Is American Income Life Insurance Legitimate? A Comprehensive Review

If you are looking for a life insurance company that offers affordable and flexible coverage, you may have come across American Income Life Insurance (AIL).

AIL is an international company that has been serving working class families since 1951. But is American Income Life Insurance legit?

How does it compare to other life insurance companies?

What are the benefits and drawbacks of choosing AIL as your life insurance provider?

In this post, we will answer these questions and more, so you can make an informed decision about your life insurance needs.

 

American Income Life Insurance
Photo Courtesy: businessinsider.com

 

What is American Income Life Insurance?

American Income Life Insurance is a subsidiary of Globe Life Inc., an S&P 500 company that markets life and supplemental health insurance products to middle-income families.

AIL specializes in providing life, accident, and supplemental health insurance to members of labor unions, credit unions, associations, and their families. Additionally, AIL operates in the United States, Canada, New Zealand, and through its wholly-owned subsidiary, National Income Life Insurance Company, in New York.

AIL claims to have a mission of protecting working families and supporting the labor movement1. AIL also partners with various organizations that advocate for social justice, such as the A. Philip Randolph Institute, the Alliance for Retired Americans, and American Family Voices.

 

What are the benefits of American Income Life Insurance?

One of the main benefits of American Income Life Insurance is that it offers portable insurance coverage, meaning that if you move or change jobs, your insurance policy stays with you.

This can be a great advantage for people who have unstable or unpredictable employment situations, or who want to avoid the hassle of switching insurance providers.

Another benefit of AIL is that it offers individual, single parent, and family policies, so you can choose the coverage that suits your needs and budget.

AIL also offers a variety of products, such as term life, whole life, accidental death and dismemberment, hospital indemnity, cancer protection, and critical illness insurance.

You can customize your policy by adding riders, such as waiver of premium, child term, and accidental death benefit.

A third benefit of AIL is that it has a strong financial rating and reputation. AIL has earned the A (Excellent) Financial Strength Rating from A.M. Best Company, which indicates that it has a stable outlook and a strong ability to meet its obligations to policyholders.

AIL also has more than 4 million policies in force and represents more than $297 million in annualized life premium sales.

What are the drawbacks of American Income Life Insurance?

One of the drawbacks of American Income Life Insurance is that it is not widely available.

AIL only operates in 49 states, excluding Alaska, and in some provinces of Canada and New Zealand. If you live in a location where AIL does not operate, or if you plan to move to such a location, you will not be able to purchase or maintain an AIL policy.

Another drawback of AIL is that it has a high number of customer complaints and negative reviews.

According to the Better Business Bureau (BBB), AIL has received 1,037 complaints in the last three years, and has an average rating of 1.13 out of 5 stars based on 232 customer reviews.

Some of the common complaints include aggressive and misleading sales tactics, difficulty in canceling policies, poor customer service, and delayed or denied claims.

The third drawback of AIL is that it may not offer the best value for your money.

AIL’s premiums are generally higher than the industry average, and its coverage amounts are relatively low. For example, AIL’s term life insurance policy offers a maximum coverage of $250,000, while other companies may offer up to $1 million or more.

AIL’s whole life insurance policy also has a low cash value accumulation, which means that you will not be able to borrow or withdraw much money from your policy over time.

 

American Income Life Insurance
Photo Courtesy: dundaslife.com

 

What are some of the Services Offered by AIL

Some of the services that American Income Life Insurance offers are:

Life insurance

AIL provides term life, whole life, and final expense insurance policies that can help protect your family in case of your death. Term life insurance provides coverage for a specified period of time, such as 10, 20, or 30 years. Whole life insurance provides coverage for your entire life, as long as you pay the premiums.

Final expense insurance provides coverage for your funeral and burial costs, which can be expensive and burdensome for your loved ones.

Accident insurance

AIL provides accidental death and dismemberment (AD&D) insurance that can pay a lump sum benefit if you die or suffer a serious injury as a result of an accident. AD&D insurance can help cover medical expenses, lost income, or other costs that may arise from an accidental injury.

You can also add riders to your AD&D policy, such as hospital indemnity, intensive care, and ambulance benefits, that can provide additional coverage for hospitalization or transportation costs related to an accident.

Supplemental health insurance

AIL provides supplemental health insurance that can complement your primary health insurance and help cover the gaps in your coverage. Supplemental health insurance can pay benefits for specific illnesses or conditions, such as cancer, heart attack, stroke, or critical illness.

Supplemental health insurance can help you pay for deductibles, copayments, coinsurance, or other out-of-pocket expenses that your primary health insurance may not cover.

 

To sum it up

American Income Life Insurance is a legit company that has been in business for over 70 years and has a solid financial rating. However, it also has some drawbacks, such as limited availability, high customer dissatisfaction, and low value for money.

Therefore, before you decide to buy an AIL policy, you should do your research and compare it with other life insurance companies and products. You should also read the fine print and understand the terms and conditions of your policy, and consult with a licensed insurance agent if you have any questions or doubts.

If you are interested in learning more about American Income Life Insurance, you can visit their website1 or contact them by phone or email.

You can also read some of the customer reviews and testimonials on their website or on other online platforms, such as Trustpilot or Consumer Affairs. However, you should always take these reviews with a grain of salt, as they may not reflect the true experience of all policyholders.

 

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