Accordia Life Insurance Review
This company has a very interesting history to recap as we start to review the company. Accordia Life is located in Des Moines, Iowa.
They actually have a parent company called Global Atlantic Financial Group Limited.
Global life was a creation of Goldman Sachs back in 2004. They grew the company to provide life insurance, annuities and even reinsurance.
Additionally Global Life also was a parent to a company called Forethought and Commonwealth Re.
Today Global Atlantic is not more than a $40 billion insurance company.
They offer through the help of their subsidiaries term insurance, index universal life, universal life, whole life, as well as annuties and investment advise.
Company Timeline Overview
2005 – Goldman Sachs buys Allmerica Life then renamed it Commonwealth Life and Annuity.
2006 – Commonwealth grows a large reinsurance platform.
2009 – They start to offer insurers risk management solutions and capital management.
2011- Commonwealth then begins to start selling Annuities
2013- They separate from Goldman Sachs and incorporate as Global Atlantic Financial Group Limited. They continue to grow and buy Aviva launching as Accordia Life Insurance Company. Additionally forethought Life Insurance Co is a subsidiary of Global Atlantic Financial.
In this Accordia Life Insurance review we will cover the following topics:
Accordia Life has not been in the insurance business very long when comparing to companies like MassMutual or New York Life.
However Accordia Life does have some very compelling company ratings that do stack up with some of the big insurance companies in the industry.
Accordia boasts an impressive A Rating with A.M Best Company for Financial Strength
A- with Standard and Poor’s
A rate with Fitch Ratings
C with Weiss reviewing the companies Safety.
This is very impressive and a big positive for such a new company.
Another great positive for the company is the variety of products they offer. Accordia provides over 10 different product options to consumers.
They have options for Term Insurance, Final Expense, Universal Life, and Indexed Universal Life.
There are also a ton of Riders to choose from to even further customize your life insurance policy.
In addition to their life insurance products and rides the company also offers several Annuity policies.
They offer annuities to solve for different needs such as; Fixed Annuities, Variable Annuities, Fixed Index Annuities, and Income Annuities.
Several Ownership Changes
As noted in the beginning of this review Accordia was ultimately created after several business acquisitions.
Although in the insurance industry it is not uncommon for companies to be acquired in the case of Accordia we believe that the several transitions created issues with existing customers.
When ever there is a business transition there is goo and also bad since you are often joining new leadership together. In this case we believe that this is a negative.
In reference to our thoughts above this there are several confirmed complaints towards Accordia and Global Financial.
Many of these complaints have to do with ongoing customer service and large scale billing issues that resulted in customers policies lapsing for non payment.
Although this may not sound like a big deal we disagree. When you sign up for a life insurance policy this is a binding contract between you and the insurance company.
There is really only one way to break this contract as a consumer and this is for non payment of your premium.
Essentially if you miss your insurance premium and the policy lapses then you could be without coverage and the insurance company has no obligation to reinstate the policy.
Due to the several complaints and issues noted from customers we believe this is a very big negative for Accordia.
No Whole Life Products
Although Accordia offers several options to consumers for life insurance coverage the one major gap in their product portfolio is whole life insurance.
Accordia does not currently offer whole life products that provides you a guaranteed death benefit and cash value accumulation.
A.M Best Company (Financial Strength): A
Standard and Poor’s (Financial Strength): A-
Fitch Ratings (Financial Strength): A
Weiss (Safety Rating): C
Index Universal Life Options
Indexed universal life insurance is a permanent life insurance policy. If provides death benefit protection for your loved ones and it also has the potential for cash accumulation.
These types of policies will credit your cash value account with an interest rate. This rate is typically based on a major stock market index.
The premiums you pay for your policy and the cash values that accumulates are never invested directly in the stock market.
Index universal life provides you the opportunity capture upside potential without market downside risk. This mean that if the index that your policy is tracking with were to go to zero you will not lose any money.
Keep in mind these policies often have a cap on the upside as well.
Indexed Universal Life Highlights:
- Flexible coverage
- Tax-free death benefit
- Guaranteed floor interest rate
- Fixed rate crediting option
- Several options for indexed crediting options
- Potential for greater interest crediting over the life of the policy
- Protection from negative market returns
Lifetime Builder ELITE
Lifetime Builder Elite is designed to provide a tax free benefit to your beneficiaries as well as potential cash value accumulation. The policy provides great flexibility for the owner.
- Three death benefit options
- LEVEL DEATH BENEFIT
- INCREASING DEATH BENEFIT
- RETURN OF PREMIUM
- Access to cash value through withdrawals or loans
- Guaranteed 1% Account Value Enhancement beginning at the end of Policy Year 5
- Includes additional riders and features that allow for customization.
Lifetime Foundation ELITE
Lifetime Foundation Elite is designed to provide guaranteed death benefit till age 90 or 40 years.
- Death benefit guarantee to age 90, or 40 years depending on the insured’s underwriting class
- Design to allow for an elimination of policy charges after 90, on a current, non guaranteed basis. This effectively makes it easier to keep a life insurance policy for the long-term.
- The ability to achieve cost of insurance discounts and lower overall cumulative premiums with the Wellness for Life® Rider
- Includes additional riders and features that allow for customization to meet your objectives
Lifetime Provides is a great options for very affordable protection.
- Affordable death benefit protection
- Flexibility with your premium
- Potential for greater cash value growth compared to traditional universal life policies
Survivorship Builder is a policy that covers two lives in one.
It has many of the features of the above products however will pay a benefit after the second insureds death.
- Covers two lives under one policy
- Tax free death benefit at the second insureds death
- Can help with liquidity for estate taxes and wealth transfer
- Tax advantaged features such as access to cash values
- Policy could potentially provide coverage to someone who is uninsurable
Universal Life Options
Lifetime Assure UL
Lifetime Assure UL is a policy very similar to the Lifetime Provider however it does not participate in the index crediting and potential upside that is offered by the Lifetime Provider policy.
- Death Benefit Protection for loved ones
- Cash Value growth
- Access to cash values
- Flexible options and riders to customize policy
Term Life Insurance
Accordia offers four different types of term insurance.
- Annually Renewable Term
- 10 year level term
- 20 year level term
- 30 year level term
- Annually Renewable Term provides a one year guaranteed level premium and usually increasing in cost annually.
- The 10, 20, and 30 year policies offer a guaranteed level premium for that specified term period selected
- All the term policies can be convert to one of our permanent life insurance policies
- Minimum Term amount is $50,000. Many other insurance companies cap their minimum at $100,000.
Preneed Life Insurance
Preneed Life is an alternative way to say Final Expense Insurance. This policy is intended to help provide for smaller items associated with putting the deceased owner to rest.
- Ment for Final Expense
- Benefit is paid to funeral provider
- Provides peace of mind
- Offered nation wide through funeral homes
Accordia provides several great additional riders to customers to enhance the policy that they choose to go with.
Accelerated Access Rider
This is a free rider until you need to use it. It provides the insured access to a portion of their life insurance death benefit if they are diagnosed with a chronic or critical illness.
Overloan Protection Rider
This rider is a safety net to the insured. It will prevents your policy from lapsing if took to much cash out of the policy. There is no cost for the rider however if used there is a one-time charge.
Primary Insured Rider
Provides additional level death benefit protection for the primary insured.
Additional Insured Rider
With this rider you can insure your family too. It provides coverage to three family members all under one policy.
Children’s Insurance Rider
You can protect your children with this rider. Any child ages 15 days to 17 years can obtain coverage. This coverage will last till the child’s age 25. Even better the children’s rider can be converted to a permanent policy for up to five times the rider face amount.
Accidental Death Benefit Rider
This rider will add additional coverage should the insured die from an accident.
Terminal Illness Accelerated Death Benefit Rider
If you become terminally ill with 12 months or less to live this rider will ensure that a portion of the death benefit proceeds are paid out to you well you are living.
Return of Premium Rider
This rider provides a death benefit equal to the face amount plus the premiums less any withdrawals, accumulated with interest.
Waiver of Monthly Deductions Rider
If you are to become disabled and could not subsequently pay your premiums the waver of premium rider can help. All charges would be waived if the insured is totally disabled for at least 6 months before age 65.
Waiver of Premium Rider
The monthly premium specified under the rider is credited to the policy if clients become totally disabled for at least 6 months before age 65.
Additional riders available
- – Waiver of Surrender Charge Due to Confinement Rider
- – Guaranteed Purchase Option Rider
Additional riders available only on Index Universal Life’s Survivorship Builder
- – First to Die Rider
- – Estate Protection Rider
- – Survivor Insured Rider
- – Policy Split Option Rider
Even though Accordia is a newer life insurance company compared to others they have been able to rise to the top when it comes to ratings. Accordia has fantastic rating from various 3rd party agencies.
Even though the company has strong ratings you may want to think twice before purchasing from Accordia Life.
When comparing Accordia to other companies you may find that there are some better alternatives especially if you are looking for Whole Life Insurance.