Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Amalgamated Life and Federated Insurance are both solid, reputable companies offering a wide range of insurance products. Before an accurate comparison can be undertaken, it is important to understand the difference between group insurance and personal insurance.

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Most people have had to buy insurance at one time or another. Insurance that is purchased by an individual is personal insurance. Examples are auto insurance, life insurance and homeowner’s insurance.

Group insurance is insurance purchased by business owners, managers, unions or other organizational leaders and offered to the group at an equal rate. Health insurance, when offered by employers, is an example of group insurance.

Amalgamated Life and Federated Insurance both offer group insurance products. Employers can purchase the group insurance product and then offer it to each of their employees at the set rate.

The advantage of group insurance is that it is very cost effective. Everyone in the group pays the same premium rate, whereas the cost of life insurance purchased individually is determined by a number of personal risk factors.

Company History and Rating

Amalgamated Live vs Federated Life Insurance CompanyFederated has been in business since 1904 and has an A.M. Best rating of “A” excellent.

A.M. Best is a nationally recognized rating agency, similar to Standard & Poors, but its primary focus is on the insurance industry. The ratings reflect the company’s financial stability and ability to pay out claims.

Amalgamated Life was started in 1943 and also carries an “A” rating from A.M. Best. These ratings mean that both companies are financially solvent

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Specializations

Federated specializes in business insurance for selected industries including: auto service centers, jewelry retailers, machine and tooling shops, contractors, motorcycle dealerships, heavy equipment manufacturers, and dairy equipment dealers.

Amalgamated Life, self described as, “America’s Labor Insurance Company,” focuses mainly on America’s unions. It’s a niche they have spent years developing and what they are best known for. However, Amalgamated also works with trust fund managers, and other organization leaders.

Life Insurance Products

Amalgamated versus Federated Life

Federated offers both personal (group) and business life insurance. Federated’s personal life insurance is a term life insurance designed to aid in estate planning and to provide income for survivors. Federated’s business life insurance provides debt protection and aids in succession planning in the event of the death of an owner or key employee.

Amalgamated offers term life insurance with a variety of coverage amounts and the ability to convert to an individual permanent policy without a medical exam.

When term insurance expires, individuals still wanting or needing insurance often must set out on their own and purchase a policy based on a medical exam and various risk factors. For someone who is elderly or has a medical condition, this can be very costly.

The ability to convert a term policy to an individual permanent policy without the medical underwriting, such as Amalgamated offers, can save an individual thousands of dollars or in some cases enable an individual to keep life insurance they might not otherwise  qualify for.

Disability Insurance Products

Federated offers disability insurance that is non-cancelable and guaranteed renewable. Disability insurance provides income for employees who are unable to work due to accidents or illnesses. Federated offers:

  • A “back-to-work part-time” benefit
  • Payments for rehabilitation
  • 24 hour coverage
  • Preferred risk rates

Amalgamated offers short term and long term disability insurance. Both are designed to provide members with income in the event of an accident, illness, or pregnancy.

Amalgamated’s long term disability benefit and duration of coverage can be tailored to a specific groups needs.

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Other Amalgamated Insurance Products

Accidental Death and Dismemberment- In the event of an accidental, serious injury, such as loss of a limb, paralysis or an accidental death that occurs on or off the job this accidental death and dismemberment coverage pays the insured or their beneficiary the amount of the insured’s basic life coverage.

Amalgamated Life Versus Federated Life

Medical Stop Loss- Medical Stop Loss insurance provides liability limits on claims for individuals and for the employer group as a whole. If claims exceed set deductibles, the stop loss insurance starts up, protecting the organization from catastrophic losses. Amalgamated offers specific stop-loss and aggregated stop-loss, protecting the employer from both high individual claims and a high volume of claims.

Dependent life insurance, retiree life coverage and supplemental life insurance:

  • Dependent life insurance can help cover the costs of funeral and other expenses in the event of death of a spouse or children.
  • Retiree life coverage gives employers the option of offering a group rate insurance policy to union retirees.
  • Supplemental life insurance offers members the option of purchasing extra financial security in addition to that provided by employers.

Amalgamated Life Versus Federated Life Insurance

Amalgamated offers several voluntary insurance options: Workers Life Plus, Workers Life Level, Critical Illness Protection, and Employee Life Option.

Workers Life Plus is a decreasing term life policy. The premium remains the same throughout the policy, while the coverage amount declines with age.

With Workers Life Level, the benefit amount stays the same throughout the policy, while the premium rises with age.

Critical Illness Protection pays out a lump sum when one of the following critical illnesses or incidents occur: diagnoses of cancer, coma, heart attack, kidney failure, paralysis, stroke, organ transplant, or if the covered person has to spend 30 or more consecutive days in the hospital.

Similar to whole life insurance, ELO offers guaranteed premiums coverage along with the ability to earn interest on the policy’s value.

Other Federated Insurance Products

Property and Casualty Coverage- Federated creates unique coverage packages for the needs of specific industries. Coverage needs for a jewelry retailer would differ from that of an auto service company.

Group Health Insurance- Federated Health Choice® (FHC) is designed for small to mid-sized businesses. It offers a Preferred Provider Option (PPO), in which individuals select their own doctors and do not need referrals, and an open formulary list, meaning no drugs are excluded from coverage.

Group Dental Insurance- Federated’s dental plan pays 100% of preventive care, 80% of basic services, such as fillings, and 50% of major services, such as crowns and bridges.

Other insurance- Federated also offers the following: environmental liability, professional liability, dwellings, personal liability exposures, special events, workers compensation, excess liability, foreign exposures, and ocean marine risks.

Personal Insurance- For Minnesota residents only, Federated Direct® offers several personal insurance policies: auto insurance, homeowners and renters insurance, and personal umbrella insurance.

These policies can be purchased by the individual directly.

The Decision: Amalgamated Life or Federated Insurance?

Several factors should be considered when selecting an insurance company including the specific needs of the business or organization, and the financial stability and customer service of the insurance company. Amalgamated has years of experience, and has carved a niche for itself working with union organizations.

Amalgamated Live vs Federated Life

For smaller businesses with unique needs, a tailored plan with Federated Insurance is definitely worth looking into.

As noted above, both Amalgamated Life and Federated Insurance are financially stable. The value of good customer service should not be underestimated.  Most companies will provide references or other verification of quality customer satisfaction.

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