: Aflac Final Expense Whole Life Insurance and Aflac Medicare Supplement Insurance. These products — underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated — are part of a robust portfolio of supplemental coverage options for those unable to access Aflac products through the workplace.

"This product expansion represents not only new offerings, but a bold new senior strategy that leverages Aflac's strong brand recognition and affinity, particularly with retiring Americans who are seeking to continue their trusted relationship with Aflac by supplementing their Medicare benefits," said Aflac U.S. Deputy President Virgil Miller. "In providing this competitive product lineup to seniors, we have partnered to support product development, risk transfer and administration." 

Aflac Final Expense Whole Life Insurance

With Aflac Final Expense Whole Life Insurance, policyholders can help protect their loved ones' financial security by helping to pay for end-of-life expenses not covered under Medicare and other programs, while also encouraging families to address uncomfortable discussions about final expenses.

"Processing the loss of a loved one takes an emotional toll on families and many often face financial stress while grieving. It is important for families and individuals to be prepared in order to help alleviate the financial burdens placed on loved ones during intensely sensitive times," said Jeramy Tipton, SVP Distribution Expansion and Consumer Markets. "End-of-life medical, legal and funeral costs can be substantial. Aflac Final Expense is designed to help take that weight off grieving families' shoulders so they can focus on what matters."

The average out-of-pocket medical expenses during one's last year of life can total nearly $10,000.¹ In addition to these expenses, there are often significant costs involved when settling a loved one's estate, and the median funeral expenses are almost $8,000.² Considering that nearly 50% of American workers say they would not be able to pay more than $1,000 in out-of-pocket medical costs in the event of an accident or injury,³ Aflac's Final Expense Whole Life Insurance can help protect loved ones from inherited expenses.

Aflac's Final Expense Whole Life Insurance is available in two options: the Level Plan and the Modified Plan. Both plans include a guaranteed level premium — meaning premiums will never increase — and a guaranteed death benefit paid to the beneficiary while the policy is active. Plans are available for individuals age 45 to 80. Benefit amounts range from $2,000 to $50,000, depending on the plan selected. The level plan also offers the option to elect accelerated and accidental death benefit riders, as well as a children's term insurance rider.

Aflac Medicare Supplement Insurance

While Medicare provides coverage for health-related expenses, it doesn't cover all costs — such as copayments, coinsurance and deductibles. Because consumers need a way to help manage expenses during retirement, Aflac introduced its Medicare Supplement Insurance policies to help fill some of these coverage gaps.

"Seniors have worked their entire lives toward this milestone: retirement," said Tipton. "With the addition of Medicare Supplement Insurance, we are able to help reduce the burden of financial stress so that policyholders can focus on enjoying their retirement years as much as possible."

With Aflac's Medicare Supplement plans A, F, G, and N, consumers will have the freedom to choose any provider that accepts Medicare at a convenient location that best meets their needs, without precertification or pre-authorization. Plan benefits remain the same year after year and are portable, so if policyholders move or travel, their coverage goes with them.

To better serve the non-workplace individual market, Aflac's Final Expense Whole Life Insurance and Medicare Supplement Insurance join other offerings, including Accident, Cancer and Critical Illness products that launched last year. Aflac's consumer markets portfolio of individual insurance products is available through Aflac Tier One distribution partners and direct to consumers by visiting Aflac.com.

Aflac Final Expense Insurance: Coverage may not be available in all states including but not limited to NM or NY. Benefits/premium rates may vary based on coverage selected. Optional riders may be available at an additional cost. Policies have limitations and exclusions that may affect benefits payable. Refer to the specific policy and rider form(s) for complete details, definitions, limitations and exclusions. In AR, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company.

Aflac Medicare Supplement Insurance policy series AFLMS. Coverage not available in all states, including but not limited to NM or NY. Some plans may be available to qualified consumers under age 65. Plans not available in all states. Benefits/premium rates will vary based on coverage selected. For complete details of benefits, definitions, and exclusions, please carefully read the outline of coverage and policy forms, and refer to the "Guide to Health Insurance for People with Medicare." Aflac Medicare supplement insurance is not connected with or endorsed by the U.S. government or the federal Medicare program. All benefits payable under the policy are based upon Medicare-eligible expenses (as applicable). In Idaho, policies AFLMSP22A-ID, AFLMSP22F-ID, AFLMSP22G-ID, AFLMSP22N-ID. In Oklahoma, policies AFLMSP22A-OK, AFLMSP22F-OK, AFLMSP22G-OK, AFLMSP22N-OK. In Virginia, policies AFLMSP22A-VA, AFLMSP22F-VA, AFLMSP22G-VA, AFLMSP22N-VA. Aflac Medicare Supplement insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated, and is administered by Aetna Life Insurance Company. 1021 Reams Blvd, Franklin, TN, 37064; Telephone Number: 833-504-0336.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL) is a Fortune 500 company helping provide protection to more than 50 million people through its subsidiaries in Japan and the U.S., paying cash fast when policyholders get sick or injured. For more than six decades, insurance policies of Aflac Incorporated's subsidiaries have given policyholders the opportunity to focus on recovery, not financial stress. In the U.S., Aflac is the number one provider of supplemental health insurance products¹. Aflac Life Insurance Japan is the leading provider of medical and cancer insurance in Japan, where it insures 1 in 4 households. In 2021, Aflac Incorporated was proud to be included as one of the World's Most Ethical Companies by Ethisphere for the 16th consecutive year. Also in 2021, the company was included in the Dow Jones Sustainability North America Index and became a signatory of the Principles for Responsible Investment (PRI). In 2022, Aflac Incorporated was included on Fortune's list of World's Most Admired Companies for the 21st time and Bloomberg's Gender-Equality Index for the third consecutive year. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to ESG and social responsibility at investors.aflac.com under "Sustainability."
¹ LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report

Media contact: Jon Sullivan, 706-763-4813 or jsullivan@aflac.com

Analyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or dyoung@aflac.com

1. Federal Reserve Bank of Richmond Working Papers: End-of-Life Medical Expense, https://www.richmondfed.org/-/media/RichmondFedOrg/publications/research/working_papers/2018/pdf/wp18-18.pdf.
2. National Funeral Directors Association 2020, http://www.nfda.org/news/statistics.
3. Aflac WorkForces Report 2021-2022, https://www.aflac.com/docs/awr/pdf/2021-overview/2021_aflac_workforces_report_executivesummary.pdf.
4. LIMRA 2021 US Supplemental Health Insurance Total Market Report.

Aflac | WWHQ | 1932 Wynnton Road | Columbus, GA 31999

 

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SOURCE Aflac

FAQ

What are Aflac's new insurance products introduced in August 2022?

Aflac introduced Aflac Final Expense Whole Life Insurance and Aflac Medicare Supplement Insurance.

How do Aflac's Final Expense Whole Life Insurance policies help consumers?

They help cover out-of-pocket end-of-life expenses that are not covered by Medicare or other programs.

What are the age requirements for Aflac's Final Expense Whole Life Insurance?

The policies are available for individuals aged 45 to 80.

What financial protection does Aflac Medicare Supplement Insurance provide?

It covers copayments, coinsurance, and deductibles not covered by Medicare.

When was Aflac's new insurance product announcement made?

The announcement was made on August 4, 2022.

Which company underwrites Aflac's new insurance products?

Both insurance products are underwritten by Tier One Insurance Company, a subsidiary of Aflac.

What is the range of coverage for Aflac Final Expense Whole Life Insurance?

Coverage amounts range from $2,000 to $50,000, depending on the selected plan.