American Income Life Insurance Review & Complaints: Life Insurance

American Income Life Insurance primarily sells products to associations, particularly labor and credit unions, and focusing on supplemental health and life insurance products. They also sell products to schools, churches, 4-H clubs, and youth groups.

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Eric Stauffer is a former insurance agent and banker turned consumer advocate. His priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

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Written by Eric Stauffer
Founder & Former Insurance Agent Eric Stauffer

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 1, 2022

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American Income Life Insurance

Financial Strength

American Income Life Insurance (AI Life) is an insurance company headquartered in Waco, Texas. The company was founded in 1951 and has been headquartered in Waco since 1959. It currently sells life insurance policies in 49 states, the District of Columbia, and Canada. In addition to American Life, AIL is the parent company of two additional life insurers: National Income Life Insurance Company, located in New York, and Union Heritage Life Assurance Company Limited, located in Ireland.

AIL AI Life predominately sells products to associations, particularly labor unions and credit unions. It also sells some group policies to schools, churches, 4-H clubs, youth groups, and more. AIL sells policies through its network of agents, who sometimes meet with potential clients in their homes to try and establish a personal relationship.

There is always more than one option, but it’s best to look deeper into a company before committing. By looking at reviews and what sort of rating a company has, you can get a better idea at what sort of customer care you’ll receive. You can also find out what types of benefits or discounts are offered as well.

Is American Income Life legitimate?

American Income Life is a Better Business Bureau accredited company, since 1952, and currently has an A+ rating. The BBB lists a total of 227 closed complaints against the company in the past three years, 90 of which have been closed in the last 12 months. The majority of complaints registered are issues with the product or the client’s experience with service and advertising/sales issues. Several of the complaints were specifically about issues with obtaining refunds for unwanted policies.

In addition to their consumer feedback, there appears to be a very sharp divide among current and former employees of the company. This review does not focus on the employment opportunities of American Income Life, but it was a strange trend so it has been added here. Anyone considering working for AI Life and interested in learning more about their legitimacy may want to do their own research.

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What types of insurance products are offered?

Life Insurance

True to its name, American Income Life primarily sells term life and whole life policies. There are also a few special products offered by AIL.

Term Life – Policies are issued for a fixed “term” and expire at the end of them. This is similar to car or homeowner’s insurance, since the period of coverage exists for a predetermined amount of time.
Whole Life – Much more expensive than its term counterpart, whole life is a policy that can be kept the entire length of one’s life.
Final Expensive Plan – Basically a whole life policy created specifically to cover the insured’s final expenses.
Terminal Illness Rider – This rider allows individuals diagnosed with a terminal illness to receive an accelerated benefit payment of half the policy’s value if their life expectancy is within a year of diagnosis. It can be purchased and added to any policy that AI Life sells.

Anyone considering a whole life policy is invited to read our post about why term life is better than whole life. There are big profits in whole life policies, so some agents push them on an unsuspecting client as a great investment tool for the future. The bottom line is you should take the extra step to be fully educated about each product and the policy info, and not simply buy it because an insurance agent told you to do so.

What additional products are offered?

Aside from life insurance, AI Life also sells some extended benefits coverage:

Accident protection – Provides a cash benefit when an individual is killed or injured accidentally.

Hospital indemnity – Helps to cover additional expenses related to long hospital stays necessitated by illness or injury.

Cancer protection – This coverage helps to provide financial assistance to help with medical expenses and lost work while a patient receives cancer treatment.

Critical illness – This policy can help to provide financial assistance with paying out-of-pocket medical expenses for patients experiencing critical illnesses like a heart attack or stroke.

Are American Income Life rates affordable?

American Income Life does not sell auto coverage and our efforts to receive a term life insurance quote has proven to be difficult. We have reached out to a few different agencies and unfortunately have not heard anything back. It is also possible that individuals are unable to purchase a policy directly and they only sell group coverage to organizations.

If we are successful in obtaining a term life quote or receive word that individuals are unable to purchase a term life insurance policy, this section will be updated with the appropriate information. Until then, their customer service rating will be adjusted to reflect the difficulty in receiving a quote.

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How are claims handled?

The American Income Life claims process begins on their website, where you can launch directly into the claim filing center. For the most common claim (death) much of the initial paperwork can be done and submitted directly online. Once submitted, a representative will contact the listed beneficiary to continue the process.

For non-death-related claims, there are specific forms that must be filled out and submitted. The forms can be downloaded directly from the claims section of the website, and completed forms must be mailed to the company claims department.

American Income Life Claims Hotline – 254-761-6400

What is the Insurer’s Financial Strength Rating?

Rating Company Grade Financial Outlook
AM Best A+ Superior
Fitch A+ N/A
S&P AA- Stable

What’s the bottom line?

American Income Life is a relatively small insurer that focuses on supplemental health and life coverage, similar to Aflac. They have insurance sales for products in nearly every state, and they primarily sell group plans to organizations such as credit unions and labor unions. They do have a lot of customer service complaints for a company that is so small, and with a big chunk of them coming from former employees. American Income Life has high financial ratings from the top firms, but it has proven difficult to get a life coverage quote or even confirmation of whether they actually sell to individuals directly.

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