Selman and Company Life Insurance Explained: Coverage, Claims, and Provider Partnerships

Selman & Company is a prominent Third-Party Administrator (TPA) that manages life insurance programs for associations, credit unions, and employers. While they do not underwrite the policies themselves, they handle billing, enrollment, and claims processing for major carriers, providing members with access to group-rate term life and AD&D coverage.

Understanding Selman & Company requires a shift in how you view insurance providers. In the traditional model, you buy a policy directly from a carrier like MetLife or Prudential. However, many people receive insurance offers through their professional associations, credit unions, or alumni groups. In these instances, Selman & Company typically acts as the bridge—the administrative engine that ensures your premiums are paid, your beneficiary information is updated, and your claims are processed efficiently. As of 2026, they remain one of the largest private TPAs in North America, managing billions in insurance force for millions of individual policyholders.

The Role of Selman & Company as a Third-Party Administrator

To understand "Selman and Company life insurance," one must first understand the role of a Third-Party Administrator. A TPA is an organization that processes insurance claims or assembles many aspects of employee benefit plans for a separate entity. In the context of life insurance, Selman & Company is hired by an "underwriter" (the company that actually takes the financial risk and pays out the death benefit) to manage the day-to-day operations of the policy.

For the policyholder, Selman & Company is the "face" of the insurance. When you receive a bill in the mail or log into a portal to change your address, you are interacting with Selman's systems, not necessarily the underlying insurance company's systems. This arrangement allows large insurance carriers to offer niche products to specific groups—such as the American Legion or a local credit union—without having to build custom administrative frameworks for every small group.

The Relationship Hierarchy

1. The Policyholder: You, the member of an association or employee of a company.
2. The Sponsor: The organization you belong to (e.g., a credit union, the VFW, or a professional league).
3. The Administrator (Selman & Company): The entity handling customer service, billing, and enrollment.
4. The Carrier/Underwriter: The financial institution (e.g., New York Life, Transamerica, or Securian Financial) that legally guarantees the policy.

Primary Life Insurance Products Administered by Selman & Company

Selman & Company focuses primarily on group insurance products. These are often "supplemental," meaning they are designed to add to the coverage you might already have through an employer or a private individual policy.

Group Term Life Insurance

This is the most common product administered by Selman. Group term life provides coverage for a specific period (the "term") and pays a death benefit to your beneficiaries if you pass away during that window. Because these policies are marketed to large groups, they often feature "simplified issue" underwriting. This means you might not need a medical exam; instead, you answer a few health questions. In some cases, "guaranteed issue" coverage is available, where no health questions are asked at all, though the coverage amounts are typically lower.

Accidental Death & Dismemberment (AD&D)

Many credit union members see Selman & Company’s name associated with "complimentary" or "purchased" AD&D insurance. AD&D is not standard life insurance. It only pays out if the cause of death is a covered accident. It also provides "dismemberment" benefits—a portion of the policy amount paid to the insured person if they lose a limb, sight, or hearing due to an accident. Selman manages the high volume of these policies for financial institutions across the United States.

Hospital Indemnity and Supplemental Health

While not strictly "life insurance," these products are often bundled in the same administrative packages. These plans pay a fixed daily amount if you are hospitalized. Selman handles the complex task of verifying hospital stays and issuing these niche payments, which serve as a financial cushion for out-of-pocket medical costs.

Eligibility and How to Enroll

Access to a Selman & Company administered life insurance policy is almost always contingent upon membership in a participating organization. You cannot typically walk off the street and buy a policy directly from Selman's website without a group affiliation.

Common Participating Groups

• Credit Unions: Many credit unions offer $1,000 to $2,000 of "free" AD&D insurance to members as a perk of membership, with the option to buy more. Selman is often the administrator for these programs.
• Military and Veteran Associations: Organizations like the American Legion often use Selman to provide their members with tailored life insurance products.
• Professional Associations: Groups for engineers, teachers, or nurses may offer group term life rates that are lower than individual market rates.

The Enrollment Process

Enrollment usually happens during a specific window or when you first join a group. In 2026, most enrollments are handled through a secure digital "Member Portal" provided by Selman. During this process, you will select your coverage amount, name your beneficiaries (the people who get the money), and authorize a payment method—often a direct deduction from your credit union account or a monthly credit card charge.

Understanding Costs and Premium Structures

The cost of life insurance administered by Selman & Company is determined by several factors, primarily the master agreement between the sponsor and the insurance carrier. Because these are group rates, they are often "age-banded."

Age-Banded Premiums

In many Selman-administered plans, your premium will stay the same for a five-year period (e.g., ages 40–44) and then increase when you move into the next age bracket (45–49). It is vital to read the "Certificate of Insurance" to understand when these price jumps occur.

Factors Affecting Your Rate

• Group Size: Generally, the larger the association, the lower the administrative cost per member.
• Benefit Amount: Most plans allow you to choose in increments (e.g., $10,000 units up to $250,000).
• Smoking Status: Even in simplified issue group plans, smokers almost always pay a significantly higher rate than non-smokers.
• The "TPA Fee": A small portion of your premium goes to Selman & Company to cover the costs of their customer service centers and digital platforms.

How to File a Claim with Selman & Company

The true test of any insurance administrator is the claims process. When a policyholder passes away, the beneficiaries must contact Selman & Company to initiate the payout. It is important to note that while Selman processes the paperwork, the actual funds are typically disbursed from the underwriting carrier's accounts.

Step-by-Step Claims Process

1. Notification: Contact the Selman & Company claims department. This can usually be done via their website or a dedicated claims phone line.
2. Documentation: You will be required to provide a certified copy of the death certificate. If the policy is an AD&D policy, additional documentation (like police reports or toxicology screens) may be required to prove the death was accidental.
3. Claim Form: The beneficiary must complete a "Statement of Beneficiary" form, which includes Social Security numbers and payment preferences.
4. Review and Verification: Selman's claims adjusters verify that the policy was in force (premiums were paid) and that the cause of death doesn't fall under any exclusions (such as the suicide clause, which usually applies for the first two years of a policy).
5. Payout: Once approved, the funds are sent to the beneficiary.

Critical Considerations: The "Fine Print"

When evaluating a Selman & Company administered policy, there are specific technical details that policyholders often overlook.

The Suicide Clause: Almost all life insurance policies administered by Selman include a two-year suicide exclusion. If the insured dies by suicide within the first 24 months of the policy being in force, the carrier will usually only refund the premiums paid, rather than paying the full death benefit.

The "In-Force" Requirement: Since many of these policies are tied to credit union accounts or association memberships, the policy remains "in-force" only as long as you remain a member and keep your account active. If you close your credit union account and your premium was being deducted from that account, your coverage could lapse without you realizing it.

Exclusions in AD&D: It is a common mistake to believe AD&D is a substitute for life insurance. AD&D managed by Selman has strict exclusions. Deaths caused by illness, disease, surgery, or natural causes are not covered. Furthermore, deaths resulting from "high-risk activities" (specified in the policy) or intoxication may be excluded.

Verification and Safety: Is Selman & Company Legitimate?

A common reason people search for "Selman and Company life insurance explained" is seeing an unfamiliar charge on a bank statement. Selman & Company is a legitimate, A+ rated company by the Better Business Bureau (BBB). They have been in operation since 1980 and are headquartered in Cleveland, Ohio.

They are regulated by state departments of insurance in every state where they operate. Because they handle "non-public personal information" (NPPI) and health data (under HIPAA), they are required to maintain rigorous cybersecurity standards. In 2026, their platforms utilize multi-factor authentication and advanced encryption to protect policyholder data.

Frequently Asked Questions

Why is Selman & Company taking money from my bank account?

If you see a charge from Selman & Company, it is most likely a premium payment for a life or AD&D insurance policy you signed up for through your credit union or a professional association. This often happens after an initial "free" period for a complimentary policy ends, or if you opted into supplemental coverage during a membership drive.

How do I cancel my Selman and Company policy?

To cancel, you must contact Selman & Company directly, either through their online member portal or by calling their customer service line. Simply stopping payment at your bank is not recommended, as it can lead to "unpaid premium" notices. You should request a written confirmation of the cancellation to ensure no further drafts occur.

Can I keep my Selman insurance if I leave my association?

This depends on the "portability" and "conversion" provisions in your specific policy. Many group policies allow you to "convert" the group coverage into an individual policy if you leave the group, but the premiums usually increase significantly because you lose the group discount. You typically have a 31-day window after leaving the group to exercise this option.

Does Selman & Company pay out claims quickly?

Generally, yes. As a TPA, their efficiency is their primary selling point to the carriers. If the documentation (death certificate and claim form) is in order and the policy is past the contestability period, claims are usually processed within 10 to 15 business days. Delays only occur if there is a dispute regarding the cause of death or if the beneficiary information is outdated.

What happens if the underwriting carrier goes bankrupt?

In the highly unlikely event that the carrier (e.g., Transamerica) fails, your policy is protected by State Guaranty Associations. Selman & Company, as the administrator, does not hold the "risk" money; they merely move it. Therefore, Selman’s financial health is less important to your payout than the financial health of the actual insurance carrier listed on your certificate.

Final Recommendation: Next Steps for Policyholders

If you currently hold a policy administered by Selman & Company, your first action should be to log into their Member Portal and download your "Certificate of Insurance." This document is the legal contract that defines your coverage. Verify that your beneficiary designations are current; failing to update a beneficiary after a marriage or divorce is the leading cause of legal delays in life insurance payouts.

For those considering a new offer from an association managed by Selman, compare the age-banded rates against a quote for a level-term individual policy. If you are young and healthy, a private individual policy may offer more stability and lower long-term costs. However, if you have minor health issues that make traditional insurance difficult to obtain, the simplified issue products managed by Selman & Company represent an excellent and accessible way to secure your family's financial future.

Disclaimer: This article provides general information about insurance administration and does not constitute legal, financial, or tax advice. Insurance laws vary by jurisdiction. Always consult with a licensed insurance professional regarding your specific coverage needs.