Supplemental insurance can provide an extra layer of financial protection in case you get sick or injured. Two popular supplemental insurance companies are Aflac and Colonial Life. But how do their products really stack up?
Here’s an in-depth look at the key differences between Aflac and Colonial Life and which may be the better choice for your needs.
A Brief Comparison Table
| Category | Aflac | Colonial Life |
| Products Offered | Supplemental health, life, disability | Supplemental health, life, disability |
| Health Plan Options | Accident, hospital, critical illness, cancer, dental, vision | Accident, hospital, critical illness, cancer, dental, vision |
| Life Insurance Options | Term, whole | Term, whole |
| Disability Insurance | Short-term, long-term | Short-term, long-term |
| States Available | All 50 states | 49 states + Washington D.C. |
| Claims Processing | Online, mobile app | Online portal |
| Financial Strength Ratings | A+ (Superior) AM Best, Aa2 Moody’s | A (Excellent) AM Best, A1 Moody’s |
| Brand Reputation | Household name, iconic branding | Less brand recognition, more niche |
| Policy Administration | In-house | Some outsourcing |
| Agents | Captive and independent | Dedicated career agents |
| Discounts | Payroll deduction, group, bundled coverage | Minimal discounts |
| Customer Service | Positive reviews, convenient technology | Positive reviews, large agent network |
Aflac Overview
Aflac first opened its doors in 1955 and today is one of the largest supplemental insurance providers in the U.S. Aflac is best-known for its quirky duck mascot and “Aflac!” tagline.
Some key things to know about Aflac:
- Offers supplemental health, life, and disability insurance
- Primarily sells insurance at the workplace as a voluntary benefit
- Policyholders can file claims online or via mobile app
- Products available in 50 states and several U.S. territories
Aflac supplemental health plans help pay for out-of-pocket medical expenses not covered by your primary insurance. This includes things like copays, deductibles, transportation, and child care costs. Aflac also offers life insurance and disability coverage.
Colonial Life Overview
Colonial Life first started selling insurance in 1939. They provide supplemental health, life, and disability insurance, similar to Aflac.
Here are some key Colonial Life details:
- Sells primarily through the workplace like Aflac
- Has an extensive network of local agents
- Offers online claims filing and digital policy access
- Provides products in 49 states plus D.C.
Colonial Life’s supplemental health plans can help cover costs for hospital stays, cancer treatment, emergency room visits, surgery, and more. They also provide term life insurance, whole life insurance, and short and long-term disability coverage.
Comparing Health Insurance Plans
The core products from Aflac and Colonial Life are their supplemental health insurance offerings. So how do these compare?
- Coverage options
Both companies offer a range of coverage options for accident, hospital, cancer, critical illness, and more. Aflac has more customizable plans. Colonial Life offers packaged benefit options.
- Benefits
The specifics of covered benefits vary by plan. But in general, Aflac and Colonial Life plans help pay for things like hospital stays, cancer care, emergency treatment, lab work, medical devices, home healthcare, child care costs, and more.
- Claims processes
Aflac and Colonial Life both offer digital claims filing through online portals or mobile apps. Customer service reviews show positive experiences overall for both companies.
- Availability
Aflac plans are sold in all U.S. states. Colonial Life is available in 49 states plus D.C. Both offer coverage through the workplace.
- Prices
Premium costs are comparable between Aflac and Colonial Life for similar plan types. Prices vary based on your age, location, and selected coverage level.
- Comparing Life and Disability Insurance
In addition to health insurance, Aflac and Colonial Life provide coverage for life events like death or disability. How do these offerings compare?
- Life insurance
Both providers offer term and whole life insurance options with comparable pricing and features. Maximum benefit amounts go up to $300,000 for Aflac and $500,000 for Colonial Life.
- Disability insurance
Aflac and Colonial Life provide short and long-term disability coverage to replace income if you’re hurt or sick. Colonial Life touts robust benefits for disabilities related to pregnancy. Aflac offers strong protections for on-the-job injuries.
- Availability
Aflac disability and life insurance plans are sold in 50 states. Colonial Life availability varies – some life and disability products are unavailable in CA, NY, and NH.
- Bottom line
For life and disability coverage, Aflac comes out slightly ahead on availability. But Colonial Life offers generous maternity benefits. For basic needs, both carriers are solid options.
Also Read: Choose Between New York Life And Northwestern Mutual.
Additional Differences
Beyond coverage options, here are some other key distinctions between Aflac and Colonial Life:
- Brand reputation: Aflac is a household name, while Colonial Life has less brand recognition. But both have positive reputations industry-wide.
- Financial strength: Aflac and Colonial Life have strong financial ratings indicating their ability to pay out claims. Aflac has higher ratings from some agencies like Moody’s.
- Plan administration: Aflac handles all policies in-house. Colonial Life outsources some aspects like enrollment and underwriting.
- Agents: Colonial Life has a large dedicated agent network. Aflac uses both captive and independent agents.
- Customer service: Reviews show positive customer service experiences generally. Aflac gets a slight edge for technology like their mobile app.
- Discounts: Aflac offers reduced rates for things like payroll deduction and enrollment groups. Colonial Life focuses less on discounts.
Choosing Between Aflac And Colonial Life
So when it comes down to Aflac Vs. Colonial Life, which is the better choice? Here are a few factors to consider when deciding:
- Plan design: Compare specific benefits like hospital stays, surgeries, labs, therapies, home healthcare, and more. Make sure the plan aligns with your needs.
- Price: Get quotes for similar plans from Aflac and Colonial Life. Premium costs can vary between the providers.
- Availability: Verify the carrier you choose offers all needed coverage types in your state. Aflac has broader availability overall.
- Reviews: Read third-party reviews and ratings for both companies to get a sense of customer satisfaction. Both score well.
- Discounts: Ask about discounts for payroll deduction, employer groups, or coverage bundling. Aflac offers more discount opportunities.
- agent: If you prefer working with a dedicated agent, Colonial Life’s large agent network is a selling point. Aflac uses both captive and independent agents.
Ultimately there’s no one-size-fits-all answer – consider your specific needs and preferences to decide if Aflac or Colonial Life is a better match. Either can provide quality supplemental insurance protection.
Also Read: Choose Between MetLife And Aflac.
Frequently Asked Questions (FAQ)
For supplemental health, life, and disability insurance, top Aflac alternatives include Colonial Life, Allstate Benefits, and Mutual of Omaha. Each offers similar coverage options with some variations in availability and pricing.
For many customers, Aflac provides useful financial protections not covered by major medical insurance. Aflac enjoys strong industry ratings and positive customer reviews. While not the cheapest, Aflac plans can provide affordable peace of mind. Just be sure to compare coverages and costs to alternatives.
Yes, Colonial Life is one of the largest and most reputable supplemental insurance companies. They provide quality plans with robust benefits. While a bit less known than Aflac, Colonial Life scores well for financial strength, claims processes, and customer service. Their large dedicated agent network is also a perk.
Among supplemental health insurers, Aflac is considered one of the top tier providers, often ranking close behind leaders like UnitedHealthcare. Aflac’s strong brand reach, variety of options, and convenience help make it a preferred choice for many customers. The company enjoys excellent financial strength ratings as well.
Also Read: Comparison Between AIG And Prudential Life Insurance.
The Bottom Line
The right supplemental insurance can provide a financial safety net and peace of mind. Both Aflac and Colonial Life offer quality coverage options to help protect you from large medical bills.
By understanding the key differences between them in terms of availability, pricing, and benefits you can determine which may be the better choice for your needs and budget. Reach out to an agent or get quotes online to further compare these two leading supplemental insurance providers.
