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American Income Life Insurance Company

American Income Life Insurance Company: Read This Before you Buy!

Disclaimer: Policy Architects has no affiliation with American Income Life Insurance Company (AIL). We quote plans from traditional life insurance companies who compete with AIL. This brief and detailed article is intended to provide you with information to help guide your purchasing decision.  

Have you ever heard of the American Income Life Insurance Company? I hadn’t until I recently came in contact with a client who just purchased a funeral insurance policy through American Income Life.

She reached out to me to review her policy and provide her with other quotes. She felt the salesperson was very pushy and she wasn’t sure she could afford the monthly premium moving forward.

Needless to say, we reviewed her AIL policy and were able to find her similar coverage with another carrier, Canada Protection Plan. The best part? Her new final expense policy has superior guarantees and cost 40% LESS!

This experience inspired me find out more about this U.S. carrier operating in Canada. I decided to research and write a review to provide information that may help you decide if American Income Life Canada is the right company for you.

So Who Am I and Why Should You Listen to Me? 

My name’s James Heidebrecht and I’m an independent life insurance agent. I’m also the founder of Policy Architects. We are an online insurance platform focused on providing Canadian consumers with accurate, easy to understand information to help guide them in their buying decisions.  

I’m not an employee of any insurance company nor does any insurance carrier have a financial stake in my business. I write the most in-depth reviews of life insurance companies on the web as well as articles about various other types of insurance. 

In Canada, there are 25-30 life insurance companies who all claim to have the best rates. We shop multiple carriers to find you the best-priced policy on the market…with an A-rated carrier. Failure to do this may result in you overpaying thousands of dollars over the life of your policy.

Do you have well-managed diabetesheart problems or some other health issue? We know which companies are the most lenient when it comes to different medical conditions.

If you take anything away from reading this review it should be that every life insurance company is different.  

AIL Question

You're just another life insurance salesman flogging his products!  

AIL Answer

YES and NO! Hey we all have pay our mortgage and put food on the table to make money and this is how I do it.  That said, this is something I firmly believe in and I'm really happy to help get the word out about how affordable good coverage really is. 

How Do Life Insurance Agents Get Paid Anyway?

When you purchase life insurance through Policy Architects, we get paid a commission from the company the business is placed with.

For example, if we help you secure an affordable life insurance policy with Empire Life, they pay a commission directly to us based on that specific sale. Likewise, if your policy happens to be with RBC or Manulife, we receive a commission from them.

Did you know, every insurance product you purchase whether it be health, auto or life insurance, etc. has a commission built into the cost? 

Well, it’s true. As a consumer, you pay this fee regardless of whether you receive any helpful advice or not. So, if you know you’re paying a commission, why not get your money’s worth? Get the added value of advice from an experienced, independent insurance agent. It’s worth its weight in gold. 

And I mean REAL Value NOT Perceived 

Working with an independent life insurance broker can literally save you thousands of dollars over the life of your policy. Purchasing insurance through a bank or a company that uses captive brokers means you’re only offered products from that one company.

That’s great IF the company is a good fit. Did you know that the way a company evaluates your rates determines how much you pay?

For example if you have a larger build a carrier may charge you 50% more on top of a standard rate because you fall outside their height/weight guidelines!

If this happens, you end up paying thousands of dollars more than necessary. Wouldn’t it be better to apply to a carrier that has the most lenient build chart in the first place and receive a standard rate? 

That’s where Policy Architects comes in. We work with the top life insurance companies in Canada to find you the BEST rate for your situation whether you’re healthy or you’ve had a brush with cancer

Now back to my American Income Life Insurance Review.

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A Few Words About American Income Life Insurance Company

Headquartered in Waco, Texas, American Income Life operates in the U.S., Canada and New Zealand. According to legend, AIL was founded in Minneapolis in 1951 by Bernard Rapoport with $25,000 of borrowed money.

In a relatively short period of time, American Income Life generated $1 million in hospital insurance premiums and expanded operations across the U.S.

In 1961, AIL focused the core of its business on selling life insurance products to labour unions, credit unions and large scale associations. This is where the focus of their business still remains today. American Income Life does a fantastic job of endearing themselves to these groups and has been doing so for decades.

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

Union Endorsement 

Due to the continued support of union and association members, AIL received an official ‘Union Label’ from the American Federation of Labor in 1973.

American Income Life Canada is owned by Torchmark Corporation. Touchmark is a publicly-traded company which owns a number of small insurance companies that have amalgamated over the years…but are still operated under their original names.

Some of these include Globe Life Insurance, Liberty National and National Income Life in New York. American Income Life operates regionally through agencies that rely heavily on recruiting people to sell their products.

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American Income Life Insurance: Financial Ratings 

American Income Life has total assets in excess of $4.5 Billion and has more than $65 billion of life insurance in force. As of 2019, AIL is highly-rated by three well known independent rating agencies:

  • A.M. Best: A+ (Excellent) 
  • Standard & Poor’s: AA- (Good)
  • Fitch: A+ (Excellent)

It suffices to say, consumers should feel safe with AIL. If you have a policy with American Income Life Insurance Company, your investment is secure as it looks like they will be around for decades to come.

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American Income Life Reviews - What Do Customers Think? 

American Income Life has been accredited by the Better Business Bureau since 1952. Based on 299 reviews, their average rating is 2 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”

Cheryl M, Better Business Bureau Review

The majority of negative reviews seem to be from consumers complaining agents are too aggressive or, from recruited AIL agents who feel like they are exploited.

On Yelp, American Income Life doesn’t’ fair much better. Out of 224 reviews divided between San Diego, Waco and Honolulu, American Income Life averages 1.5 stars out of 5. 

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 you are, the more likely you are to spend the energy to leave a bad review.

Negative online reviews are synonymous with Insurance Companies…

….and they shouldn’t be the only thing you look at when deciding whether American Income Life is the right company for you.  

According to Wikipedia, “in 2012, American Income Life Insurance Co. sued Google, Inc.  and the unnamed owners of two websites for featuring unflattering results and reviews for the company in the top page of search results.”

american income life reviews yelp

Is American Income Life A Legitimate Company?

American Income Life is a totally legitimate, financially solid company that sells life insurance products. I can find NO evidence that American Income Life is a scam. They do seem to leave many unhappy consumers and insurance agents in their wake though.

Similar to Primerica, American Income Life Insurance is a multi-level marketing (MLM) company. Their focus is more on recruiting agents than selling insurance policies.

All agents are 100% commission which is pretty standard in the insurance business. But it seems that their recruitment process is designed to make prospects think it’s a real job interview with salary. Unfortunately, they also have to pay a fee upwards of $400 to join AIL.

As I mentioned above, independent agents are paid through commissions – but we don’t try and recruit people to become agents and sell insurance unless we are starting an agency. 

Similar to life insurance brokers everywhere, most American Income Life agents quit within six months and leave having spent more money than they earned. Surprise, surprise.

MLMs all follow a pyramid structure in which the people at the top (known as uplines) make tons of money off the sales commissions of the people they’ve recruited to work underneath them (their downlines). In fact, these businesses rely heavily on recruiting new members, who are mostly women, targeting stay-at-home moms, military wives and others under the guise of financial empowerment.

10 Horror Stories That Prove MLM Companies Are Complete Trash, Huffington Post 

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American Income Life Insurance Products 

AIL seems to have a wide and convoluted selection of insurance products. There seems to be a lot of overlap and frankly, there’s a serious lack of information on their web site.

So let’s take a gander at what I found thus far. 

American Income Life - Term Life Insurance 

Term insurance is the most popular type of life insurance and offers protection for a temporary period of time. The most common periods are term 10, term 20 and term 30. 

AIL’s term 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, AIL pays out 50% of the death benefit

American Income’s term coverage also underpins their Family Protection insurance suite:

American Income Life - Whole Life Insurance

Whole life is a type of permanent life insurance which has 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 for your entire life. Most importantly, the monthly cost is guaranteed to never increase over the life of the policy and the coverage cannot be cancelled due to any change in your age or health.

Permanent life insurance products are more expensive because there is a guaranteed payout. 

American Income Life - Final Expense Insurance

AIL’s final expense coverage is a small whole life insurance policy designed to take care of funeral costs when you pass away. The death benefit is paid out directly to your family and they have the freedom to 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, allowing them to grieve without the stress of making preparations.

American Income Life - Accidental Death Insurance

AIL accidental death insurance pays out a benefit for accidental death and dismemberment. It also helps with the cost of hospital stays as a result of an accident.

It should be noted that the odds of you having an accidental death after the age of 30 are infinitesimally small. I would only recommend one of these plans to someone with a hazardous occupation.

American Income Life - Critical Illness Insurance

Critical illness insurance (CI) is designed to pay you 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 it be to cover lost income or supplement the health care you’re receiving. 

In reality, it may be difficult to qualify for this benefit based on insurance companies’ narrow definitions of what constitutes a critical illness. 

AIL’s 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.

Cancer Insurance

American Income Life’s cancer insurance is a form of critical illness coverage which 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 of them survive but how will their finances fair? AIL’s cancer insurance benefit allows you to focus on getting better rather than on financial stress.

American Income Life  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 you 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 key to AIL’s marketing strategy. If you’re in a union or association that has any affiliation with American Income Life, you may receive a letter from your organization saying that you can sign up for AIL’s no-cost accidental death coverage and child safety kits. 


This is a tactic that American Income Life uses to then come to your home and sell you life insurance products. There’s nothing illegal about this practice, 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. And I found out it is multi-level marketing!!! And they didn’t bring any child safety kit, either. False advertising.” Yelp Reviewer

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American Income Life - Rates & Application Process

There is very little information on their site aillife.com OR on the internet in general about their application process. It likely involves sitting through an hour-long presentation in your home, although that may have changed recently as a result of COVID-19

Why is there so little information available to consumers about American Income Life’s application process and the specific rates they can expect to pay? 

According to one applicant, when queried, her AIL agent told her, “they [American Income] don’t advertise because this product isn’t available for just anyone.”

Hmmmm now that just isn’t true. 

american income life insurance application process

american income life insurance reviews

American Income Life Insurance - Pros

American Income Life Pros

Great Financial Rating

American Income Life Insurance is 'A' rated by three major rating agencies: A.M. Best, Standard & Poors and Fitch. This solid financial rating is a good indication that AIL is very solvent and will weather any economic storm. If you’re an American Income Life policyholder, sleep well knowing that if God forbid, something happens to you, AIL will pay out your family’s claim guaranteed.

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American Income Life Insurance - Cons

American Income Life Cons

American Income Life Has Tied Agents

American Income Life agents are recruited to sell ONLY AIL products. If you’re interested in quotes from multiple carriers, an AIL agent won’t be able to help you accomplish this. Not to mention, many captive American Income Life brokers are focused more on recruiting than selling life insurance. 

Always work with an experienced independent life insurance agent who has access to the best life insurance companies in Canada.

American Income Life Cons

American Income Life is an MLM

Many legitimate companies that sell great products use or have structures that resemble multi-level marketing. Personally, I don’t feel this structure puts the needs of clients first. I think it creates an atmosphere that’s counterproductive for agents and the company itself.

American Income Life Cons

Poor Customer & Agent Reviews

The internet is littered with bad and questionable AIL reviews written by 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 minority of consumers make the effort to leave a review (something like 15 in 1000), reviews are difficult to verify and anyone - whether they’ve used a product or not - can leave a review. 

That being said, the sheer volume of negative online reviews directed towards American Income Life has to be acknowledged.

American Income Life Cons

Lack of Transparency and Information Online

There is a severe lack of information about American Income Life Insurance products online. For example, there’s no specific description about what term lengths they offer or the specific features of their whole life insurance.

Does AIL’s term insurance come with standard renewal and conversion options? Likely, but their website doesn’t provide any  details whatsoever. 

It’s 2020 and never in the history of the world has there been so much technology to spread and communicate information. It’s estimated roughly 1.7 billion people use Google everyday to search for expertise and product info.

How can any major company operating in the 21st century afford not to be using these tools? Consumers are more sophisticated than ever and many like to research online before making a purchase. Corporations like American Income Life have a unique opportunity to provide information and shape the message they want consumers to see.

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Is American Income Life Insurance Company Right For YOU?

Hopefully, our American Income Life Insurance review has provided you with some helpful information about a carrier that is little known in Canada. It is intended to provide you with the details a captive life insurance agent would not.  Primerica Canada and Assurant Life of Canada also use tied brokers. 

My only experience with American Income Life Canada has been helping a client replace her final expense policy with something 40% cheaper. 

American Income Life isn’t scamming anyone, they are a totally legitimate ‘A’ rated carrier. However, AIL is not a company I would feel comfortable recommending to clients. 

American Life Insurance Company Policy Architects

All Life Insurance Companies are NOT Created Equal 

If you belong to a union or association and have coverage with American Income Life Canada, rest assured if something happens to you, they will pay out a benefit to your family guaranteed.  After reading this review I am sure you are left with one final question.

Is AIL the right company for your insurance needs? My guess is we can probably find you a better fit. If you read any of my reviews you will see a common thread – insurance companies are NOT created equally.

Each one has their strengths and each one has their weaknesses. 

That’s why my reviews are always a mixed bag. In my humble opinion, there is no such thing as a BAD review unless you are dealing with a fly by night company and I am not going to even waste my time with those. 

So while American Income Life may be a company to consider my guess is we can find you better coverage. Why not call to find out.

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