Alfa Life Insurance Review

Name: Alfa Life Insurance Review
Item: Alfa Life Insurance Review
Author: Mark Fitzpatrick

Alfa is a highly sought-after life insurance company in the U.S., offering competitive rates and policy options to meet your family's needs. Alfa's reliable coverage allows you to secure their future, even when you're no longer with them.

By Mark Fitzpatrick

Edited by Katherine Kurtz, PhD

Updated: November 21, 2024

Advertising & Editorial Disclosure

MoneyGeek’s Take: Is Alfa Right for You?

Alfa’s simple term policy and flexible universal and whole policy options make it a good fit for younger people who need coverage they can modify or upgrade if their needs change. This provider may also interest those with pre-existing conditions or people who don’t want to take a medical exam to apply.

Alfa life insurance may not be ideal for seniors because of its limited senior-specific and final expense policy options. State Farm is MoneyGeek’s top choice for seniors.

MoneyGeek’s Alfa life insurance review can help you make an informed decision before applying.

At a Glance: Alfa Life Insurance

pros

24/7 claims reporting

Offers flexible billing options and 24/7 bill pay via phone

Various coverage options

cons

Not available in some states

Requires annual membership for Alabama residents

There might be better insurance options for seniors

COMPANY HIGHLIGHTS

Alfa life insurance is a well-known carrier in the United States that offers a variety of policy options to fit the needs of its customers.

With competitive rates and a strong reputation for customer service, Alfa provides valuable protection for families in the event of a death. According to the National Association of Insurance Commissioners (NAIC), Alfa life insurance receives minimal complaints. It has a complaint index score of zero, which falls below the national index. This insurer offers insurance like auto, home, farm and health.

Alfa offers nine life insurance products:

Level Term Plan
30-Year Return of Premium
Rapid Issue Term Life
Whole Life Insurance
Interest Sensitive Plan
Flexible Universal Life
Guaranteed Acceptance Life
Final Expenses Plan
First Step Life

All of these require a medical exam except Guaranteed Acceptance Life, Final Expenses Plan and First Step Life. Term life insurance plans usually require a medical exam, but it depends on the applicant's age.

There are advantages to purchasing permanent life insurance plans from Alfa. One includes building cash value. These policies may include accelerated death benefits to help pay for medical and other expenses if you become terminally ill. Unlike term policies, permanent life policies do not have a term limit.

TABLE OF CONTENTS

Is Alfa Right for You?
At a Glance: Alfa Life Insurance
Alfa Life Insurance Policy Options Explained
Term Life Insurance Options From Alfa
Whole Life Insurance Options From Alfa
Universal Life Insurance Options From Alfa
Final Expense Insurance Options From Alfa
Alfa Life Insurance Riders
How to Buy Life Insurance From Alfa
What to Do if Alfa Denies You Coverage

Key Takeaways

Alfa offers nine life insurance products that applicants can choose from.

There are death benefits for Alfa’s permanent life insurance plans.

Life insurance applicants might be required to undergo a medical exam depending on their age.

Alfa Policy Options Explained

According to the Life Insurance Marketing and Research Association’s (LIMRA) 2022 Insurance Barometer Study, 68% of respondents reported feeling more financially secure after acquiring life insurance. Learn about Alfa’s life insurance policy options to determine which one is the most suitable for your family's circumstances.

Term Life Insurance Options From Alfa

Term life insurance provides coverage for a specified number of years at a more affordable premium than other life insurance policies. If the policyholder passes while the policy is active, their beneficiaries can receive the death benefit payout to cover expenses such as rent, mortgage, child care and final costs.

Level Term Plan

Level Term Plans provide coverage for a specific period, usually 10 to 30 years. The policy features a level premium, meaning the cost remains the same throughout the policy term. The policyholder can renew their coverage at the end of the term or convert it to a permanent life insurance policy.

30-Year Return of Premium

The 30-Year Return of Premium policy offers level death benefit protection for 30 years. At the end of the policy term, it returns all premiums paid. If you cancel the policy early, you still might get some money back. It is an affordable option for long-term coverage with the added benefit of receiving a premium refund.

Rapid Issue Term Life

Alfa's Rapid Issue Term Life insurance policy is for individuals who need coverage quickly without undergoing a medical exam. It offers coverage worth up to $75,000, and you can receive your policy within minutes of applying online. The policy is available for individuals between the ages of 18 and 70 with a term of 10, 20 or 30 years. The policy’s premiums are fixed and will not increase during the policy term.

People at different life stages can benefit from term life insurance. Younger buyers, new families or people who have recently taken out a mortgage may find it ideal. Term life insurance is more affordable than other policies, making it manageable for those balancing other financial obligations.

Whole Life Insurance Options From Alfa

You can get long-term coverage through a whole life insurance policy by paying a set premium over time. These policies come with a cash value component that accumulates. You can borrow the accrued value against expenses like school fees or a home down payment while the policyholder is still alive.

Whole Life Insurance

Alfa offers Whole Life Insurance with different payment options tailored to diverse financial situations. The policies, including Single Pay, Ten Pay and Life Pay, provide guaranteed premiums, death benefits starting at $15,000 and a guaranteed cash value component.

While Single Pay requires a lump-sum payment, Ten Pay allows payments over 10 years. Life Pay involves payments throughout the insured's lifetime. The plan offers coverage to individuals up to 80 years of age and an interest-sensitive cash value feature.

Interest Sensitive Plan

With a death benefit starting at $15,000, Alfa’s Interest Sensitive Plan is ideal for people up to age 75. This policy provides cash accumulation that earns interest. The earnings can be used to pay your premiums.

Guaranteed Acceptance Life

Alfa’s Guaranteed Acceptance Life insurance can protect your family’s financial future by paying for things like credit card debt, medical bills and funeral costs. It is an affordable policy for people between the ages of 40 and 80. It doesn’t require a medical exam, and you won’t be turned down for medical reasons.

First Step Life

This plan is available for kids up to age 14 and offers a death benefit amount of $15,000 or more. It is an interest-sensitive policy with flexible payments.

A whole life insurance policy provides you and your child lifelong protection. This policy benefits buyers with long-term dependents or those planning their estate. The cash value component makes it a good choice for buyers with health conditions that may require long-term care.

Universal Life Insurance Options From Alfa

Universal life insurance is a type of permanent life insurance that offers lifelong coverage like whole life insurance. However, unlike whole life insurance, universal life insurance provides more flexibility since you can adjust your coverage levels to match your current needs.

Flexible Universal Life Insurance

Alfa's Flexible Universal Life Insurance policy is a permanent life insurance plan that offers flexible death benefits and premium payments that policyholders can change as needed. It also allows for temporary suspension of payments. This plan is suitable for individuals seeking flexibility in their coverage and payments. The death benefit amount is at least $25,000, and this policy is available for people up to age 80.

Universal life insurance can provide permanent coverage while allowing buyers to adjust their coverage levels based on their changing needs. This flexibility can be appealing if you want long-term protection with the ability to only pay for the coverage you need at the time.

Final Expense Insurance Options From Alfa

Final expense insurance is a type of life insurance designed for seniors or individuals nearing the end of their life. Its benefits can help alleviate the financial burden on loved ones for any funeral or end-of-life expenses that may arise.

Final Expenses Plan

This permanent life insurance policy covers final medical, burial or other expenses for people between the ages of 15 and 80. Coverage ranges from $5,000 to $15,000 and can be issued quickly without a medical exam. It's ideal if you are planning for end-of-life costs and want to provide financial protection for your loved ones.

Final expense insurance is permanent insurance that helps cover funeral or end-of-life expenses. It can be a valuable option for those who want to protect their loved ones from financial burdens after their passing.

Alfa’s Life Insurance Riders

Adding a rider to your life insurance policy allows you to customize your coverage at an additional cost. Alfa offers several riders for policyholders to tailor their coverage to fit their individual needs.

Rider	Description
Accidental Death Benefit	Pays out if the insured dies accidentally.
Children's Term Insurance	Provides a level death benefit for each insured child up to age 25. If the insured dies during the term, you must pay the policy until the child reaches age 25.
Guaranteed Purchase Option	Allows buying additional coverage at certain times even if the insured has become uninsurable due to a terminal illness.
Guaranteed Renewability Benefit	Lets you renew a Level Premium Term policy at the end of the level premium period or a Return of Premium policy at the policy expiration, regardless of health.
Premium Insurance	Prevents the cancellation of a policy on the insured's child's life until age 25 if the premium payer dies or becomes disabled. This rider is available for children up to age 14.
Spouse Level Term Option	Provides level term coverage for a spouse up to age 65. It can be converted to a permanent plan of insurance before the expiration of the rider.
Waiver-of-Premium Benefit	Keeps the insurance policy in effect without payment of premiums while the insured is disabled.

How to Get Alfa Life Insurance

If you are ready to purchase a life insurance policy from Alfa, these are some steps to follow, as well as strategies to handle a denied application.

How to Buy Life Insurance From Alfa

1
Do Your Research
Figure out which life insurance plan meets your needs. Alfa’s website allows you to compare policies and prices, ensuring you get the right coverage at a rate that fits your budget and needs.
2
Compare Quotes
By comparing quotes, you can ensure you get the best plan at the most affordable price.
3
Health Check
Medical exams can be essential when buying life insurance because they help determine your health status, which is a critical factor in determining your premium rates. Insurance providers use your health check to assess the risk they are taking by insuring you. You might be able to skip this step if you opt for a policy that doesn’t require an exam.
4
Approval
After submitting your application, the underwriting team at Alfa will review your information to assess the risk of insuring you. They may request additional information or medical exams to evaluate your health status better. Once they have gathered all the necessary information, they will determine whether to approve your application and provide a rate for your policy.

What to Do if Alfa Insurance Denies You Coverage

If Alfa denies you coverage, it's important to remember that many other options are available for life insurance. First, contact your broker and ask why your application got denied. You can also consider making lifestyle changes to improve your health. These changes might even help you access lower premiums.

Another option is exploring other life insurance options, such as final expense insurance. However, remember these policies could be expensive and more limited.

Frequently Asked Questions About Alfa Life Insurance

We responded to the most asked questions about Alfa life insurance.

Can you use your Alfa life insurance policy to borrow money?

Yes. Alfa life insurance policies that build cash value allow borrowing against the policy while you are still alive, reducing the death benefit. The amount that can be borrowed is a percentage of the cash value, and no credit check or collateral is required when borrowing against a permanent life insurance policy such as Alfa's First Step Life plan.

What’s the maximum amount of life insurance coverage available from Alfa?

The maximum amount of life insurance depends on the type of policy and the individual's circumstances. Rapid Issue Term Life coverage ranges from $25,000 to $75,000, Guaranteed Acceptance Life insurance is up to $25,000 and the Final Expenses Plan policy ranges from $5,000 to $15,000.

Do life insurance policies from Alfa pay dividends?

Policyholders who purchase whole life insurance from Alfa might be eligible to receive dividends. These dividends represent a share of the insurer's profits based on the performance of their investments.

Can you get life insurance if you have cancer?

Many of Alfa's life insurance policies require a medical exam. A pre-existing medical condition, like cancer, can impact eligibility for coverage. However, eligibility is assessed on a case-by-case basis, and some individuals with cancer may still qualify for coverage.

Do life insurance policies from Alfa cover death by drug overdose?

Coverage for drug overdose deaths under an Alfa life insurance policy depends on its specific terms and conditions. We recommend talking with an Alfa representative or agent to learn more about the policy's coverage options.

Do life insurance policies from Alfa cover death by suicide?

Generally, life insurance policies cover death by suicide, but insurers don’t cover the policyholder if they commit suicide within the first one to two years of coverage. It’s best to connect with an Alfa representative to find out how the insurer handles death by suicide.

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About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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sources

Jacqui Kenyon. "Does Life Insurance Cover Suicide?." Accessed October 30, 2024.
Lucy Lazarony and Amy Danise. "Does Life Insurance Cover Suicide?." Accessed October 30, 2024.
LIMRA. "2022 Insurance Barometer Study." Accessed October 30, 2024.
National Association of Insurance Commissioners. "Alfa Life Ins Corp National Complaint Index Report." Accessed October 30, 2024.