We care about Aflac’s policyholders affected by the recent weather:
To help provide relief for California policyholders residing in Santa Cruz County who were affected by the coastal storms, Aflac will provide a premium grace period starting Dec. 23, 2024, and ending Apr. 15, 2025. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.
For Network Dental and Vision Members:
This grace period also provides an extension of filing deadlines for claims; relaxation of prior authorization, precertification, and referral requirements; access to appropriate out-of-network providers due to unavailability on in-network providers or the members’ displacement; and leniency for any other action required under the certificate. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.
We care about Aflac’s policyholders affected by the recent wildfires:
To help provide relief for California policyholders residing in Los Angeles and Ventura Counties affected by the wildfires, Aflac will provide a premium grace period starting Jan. 7, 2025, and ending Mar. 10, 2025. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.
For Network Dental and Vision Members:
This grace period also provides an extension of filing deadlines for claims; relaxation of prior authorization, precertification, and referral requirements; access to appropriate out-of-network providers due to unavailability on in-network providers or the members’ displacement; and leniency for any other action required under the certificate. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.
New messages from Aflac |
View Notifications opens a dialog
Close X dismisses the notification alert
Single premium life insurance is a type of policy where you pay one large premium instead of monthly premium payments to receive life insurance benefits, like the death benefit payout.1 The death benefit is the amount of money given to beneficiaries once the policyholder passes that can help ensure financial stability for loved ones.
At Aflac, we don’t offer single premium life insurance, but in some cases, you may have the flexibility to adjust your premium payments on other policies. Single premium life insurance and traditional life insurance (offered at Aflac) provide similar benefits, but the payment schedule is different.
Table of Contents
There are a few different kinds of single premium life insurance, like single premium whole life insurance and single premium variable life insurance. The main difference between these two life insurance plans is how the cash value functions.1
Cash value is a feature of some life insurance plans where a portion of the premium payment is put into a savings-like account that grows over time tax-deferred. If this feature appeals to you, cash value is offered in Aflac Whole Life Insurance plans.
The cash value grows in a single premium whole life insurance plan at a pre-determined fixed interest rate and functions the same way as Aflac Whole Life Insurance plans. Because there is less variability involved in this kind of life insurance plan, it is viewed as less of a risk.2 On the other hand, single premium variable life insurance invests the cash value into various portfolios. This is known as active investing and has the potential for greater reward or loss.2
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedNow that you understand the single premium life insurance definition, we can explore the benefits and drawbacks of this type of life insurance plan.
Single premium life insurance can grant beneficiaries a substantial death benefit. While every life insurance plan functions differently and death benefit capabilities vary, single premium life insurance can be helpful if you are looking to give loved ones a large payout.1
Additionally, it may be helpful to pay for your life insurance plan upfront if you can do so financially. Lastly, you may be able to access the cash value in these life insurance plans in the form of a loan, with a few extra hurdles compared to a traditional life insurance plan with cash value.
With single premium life insurance plans, you are required to pay a sizable fee upfront to guarantee benefits will be available. The bare minimum investment for these plans is somewhere around $5,000, which isn’t financially possible for everyone and offers a minimal death benefit payout.2
There are also more tax limitations involved when borrowing the cash value from a single premium life insurance plan than a whole life insurance plan.2 Once premium payments reach a specific value, they qualify as a modified endowment contract with a different tax structure. This value is determined by undergoing the seven-pay test.
The seven-pay test of a single premium life insurance policy measures how much money is spent on premiums over seven years. If the amount spent on premiums in seven years exceeds the total cost of a policy, it fails the test and qualifies as a modified endowment contract.2 Due to this legality, all single premium life insurance plans are modified endowment contracts. These contracts face greater withdrawal penalties, making it more challenging to utilize the cash value.2
With our whole life insurance plans, you may be able to borrow against the cash value in the form of a loan with little to no penalties. We recommend chatting with an agent to understand your life insurance options better if cash value appeals to you.
Get Started
Wondering what life insurance policy is best for you? Find out which type of life insurance can offer you the best coverage.
Life insurance premiums can vary based on the term length and your age. Learn how life insurance premiums are calculated and whether they’re tax-deductible.
Wondering what life insurance policy is best for you? Find out which type of life insurance can offer you the best coverage.
Life insurance premiums can vary based on the term length and your age. Learn how life insurance premiums are calculated and whether they’re tax-deductible.
1 Investopedia - Single-Premium Life Insurance: What it is, How it Works, FAQ . Updated August 11, 2023. Accessed February 28, 2025. https://www.investopedia.com/terms/s/single-premium-life-insurance.asp.
2 Value Penguin - What Is Single Premium Life Insurance? The Pros and Cons. Updated February 14, 2024. Accessed February 28, 2025. https://www.valuepenguin.com/single-premium-life-insurance.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma & Virginia, ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. B1000: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Pennsylvania, Policy Q60100MPA. In Texas, Policy Q60100MTX. Term: In Delaware, Policies Q60200M. In Arkansas, Idaho, Oklahoma, Oregon & Texas, Policies ICC18Q60200M.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
In Arkansas, Delaware, Idaho, Oklahoma & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac does not offer Universal or Variable Universal life insurance.
WWHQ | 1932 Wynnton Road | Columbus, GA 31999
NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
Z2400202R1
EXP 3/26
