American Income Life Insurance Company

American Income Life Insurance Company Review September 2022

Life insurance is a good investment in your future. When choosing a life insurance company, you must ensure it is reliable even in tough times. American Income Life Insurance is one of the best life insurance companies to consider.

American Income Life Insurance is not sold like many other companies because it uses a multi-level marketing structure. American Income Life Insurance offers many legitimate types of insurance, but there are some drawbacks that you should be aware of before purchasing.

In this article, you’ll learn everything you need about American Income Life Insurance, its benefits, and procedures.

Brief History of American Income Life

Founded in 1951, American Income Life provides supplemental life, accident, and health insurance in the United States and beyond. The company is headquartered in Waco, Texas, and serves customers in the United States, Canada, and New Zealand.

American Income Life is a subsidiary of Global Life, Inc., which is currently licensed in 49 states, Washington, D.C., and Canada, but not New York, and has a subsidiary in New York, National Income Life.

They focus primarily on working-class families and work with members of unions, credit unions, various associations, and their families. They offer policies for individuals, single parents, and families to take with them when they change jobs or move.

Who is offered American Income life insurance?

American Income Life Insurance (AIL) is generally offered to members of labor unions, credit unions, and certain organizations with insurance coverage in the United States, Canada, and New Zealand.

Online insurance information is very limited, and insurance must be calculated and purchased through one of the independent agents in the AIL network. The company has a long history as a provider of supplemental insurance for credit unions but has since expanded its offerings to include a wide range of policies.

Importantly, American Income uses multi-level marketing tactics to sell insurance and recruit new agents. Agents are independent contractors paid on a commission-only basis, meaning they only make money when they make a sale.

Each agent is also required to recruit new agents and earn a percentage of their recruiters’ revenue.

What plans does American Income Life Insurance offer?

American Income Life offers four life insurance plans. It’s important to note that the options can be very diverse. AIL generally offers group policies to various associations and groups that can determine the scope of coverage and features they want to offer their members.

1. Term life insurance

American Income Life offers term life insurance for 10, 15, 20, 25, or 30 years that can financially protect your loved ones during your death.

This insurance is usually less expensive than life insurance, which offers the same death benefit, even if it only pays for a certain period.

The lifetime annuity can be paid in a lump sum or monthly. A medical examination is required to take out insurance; you should contact an insurance representative to find out the extent of the cover.

2. Whole Life Insurance

If you prefer life insurance, you should take out life insurance for an indefinite period. This policy also requires a medical exam, and you should work with a representative to determine your insurance options and apply for a policy.

American Income Life does not pay dividends on life insurance policies.

3. Children’s Life Insurance 

American Income Life offers life insurance for children. It is available for children up to age 17 and offers the opportunity to purchase additional insurance without a certificate.

4. End of Life

End-of-life insurance offers lower premium amounts and covers any final expenses incurred. This may mean covering final medical expenses, funeral and burial expenses, or other emergency needs.

With this policy, also known as a free choice plan, you can name the funeral home of your choice as the beneficiary, saving your family time and money.

American Income Life cost

The cost of life insurance depends largely on individual factors. Prices can be affected by various factors, from age and gender to where you live, coverage amounts, policy options, marital status, tobacco use, and even the group of insurers you belong to.

In general, insurance costs decrease as you get younger. Term life insurance is usually cheaper than whole life insurance, and the lower the coverage amounts, the cheaper the policy.

Also, remember that life insurance companies calculate premiums based on birth biology. If you identify as a non-binary or transgender person, you may be eligible for coverage, but many types of life insurance policies.

If you’re looking for insurance that you can quote for or buy online, or even get a detailed picture before you buy, American Income Life probably isn’t for you. This coverage is only available through independent agents, and you can’t get a quote or purchase coverage online.

The company offers life insurance in the United States, Canada, and New Zealand. They offer many additional coverage options that you won’t find anywhere else. So it’s worth checking to see if your union or company offers AIL insurance.

What types of insurance does American Income offer?

Although American Income’s marketing strategies are questionable, the company does offer reputable life insurance policies.

Suppose you choose to insure your life with them. In that case, whether it’s a small or multi-million dollar policy, you can rest assured that they will protect you regardless of your current financial situation.

They have an A+ rating from AM Best, an independent company that rates the financial strength of insurance companies and other financial institutions.

American Income specializes in life insurance. As the name implies, these policies provide lifetime coverage, regardless of age.

Life insurance policies also have a cash value component, which means they provide money over time and can be considered a financial investment. They also offer death benefit insurance, which allows you to use the death benefit for medical treatment in the event of illness.

What are the Pros of American Income Life insurance?

  • Domestic (and international) insurance: American Income Life offers life insurance in 49 states, Canada and New Zealand, so you can purchase a policy no matter where you live (in New York, the policy is underwritten by National Income Life, a subsidiary of AIL).
  • Free Riders: terminal illness clauses are available to policyholders at no additional cost. Many policies also provide accidental death and dismemberment (AD&D) coverage. Depending on the group and policy, this service may also be free.

What are the Cons of U.S. life insurance?

  • Working with a broker is necessary: It is impossible to purchase a policy or review insurance options without working directly with a local independent broker. Many argue that the AIL agent program is very similar to the operational structure of multi-level marketing (MLM).
  • There is a lack of transparency: without speaking with an agent, it is difficult to learn about coverage limits, policy options, pricing, and even the features of some policies. The IIA offers very little information online.
  • There are no quotes or pricing information online: For pricing information, don’t hesitate to get in touch with a broker. No online quotes, examples, or pricing tables are available on the AIL website.
  • Financial Strength Rating Recently Downgraded: American Income Life currently has a financial strength rating of A from AM Best, which is still very good. However, the recent downgrade to A+ for 2020 is a cause for concern.

Conclusion

American Income offers reputable life insurance policies. They are financially strong and can settle claims reliably. However, many aspects of their business are cause for concern. Because of their multi-level marketing structure, customers do not receive the experience and reliable customer service they would receive from a larger, more reputable company.

In addition, their lifetime products do not offer the same value as other companies and do not have many customization options.

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