Life insurance is the contract held between the insurer and the insurance policy holder in which the insurer promises to pay certain monetary benefits to the policy holder’s beneficiary. With time, insurance plans have undergone significant advancement and various unique terms have been introduced to secure the future of the policy owners. Plenty of insurance providers are contending with each other and bringing in innovative schemes to outperform their contestants. Two eminent names in this field are AFLAC and Life Insurance Company of The Southwest. Following is a comparative study between these two providers, their policies and terms.
One way to narrow down your choice of providers is by inputting your ZIP code above and using our FREE comparison tool!
AFLAC Incorporated- About the Company
AFLAC Incorporated was established in the year 1955, in Columbia, Georgia. The company offers wide variety of policies although it is much popularly known as a supplemental health insurance provider in the US. They prefer to call themselves the most legitimate insurance provider that insures ‘one of every four Japanese households’ as they offer highest number of individual life insurances in Japan. Almost 72,500 agents of AFLAC currently function in US. In 2009, the company acquired ‘Continental American Insurance Company’.
Fiscal Statistics of AFLAC
AFLAC was founded by John, Bill and Paul Amos, three brothers from Columbia. The present name was given in 1964. AFLAC accumulated 6,246 policy owners in its very first year and the journey continues till date. In 2009, the annual revenue earned by AFLAC was $18,254 million and net income was $1497 million. AFLAC operated from an eighteen storied building in the downtown area of Columbus which happens to be the tallest building of the city. By 2009, the company has provided insurance to more than 60 million consumers across the globe.
Policies Offered by AFLAC
Though Aflac happens to be the largest contributor for guaranteed-renewable insurances, they also have various other policies on offer that cover a comprehensive range of future and life protection needs. Following are the types of policies AFLAC offers:
Accident: When unforeseen accidents and related health hazards occur to AFLAC consumers or their family, the company pays cash benefits immediately so that one can deal with the day to day expenses that add up in no time at all. The benefits include medical bills, groceries, deductibles and transportation costs.
- Life: AFLAC provides both term life and whole life insurances to meet the specific needs of their consumers.
- Hospital Confinement Indemnity: In case, the insured person is compelled to stay confined in the hospital for undefined period, Aflac pays benefits for the medical bills and other unexpected expenses.
- Cancer/ Other Specified Disease: This insurance plan provides complete coverage for fatal diseases like Cancer or other specified diseases.
- Lump Sum Cancer: This policy offers pre-established cash amount to the cancer sufferer or his/her family so that they can spend the amount according to necessity.
- Hospital Confinement Sickness Indemnity: It covers all associated expenses for the insured person when he/she is confined in hospital due to illness.
- Dental: AFLAC dental policy covers expenses for regular dental checkups like cavities, cleanings, root canals and fillings.
- Vision: This particular policy covers all sorts of diagnostic tests and treatment costs to protect the vision of the policy holders.
- Hospital Intensive Care: This policy helps the insured with direct monetary compensation in case he/she is under treatment in ICU.
- Lump Sum Cancer Critical Illness: This insurance policy helps the insured with a pre-decided amount in case he/she suffers from ailments like paralysis, heart attacks or strokes.
- Short Term Disability: In case of off-duty injuries or short term disabling conditions, this policy offers monthly benefits to help you pay daily expenses.
- Juvenile Life: It provides life coverage for juveniles and under-aged people.
Aflac insurance policies also cover medical un-reimbursed expenses and bills for dependant daycare.
Life Insurance Company of the Southwest is a distinguished provider for retirement products and savings benefits. Its plans and retirement options offer both premium-deferred flexible policies and single plans along with ‘equity indexed annuity’. The company was set up in 1955, in Dallas, Texas. The company holds license to operate in 49 states of America and also in the Columbia district. The total asset value of the company is $6,525,364,390 and net surplus is worth $417,121,367. Currently it operates as the subsidiary of National Life Insurance Company.
Insurance Plans Offered by Life Insurance Company of the Southwest
Following are the popular life insurance plans offered by the Life Insurance Company of the Southwest:
- Term Life: Term life insurance incurs less premium cost which implies that it makes an easy alternative to permanent life insurance. But these insurances can be converted into permanent insurance over time. It is a perfect option for young people who have less flow of cash yet higher protection needs.
- Whole Life: Whole life insurance, also known as traditional or permanent insurance, provides life coverage to you and your loved ones throughout the lifetime. The death benefits are offered till the insured person continues to pay premium.
- Universal Life: This policy offers ultimate flexibility for both death benefits and premiums payable. This policy can be adjusted according to individual needs for life insurance.
- Indexed Universal Life Insurance: IUL again provides premium flexibility and adjustable death benefits so that the insured people can choose their policies as per convenience.
- Variable universal Life: VUL contracts are market sensitive in nature and they are sold according to prospectus. Apart from flexibility for death benefits and premiums, it also offers growth of tax deferred cash value associated with the equity performances of sub accounts. It is an ideal plan for people who wish to see their cash value partake market equity performance along with the coverage of life insurance.
Comparison between AFLAC and Life Insurance Company of the Southwest
The main differences between these two insurance companies can be summed up in four points:
1. Aflac aims at providing supplementary insurance for various expenses and requirements that people face day in and day out. On the other hand Life Insurance Company of the Southwest caters to the traditional insurance needs of people.
2. Aflac makes business at the International level wherein LSW is limited to state level. The annual net surplus of Aflac is much higher than LSW.
3. Aflac provides protection for apparently trivial needs of people (For example: vision, dental, hospital indemnity, juvenile life) but in practical scenario, they come in significantly handy. However LSW offers insurance plans that are traditionally known for long term benefits.
4. Aflac operates as an independent company wherein LSW operates under the name of National Life Group.
Choosing between Aflac and LSW
Both Aflac and LSW have their own set of features and benefits that can be chosen according to the specific needs of individuals or organizations. Getting a quote is always free; so it is certainly wiser on your part to weigh the advantages of both brands and their products before making the final decision.
To ease your decision about which company to employ, try our FREE comparison tool by inputting your ZIP code at the top of the page!