Life insurance is an essential tool which should be included in most any financial plan.
The proceeds from this type of coverage can be used for paying a decedent’s funeral and other final expenses, as well as for paying off debts so loved ones won’t be placed into financial hardship in case of the unexpected. Having life insurance can also help you to ensure your promises will be kept – even if you aren’t there.
When you purchase a life insurance policy, there are many variables to be factored in so you can ensure loved ones won’t be under-insured. Both the type and the amount of coverage are important criteria.
But there is also another key factor many people may not realize – but it is equally important to consider – when choosing your life insurance protection. This is the insurance company through which you purchase it. You will want to ensure the company will be there to make good on their promise of paying out if or when the time comes to file a claim.
One insurer who has a good reputation for paying out its policyholder claims and is also strong and stable financially, is Accordia Life Insurance Company.
The History of Accordia Life Insurance Company
Accordia Life and Annuity Company came into existence as the result of another insurer’s acquisition – it is a relatively new insurer. In 2013, Global Atlantic Financial Group Limited – also often referred to simply as Global Atlantic – completed an acquisition of Aviva USA life division. The company was incorporated as Accordia Life.
While Accordia Life Insurance Company does not have a long history in the insurance and financial services business, it has been built upon a strong foundation of proven product designs, as well as expertise of its management team, who are considered to be very seasoned professionals in the life insurance and annuity market niche.
The parent company of Accordia, Global Atlantic, is also considered to be a large and strong company. Global Atlantic was a part of Goldman Sachs and has been operating as a life insurance and annuity arm for several years. Then, in 2013, the company branched out on its own.
Over just the past ten years, Global Atlantic became well known as an innovative provider of life insurance coverage in the industry. Since its beginnings, this company has expanded to more than $30 billion in total assets. This insurer’s success is due in large part to the long-term focus it has on its policyholders. It is also due to the emphasis the company places on teamwork – starting from top management on down.
Our Accordia Life Insurance Company Review
The life insurance and annuity offerings of Accordia Life Insurance Company are good, solid products which have a focus on meeting protection and wealth transfer needs of its clients. The company also has a focus on working with small business owners and ensuring they are able to transfer the companies who they have worked for in their desired manner.
The key products offered via Accordia Life Insurance Company are life insurance – including term, universal, and indexed universal – as well as retirement annuities. Clients have a nice variety of wealth building and protection products to choose from, and they may also be able to alter or change their coverage as their personal needs change.
At this time, Global Atlantic has more than $40 billion in total assets, and Accordia Life has almost $8 billion. These companies are both highly regarded in the life insurance and annuity marketplace.
Accordia Life Insurance Ratings and BBB Grade
Accordia Life is also considered to be a strong and stable company from a financial standpoint. The company has been granted an A- rating from Standard and Poor’s, as well as an A- rating from A.M. Best Company. In addition to its financial strength, the company is thought to have a positive reputation for paying out its policyholder claims.
Although Accordia Life Insurance Company is not an accredited business through the Better Business Bureau (BBB), nor has it been given a grade by the BBB from A+ to F, the company has closed out a total of 80 complaints through the Better Business Bureau over the past three years (and 12 of these were closed out within the past 12 months).
Of the 80 complaints which have been closed out, 40 had to do with problems with the company’s products and / or services. Another 35 of these complaints were regarding billing and / or collection issues, four were regarding advertising and / or sales issues, and one pertained to another unstated issue.
Life Insurance Products Offered By Accordia
Accordia Life Insurance Company offers a variety of different life insurance coverage options. This can be helpful in allowing its clients to gear the right type of coverage for their specific needs and goals. This life insurance coverage includes both term and permanent protection.
Term Life Insurance Coverage
Term life insurance is considered to be the most basic form of life insurance protection. This is because term policies offer death benefit only, without any cash value or savings build up.
With term life insurance, policies are purchased for a certain, set amount of time, such as for five years, ten years, 15 years, 20 years, 25 years, or even for 30 years. During this period, the premium is charged to the policyholder and will typically remain level. In some instances, the insured may have the option of converting the term insurance coverage over into a permanent form of life insurance. This can help helpful in securing coverage for life – and especially important if the insured has certain types of adverse health issues.
With the term life insurance product offered by Accordia, an insured is able to choose any range of policy durations – from one-year annual renewable term coverage up to 30 years. The amount of the policy’s death benefit can start at $50,000, and the maximum amount can depend upon the age and the health of the insured individual at the time he or she initially applies for coverage.
All of Accordia Life Insurance Company’s term life insurance products can be converted over into permanent coverage. In addition, there are several different riders a policyholder may choose to add to their coverage in order to basically “customize” it to best fit their needs. These riders include:
- Accidental Death Rider
- Children’s Insurance Rider
- Waiver of Premium Rider
Permanent Life Insurance Coverage
With permanent life insurance coverage, there is both a death benefit component and a cash value component with the policy. One a policyholder has a permanent life insurance policy; the premium amount will typically be guaranteed not to increase during the length of the coverage.
The cash value inside of a permanent life insurance policy is allowed to grow on a tax-deferred basis. This means there will be no tax due on the gain of the funds unless or until the money is withdrawn. This can allow the funds in the cash value component to grow and compound exponentially over time.
The cash in the policy may be either borrowed or withdrawn by the policyholder for any reason, including the supplementing of their retirement income, the payoff of debts such as a mortgage or a vehicle note, or even for taking a nice vacation.
In addition, as long as the policyholder continues to make the premium payment on a permanent life insurance plan, the policy cannot be canceled by the insurance company – even in light of the insured’s increasing age and / or if they contract an adverse health issue.
Accordia Life Insurance Company offers both universal life insurance and indexed universal life insurance for its permanent coverage. Universal life insurance can be considered a flexible type of life insurance where the policyholder may – within certain guidelines – decide how much of the policy’s premium payment will go towards the death benefit, and how much will go towards the cash value component. The policyholder may also alter (again, within certain guidelines) the due date of their policy’s premium.
With index universal life insurance, the growth of the cash value is based on the performance of an underlying market index, such as the S&P 500. Here, if the market index performs well, the policy’s cash value will be credited – up to a certain stated cap. If, however, the market index performs poorly during a given period of time, the cash component will not lose value, but rather it will simply be credited with a 0% for the particular period.
Accordia Offers Four Main Universal Life Insurance Products
- Lifetime Builder Index Universal Life – For those who are seeking the opportunity to grow their policy’s cash value, this plan may fit the bill. It allows several different strategies for crediting interest to the policy.
- Lifetime Foundation Index Universal Life – With the Lifetime Foundation IUL policy, the death benefit may be adjusted, based on the insured’s specific needs. As time goes on, the policy will be focused more on growth within the cash component.
- Accordia Life Provider Index Universal Life – With the Life Provider IUL policy, the insured has the flexibility to modify the premium payment, based on changes in their lives.
- Survivorship Builder Index Universal Life – This policy covers two people rather than just covering one. This is oftentimes purchased by couples, as the premium for this type of plan can usually be less than purchasing two separate life insurance policies. The product is also often used in conjunction with estate and / or tax planning situations.
The permanent life insurance products which are offered through Accordia Life Insurance company also have several different riders which can be added to fit the policy more to the needs of the insured.
For example, the overloan protection rider is considered to add additional “cushion” in order to keep the policyholder from being too overextended if he or she opts to access cash from the policy. And, with the wellness for life rider, the insured may obtain additional benefits from the policy – such as lower costs – when the live a healthier lifestyle.
Other Coverage and Financial Products
In addition to life insurance coverage, Accordia Life also offers retirement annuities. Having an annuity can help people to save for retirement in a tax-deferred manner, and they can also provide a guaranteed lifetime income stream in retirement – regardless of how long the annuity holder lives. Both fixed and fixed index annuities are offered.
Is Accordia Right For You?
When seeking life insurance coverage, it is often best to work with a company or an agency who has access to more than just one single insurance carrier. You will be able to more directly compare policies, benefits, companies, and premium quotes – and from there you can determine which will be the best one for you.
We can help you in this area, as we work with multiple life insurance companies. So, if you are ready to begin searching for the best life insurance quotes for you, then just simply take a few moments to fill out the form on this page.
We are also available to answer any additional questions or concerns you may have. We understand finding the right life insurance can be confusing. By now you have an ally on your side. So, contact us today – we’re here to help.