Loyal American Life (Cigna)

Loyal American Life Insurance Company was founded in 1955 and became part of the Cigna Group, a leading global health service company, in the early 2000s. The acquisition expanded Cigna’s insurance offerings and helped the company gain a strong foothold in the supplemental insurance market. With Cigna’s backing, Loyal American operates under the health services umbrella and has earned a reputation for its broad portfolio of products aimed at individuals seeking additional coverage beyond traditional health insurance.


Loyal American Life Insurance focuses on various supplemental insurance products, primarily targeting seniors and individuals looking to enhance their medical coverage. Their core offerings include: Medicare Supplement Insurance, Whole Life Insurance, Hospital Indemnity Insurance, Dental, Vision, and Hearing, Cancer and Critical Illness Insurance and Short-Term Care Insurance.


As a subsidiary of Cigna, Loyal American benefits from the financial strength and stability of its parent company, which is consistently rated highly by major rating agencies. Cigna’s global reach and diversified portfolio contribute to Loyal American’s ability to maintain its financial obligations to policyholders, ensuring the company’s ability to deliver on its promises over the long term.

Cigna’s financial ratings typically range from A (Excellent) from A.M. Best to high marks from Fitch and Standard & Poor’s, reflecting their stable, diversified revenue streams and strong capital position. This backing gives Loyal American a solid foundation and positions it as a reliable partner for agents and clients alike.

Loyal American Life has long been recognized for its adaptability within the insurance space, particularly in the way it has evolved to meet the needs of Medicare-eligible individuals. Its acquisition by Cigna marked a turning point, allowing the company to integrate its services with Cigna’s broader health and wellness offerings, including technology-based health solutions and personalized care. This evolution reflects a broader industry trend where supplemental insurers are aligning more closely with holistic health service providers.

Pros
- Diverse Supplemental Product Offerings: Loyal American’s product lineup, including Medicare Supplement, Cancer, Critical Illness, and Short-Term Care insurance, offers comprehensive coverage options for policyholders looking for financial protection beyond basic healthcare.


- Financial Backing of Cigna: The company’s connection to Cigna adds credibility and stability, reassuring policyholders and agents that they are working with a financially strong and well-established organization.

- Specialization in Senior Markets: Loyal American is highly focused on meeting the needs of the senior market, with products specifically tailored to Medicare beneficiaries, offering niche solutions that enhance healthcare coverage.

Cons
- Brand Identity: Loyal American may not have the same level of brand recognition on its own compared to competitors in the same space, as it operates under Cigna’s larger corporate umbrella.

- Limited Standalone Focus: Being part of a broader health services organization like Cigna can limit its flexibility in differentiating from its parent brand. Some agents may prefer carriers that are independently focused on the supplemental insurance market.

Loyal American Life Insurance Company, operating under the Cigna umbrella, is a solid player in the supplemental insurance market, offering a wide range of products focused on helping individuals—particularly seniors—enhance their health coverage. Backed by Cigna’s financial strength and industry expertise, Loyal American is a trusted provider for Medicare Supplement, Whole Life, Hospital Indemnity, Cancer, and Critical Illness insurance. For insurance professionals, the company’s diverse offerings and reliable financial backing make it a competitive option for clients seeking additional coverage beyond traditional health insurance. However, the brand’s dependence on Cigna’s identity may be a consideration for those looking for more standalone recognition in the market.