Insurance coverage can be complicated and there are many variables to consider. One of the many variables is that insurance companies differ in the products they offer. Two such life insurance providers are: National Western Life Insurance Company and AETNA.
National Western Life Insurance Company
National Western Life Insurance Company’s primary focus is on life insurance and products to meet financial goals such as annuities and individual retirement accounts.
National Western Life Insurance Company offers both term and universal life insurance products.
- Term life insurance – Term life insurance is purchased with a fixed amount and a fixed term. A coverage amount is chosen, and one makes payments over the coverage term. A payout of insurance is made only in the event of death. At the end of the term, one has the option to renew the policy or to choose another. It is best for those who want insurance coverage only, and are not looking to use an insurance policy as an investment vehicle.
- Universal Life Insurance – With universal life insurance, a cash value is accumulated. All payments above the cost of insurance increase the cash value of the policy. Interest then accrues on that cash value, with the cost of insurance and any other applicable fees being deducted each month. This allows some flexibility in payments since one has the option to skip a payment, assuming the policy has accumulated enough value. The key point, however, is that money spent on insurance does not simply cover the cost of insurance; it grows at a rate determined by the company.
National Western Life Insurance Company has several options for life insurance including their Lifetime Returns, MAXWealth, ProviderSelect, and Omega Gold VI policies.
An annuity allows an investor to make a lump sum or fixed payments to an insurer with the understanding that the insurer will then make payments to an investor, either beginning immediately or at a future date. There are both fixed annuities and variable annuities.
- Fixed Annuities – With a fixed annuity, one is guaranteed a minimum level of interest. One is also guaranteed that the payments will be a specified amount per dollar in one’s account, and that payments will be made for a fixed amount of time, such as a certain number of years or for the lifetime of an individual or couple.
- Variable Annuities – With a variable annuity, payments are invested in mutual funds or other investment options, which determine the rate of return. Variable annuities are considered investments and may be regulated by the SEC.
Information on specific annuity options that are available through National Western Life Insurance Company is available through an agent.
A Roth Ira is an advantage in that withdrawals are usually tax free though payments are not tax deductible in the year that they are made as they are for traditional IRAs. Roth IRAs can be good for those who meet the income requirements, and are especially ideal for those who expect to be in a higher income bracket in retirement.
Information on Roth IRAs that are offered through National Western Life Insurance Company is available through an agent.
AETNA ‘s focus is on meeting a family’s insurance needs and offers a variety of insurance coverage:
- AETNA offers life insurance through an employer for an employee and his/her family. Basic and supplemental term life policies are available, as well as accidental death and personal loss insurance and dependent coverage to cover a spouse and children.
- AETNA offers both managed care plans and hospitalization/Health Savings Account plans. With managed care plans, one will pay higher premiums but will have lower deductibles and access to preventative services. Managed care plans are good for those who expect to use medical services routinely. With hospitalization/Health Savings Accounts, one pays lower premiums but will have to meet a higher deductible. The advantage to having a health savings account is that money placed in such an account will be there to pay for out-of-pocket medical expenses, but is not lost if it is not used.
- AETNA offers dental insurance coverage for employees through a company’s dental plan, and also offers individuals and families the option to add dental coverage to their selected health plan. Residents of Arizona, Delaware, Illinois, and Pennsylvania have the option to buy a stand alone dental plan.
- AETNA offers discounts on vision services. This is not an insurance policy but is offered to anyone with health or other insurance through them.
- Pharmacy plans are offered to offset the high cost of prescription drugs. However, at this time, they are only offered through employer health plans and are not available to individuals or families.
Student Health Coverage
- AETNA offers student health coverage plans through colleges and universities.
- AETNA offers behavioral health services through employer sponsored plans.
- AETNA offers disability coverage through employer sponsored plans. Disability coverage is based on one’s income, and is designed to replace that income if one is unable to work. Both short term and long term disability coverage is available.
How do they compare?
AETNA’s primary focus is on insurance needs including coverage for health, dental, and prescription drugs, while National Western Life Insurance’s focus is on life insurance, annuities, and IRAs. On the surface, AETNA’s website appears to be more user friendly and offers individuals the opportunity to compare and purchase plans online, while National Western Life Insurance seems to be aimed at working directly with an agent. Both offer plans for individuals and families.