Fact CheckedAre you looking for American Income Life Insurance Company Reviews for 2024? We’ve got you covered! The company’s main office is in Waco, Texas, and operates in the United States, Canada, and New Zealand. AIL is a wholly-owned subsidiary of Globe Life.
1951, Bernard Rapoport founded this insurer in Minneapolis with $25,000 of borrowed money. In a relatively short period, American Income Life generated $1 million in hospital insurance premiums and expanded operations across the US.
By 1961, they shifted their focus to selling life insurance products to labor unions, credit unions, and large-scale associations, which remains the core of their business today.
Some of their strategies for building relationships include:
- Sponsoring union and association events like “family fun days,” etc.
- Picket line visits and donations
- Waiving policy premiums during lawful strikes
- Scholarship programs for families of union members
- Offering groups no-cost Accidental Death & Dismemberment (AD&D) coverage
- Monetary contributions
- Gift of a free child safety kit
In 1973, AIL received an official “Union Label” from the American Federation of Labor due to its continued support of union and association members.
American Income Life Insurance Company Reviews:
Financial Ratings
This company has over $8 billion in assets and more than $86 billion in life insurance. As of 2023, they are highly rated by three well-known independent agencies:
- A.M. Best: A (Excellent)
- Standard & Poor’s: AA- (Good)
- Fitch: A+ (Excellent)
Note that consumers can trust their financial stability for decades, making it a secure option for paying premiums.
What Do Customers Think?
The Better Business Bureau accredits American Income Life. Based on 720 reviews, their average rating is 1.55 stars out of 5.
Most negative reviews come from consumers complaining agents are too aggressive.
On Yelp, American Income Life doesn’t fare much better. Out of 267 reviews, It averages 1.4 stars out of 5.
“Zero stars! I plan to cancel my policy with them [AIL] asap because they continue to HARASS me with phone calls – supposedly to ‘update me about my policy’, but their true intent is to try to get me to buy MORE insurance”
It should be noted that American Income Life is far from the only company with negative reviews and consumers complaining about pushy agents. The life insurance industry is criticized for this behavior across the board.
Buyer Beware Reviews Are Unpredictable
It should be noted that only 2% of consumers leave online reviews for goods or services they purchase. The more unhappy they are, the more likely they are to spend energy to leave a bad review.
Negative online reviews are synonymous with Insurance Companies.
They shouldn’t be the only factor considered when deciding whether American Income Life is the right insurer for you.
Is American Income Life a Legitimate Company?
YES, they are a legitimate company selling life insurance products with solid financial stability ratings. Their representatives work on commission, just like most insurance agents. It is common for many agents to quit within six months due to the high expenses involved in licensing and training, which often exceed earnings. This is a typical scenario in the life insurance business and is not unusual.
American Income Life Insurance Products
AIL offers a comprehensive and convoluted selection of insurance products. There is a lot of overlap, and their website lacks information.
So, let’s take a gander at what I found thus far.
1. Term Life Insurance
Their term insurance provides temporary life protection for 10, 20, or 30 years.
Coverage has the following features:
- Guaranteed rates for the length of the term
- Renewable and convertible to permanent Insurance within prescribed limits
- Terminal Illness Rider – if the doctor says you only have 12 months left to live, they pay out 50% of the death benefit
American Income’s term coverage also underpins their Family Protection insurance suite:
- Education Protection – term insurance covers your kid’s college bills if you die
- Head Start Program – life insurance for kids aged 0-17
- Mortgage Protection Insurance – term insurance to cover your mortgage
- Protect Your Children – Term or whole life for kids over the age of 17
- Monthly Income Protection – term insurance to replace your income
2. Whole Life Insurance
Whole life is permanent life insurance, often with a cash value component. That means the investment account inside your policy grows in value over time.
Whole Life by American Income Life is designed to provide coverage until the day you die. Most importantly, the monthly cost is guaranteed to never increase over the policy’s life, and the coverage cannot be canceled due to any change in your age or health.
Permanent life insurance products are more expensive because there is a guaranteed payout.
3. Final Expense Insurance
AIL’s final expense coverage is a small whole-life insurance policy designed to cover funeral costs when you pass away. The death benefit is paid out directly to your family, and they can choose the funeral provider and the specific services they want.
American Income Life’s Freedom of Choice Certificate allows your beneficiary to have policy proceeds paid directly to the funeral home. This removes a substantial burden on your family, enabling them to grieve without the stress of making preparations.
4. Accidental Death Insurance
This product pays out a benefit for accidental death and dismemberment. It also helps with the cost of hospital stays due to said accident.
Please note that the odds of you having an accidental death after the age of 30 are infinitesimally small. I would only recommend these plans to someone with a hazardous occupation.
5. Critical Illness Insurance
Critical illness insurance (CI) is designed to pay a one-time, lump-sum benefit when you develop a serious condition as laid out in your policy. There are no restrictions on how you spend the money, whether to cover lost income or supplement the health care you’re receiving.
Qualifying for this benefit may be challenging based on the insurance companies’ narrow definitions of critical illness.
Their critical illness plan covers the following situations:
- Heart attack
- Stroke
- Kidney failure
- Major organ transplant of heart, lung, liver, kidney, pancreas, or bone marrow
- Total loss of eyesight and/or hearing
If you’re thinking about buying CI coverage, make sure you read my post here first.
6. Cancer Insurance
American Income Life’s cancer insurance is a form of critical illness coverage that pays out a one-time, lump-sum benefit when the insured is diagnosed with life-threatening cancer.
50% of North Americans develop some form of cancer in their lifetime. The majority survive, but how do their finances fair? AIL’s cancer insurance benefit allows you to focus on getting better rather than on financial stress.
No-Cost Child Safe Kit
Endorsed by the International Union of Police Associations, American Income’s No-Cost Child Safe Kit is a tool designed with your child’s safety in mind. It helps document your child’s fingerprints, a recent photo, and a simple description to aid authorities.
The best part? American Income Life Insurance provides these kits for free!
It should be noted that these free child safety kits are essentially a marketing strategy. Suppose you’re in a union or association affiliated with American Income Life. In that case, you may receive a letter saying you can sign up for AIL’s no-cost accidental death coverage and child safety kits.
REQUEST YOUR NO-COST CHILD-SAFE KIT TODAY!
American Income Life uses this tactic to come to your home and sell life insurance products. This practice is not illegal; many companies do it, but as a consumer, you should be aware.
“They offered a free child safety kit. I gave them our address. Instead of mailing it, they send a rep out to do a sales pitch for life insurance”
Yelp Reviewer
American Income Life Insurance Company Reviews 2024 Pros
1. Great Financial Rating
American Income Life Insurance is well-rated by three major agencies: A.M. Best, Standard & Poors, and Fitch. This solid financial rating indicates that they are very solvent. If you’re an American Income Life policyholder, sleep well.
2. A Long History
American Income Life has been in business for almost 70 years.
American Income Life Insurance Company Reviews 2024 Cons
1. Captive Sales Representatives
American Income Life agents ONLY sell American Income Life products. Does this mean they won’t provide you with good service or help? No, but you won’t be able to compare them with other companies and products.
AIL is not alone; other carriers, including Sun Life & Trustage Life of Canada, also use captive brokers.
2. AIL’s Structure Resembles an MLM
Many legitimate companies that sell great products use or have structures that resemble multi-level marketing. I don’t feel this structure prioritizes clients’ needs.
3. Poor Customer & Agent Reviews
The internet is littered with bad and questionable reviews from unhappy clients and disgruntled agents. As I mentioned earlier in this post, online reviews need to be taken with a grain of salt and put in context.
A small percentage of customers leave reviews, with only 15 out of 1000 people providing feedback. However, it’s not easy to verify the authenticity of reviews.
BUT, the sheer volume of negative online reviews directed at American Income Life must be acknowledged.
4. Lack of Online Information
There is a significant lack of online information about their products. For instance, there is no specific description of the term lengths offered for the particular features of their whole life insurance.
AIL’s term insurance may be issued with standard renewal and conversion options, but it’s hard to tell as their website provides no details.
American Income Life Insurance Company Reviews
Are They Right For YOU?
Hopefully, our American Income Life Insurance review has given you some helpful information about a little-known carrier in Canada.
AIL is NOT a scam; it is a legitimate life insurance company with a long history. It offers coverage similar to other carriers but at a higher cost.
So, are they the right company for your insurance needs?
Not all life insurance companies are created equal. Each one has its strengths and weaknesses. That’s why these reviews are always a mixed bag. There is no BAD review unless you are dealing with a fly-by-night company, and I will not even waste my time with those.
Call Policy Architects today – we can help you with all your life insurance needs! If you have an American Income Life Insurance Policy, we can review for you!
