Atlanta Life Insurance Review

Pros Explained

• Long company history: Atlanta Life was formed in 1905 and continues to provide a variety of insurance products to consumers in 17 different states.
• One of the most well-known African American businesses in the country: Atlanta Life was founded by a former slave named Alonzo Herndon. From its inception, Atlanta Life has sought to serve low- to moderate-income African American families, primarily in the Atlanta area, and became the second-largest African American life insurance company in the U.S. 

Cons Explained

• Only offered in 17 states: Atlanta Life has a limited customer service area and only operates in 17 states across the U.S.
• Almost no information offered online: Atlanta Life’s website offers little information regarding policies, coverage options, pricing, or the claims process. To get more information, see what sort of coverage you can buy, or get a price quote, you’ll need to contact the company directly.
• AM Best rated the company a C for financial strength prior to withdrawing ratings: In April 2021, Atlanta Life’s AM Best rating has been withdrawn. Prior to the withdrawal AM Best downgraded the company to a financial strength rating of C (Weak). AM Best cites the company’s weak operating performance, weak balance sheet, and a downward trend of operating losses as the reason for the company’s score downgrades. AM Best also predicted that regulatory action against Atlanta Life will be necessary within the next 12 months. 

Available Plans

Atlanta Life operates primarily as an insurance agency. The company helps insurance shoppers compare quotes for various types of coverage, which will actually be serviced by other providers. 

Each provider will offer its own plans and coverage options. These may include a variety of the following life insurance policy types.

Term Life

Also called temporary coverage, term life insurance is designed to protect the insured for a specific period of time (or term). Terms generally range from 10 to 30 years in length, though some carriers offer coverage for as little as a year or as much as 40 years. Term life insurance policies do not offer dividends or build a cash value, so any premiums paid are lost if a claim is not made against the policy (i.e., you outlive your coverage). However, these tend to be the most affordable life insurance policies when comparing coverage dollar-for-dollar.

Whole Life

Permanent life insurance, such as a whole life policy, is meant to stay in effect until the insured passes away, regardless of when that happens. This type of policy is generally more expensive than term life but offers both a cash value (which can be borrowed against) and coverage that follows the insured for the rest of their life. Whole life policies may offer dividends, depending on the carrier, and may provide a surrender value if cancelled.

Universal Life

A universal life insurance policy is another permanent coverage option, with an added investment component. These policies generally offer lower premiums than whole life insurance, as well as flexibility in terms of monthly premiums and coverage limits. Policies often accrue a cash value, which can be borrowed against or withdrawn if the policy is surrendered (cancelled). Universal life insurance policies may be indexed or variable and offer the potential for investment growth over time.

Final Expense

A final expense policy, also known as burial insurance, is generally a low-limit insurance product. It is intended to provide loved ones with coverage for final expenses such as medical bills or a funeral. These policies are often guaranteed issue, meaning that you will not be denied coverage; however, premiums will depend on your age, medical history, and current health.

Available Riders

Riders offer consumers additional coverage on top of their life insurance policy’s death benefit. These riders may provide benefits to loved ones after your passing or may even offer certain coverage options while you’re still alive, called living benefits.

The available riders on Atlanta Life policies will vary from one provider to the next and even from policy to policy. Here are some popular riders that may be offered. However, none of these are guaranteed to be available. Check with the company to know for sure.

Accelerated Benefits

If you are diagnosed with a terminal, chronic, or critical illness, an accelerated benefits rider may offer access to a portion of your life insurance policy’s death benefit while you’re still alive. These funds can be used to cover monthly expenses, pay medical bills, cover specialized care, or simply let you enjoy the time you have left. Any funds withdrawn from the policy with an accelerated benefits rider will be deducted from the final death benefit that beneficiaries will receive.

Accidental Death

An accidental death is typically unexpected and sudden and may be more traumatic in nature. Because of this, the financial and emotional impacts on loved ones may be greater. With an accidental death rider, beneficiaries can receive an additional death benefit on top of the policy’s base payout. 

Spouse/Child Rider

A policy’s spouse or child rider allows the policyholder to add coverage for his or her significant other and dependent child(ren), without needing to buy a separate policy. The coverage limits for spouses and children are generally lower than the policy’s overall death benefit, but may provide enough coverage for things like final expenses or medical bills.

Waiver of Premium

If you are totally disabled during the course of your coverage, a waiver of premium rider will allow you to keep your life insurance policy in good standing while waiving monthly premiums. To qualify, you may need to be disabled for a specific period of time and be unable to complete a number of Activities of Daily Living (ADLs).

Customer Service

Customers can contact customer service via phone by calling 888-407-3209. The company makes a contact email address available as well. If you're interested in more policy information, you can fill out a quote request form and an agent will contact you.

Complaint Index

Each year, the National Association of Insurance Commissioners (NAIC) assigns a complaint index to carriers, which is used to discuss trends. This index, with an average score of 1.0, allows consumers to see how a company is performing in terms of consumer complaints from one year to the next. 

A score below 1.0 means the company received fewer complaints than expected in a given year. A score higher than 1.0 means that more complaints were received than expected for the company’s size and market share. So, for example, a score of 2.0 indicates that the company received twice the expected number of complaints in that year.  

Atlanta Life had a complaint index of 161.90 (four complaints) in 2021. In 2020, Atlanta Life received an NAIC complaint index score of 158.09 (three complaints). In 2019, the complaint index was 84.55 (three complaints). While the number of complaints each year was small, the company’s complaint indexes are off the charts, indicating that they received far more complaints than what is normal for their market share.

Third-Party Ratings

Certain third-party ratings can help consumers determine whether an insurance carrier is both reliable and financially solvent. One of the most trusted ratings is that of AM Best, which offers both a credit rating and a financial strength rating for insurance companies.

While Atlanta Life has had a strong, successful, and impactful history, its current financial status is concerning. Atlanta Life's AM Best ratings were withdrawn in 2021 after the company requested to no longer participate in the AM Best interactive rating process. Just before the withdrawal, AM Best assigned Atlanta Life a C (Weak) financial strength rating, which came after yearly operating losses since 2017.

Cancellation Policy

Atlanta Life does not offer any information regarding life insurance cancellation policies. 

Generally, term life insurance may be cancelled at any time, without penalty. Since temporary life insurance policies do not build a cash value, no refund will be received when cancelling.

Permanent life insurance policies, such as whole or universal life, may have a cash value component. When cancelling, you may receive a portion of that cash value back, minus a surrender fee.

Price

Atlanta Life does not offer online quotes or pricing information. Additionally, this agency offers coverage through other providers, which may have their own pricing structure, policy options, etc. For this reason, we are unable to analyze Atlanta Life’s pricing.

In general, though, life insurance premiums are impacted by a variety of personal factors, such as age, gender, location, medical history, family health history, and even occupation. Premiums are also dictated by policy options chosen, such as the type of life insurance and the policy’s coverage limit.

Competition

Both Atlanta Life and Prudential have been providing insurance coverage for well over a century with Atlanta Life being founded in 1905 and Prudential in 1875. Each offers a range of insurance products and services. While Atlanta Life has expanded into 17 states, however, Prudential has the fourth-largest market share in the U.S. and is licensed in all 50 states. Prudential also underwrites its own policies, while Atlanta Life now operates primarily as an agency, only underwriting business insurance products.

Prudential boasts an A+ (Excellent) AM Best rating for financial strength, whereas Atlanta Life’s rating has been withdrawn (previously downgraded to a C). Prudential also preforms better in terms of complaint index. In 2021, Prudential had a complaint index of 0.67 compared to Atlanta Life's 161.90.

If you’re looking to purchase life insurance from a national carrier, want to be able to buy online, or are looking for strong financial ratings, Prudential easily wins out.

Our Methodology: How We Review Life Insurance Carriers

We implement a comprehensive methodology process when reviewing life insurance carriers. In order to offer readers a reliable and complete overview of each company, we analyze factors such as financial strength, third-party ratings, consumer complaints, and product availability. We also consider things like pricing, customer service access, and the ease of managing a policy once it’s purchased. With this information, we can offer readers an idea of how that company compares to the rest of the industry, and whether it is a worthwhile consideration when shopping for a new life insurance policy.