If you're in the market for life insurance, you've probably come across American Income Life (AIL) Insurance. They are one of the largest providers of life insurance in North America.
But is AIL the right insurer for you?
In this review, we'll take a closer look at what American Income Life offers and how their policies stack up against the competition. To let's dive in!
Who is American Income Life Insurance?
Founded in 1951, American Income Life sells life insurance products and more in Canada, the US, and New Zealand. They focus largely on selling financial products to credit unions, labor unions, and such associations. They sell life insurance solutions through captive agents and is headquartered in Texas, USA.
American Income Life Facts & Financial Information
Founded in 1951
Headquartered at Texas, USA (satellite offices in Canada)
$4.3 billion in Financial Assets
~$60 billion in annual insurance premiums
AM Best Financial Strength Rating: A+
A life insurance policy is a long-term investment. As such, the financial stability of the provider is a key factor when purchasing a life insurance plan. If you pick a provider that does not have the financial means to survive a long-term contract, you will suffer a double blow. You will not only lose your investment but will also have to buy a new policy from another insurer.
An easy way to check an insurer’s financial strength is by looking at its AM Best ratings. AM Best has been rating insurance companies for several decades and considers both short-term indicators and long-term financial outlook. Lower-ranking insurers might not have the means to weather economic storms.
Thankfully, with American Income Life, you have nothing to worry about. They are well placed financially, as their A+ AM Best rating confirms.
American Income Life Insurance Reviews
Online reviews, though important, should not be the only thing you look at while deciding whether a life insurance company is right for you. As far as this insurer is concerned, we were not able to find any American Income Life reviews on both Google Reviews and Insureye. So, it is difficult to comment on the quality of their customer service.
Products and Features
American Income Life sells different life insurance products. The list includes term life insurance, whole life insurance, final expense, supplemental health insurance, and critical illness insurance.
Term Life Insurance
This is the most popular type of life insurance product. The coverage lasts for a predetermined period. It does not include any additional bells and whistles, such as cash value, which end up increasing your premium rate.
Term life insurance is referred to as the purest form of life insurance because it has only one goal— to pay the death benefit. Your family will receive the policy amount if you die within the policy term. If you outlive the policy term, you can renew your coverage or let the policy lapse.
Term life policies are significantly cheaper than comparable permanent life plans. As such, they are a great choice for someone with financial needs that have an end date. You can match the policy term and amount to your needs to ensure your safety net is adequate.
Generally speaking, term life insurance is recommended for:
- Young families or couples approaching an important milestone, like marriage or childbirth
- Homeowners with a mortgage
- Someone with a debt that would fall on the shoulders of their loved ones in the event of death
- Retirement planning
Term coverage by American Income Life includes the following features:
- Guaranteed rates – Your premium rates will not change during a policy term. That said, at policy renewal, you will likely have to pay higher premiums. This increase, however, will be due to age only.
- Renewable – Term life insurance usually comes with a built-in renewability feature. Plans offered by them are no exception. As your policy term approaches its end date, you can renew the policy without having to submit proof of good health. Meaning, even if your health deteriorates, you can continue to enjoy the coverage.
- Convertibility – If your insurance needs change in the future, you can convert the plan into a permanent policy. You will not need to provide proof of good health. This feature is available up to a certain age.
- Terminal Illness Rider – You can add this benefit to your term life policy at no extra cost. You will receive a cash benefit equivalent to 50% of your death benefit if you are diagnosed with a terminal illness and have less than 12 months to live.
Whole Life Insurance
While term life insurance works best for most people, some may be better off investing in a whole life policy. These plans do not have an end date, meaning they last for your entire lifetime (provided you pay the premiums). They also build cash value on a tax-deferred basis.
The policy’s cash value is for you to use during your lifetime. You can borrow against or withdraw from it at any time and use the money as you like. Upon your death, your beneficiary receives only the death benefit, not the cash value.
Permanence and the inbuilt savings component, however, do not come cheap. You can expect to pay anywhere between 6 to 10 times more than a comparable term life plan.
Whole life insurance could be the right option for those who:
- Have a lifelong dependent, like a child with special needs
- Have exhausted the traditional investment channel
- Want to leave an inheritance for their heirs
- Wish to preserve the value of their estate
American Income Life’s whole life insurance plan includes features such as:
- Lifelong coverage
- Guaranteed level premiums. Your insurance premiums will remain the same throughout the ownership of whole life policy, even if your health changes over time.
- Builds cash value
Final Expense Insurance
This plan is aimed at those who want to take out a small life insurance policy to cover their end-of-life expenses. Your family can have the payout issued directly to your funeral home, which allows them to grieve without having to worry about making preparations.
Critical Illness Insurance
Thanks to medical advances, the chances of surviving a critical illness are better than ever before. However, surviving a critical illness diagnosis generally causes financial hardships for families, especially when the patient is the primary earner. Critical illness insurance can lighten the financial burden of a severe illness. You can use the payout to cover out-of-pocket medical bills or other expenses.
American Income Life Insurance’s critical illness plan includes the following health conditions:
- Kidney failure
- Heart attack
- Major organ transplant of heart, kidney, liver, pancreas, bone marrow, or lung
- Complete loss of hearing or eyesight
Cancer insurance is a type of critical illness insurance. It gives a one-time, lump-sum benefit if you develop life-threatening cancer. This plan aims to offset the financial burden of a serious illness, which in this case, is cancer.
Why We Like American Income Life Insurance
Solid financial ratings
American Income Life Insurance received A+ rating from AM Best. That is the second-highest rating the agency awards and an indicator of the insurer’s solid financial health. This means the life insurance company is very solvent and has the financial wherewithal to survive long-term contracts.
This company has been in the business for 70 years. If you purchase a policy from them, you can rest assured knowing your investment is in safe hands.
No-cost child safe kit
This free-of-cost kit is designed to help provide valuable protection for your family. It makes important information about your children available in one place. This includes their recent photographs, their fingertips, and a simple description.
What We Did Not Like About American Income Life Insurance
Does not offer online quotes
With American Income Life, you do not get online quotes for your life insurance. You will have to speak with an advisor to find out the cost of insurance. While there is nothing wrong with this, it makes comparing quotes difficult. As a result, you cannot be sure whether the offer made by American Income Life Insurance is the best you can get.
Captive sales representatives
American Income Life Insurance agents can only sell products from this insurer. Does that mean you will not receive top-level service from its captive agents? No, but there is always a chance that an agent may try to sell an AI Life Insurance product to you even if it does not perfectly suit your needs. That is because they cannot sell insurance products from any other life insurance company.
The website is not informative
This is a major gripe we have with American Income Life Insurance. Its website, though neatly laid out, does not offer much information. For example, we could not find even the coverage amounts or term options available with term life insurance. It seems you cannot learn anything about their products without contacting either American Income Life or one of their agents.
In this age when many Canadian companies let you buy life insurance online, this old-school approach might put off some buyers.
Does not offer universal life insurance
Universal life is a good option for people who want more flexibility than what is offered whole life insurance. Universal life policies let you pick investment options according to your risk tolerance. In most cases, you can also adjust the coverage if needed.
AI Life Insurance, however, does not sell universal life insurance. You will need to consider other options if you need universal life.
Does not offer a simplified issue plan
Traditional policies require a medical exam and health questions. All of this allows insurers to offer a rate that closely matches a customer’s risk profile. However, not everyone has the time or inclination to undergo a medical exam. For such people, a simplified issue policy is a great option. It lets them forgo the medical exam and involves only a few health questions.
Unfortunately, AI Life Insurance does not sell simplified issue life insurance. If that is what you need, you will have to look elsewhere.
Conclusion – Is American Income Life Insurance Right for You?
American Income Life Insurance has a long history and impressive financial ratings. They sell term life, whole life, final expense, and critical illness insurance through captive agents. If that is not an issue, American Income Life might be the right choice for you. On the other hand, if you want to compare rates with another life insurance company before buying a life policy, you may want to look elsewhere.
👉 Comparing insurance companies? Check out our reviews of other top insurers