Is Aflac a Good Insurance Company?
Is Aflac a Good Insurance Company?
Jason Stolz CLTC, CRPC, DIA, CAA
Aflac is one of the most recognizable insurance brands in America — the talking duck has been running since 1999, and for good reason: it works. Behind the advertising is a Fortune 500 company that is genuinely one of the most financially strong and ethically recognized insurers in the world. Founded in Columbus, Georgia in 1955 by brothers John, Paul, and William Amos, Aflac Incorporated (NYSE: AFL) is the largest provider of supplemental health insurance in the United States and the leading provider of cancer and medical insurance in Japan, where it insures one in four households. Revenue reached $18.93 billion in 2024. Total assets stand at $117.6 billion. AM Best has rated Aflac A+ (Superior) — affirmed September 2025 — and Aflac has increased its dividend for 38 consecutive years, qualifying it as an S&P 500 Dividend Aristocrat. The company has appeared on Ethisphere’s World’s Most Ethical Companies list for 19 consecutive years and Fortune’s World’s Most Admired Companies list for 24 years. One material disclosure belongs at the front of this evaluation: on June 12, 2025, Aflac identified unauthorized access to its U.S. network by a sophisticated cybercrime group. The company contained the intrusion within hours with no ransomware deployed and continued normal operations. Subsequent review determined the personal and health information of approximately 22.65 million people was potentially compromised — one of the largest health data breaches reported in the United States in 2025. Aflac notified affected individuals and federal regulators as required. The breach does not affect Aflac’s financial strength or its ability to pay claims, but it is a factual part of any current evaluation of the company. What Aflac does not offer: Aflac is not a primary health insurance carrier, not an annuity carrier in the independent retirement market, not a long-term care insurance provider, and not a Medicare Supplement carrier. The product suite is supplemental — designed to fill gaps in existing coverage by paying cash directly to policyholders when accidents, illnesses, or hospitalizations occur. At Diversified Insurance Brokers, Jason Stolz, CLTC, CRPC, DIA, CAA, works with clients who hold Aflac coverage as part of a broader benefit package and evaluates supplemental insurance options alongside the primary health, Medicare, long-term care, life, and retirement income planning that makes up a complete financial protection plan.
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What Aflac Covers and What It Does Not
| Product | What It Pays | What Buyers Need to Know |
|---|---|---|
| Accident Insurance | A lump-sum cash benefit paid directly to the policyholder when a covered accident occurs — ambulance costs, ER visits, fractures, dislocations, and more | The cash goes to you, not the provider — you use it however the recovery requires, whether that is a copay, a lost-wage gap, or a utility bill during recovery; most primary health insurance does not cover these incidental costs |
| Cancer Insurance | Lump-sum or ongoing cash benefits triggered by a cancer diagnosis; helps cover deductibles, copays, experimental treatment costs, and living expenses during treatment | Aflac pioneered cancer insurance in both the U.S. and Japan; even with strong primary health insurance, a serious cancer diagnosis creates out-of-pocket costs and income disruption that a lump-sum cash benefit directly addresses |
| Critical Illness Insurance | Lump-sum cash benefit upon diagnosis of a covered critical or chronic illness — heart attack, stroke, organ failure, and other defined conditions | A critical illness event often triggers both high medical costs and income disruption simultaneously; the lump-sum cash provides financial flexibility that health insurance reimbursement cannot — you decide where the money is most needed |
| Short-Term Disability Insurance | Replaces a portion of income when you cannot work due to covered illness or injury; Aflac’s short-term product covers up to six months | Short-term disability fills the income gap before long-term disability kicks in; for buyers who need disability protection beyond six months or whose occupation requires more comprehensive coverage, our resource on disability insurance covers long-term alternatives across the full market |
| Hospital Indemnity Insurance | Daily cash benefits for each day of a covered hospital stay, regardless of what primary insurance pays; benefits go directly to the policyholder | Even with good primary health insurance, a multi-day hospital stay leaves the patient managing copays, parking, meals, and childcare costs that insurance does not touch; the daily hospital indemnity benefit covers exactly this financial layer |
| Dental and Vision Insurance | Coverage for dental procedures not covered by standard plans (orthodontics, complex restorations) and vision care gap coverage; delivered through Aflac Benefits Solutions | Most employer health plans have limited or no dental and vision coverage; Aflac’s voluntary dental and vision products can be added through the employer or, increasingly, directly by individuals; relevant to Medicare recipients whose coverage includes no routine dental or vision |
How Supplemental Insurance Fits Into a Complete Retirement Plan
Aflac’s products solve a specific problem: primary health insurance — whether employer-sponsored, ACA marketplace, or Medicare — covers the claim but leaves a layer of costs the policyholder absorbs directly. Copays, deductibles, out-of-network charges, and the income disruption of a serious illness or injury all fall to the individual. Aflac’s cash benefits address that layer by paying directly to the policyholder without restriction. For working-age adults, that value proposition is clear. For retirees and pre-retirees, the picture shifts. Medicare covers hospital and medical costs for most Americans over 65, but the gaps — deductibles, copays, prescription costs, and the absence of dental and vision coverage — are real financial exposures. Our resource on Medicare Advantage versus Medicare Supplement covers the primary decision most retirees face in structuring their healthcare coverage, and the answer to that question determines how much supplemental gap exposure remains. Hospital indemnity coverage from Aflac can complement a Medicare plan by covering the daily out-of-pocket exposure during a hospital stay that Medicare and a supplement may not fully absorb. For the retirement income planning that sits alongside healthcare coverage decisions — how to generate guaranteed income that covers both predictable expenses and the unpredictable costs of illness — our resources on guaranteed income at age 65 and sequence of returns risk cover the structural planning decisions that determine how much of a health event your retirement income can absorb without derailing the broader financial plan. For buyers who have Aflac coverage through an employer and are transitioning to retirement — wondering whether to continue coverage on their own — the cost-benefit calculation changes when you no longer have payroll deduction and an employer subsidy. An independent review of what coverage is actually worth keeping versus what gaps are better addressed through Medicare Supplement or a dedicated hospital indemnity policy is the right analysis before making that decision.
The June 2025 Data Breach — What Existing and Prospective Policyholders Need to Know
On June 12, 2025, Aflac identified unauthorized access to its U.S. network as part of a coordinated cybercrime campaign that targeted multiple large U.S. insurers. Aflac’s security team contained the intrusion within hours. No ransomware was deployed and Aflac’s operations continued without interruption — underwriting, claims processing, and policyholder services all remained available throughout the incident. Subsequent investigation determined that personal and health information associated with approximately 22.65 million customers, beneficiaries, employees, agents, and other individuals was potentially exfiltrated — making it one of the largest health data breaches reported to federal regulators in 2025. Aflac notified affected individuals and filed required disclosures with the SEC and state attorneys general. Security researchers linked the attack to tactics consistent with a sophisticated cybercriminal group that targeted multiple insurance companies in the same period. This disclosure belongs in any honest evaluation of Aflac because it is a current, material fact. It does not affect Aflac’s AM Best A+ rating, its financial strength, or its ability to pay claims. It does mean that anyone who holds or has held an Aflac policy should monitor their credit, consider placing a fraud alert, and take standard identity protection precautions. Affected individuals who received a notification from Aflac should follow the instructions in that notice for credit monitoring services and next steps.
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Frequently Asked Questions: Is Aflac a Good Insurance Company?
What is Aflac’s AM Best rating and how financially strong is the company?
Aflac carries AM Best A+ (Superior) — the second-highest possible rating — affirmed September 2025. Aflac Incorporated is a Fortune 500 company with $18.93 billion in revenue and $117.6 billion in total assets as of 2024. The company has increased its dividend for 38 consecutive years, qualifying it as an S&P 500 Dividend Aristocrat — a distinction that requires consistent financial performance sustained through multiple economic cycles. Aflac is also rated investment-grade by S&P and Moody’s, providing multi-agency confirmation of its financial strength. The A+ rating reflects Aflac’s strong capital position, consistent operating earnings across its U.S. and Japan businesses, and decades of reliable claims payment. For context on what A+ means in the full AM Best framework, our resource on what an AM Best rating means covers the full scale. The June 2025 cybersecurity incident did not affect this rating — financial strength and data security are separately assessed.
What exactly is supplemental insurance and why does Aflac specialize in it?
Supplemental insurance fills the financial gaps that primary health insurance leaves. When you have a covered accident or illness, your primary health plan pays a portion of the medical costs — but deductibles, copays, and out-of-pocket maximums leave real expenses the policyholder absorbs. There is also the income disruption: time off work, travel for treatment, childcare during recovery, and other non-medical costs that no health insurance covers at all. Aflac’s products address these gaps by paying a defined cash benefit directly to the policyholder — not to the provider — when a qualifying event occurs. Aflac pioneered the supplemental cancer insurance model in both the U.S. and Japan, building a company that now serves over 50 million policyholders worldwide on the insight that health insurance pays the hospital while supplemental insurance pays you. Most Aflac coverage in the U.S. is enrolled through employers as a voluntary benefit with premiums paid via payroll deduction, making it widely accessible with no out-of-pocket premium management required from the employee.
What happened in Aflac’s June 2025 data breach and what should I do?
On June 12, 2025, Aflac identified unauthorized access to its U.S. network, which the company’s security team contained within hours. No ransomware was deployed and Aflac’s operations — underwriting, claims, customer service — continued without interruption throughout the incident. Subsequent investigation confirmed that personal and health information belonging to approximately 22.65 million individuals was potentially exfiltrated, including customers, beneficiaries, employees, and agents. The compromised data may include names, dates of birth, Social Security numbers, and health-related information. Aflac notified affected individuals and filed required disclosures with the SEC and state attorneys general. If you received a notification from Aflac, follow the instructions in that notice regarding credit monitoring services. Regardless of whether you received a notification, if you hold or have held an Aflac policy, placing a fraud alert or credit freeze with the three major credit bureaus and monitoring your accounts for unusual activity is a prudent precaution. The breach does not affect Aflac’s financial strength, its obligation to pay claims, or the status of your policy.
Does Aflac offer long-term care insurance or annuities?
No on both counts. Aflac does not offer long-term care insurance, annuities for retirement accumulation, or Medicare Supplement coverage. These gaps are not secondary — they are the products most retirement-focused buyers need to address the three largest financial risks in retirement: income longevity, healthcare costs in Medicare, and long-term care costs. Aflac’s accident, cancer, critical illness, and hospital indemnity products are genuine value for working-age adults and active retirees, but they do not replace dedicated long-term care planning. For buyers evaluating long-term care coverage, our resource on hybrid long-term care insurance covers the current market of carriers — including OneAmerica, GILICO, and others — that actively compete for new LTC business with strong financial strength ratings. For retirement income planning, our annuity comparison tools above cover the full market of A-rated carriers. For Medicare coverage decisions, our resource on Medicare Advantage versus Medicare Supplement addresses the primary healthcare coverage decision most retirees face.
Can I keep my Aflac coverage if I leave my employer?
Most Aflac individual policies are portable — you can typically keep the coverage by switching from payroll deduction to direct billing when you leave an employer. The premium amount does not change simply because you are no longer enrolled through an employer, but you lose the convenience of automatic payroll deduction and, in some cases, any employer contribution to premium. For employees transitioning to retirement, the cost-benefit calculation on Aflac coverage changes materially. The accident and critical illness products remain relevant if you are not yet on Medicare; once you are enrolled in Medicare, the gap structure changes and some Aflac products overlap less cleanly with what Medicare actually covers. A review of which Aflac products are worth continuing after retirement — and which gaps are better addressed by a Medicare Supplement or dedicated hospital indemnity product purchased separately — is worth completing before assuming continuation is automatically the right choice. Our resource on Medicare Advantage versus Medicare Supplement covers the healthcare coverage decision that most directly affects which supplemental insurance gaps remain worth filling.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, as well as his agency's featured coverage in Kiplinger— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Review More Carrier Reviews: Browse our complete Medicare & Group Health Company Reviews — covering Physicians Mutual, Aflac, The Hartford, and Zurich.
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