American Income Life Insurance Reviews: Is It Worth It?

Life insurance is a great investment in your future. When choosing a life insurer, you need to make sure the provider is trustworthy even in tough times. American Income Life Insurance is one of the great life insurance providers that you may want to consider.

American income life insurance is sold differently than many other companies because they use a tiered marketing structure.

American Income Life Insurance offers many types of legitimate insurance, but there are also some drawbacks you should be aware of before you make a purchase.

In this article, we will discuss everything you need to know about American income life insurance and its benefits and processes.

Table of Contents

About American Income Life

American Income Life was founded in 1951 and offers life, accident and supplemental health insurance in the United States and beyond.

The company is based in Waco, Texas, but also serves clients in the United States, Canada, and New Zealand.

American Income Life, a wholly owned subsidiary of Global Life, Inc and currently licensed in 49 states, Washington DC and Canada, although not licensed in New York, has a New York-based subsidiary called National Income Life.

They cater primarily to working-class families; work with members of unions, credit unions, various associations and their families.

They offer policies for individuals, single parents, and families with portable coverage, whether you’re changing jobs or moving.

Who is offered life insurance from American Income?

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

Insurance information is extremely limited online and coverage must be quoted and purchased through one of the independent agents in the AIL network.

They have a very long history of providing supplemental insurance to credit unions and cooperatives, but have since expanded to offer a wide range of policies.

It’s important to note that American Income uses multi-level marketing tactics to sell insurance and recruit new agents.

Agents are independent contractors who are paid entirely on commission, meaning they only make money when they make a sale.

Each agent is also expected to recruit new agents and will earn a percentage of the income their recruits earn.

What plans are offered at American Income Life Insurance?

American Income Life has four life insurance plans to choose from. It’s important to note that your options can vary widely, as AIL generally offers group policies for different unions and groups, which may determine the coverage limits and features they want to offer their members.

Term Life
American Income Life policies offer 10, 15, 20, 25 or 30 years of term life insurance that could financially protect your loved ones in the event of your death.

The insurance coverage is generally cheaper than whole life insurance coverage with the same death benefit, although it is only valid for the term specified.

Lifetime income can be paid as a lump sum or as a monthly benefit. A medical exam is required for applicants to purchase insurance coverage; You will need to speak with an agent to determine the coverage limits available.

Whole life
If you prefer whole life coverage, consider permanent life insurance. This policy also requires a medical exam to purchase, and you must work with an agent to determine your insurance options and apply for a policy.

American Income Life does not pay dividends on life insurance.

Head Start Child Life Insurance Program
The Head Start policy is child life insurance offered by American Income Life. It is available to children up to age 17 and offers the option to purchase more insurance coverage without proof of insurability.

Final Expense
The final expense life insurance policy offers lower coverage limits and is intended to cover all applicable final costs.

This could mean meeting things like final medical bills, funeral and funeral expenses, or other immediate needs.

This policy, also known as a freedom of choice plan, also allows you to designate the funeral home of your choice as beneficiary, saving your family time and stress when the time comes.

Supplemental Health Guidelines
Although American Income Life classifies the following policies as supplemental health insurance, they overlap with many life insurance and optional passenger coverage. These include:

accident policy
health insurance plan
Cancer Protection Plan
Critical Illness Policy

The terms, exclusions, and availability of these plans can vary, so it’s important to talk to your agent to find out what’s available to you and what exactly is covered.

How much does American Income life insurance cost?

The cost of life insurance depends largely on your individual factors. Prices can be affected by anything from your age and gender to your location, coverage limits, insurance options/features, marital status, tobacco use, and even the participating group you belong to.

In general, you can assume that the younger you are, the cheaper your insurance coverage is. Term life insurance is usually cheaper than life insurance, and the lower the coverage limits, the cheaper the policy.

Also, we should keep in mind that life insurers calculate insurance premiums based on the biology of birth. If you identify as non-binary or transgender, you may qualify for coverage, but many life insurance

If you’re looking for coverage that you can quote or buy online, or even get a detailed idea of before you buy, American Income Life probably isn’t for you.

This coverage is only available through independent agents and there are no online options for quotes or coverage.

The company offers life insurance in the United States , Canada and New Zealand. They offer a variety of additional insurance options that you may not find anywhere else, which might make them worth considering if your union or employer offers AIL coverage.

What types of policies does American Income offer?

Although American Income’s tiered marketing sales strategies are questionable, they offer legitimate life insurance.

If you decide to buy life insurance with them, regardless of whether it is a small or multi-million dollar insurance, you can rely on their protection regardless of the current economic situation.
They have an A+ rating from AM Best, an independent company that assesses the financial stability of insurance companies and other financial institutions.
American Income specializes in life insurance. As the name suggests, these policies will cover you for your entire life, regardless of your age.
Life insurance policies also have a cash value component, i. H. earn money over time and can be treated as a financial asset. They also offer a terminal illness rider, which means you can use your death benefit to pay for medical care if you get sick.
However, the American Income policy differs from other insurance providers in that it does not participate and does not offer dividends.
They guarantee a 4.5% growth rate on the value of the insurance, but your policy will not pay dividends in the same way that other life insurance policies would. This means that in the long run you will not have the opportunity to win as much money.
American Income also offers term life insurance. Term life insurance is only valid for a certain period of time, usually between 10 and 30 years.
It is cheaper than life insurance and does not have a cash value component. For most people, term life insurance is the best value for money.
American Income also offers additional health insurance. These include accident insurance, hospital indemnity insurance, cancer insurance, and critical illness insurance.
Although each of these types of insurance is slightly different, they generally provide financial protection if the policyholder ends up in the hospital for an extended period of time or needs ongoing medical care.

While these policies may sound tempting, you can usually get better coverage by investing the money in quality health insurance. You should weigh all of your family’s health insurance options before committing to any of these policies.

What are the merits of American Income Life Insurance?

National (and even international) insurance – American Income Life offers life insurance in 49 states, Canada, and New Zealand to ensure you can get a policy no matter where you live. (In New York, policies are issued by AIL’s National Income Life subsidiary.)
Courtesy Passengers: Terminally ill passengers are available to policyholders at no additional charge. Many policies also offer accidental death and dismemberment (AD&D) coverage. Depending on the group and policy, this may also be free.

What are the drawbacks of American Income life insurance?

Working with an agent is required – You can’t buy a policy or view your insurance options without working directly with a local independent agent. Many people claim that the AIL agent program is very similar to a multi-level marketing (MLM) operating structure.
Serious lack of transparency – You’ll find it difficult to find out the coverage limits, policy options, prices, or even features of certain policies without speaking to an agent. AIL offers very little information online.
No online quotes or pricing information: For pricing information, please speak to an agent again. No online listings, examples or price charts are offered on the AIL website.
Recently Downgraded Financial Strength Rating: American Income Life currently has an A Financial Strength Rating from AM Best, which is still a very good number. However, this was recently downgraded from A+ in 2020, raising some concerns.

conclusion

American Income offers legitimate life insurance. They are very strong financially and can reliably settle your claims. However, there are many aspects of your business that are of concern.

Because of their tiered marketing structure, customers don’t get the experience and reliable customer service that they would get from a larger, more reliable company.

Their lifetime products also don’t offer as much value as some other companies, and they don’t have many customization options. Most consumers would be better off buying life insurance from another company.