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AFL Enhances Group Life Product With Life Insurance and LTC Combo
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Key Takeaways
AFL launches a hybrid Group Life Term to 120 policy combining life insurance with LTC coverage.
AFL rider restores full life value after LTC use and offers inflation protection and flexible payouts.
AFL enables portable coverage and access to LTC benefits across home, facility or caregiver care.
Aflac Incorporated (AFL - Free Report) recently introduced an innovative worksite benefit within its Group Life Term to 120 product. This hybrid solution combines term life insurance with long-term care (LTC) coverage, offering meaningful protection against rising care expenses and helping safeguard the financial well-being of consumers.
The rider also offers several important features that enhance its value. It provides the option to extend the LTC benefit period while also restoring the full face value of the life insurance policy, even if those funds have already been used for LTC expenses. The rider also includes an optional inflation protection feature.
In addition, it incorporates a fund that grows annually, increasing the overall value of the LTC benefit while helping counter rising care costs. Policyholders can choose from flexible payment options, including a single lump-sum payout for significant or unexpected expenses or periodic payments that better align with their individual needs. Furthermore, the coverage is portable, allowing individuals to retain their benefits even if they leave their employer.
Furthermore, AFL’s new rider allows policyholders to access full LTC benefits irrespective of where or how care is provided, whether through home-based care, facility care or assistance from a professional caregiver, family member or friend. In addition, the benefits can be utilized during the policyholder’s lifetime rather than being reserved solely for after death.
The recent move seems to be a time-opportune one on the part of Aflac since the cost of LTC continues to increase, creating significant challenges for an aging U.S. population and increasing the need for comprehensive life and LTC planning. Therefore, Aflac can capitalize on the prevailing scenario with its newly added worksite benefit that enables individuals to better prepare for future uncertainties.
Benefits of the Recent Move to Aflac
The advantages offered by the new rider are likely to enhance customer satisfaction and drive greater usage of Aflac’s Group Life Term to 120 policy. This could help attract new policyholders while strengthening retention among existing customers, thereby supporting higher sales of Aflac’s offerings. As a result, Aflac may benefit from increased premium income from its U.S. business, which remains the primary driver for any insurer’s top-line growth.
For 2025, Aflac U.S. unit generated net earned premiums of $6 billion, which grew 2.9% year over year. Total new sales rose 3% year over year in the same time frame. Net earned premiums are anticipated to grow at the lower end of the 3-6% range in 2026, in the U.S. business.
AFL’s Share Price Performance & Zacks Rank
Shares of Aflac have declined 2.8% in the past year compared with the industry’s 4.6% fall.
Image Source: Zacks Investment Research
AFL currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the insurance space are TWFG, Inc. (TWFG - Free Report) , First American Financial Corporation (FAF - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) . While TWFG sports a Zacks Rank #1 (Strong Buy), both First American Financial and Reinsurance Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TWFG’s earnings surpassed estimates in each of the last four quarters, the average surprise being 26.38%. The Zacks Consensus Estimate for TWFG’s 2026 earnings suggests an improvement of 5.7% from the 2025 figure, while the same for revenues implies growth of 20%. The consensus mark for TWFG’s 2026 earnings has moved 6.9% north in the past 30 days.
The bottom line of First American Financial outpaced estimates in each of the last four quarters, the average surprise being 22.95%. The Zacks Consensus Estimate for FAF’s 2026 earnings indicates an improvement of 5.5% from the 2025 figure, while the same for revenues implies growth of 7.9%. The consensus mark for FAF’s 2026 earnings has moved 0.5% north in the past seven days.
Reinsurance Group’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 8.22%. The Zacks Consensus Estimate for RGA’s 2026 earnings suggests an improvement of 15.8% from the 2025 figure, while the same for revenues implies growth of 9.1%. The consensus mark for RGA’s 2026 earnings has moved 2.1% north in the past 30 days.
Reinsurance Group stock has inched up 0.7% in the past year. However, shares of TWFG and First American Financial have declined 37.3% and 10.6%, respectively, in the same time frame.
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AFL Enhances Group Life Product With Life Insurance and LTC Combo
Key Takeaways
Aflac Incorporated (AFL - Free Report) recently introduced an innovative worksite benefit within its Group Life Term to 120 product. This hybrid solution combines term life insurance with long-term care (LTC) coverage, offering meaningful protection against rising care expenses and helping safeguard the financial well-being of consumers.
The rider also offers several important features that enhance its value. It provides the option to extend the LTC benefit period while also restoring the full face value of the life insurance policy, even if those funds have already been used for LTC expenses. The rider also includes an optional inflation protection feature.
In addition, it incorporates a fund that grows annually, increasing the overall value of the LTC benefit while helping counter rising care costs. Policyholders can choose from flexible payment options, including a single lump-sum payout for significant or unexpected expenses or periodic payments that better align with their individual needs. Furthermore, the coverage is portable, allowing individuals to retain their benefits even if they leave their employer.
Furthermore, AFL’s new rider allows policyholders to access full LTC benefits irrespective of where or how care is provided, whether through home-based care, facility care or assistance from a professional caregiver, family member or friend. In addition, the benefits can be utilized during the policyholder’s lifetime rather than being reserved solely for after death.
The recent move seems to be a time-opportune one on the part of Aflac since the cost of LTC continues to increase, creating significant challenges for an aging U.S. population and increasing the need for comprehensive life and LTC planning. Therefore, Aflac can capitalize on the prevailing scenario with its newly added worksite benefit that enables individuals to better prepare for future uncertainties.
Benefits of the Recent Move to Aflac
The advantages offered by the new rider are likely to enhance customer satisfaction and drive greater usage of Aflac’s Group Life Term to 120 policy. This could help attract new policyholders while strengthening retention among existing customers, thereby supporting higher sales of Aflac’s offerings. As a result, Aflac may benefit from increased premium income from its U.S. business, which remains the primary driver for any insurer’s top-line growth.
For 2025, Aflac U.S. unit generated net earned premiums of $6 billion, which grew 2.9% year over year. Total new sales rose 3% year over year in the same time frame. Net earned premiums are anticipated to grow at the lower end of the 3-6% range in 2026, in the U.S. business.
AFL’s Share Price Performance & Zacks Rank
Shares of Aflac have declined 2.8% in the past year compared with the industry’s 4.6% fall.
Image Source: Zacks Investment Research
AFL currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the insurance space are TWFG, Inc. (TWFG - Free Report) , First American Financial Corporation (FAF - Free Report) and Reinsurance Group of America, Incorporated (RGA - Free Report) . While TWFG sports a Zacks Rank #1 (Strong Buy), both First American Financial and Reinsurance Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TWFG’s earnings surpassed estimates in each of the last four quarters, the average surprise being 26.38%. The Zacks Consensus Estimate for TWFG’s 2026 earnings suggests an improvement of 5.7% from the 2025 figure, while the same for revenues implies growth of 20%. The consensus mark for TWFG’s 2026 earnings has moved 6.9% north in the past 30 days.
The bottom line of First American Financial outpaced estimates in each of the last four quarters, the average surprise being 22.95%. The Zacks Consensus Estimate for FAF’s 2026 earnings indicates an improvement of 5.5% from the 2025 figure, while the same for revenues implies growth of 7.9%. The consensus mark for FAF’s 2026 earnings has moved 0.5% north in the past seven days.
Reinsurance Group’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 8.22%. The Zacks Consensus Estimate for RGA’s 2026 earnings suggests an improvement of 15.8% from the 2025 figure, while the same for revenues implies growth of 9.1%. The consensus mark for RGA’s 2026 earnings has moved 2.1% north in the past 30 days.
Reinsurance Group stock has inched up 0.7% in the past year. However, shares of TWFG and First American Financial have declined 37.3% and 10.6%, respectively, in the same time frame.