Aflac vs. USAA Life Insurance [2024]

In the competitive arena of life insurance, AFLAC and USAA vie for the top spot, offering distinct advantages in coverage rates, options, discounts, and customer satisfaction. As we dissect their respective strengths, AFLAC stands out with its specialized focus on supplemental health insurance, providing crucial cash payouts for daily living expenses during covered incidents. Meanwhile, USAA’s comprehensive range of insurance options caters not only to military personnel but extends its benefits to a diverse customer base.

AFLAC

AFLAC Business Model

AFLAC was originally founded as American Family Life Insurance Company in 1955 by three brothers in Georgia; it now serves over 50 million people in the U.S. and Japan. How does this Fortune 500 company stay successful in the extremely competitive insurance market?

According to the AFLAC business model, it is about providing excellent customer service and relevant insurance products within the “supplemental health insurance” niche category that it has diligently carved out for itself.

AFLAC provides coverage for unexpected out-of-pocket expenses relating to covered incidents as well as cash payouts for daily living expenses such as groceries, transportation, utility bills, and mortgage payments while one is out of work due to a covered incident. This can greatly help when an individual is already in a tough financial situation.

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USAA Business Model

A group of U.S. Army personnel, who were considered to be “high-risk” customers for automobile insurance, founded the United Services Automobile Association (USAA) in 1922 to meet the auto insurance needs of military personnel. Today, USAA is primarily known as a financial services company that offers insurance products primarily in the Property & Casualty and Life insurance categories.

AFLAC vs. USAA: Types of Insurance Products

AFLAC and USAA provide unique insurance products to meet the needs of their customers, each with its own dedicated team. Most of the companies’ products are customizable to give each customer the value they expect from these leaders within the insurance industry.

The customer reviews for both companies are both more positive than negative, which is a testament to potential consumers seeking a wide range of options for insurance coverage.

AFLAC Product Line

AFLAC offers a variety of medical and life insurance policies. Let’s take a look at the coverage options available.

Accident Insurance

AFLAC’s Accident Insurance pays cash directly to its customers when covered accidents occur. Accident Insurance benefits are designed to cover ancillary expenses not insured by regular health insurance policies such as ground and air ambulatory transport, concussions, and broken teeth.

AFLAC even pays for follow-up treatments such as physical therapy. Its Accident Insurance pays cash for living expenses when a person is no longer able to work for an extended period of time.

Cancer/ Specified Disease Critical Care & Recovery

The unexpected and dreaded diagnosis of cancer or any major illness may be daunting, but AFLAC’s Cancer Critical Care & Recovery Insurance may ease the financial stress of meeting the growing costs of treating and recovering from cancer.

This product offers customers insurance that will cover experimental cancer treatment, out-of-network specialists, travel expenses to see out-of-town specialists and other insurance deductibles. Cash is paid directly to the customer for living expenses such as childcare, housekeeping, mortgage payments, car payments, and utility bills.

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Read more: Best Life Insurance Policies for Cancer Patients

Critical Care & Recovery

Serious health issues such as heart attack, stroke, kidney failure, and third-degree burns are covered by AFLAC under its Critical Care & Recovery Insurance. AFLAC pays the cash directly to the customer or the customer’s designee to cover expenses such as bypass surgery, major organ transplants, and paralysis to name only a few.

Dental Insurance

AFLAC offers a great dental insurance product specially designed for those whose regular insurance policy doesn’t have a dental addendum. With AFLAC’s Dental Insurance, customers do not pay yearly out-of-pocket deductibles, and they may see any dentist they prefer without network constraints.

Life Insurance

AFLAC offers term life and whole life insurance to its customers along with customizable riders to meet the unique needs of just about anyone. Each life insurance product pays death benefits such as funeral/burial costs, uninsured medical costs incurred prior to death, and payment of any outstanding bills. Each product covers future income replacement, retirement, and education expenses for family members.

Term Life insurance pays the benefit over a predetermined term of 20 to 30 years; the benefit expires at the end of the term. Whole Life insurance doubles as an insurance policy that pays death benefits and is an investment tool. The investment element of Whole Life insurance allows customers to collect payments or borrow against the policy; the policy remains active as long as the premiums are paid.

Other insurance products covered by AFLAC are Hospital Confinement Indemnity, Sickness Indemnity, Intensive Care, Juvenile Life, Lump Sum Cancer, Lump Sum Critical Illness, Vision, and Short Term Disability. AFLAC’s mission is to continuously grow its product line in response to customer needs.

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USAA Product Line

USAA’s product line includes homeowners insurance, life insurance, and car insurance. Here are the policy types available for each.

Home & Property Insurance

USAA provides homeowner’s Insurance that protects valuable assets from fire, theft, vandalism, and some weather-related damage. Depending on the extent of the home’s damage, USAA offers 100% replacement costs at current construction rates and 75% of the value of the home’s personal property content.

USAA’s Renter’s Insurance covers damage to personal property due to theft, fire, flood, and some moving losses; the cost of coverage starts at only $10/month for $2500.00 of personal property coverage.

Life Insurance

USAA offers 5 different types of life insurance including Level Term, Military Term, Universal Life, Whole Life, and a Combination insurance policy. The Level Term and Military Term policies pay death benefits akin to the Term Life insurance policy offered by AFLAC and other leaders in the industry; the Military Term policy provides an additional $25,000 severe injury benefit.

The Universal, Whole, and Combination Life insurance policies provide similar coverage to the Whole Life insurance policy provided by AFLAC; the differences among these insurance policies relate to payment and term flexibility.

Automobile Insurance

USAA still offers the product that got the company off to a good start in 1922. It offers a variety of vehicle coverage based on the needs and budget of the customer. USAA also offers good student and safe driver discounts as well as Accident Forgiveness options much like the top auto insurers in the industry.

It offers its customary perks to the military; for example, cars garaged on base receive up to a 15% discount on premiums.

USAA has traditionally maintained a presence in the Property and casualty Insurance segment and is doing very well in the Life Insurance segment. It has expanded its product line into specialty property insurance, special event insurance, annuities, and business insurance which allows it to leverage its expertise in financial services.

AFLAC and USAA Likely Competitors

While AFLAC and USAA currently serve different market categories within the insurance industry, their growth strategy may force them to compete more directly in the future. Both companies are beginning to offer products outside of their traditional insurance market categories.

AFLAC offers retirement benefit products through its Wingspan Service and Solutions division. USAA offers long-term care insurance, health insurance, and Medicare solutions to a certain degree providing AFLAC with a little competition in its niche “supplemental health insurance” category. Both companies provide a high-level quality of insurance coverage, but it is still good to shop around.

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Read more:

• Aetna vs. USAA Life Insurance
• Amalgamated Life vs. USAA Life Insurance
• Indemnity vs Expense-Incurred Long-Term Care: What You Need to Know

Aflac vs. USAA Life Insurance: Claims Process Uncovered

Ease of Filing a Claim

When it comes to the claims process, both AFLAC and USAA offer convenience to their policyholders. They provide multiple options for filing claims, including online, over the phone, and through mobile apps. This flexibility ensures that policyholders can choose the method that suits them best, making the claims process more accessible and user-friendly.

Average Claim Processing Time

The speed at which insurance companies process claims is crucial for policyholders who rely on timely payouts. While specific processing times may vary depending on the nature of the claim and individual circumstances, both AFLAC and USAA aim to process claims efficiently.

However, it’s essential to check with each insurer for the most up-to-date information on their average claim processing times.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback provides valuable insights into the satisfaction of policyholders when it comes to claim resolutions and payouts. Both AFLAC and USAA have received positive reviews from customers, indicating that they are generally reliable and responsive when it comes to addressing claims.

However, individual experiences may vary, so it’s advisable for potential policyholders to research and read customer reviews to get a better understanding of each insurer’s track record in this regard.

Mobile App Features and Functionality

In today’s digital age, insurance companies have developed mobile apps to enhance the customer experience. Both AFLAC and USAA offer mobile apps with various features and functionalities, allowing policyholders to manage their accounts, file claims, and access important policy information on the go.

These apps are designed to make it more convenient for policyholders to interact with their insurers.

Online Account Management Capabilities

In addition to mobile apps, both AFLAC and USAA provide robust online account management capabilities. Policyholders can log in to their accounts through the insurers’ websites to view policy details, make payments, and update their information.

This online accessibility simplifies the management of insurance policies and ensures that policyholders have easy access to their important documents.

Digital Tools and Resources

To further assist policyholders, AFLAC and USAA offer digital tools and resources to educate and support them in making informed decisions about their insurance coverage. These resources may include calculators, educational articles, FAQs, and other online tools that help policyholders understand their policies better and choose the coverage options that suit their needs.

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