5 Star Life Insurance Review
Table of Contents
The most important thing to understand is that 5Star focuses on two distinct life insurance markets. First, it markets products to groups through employer-based life insurance coverage. The group policies are relatively diverse and provide some solid options for those whose workplace makes these policies available.
Secondly, 5Star markets simplified issue insurance coverage to the senior market. This can be great for those looking for final expense insurance plans.
With their strong history, we recommend that seniors look into 5Star if they are looking for final expense insurance coverage without a medical exam. Others may have to explore 5Star if and when their policies are made available by your employer.
|A.M Best Rating||A-|
|S&P Rating||Not Yet Rated|
|Customer Service Phone||800-776-2322|
|Address||5Star Life Insurance Company|
909 N. Washington St.
Alexandria, VA 22314
What we like
Coverage for Military Members and Federal Workers
5Star offers life insurance to military members and federal workers through its group offerings.
Group plans offer a small variety of flexible plans, some of which are not typically offered to individuals.
No Exam Options
Some plans require no medical exam for approval.
What we don’t like
Limited Options Based on Employer
As with any group plan, you may find your options limited by your employer.
Rates Not Competitive
While group plans may offer better pricing compared to the open market, it’s not clear that 5Star offers competitive rates for its products.
No Online Quotes
5Star offers no online quotes to form a baseline of overall cost.
Prosperity Life Insurance Products
Group Term Policies
5Star offers term life insurance to employer groups. The advantage of this plan is that groups tend to get lower rates than if they purchased a policy off the market on their own.
5Star’s core product is known as Basic Life and AD&D, which combines the features of a term life policy with an Accidental Death & Dismemberment plan. Details on this plan are a bit vague, largely due to the fact that group plans tend to be the result of a negotiation between the insurance provider and your employer.
Family Protection Plan
We especially like their Family Protection Plan, which is a form of group term life insurance that allows the applicant to add children and grandchildren to their policy, offering coverage up until they turn 23. This policy also includes living benefits, allowing the insured to borrow from their death benefit if they are diagnosed with a qualifying illness.
Group Accident Plan
This plan covers medical treatment for employees involved in any form of accident. Coverage may be extended to the insured’s family.
Group Critical Illness Insurance
If you are diagnosed with a qualifying illness, this plan provides a payout to cover medical expenses, groceries, and any other financial obligations you may experience.
Healthcare Indemnity Insurance
If you are hospitalized, this product will provide cash benefits.
The advantage of a group plan is that coverage is guaranteed, with no questions or medical exams to qualify. However, the participating group must include at least 10 employees.
Great for Families
This plan can be further modified with the addition of riders, which makes it a solid choice for employees wishing to cover their families.
Choices Limited by Employer
As with any group plan, the individual participants don’t get to set the terms. Instead, employees will choose the options provided through their employers, which can potentially be limiting.
Final Expense Plans
5Star also markets final expense plans to the senior market. Final expense plans are technically a form of whole life insurance, though the death benefit tends to be a bit lower, designed to cover medical bills, funeral bills, outstanding debts, and any other end-of-life expenses.
5Star’s final expense plans are provided with common benefits and requirements. This policy is available to applicants between the ages of 50 and 85, and the benefit ranges from $5,000 to $25,000. Premiums stay level for the duration of the policy.
As with other life insurance providers, 5Star offers two options for their final expense coverage, depending on your answers to a few basic health questions.
Silver Premier Preferred
This policy provides the full death benefit starting from the date of issue. In many cases, approval can be instantaneous, and applicants can be approved over the phone.
Silver Premier Graded
A graded policy does not provide your full death benefit until the third policy year. For the first two years, beneficiaries would be entitled to a rising percentage of the death benefit: 30% during year one, and 70% during year two. An accidental death would result in the full death benefit regardless of the policy year.
5Star offers a small variety of riders that can be used to further customize their policies. However, we should mention that it’s not always clear whether these riders will be available for group plans, which may be dependent on the employer.
Terminal Illness Rider
If you are diagnosed with a terminal illness, you are entitled to 30% of the death benefit to cover any expenses as a result of the illness.
TI Air Rider
This rider can be purchased for as low as an additional $1 per week. The rider will automatically increase coverage over time, although details are vague as to how much.
Quality of Life Rider
If you are diagnosed with an illness that requires continual care, this rider will receive a portion of the death benefit on a monthly basis. This is typically 3% or 4% per month, to a maximum of 75% of your total death benefit.
Waiver of Premium Rider
If you are totally disabled for 6 months or more, your premiums are waived without jeopardizing your policy.
Critical Illness Rider
If you experience a heart attack, life-threatening cancer, a stroke, or a similar qualifying diagnosis, you are entitled to 30% of your death benefit.
We like the fact that 5Star offers discounts to healthy members, which can help reduce costs. Discounts are available if you…
- Have healthy blood pressure
- Don’t use tobacco
- Have a healthy body mass index (BMI)
- Enjoy safe hobbies
- Work in a safe environment
However, it’s not clear as to the magnitude of a discount you should expect, nor is it clear if more than one discount can be applied per policy.
When it comes to cost, group policies tend to be difficult to evaluate, as many of the details and options are determined by your employer. Generally, though, policyholders find that they can find lower rates with a group plan, but their policy options and choices are limited by what’s available to the group. If you work in an industry that offers 5Star products, you may wish to discuss your options with your HR department or other managers to see if these policies are right for you.
If you do go with a group plan, the monthly premiums are typically deducted from your monthly pay, which ensures you never miss a payment. This can be a good option for those looking for affordable life insurance, but it largely depends on your employer and the options provided.
5Star’s final expense insurance is a solid option for seniors, and the riders and discounts offer considerable value as well. It’s possible to find lower rates elsewhere, but if you are eligible for a discount or see value in their riders, you may wish to speak with an agent about your options.
Despite being relatively new, 5Star enjoys some solid ratings from consumer associations, including the following:
- A.M. Best Rating: A-
- BBB: A
These scores convey a strong sense of reliability, indicating that they can be relied upon for a payout when the time comes.
See what you qualify for by answering some health questions.