What You Should Know About the Life Insurance Claims Practices of Armed Forces Benefit Association
Recently, there has been negative publicity regarding other life insurance companies’ practices that delay payment of death benefits by depositing the proceeds due beneficiaries in a non-insured, low-interest bearing general company account.
Please rest assured that neither AFBA nor 5 Star Life Insurance Company, its underwriter, has ever engaged in any of these practices.
How does AFBA pay the beneficiaries their death benefit proceeds?
An Emergency Death Benefit of up to $15,000 (depending on the amount of coverage then in effect) will normally be mailed within 24 hours after receiving notice of death.
When death benefits are due to the beneficiary of an AFBA member, payment is immediately mailed to the beneficiary once all of the needed documentation is received.