As the life insurance subsidiary of health care giant Aetna, Aetna Life Insurance Company (ALIC) offers group life policies and select individual products throughout North America. It also provides disability insurance and underwrites some of its parent's health plan policies. ALIC was founded in 1853 as a spinoff of Aetna Insurance Company and is the primary entity that makes up Aetna's Group Insurance segment. After more than 150 years in operation, the company has more than 20,000 group life contracts in force. The company targets a wide range of small to large corporate customers across the US.
The parent company's operations are focused on accident and health insurance, while life and disability insurance accounts for about 5% of total earned premiums.
Sales and Marketing
ALIC's policies are marketed through Aetna's sales representatives and through independent brokers and consultants. ALIC's life insurance offerings for groups include term, universal, and supplemental (including spouse and dependent) coverage, as well as accidental death and dismemberment coverage. Group term life policies, which can either be fixed or variable (tied to employee wages), are its most popular offering.
Disability offerings are designed to replace employees' income while they are on short-term or long-term disability leave. These policies are offered on an employer group or individual account basis. For group accounts, ALIC offers absence management and disability administration services.
Additionally, ALIC is the underwriter for certain health plan benefits sold by its Aetna sister companies including self-funded and PPO medical plans and dental plans, as well as student health insurance plans. Aetna no longer sells new long-term care insurance coverage (for nursing home stays), but it still services existing policies.
The company works hard to differentiate itself from its competitors. It works hard at cementing long-term loyalty among its customers.