Life insurance is a great investment in your future. When choosing a life insurer, make sure that the provider is trustworthy even during difficult times. American Income Life Insurance is one of the great life insurance providers 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 legitimate types of insurance, but there are also some drawbacks to be aware of before making a purchase.
In this article, we shall discuss all you need to Know about American income life insurance and its benefits and processes.
About American Income Life
American Income Life was founded in 1951 and offers life, casualty, and supplemental health insurance in the United States and beyond.
The company is headquartered in Waco, Texas, but also serves customers 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 — while not licensed in New York, has a New York-based subsidiary called National Income Life.
They mainly serve working-class families; work with members of trade unions, credit unions, various associations, and their families.
They offer policies for individuals, single parents, and families with portable coverage, whether you change jobs or move.
Who Is American Income Life Insurance Offered to?
American Income Life (AIL) life insurance is generally offered to members of trade 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 both priced and purchased through one of the independent agents on the AIL network.
They have a very long history of providing supplemental insurance to credit unions and unions but have since expanded to offer a wide range of policies.
It’s important to note that American Income uses multilevel marketing tactics to sell insurance and recruit new agents.
Agents are independent contractors who are paid entirely on a commission basis, meaning they only make money when they make a sale.
Each agent is also expected to recruit new agents and earn a percentage of their recruits’ revenue.
What plans are offered in 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. AIL generally provides group policies for different unions and groups – which can 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 temporary life insurance that could financially protect your loved ones during your death.
Insurance cover is generally cheaper than lifelong insurance cover with the same death benefit, although it is only valid for the specified term.
The lifetime income can be paid out as a lump sum or as a monthly benefit. A medical examination is required for applicants to purchase insurance coverage; You will need to speak to an agent to determine the coverage limits available.
Whole life
If you prefer lifelong 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.
Children’s life insurance program (head start)
The Head Start Policy is child life insurance offered by American Income Life. It is available for children up to 17 years of age and offers the option of purchasing more insurance cover without proof of insurability.
Final Expense
The End-Expense Life Policy offers lower coverage limits and is intended to cover all applicable end-cost costs.
This could mean meeting final medical bills, funeral and funeral expenses, or other immediate needs.
This policy – also known as the freedom of choice plan – also allows you to designate the funeral home of your choice as a beneficiary, saving your family time and stress when the time comes.
Supplementary Health Guidelines
Although American Income Life classifies the following policies as supplemental health insurance, they overlap with many life insurances 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 may vary, so it is important to speak with your agent to find out what is available and what is covered in it.
How Much Does American Income Life Insurance Cost?
The cost of life insurance depends heavily on your individual factors. Anything can affect prices 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 your coverage limits, the cheaper the policy.
In addition, we should note that life insurers calculate insurance premiums based on birth biology. If you identify as non-binary or transgender, you can qualify for coverage, but lots of life insurance
If you’re looking for coverage that you can price or buy online – or even get a detailed idea of it before you buy – American Income Life is probably not 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 elsewhere, which might make them worth looking at if your union or company offers AIL coverage.
What types of Policies Does American Income Offer?
Although American Income’s tiered marketing sales strategies are questionable, they do offer legitimate life insurance.
- If you decide to take out life insurance with them, regardless of whether it is 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 evaluates 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. they make 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 become ill. However, American Income’s 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 insurance value, but your policy will not yield dividends like other life insurance policies would. This means that in the long run you will not have the opportunity to make that 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 has no 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 compensation, cancer insurance, and insurance against serious illnesses.
- Although each of these types of insurance is slightly different, they usually provide financial protection if the policyholder ends up in hospital for an extended period of time or in need of ongoing medical care.
While these policies may sound tempting, you can usually get better coverage by investing the money in good 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, the policies are written by AIL’s National Income Life subsidiary.)
- Complimentary riders: Riders with terminal illnesses are available to policyholders at no extra charge. Many policies also offer accidental death and dismemberment (AD&D) coverage. Depending on the group and policy, this can also be free.
What are the demerits of American Income Life Insurance?
- Working with an agent is required: you cannot purchase a policy or see your insurance options without working directly with a local, independent agent. Many people claim that AIL’s agent program is very similar to a Multi-Level Marketing (MLM) operating structure.
- Serious lack of transparency: You will find it difficult to figure out coverage limits, policy options, prices, or even the features of certain policies without speaking to an agent. AIL offers very little online information.
- No online quotes or pricing information: To get pricing information, speak to an agent again. No online listings are offered, nor are their pricing examples or charts on the AIL website.
- Recently Downgraded Financial Strength Rating: American Income Life currently holds an A Financial Strength rating from AM Best, which is still a very good number. However, this was recently downgraded from A + in 2020, which raises some concerns.
Conclusion
American Income offers legitimate life insurance. They are very financially strong and can reliably settle their claims. However, many aspects of their business are worrying.
Because of their tiered marketing structure, customers are not getting the expertise and reliable customer service they would get from a larger, more trustworthy company.
Their lifetime products also don’t offer as much value as other companies and don’t have many customization options. Most consumers would be better off buying life insurance from another company.
References
- American Income Life Insurance Review 2023 – Investopedia
- American Income Life: AO | North America | Opportunity …
- American Income Life Insurance Company – Crunchbase
- American Income Life Insurance Company | Devex
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