Aetna Life Insurance Company

The Aetna Life Insurance company has been in business for over 150 many years.  Today it provides stable life insurance products through various group life insurance plans.  These plans are typically available through select employers.  They are most notable for their group health and dental plans.

If you have come to this page looking for information concerning Aetna and their group life insurance, please read on.  If you have come to this page hoping to purchase an independent term life insurance policy through Aetna, you will be out of luck.  To our knowledge Aetna does offer life insurance for individuals.

Aetna is one of the largest group health insurance companies in the United States.  They also offer Group Life Insurance.

Aetna has been in business for so long and been involved in so many first, it might not be possible to do this historical survey justice.  The company has proudly been part of much of our country's history and has many notable historical "firsts."

First set up to provide annuities in 1850, the original name came was inspired by a Volcano in Italy. Although the names are spelled slightly differently (Aetna vs Etna) the link is clear.  In 1861 Aetna began offering their first Participating Whole Life Insurance policy.  In 1867 the company began offering farm mortgage loans.  

In the late 1860s the company abandons the most common underwriting system, known as the half note premium system, in favor of the all cash premium plan.  This is novel in numerous ways.  In the late 1880s the company moves its headquarters to Hartford Connecticut.  In 1891 the company begins issuing Accident policies.

Aetna enters the health insurance industry in 1891 as being one of the first publicly traded companies to do so.  About 1907 the insurer begins refereeing Automobile policies.  In 1913 they begin selling their first group life insurance contracts.  In 1919 the follow up by offering group disability policies.

In 1944 Aeta becomes the very first insurer to advertise on television. In 1951 the move into what is known as major medical health insurance.  They grown to become an international insurer in the 1960s. In 1966 Aetna pays out the very fist medicare claim and becomes listed on the NYSE in 1968.

By the 1990s Aeta ceases selling individual health insurance policies and in 1996 gets out of the property causality business.  In 2017 the company sells much of its group life and disability benefits to the Hartford and then agrees to be acquired by CVS.

Today  the company has become a Health Insurance colossus insuring over 23 Million consumers for medical insurance and 15 million dental clients as well.  The company provides other non dental and medical insurance to many individuals as well.

Group Term Life:

Aetna's group life insurance policies are through Employer Sponsor plans.  These cannot be purchased as individual policies.  Aetna's policies contain both the basic coverage amount and a potential supplemental coverage amount.

Various Options (Riders) and Features of the Aetna Group Life Insurance Policies include:

• Portability:  According to Aetna, this "This lets you take your coverage with you if you leave the company or you retire."
• Convertibility:  This potentially allows consumers to migrate your group policy to an individual policy if "you leave your employer or if your coverage is reduced."
• Group Life Insurance Extension: Your coverage may be extended if "you become permanently and totally disabled."
• Accelerated Death Benefit:  This feature may allow an early partial payout if you become terminally ill.
• Extension of Coverage to Loved Ones:  Add additional policies or coverage to select family members.
• Premium Waiver:  This feature if available will allow you to potentially forgo yearly premium payments if certain if certain conditions are met.

This is a partial list subject to change.

The Aetna Life Insurance Company has a Financial Strength Rating of "A".   This is two levels below the top rating of A++.  AM Best defines this rating as "Excellent."  The insurer has had an A rating from at least since 2014, which has been steady the entire time.

Aetna Life Insurance has a Policyholder Surplus Rating of "XV".  This means that they have amongst the largest policyholder surpluses rated.  This is defined as 2 Billion dollars or greater.

Both of these ratings make the Aetna Life Insurance Companies one of the best rated insurers in the country both in terms of size and technical financial metrics.

• In 2000 Aetna apologized for "for its actions relating to slavery in the years prior to the U.S. Civil War, admitting that it had insured slaves with policy benefits paid to their owners, not their families."  Source.
• In 2018, the California Department of Insurance launched an investigation when they "learn[ed] a former medical director for the insurer admitted under oath he never looked at patients' records when deciding whether to approve or deny care."  CNN.

The Aetna Life Insurance company is a terrific option is you have this option through your employer. Group Term life insurance is best used up the free amount available through your employer.  For some, that are un-insurable on the open market, sometimes getting the maximum amount available through a group policy is your best bet.  In other words if you can not qualify for independent term life insurance because of your health or lifestyle, consider maxing out the group policy.

Should you have questions about this insurer or life insurance kindly send them to us.  You can add them to the comment box below or email us directly.  scott at marindependent.com

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