Aflac Supplemental Insurance (2024)

More Like This:

Life Insurance with Cash Value

3 Min Read

Term life insurance is designed to help protect your loved ones financially if you suddenly pass away. It provides them with a death benefit and typically expires after 10, 20, or 30 years.

Term life insurance differs from whole life insurance and other permanent policies in that you can’t cash it out. However, you may be able to sell your term life policy. Let’s dive deeper into term life insurance, what policies you can cash out, and alternatives to cashing out a term life policy that you might want to consider.

Can you cash out term life insurance?

Since a term life insurance policy doesn’t come with a cash value component, it’s not possible to cash it out. This policy solely includes a death benefit that your beneficiaries may receive if you die before the end of the policy’s term. Permanent life insurance, such as universal and whole life policies, comes with a death benefit and a cash value account that you may can cash out while you’re still living.

Can you sell a term life insurance policy?

You may have the option to sell a term life insurance policy to a third-party company. This process is known as a life insurance settlement. Selling your policy depends on several factors, such as the insurance company you chose, how much coverage you have, and whether your policy can be converted. Keep in mind that with a life insurance settlement, you'll sell your policy for less than the death benefit.¹

Peace of mind doesn't
have to break the bank

Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.

Get a Quote

How to sell your term life insurance policy

Here are the basic steps you can take to sell your term life insurance policy:²

1. Find a reputable broker: You’ll share information and documents regarding your policy with a broker. Then, the broker will let you know whether or not it’s feasible to sell it.

2. Make a sale: The broker will do their research and likely match you to a buyer who will take over your policy. You can expect the buyer to pay the price you agreed to and make the premium payments on your behalf. Then, once you pass away, the buyer will receive the death benefit payout.

What life insurance policies can you cash out?

Here are some common types of life insurance policies that can be cashed out:

Whole life insurance

Whole life insurance lasts for the rest of your life if you continue to pay your premiums. With this permanent life policy, part of your premium payments helps build cash value, which you may be able to take advantage of through a withdrawal, loan, or policy surrender.

Universal life insurance

Universal life insurance is a permanent policy that lets you change your premiums and death benefit over time to meet your needs. There’s also a cash value account, which earns interest and allows you to withdraw money from or borrow against it. Universal life policies typically cost less than whole life insurance.³

Variable universal life insurance

Variable universal life insurance involves a cash value component that you have some control over. With this type of permanent life insurance, you can choose from various investment options that are based on market performance, rather than a specific interest rate.

Alternatives to cashing out or selling a term life insurance policy

If you have a term life insurance policy you can’t cash out and you don’t want to sell it, consider these alternatives:⁴

Adjust your term life insurance coverage

Many life insurance companies understand that life happens and are willing to work with you if your premiums are no longer affordable. If your life insurance company allows it, you can lower your coverage level and enjoy lower premiums. This option is worth considering if you’re struggling to pay your premiums.

Convert to a permanent life insurance policy

You might be able to convert your term life insurance policy to a permanent policy that builds cash value, such as whole life, universal life, or variable universal life insurance. Just keep in mind that your premium payments will increase.

Cancel your term life insurance policy

You won’t receive any benefits if you cancel your term life insurance policy or let it lapse. But going this route can get rid of your premium payments if you need to make more room in your budget.

Learn more about life insurance

Permanent life insurance comes with a cash value component that you can access in several ways. While you can’t cash out term life insurance, you can sell your policy. Additionally, you may have other options if you want to change your coverage, such as lowering your premium payments or converting to a permanent policy.

Aflac offers term life insurance with premiums that fit most budgets. But if you prefer a life insurance policy with cash value, you can consider getting a whole life insurance plan. Chat with an agent to learn more about the life insurance policies we offer and get a quote!

Still have questions?

Explore your life insurance options.

Get a Quote

Disclaimer

¹ The Annuity Expert. Can You Cash Out a Term Life Insurance Policy? https://www.annuityexpertadvice.com/can-you-cash-out-term-life-insurance-policy/. Accessed April 18, 2023.

² The Motley Fool - How to Sell a Life Insurance Policy. Updated February 21, 2023. https://www.fool.com/the-ascent/insurance/life/sell-life-insurance-policy/. Accessed April 10, 2023.

³ Forbes – Whole Life vs. Universal Life Insurance. Updated March 6, 2023. https://www.forbes.com/advisor/life-insurance/whole-life-vs-universal-life-insurance/. Accessed April 18, 2023.

⁴ Policygenius - Can You Sell Your Life Insurance Policy? Updated January 31, 2023. https://www.policygenius.com/life-insurance/can-you-sell-your-life-insurance-policy/. Accessed April 10, 2023.

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.

In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400.

Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company.

The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.

Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.

Content within this article is for informational purposes only and does not constitute legal, tax, accounting or medical advice regarding any specific situation. Aflac cannot anticipate all the facts that a particular employer will have to consider in their benefits decision-making process.

Aflac does not offer Universal or Variable Universal life insurance.

WWHQ | 1932 Wynnton Road | Columbus, GA 31999

22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

Z2300613

EXP 7/24

FAQs

What does Aflac supplemental cover? ›

Supplemental insurance can complement a variety of health insurance plans by providing specific coverage for accident, cancer, critical illness, hospital, short-term disability, dental, and vision. We can help provide support in one or multiple of these areas.

Learn More ›

Is it worth getting supplemental insurance? ›

Who buys supplemental insurance coverage and why? You may be a right fit for additional insurance coverage if you: Have a family history of certain types of diseases, such as cancer, heart disease, stroke, etc. Want additional financial protection in the event of unexpected accidents or injuries.

Know More ›

What does a supplemental insurance policy cover? ›

There are many different types of supplemental health insurance, including vision, dental, hospital, accident, disability, long-term care, and Medicare supplemental plans. There are also supplemental health insurance plans for specific conditions, such as cancer, stroke, or kidney failure.

Discover More ›

What does Aflac not cover? ›

We will not pay benefits for confinement to an observation unit, or for emergency room treatment or outpatient treatment.

Know More ›

Does Aflac pay for pre existing conditions? ›

Disability caused by a Pre-existing Condition or reinjuries to a Pre-existing Condition will not be covered unless it begins more than 12 months after the Effective Date of coverage.

See Details ›

What will Aflac pay me for? ›

Aflac can help pay for ambulance trips, physical therapy, CT Scans, MRIs, confinement, blood transfusions, and medical appliances.

State	Monthly Cost	Rank from least expensive (1) to most expensive (51)
California	$162.93	45
Colorado	$127.76	29
Connecticut	$227.06	49
Delaware	$150.99	42

Does Aflac qualify as health insurance? ›

Aflac policies are considered HIPAA excepted benefits because they are not major medical health insurance. This means they're offered separately from major medical coverage and are not an integral part of an individual's health plan.

Is Aflac accident advantage worth it? ›

Accident insurance works alongside your primary medical plan to help minimize those out-of-pocket expenses. This is one of the many reasons supplemental accident insurance is worth it. It's important to note that Aflac offers both payroll-deducted and personal accident insurance.

Learn More ›

Will Aflac pay for past medical bills? ›

If you own an Aflac policy, your cash benefits can be used to help pay your deductible and any leftover medical bills, the mortgage or rent, utilities or other expenses you may have.

See Details ›

What illnesses are covered by Aflac? ›

The Aflac Group Critical Illness plan benefits include:

• Critical Illness Benefit payable for:
– Cancer.
– Heart Attack (Myocardial Infarction)
– Stroke.
– Kidney Failure (End-Stage Renal Failure)
– Major Organ Transplant.
– Bone Marrow Transplant (Stem Cell Transplant)
– Sudden Cardiac Arrest.

More items...

Get More Info Here ›

How much does Aflac pay for an MRI? ›

Major Diagnostic Exams Aflac will pay $150 when a covered person requires one of the following exams for a covered sickness: • CT scan • MRI (magnetic resonance imaging) • EEG (electroencephalogram) • Thallium stress test • Myelogram • Angiogram • Arteriogram These exams must be performed in a hospital, doctor's office ...

Show Me More ›

What is covered by supplemental life insurance? ›

Because this kind of coverage is so limited, an employer may also offer workers the option to buy what's known as supplemental life insurance. This can extend coverage to a spouse or child, add protection in the event of an accident, provide for end-of-life expenses, or increase your policy's death benefit.