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According to its website, the company sold only limited accident insurance policies to seniors at first, but added life insurance after five years. It has experienced some difficulty through its history—including being taken over by the federal government in the 1980s. But the company was purchased by Kansas City Life in 1991, and remains a wholly owned subsidiary of Kansas City Life, and has enjoyed a sound financial backing since.
Market Areas:
All states except Alaska, Hawaii, and New York.
Insurance Products
Life Insurance
Old American has a unique niche coverage known as final expense insurance. It offers whole-life insurance in three different packages, including an immediate death benefit, a two-year modified graded death benefit for clients who have current health problems, and a juvenile plan. The whole life is generally available up to age 80, and typically does not require a physical examination although customers in questionable health may be offered only the graded benefit policy.
It also offers term life insurance for individuals up to age 65.
With the whole life policy, Old American can also assist with a living will, vital document registry, and a guide to plan final arrangements according to the customer’s wishes.
Old American Insurance Company Rates
Online quotes are not available, nor is there a search engine to find agents. To get a quote, call 800-733-6242 and ask to be directed to the nearest agent, or make the request via the website.
Claims
Claims can be initiated online, by calling 800-733-6242, or by calling the client’s local agent.
Consumer Research and Complaints
Old American is not accredited by the Better Business Bureau, however the company is given an A- rating. There have been six complaints against the company in the last three years, two of which have been closed in the past 12 months. The BBB states that the six complaints have affected the rating downgrade, as it was A+ in our last review.
Results from the National Association of Insurance Commissioners Center find that some customers have had issues with Old American, but the score is near the national median complaint ratio of 1.00, Old American Insurance received the following scores from the NAIC Center 2016:
- Individual life: 0.68 (four complaints)
- Individual accident & health: 0.00 (zero complaints)
Financial Strength
| Rating Company | Grade | Financial Outlook |
|---|---|---|
| AM Best | A | Stable |
| Fitch | N/A | N/A |
| S&P | N/A | N/A |
Bottom Line
Old American Insurance, as its name implies, is geared toward seniors who may have difficulty finding insurance because of health issues or age. In those situations, Old American may offer competitive rates, however their products are generally not competitive with customers who can qualify for a preferred rate.
For a list of companies that we recommend, visit our Best Insurance Companies page.
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Review Information
I am a former insurance agent and banker turned consumer advocate. My 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.
Dale says
My mother bought a small policy in 1985 and is still paying the same premiums. She surpassed the face value by 400% and yet was never notified she had paid the value of policy years back. I find this extremely upsetting that a company can take advantage of elders in this fashion.
Chris says
That’s how life insurance works.You continue to pay until you pass away, unless it is term insurance which expires before age 75-80 and the rates increase.If she got the policy in 1985 you figure that’s 30 years.I am assuming she lived into her late 70s or 80’s?
Laura Middaugh says
Oh, well my husband was just with an agent who says that Old American Insurance, you only pay in 20 years and then stop. You have it from the time you start and regardless of when you die. I am checking them out and reading a conflicting arguement here.
Chris says
My question to you Laura is what type of product did he get from old American? We have term insurance, whole life insurance and 10 year paid up whole life insurance?That could mean multiple things what you said.
Debra Albaugh says
My questions are about the application. Since my husband was in a surly way that day, the rep and I went over the application questions. Was advised that the questions all had time frames and within those frames the answers were all no. He advised me to tell my husband to answer all the telephone interview questions with a no, which he did but does not remember hearing the time frames.
The rep called this morning saying he’d been excepted. Were there time frames in the interview? Can they say he lied an therefore not pay out a claim after paying out for years? Lost a little sleep last night thinking about this.
Sad when you just plain can’t trust people and corporations anymore. Especially when money is involved.
Tawana says
I understand and I would like to know the answer to your question as well.
Danny says
Eric, several of your comments concerning Old American are incorrect. Old American added preferred rates in Sept of 2014. Also, Old American is not geared toward those who are ill. On the contrary, many agents will steer their clients toward a guaranteed issue CO such as Gerber or Kemper. Also, Old American issues standard policies up to the age of 85 – not age 80 as you had stipulated. I have found their easy issue rates to be in the top 30 % of rates when I do my own comparisons. The strength of the company is likely their customer service since phone call are typically answered by a real person. If you have other questions about the company, feel free to ask. Definitely not perfect, but a solid small ins. Company…
Linda Landry says
After signing the green card I was contacted and an in home presentation was scheduled. I was given a pitch on how the Life Ins policy could accrue over time and I could draw on the money once it did which would be a good resource for a retiree such as me. The only paperwork I was provided to review was the rate sheet so I could decide the coverage I wanted based on the premium. Once the process was completed I was left with a brochure and business card. Overnight I became doubtful and made an effort to contact the agent via text/email/voice mail with no response. The second morning I called the corporate # which I found online and was informed the policy had been submitted and my bank drafted for the premium and it had not yet been 48 hours. The agent promised me my bank would not be drafted until the 22nd of the month when my funds would be replenished. Apparently my intuition was correct this person was giving me a sales pitch that was inaccurate. Customer service said they would send me a form to submit a letter of cancellation. I hope Old American is more reputable than the agent.
MAD AS [Redacted] says
I have been receiving calls from this company for the pass week asking me to buy their insurance. I have told them that I am on the no call list and they still call. I tried to call back the same number that they called me from and the number is not in service. Please stop calling people that do not want your service.
Chris says
As an agent for the company, the only way that agents can contact you is if you fill out a lead card giving them your information such as you name number and additional information.If you don’t want to be contacted I would advise not sending back the lead cards in the mail otherwise the way an agent looks at it you are a prospect.I hope everything has been straightened out for you.
Rick Dunn says
Eric,
What is your opinion on working for Old American Insurance Company? My son-in-law has been working for them for the past 6 months and it just doesn’t seem like a very profitable job.
Thanks,
Rick
Eric Stauffer says
Hi Rick,
My insight into working for Old American Insurance Company is going to be limited, and it really does depend on what your son-in-law is doing for them.
I can say from an overview level that selling insurance (assuming that is what he is doing) can be very profitable if done successfully. However, the learning curve is steep and it can take a long time to ramp up. One of the best sayings I heard about insurance went something like:
“The first five years you work harder than anyone and get paid less. After that, you make more than most and have to work less.”
Of course that is very dependent on the personal situation, but the point is it can be very difficult to build a book of business. Once that book is full, a lot of the money comes in on auto pilot when clients renew each year.
Best,
Eric Stauffer
Kerry says
I guess I wouldn’t complain about this company in relation to what it pays its employees!!! If salesmen WERE making big money, then insureds would have something to question. i just hope it’s on the up and up and that when my family needs the payout for my funeral, the money is there as promised. However, you Rick, should remove your silly complaint.