What is Aflac insurance? We’ve all seen that duck on TV, and who makes us laugh time and time again. But exactly what IS the insurance offered behind our feathery friend?

What Is Aflac Insurance?

Aflac is not health insurance. It is insurance for daily living. Also known as “voluntary supplemental insurance”, Aflac helps covered persons by paying them cash benefits, unless assigned, to help with out-of-pocket expenses that arise from covered accidents or illnesses. In the event of a covered loss, cash is paid to covered persons regardless of any other insurance they may have.


How It Works

Think about all the major medical health insurance expenses associated with being involved in an accident or major illness. You have co-pays when you go to the doctor or get a pharmacy prescription. You have (in many cases) an annual policy deductible to meet before benefits gets paid, and many times you even have co-insurance to contend with for ER visits and hospital stays. And what if you have a major dread disease like cancer and you want to see a specialist outside of your home state. Does your major medical insurance cover you and your supporting family member’s travel, lodging, and food expenses? No, it doesn’t…and it never will. Even all the healthcare reform laws (PPACA) will not help you with covering out of pocket expenses. These are the exposures that Aflac addresses.

There are several plan types that Aflac insurance offers including:

-Short Term Disability

How Much Is Aflac Insurance?

Like other forms of insurance, Aflac policy premiums vary due to many factors including:

-Whether you apply for coverage individually or through your employer group
-Whether or not you are paying your premiums via pre-tax, payroll deductions (if taken through your employer)
-Age of the applicant
Industry class of your employer or profession type
-Level of coverage desired
-Extending coverage to dependents

Aflac insurance premiums are funded by employees…not employers. Employees choose the plans that work best for their situation and pay for them (in many cases) via pre-tax, payroll deductions. There is no direct cost to employers who wish to add Aflac benefits to their benefits package. In fact, employers can even save money on their FICA and FUCA taxes due to pre-tax, payroll deductions of Aflac premiums.

Aflac policies are owned by the individual employee. Thus, if you quit or retire from your job, you take your Aflac plans with you at the same group rate. If your new employer does not offer Aflac insurance, you can pay your premiums directly to the company. If your new employer does offer Aflac, you can jump on their payroll group with ease. It’s a win-win situation for employers and employees alike.

Administration Ease

Although Aflac insurance can be applied for on an individual basis, it is designed with employer groups in mind. In addition to the cost savings associated with taking out Aflac on a group basis, Aflac imposes nearly zero administration duties for benefits managers, which is quite different from group health insurance. All enrollments are handled by Aflac agents that come to your job site(s), employees have online and telephone access for all claims issues, and there is no COBRA administration for terminated employees.

The only task a benefits administrator must perform is a monthly billing reconciliation. Think of it as a “roll call” for all of your employees that you run once a month. For example, if an employee leaves the group, you indicate a “T” next to that person’s name on the list and next month, they drop off the list. Additionally, reconciliations can be processed online for even more ease. As you can see, group Aflac insurance is a cinch to implement and to maintain for benefits managers.

How to Get Aflac Insurance

Aflac insurance can be easily obtained by contacting an independent agent or broker representing Aflac. It is available in all US states (with slight coverage variations depending on the state you are in) and works with any group health insurance plan your employer may have in force. It also operates on its own cafeteria plan, which means you can add Aflac insurance to your company any time of the year.

Indeed, our happy-go-“ducky” friend can be a powerful ally in today’s world of rising health insurance out of pocket costs. For more answers to frequently asked questions about Aflac insurance, visit our Aflac FAQ page or contact us directly to see if Aflac is a good fit for your organization. *Note* If you represent many employees of a company that would like an Aflac insurance presentation, have your company benefits manager contact us directly for a full explanation of coverage and to setup the presentation appointment.