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American Income Life Review

review of American Income Life

American Income LifeChartered in Indiana in 1951 and now headquartered in Waco, Texas, American Income Life (“AIL”) is a financially strong life insurer with a stated focus on serving “working families.”

AIL’s bread and butter is marketing life insurance to members of associations—especially labor unions and credit unions—though group membership is not generally a prerequisite for coverage.

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AIL’s founder was a strong supporter of labor unions, and the company’s connection to unions is a significant point of emphasis in its marketing.  That relationship apparently isn’t just a promotional gimmick, either.

AIL is a consistent supporter of labor-related causes and charities.  Company representatives have even been known to directly support striking union members.

AIL operates in 49 states, plus DC, and sells life insurance in New York through its subsidiary, National Income Life Insurance Company.  According to the company’s website, house calls from local agents are available when insureds and prospective insureds need assistance with coverage.

AIL agents work as independent contractors and are not unionized.  Their pay is completely commission-based.  Though this structure creates the potential for high-performing agents to earn great money, it can also run the risk of leading to high-pressure sale pitches.

Though most AIL marketing is geared toward association members, consumers can also obtain contact information for local agents directly from AIL’s website.

Since 2019, AIL has been a wholly-owned subsidiary of Globe Life, an insurer specializing in relatively low-cost, low-coverage life insurance policies.

Please note, this is an American Income Life review. We are not the company. However, if you need to reach the company you can use the following info:

Customer Care: 800-433-3405

American Income Life Financials

  • A.M. Best:A+
  • S&P: AA-
  • Moody’s:NR
  • Fitch: A+
  • Comdex Ranking: 91

American Income Life earns highly respectable scores from the major ratings groups, and its 91 from Comdex and A+ from A.M. Best put it just outside the highest rated life insurance companies.

In practical terms, that means policyholders who purchase coverage from AIL have very little risk of non-payment of policy benefits.  Stranger things have happened, but, all in all, AIL is a safe bet when it comes to financial stability.

With over $4 billion in corporate assets and around $60 billion in life insurance policies in force covering over two million individual insureds, AIL is a sizeable company but not quite so big as the biggest names in the industry.

American Income Life Consumer Ratings

AIL has been BBB accredited since 1952 and currently holds an A+ ratings.  That’s a solid score and, in general, means that AIL is responsive when it receives consumer complaints (at least, complaints through BBB).

However, AIL’s ratings received directly from customers are on the low side, at just over two stars (out of five) on BBB’s site.  Difficulty in quickly reaching company representatives seems to be a common refrain among AIL policyholders who have created online reviews of the company.  If super-fast customer service is a priority, that doesn’t seem to be one of AIL’s strong suits.

American Income Life Insurance Rates

In terms of overall life insurance cost, AIL seems to offer higher-than-average premiums in total.

Premium competitiveness can vary considerably from one policy to another.  And variations in underwriting standards between companies can make one company a bargain for one person but overpriced for another.

Generally, though, AIL seems to come in on the high side.

Selection is pretty limited with AIL.  Term and whole life are both available, but the company doesn’t sell universal life or offer a no-exam life insurance policy (or, if they do, they do an excellent job of keeping it a secret).

What Products Does American Income Life Offer?

First and foremost, AIL is a life insurance provider—issuing term life and whole life policies.

Additionally, the company offers accident and supplemental health coverage, including accident-only, hospital-indemnity, cancer protection, and critical illness policies.

AIL’s Special Risk Division also provides accident coverage for minor-oriented organizations, such as summer camps and 4H groups.

At no additional cost, AIL makes available to its insureds a program for obtaining discounted services from partnered healthcare providers.  AIL’s “Safe Child Kit” for parents of minor children does not require a policy purchase and is one of AIL’s more effective marketing tools.

Life Insurance from American Income Life

AIL Term Life Insurance: 

AIL offers the kind of straight-forward term life policies that have come to take up the lion’s share of the consumer life insurance market.

The way the policies work is that coverage extends for a pre-defined period of years (often 10, 15, 20, 25 or 30 years).  During that term, the policyholder makes regular premium payments.

AIL’s policies are “level term life insurance,” which means premium amounts stay consistent throughout the term.  If the insured dies during the term, AIL pays out the policy’s death benefit to the named beneficiary.  If the term ends, the coverage lapses, and the policy no longer protects the insured.

AIL offers a variety of term lengths, with premiums depending on the insured’s age, health, and chosen term length, among other factors.

If coverage is triggered, the beneficiary can accept payment via a single lump-sum or spread out the funds over a period of years.  Subject to certain restrictions, term policies can be converted to whole life coverage.

AIL Whole Life Insurance

Whole life insurance policies from AIL come with the standard features normally associated with whole life.  Coverage is guaranteed to stay in place as long as premiums are paid.

Premium payment amounts are fixed for life and guaranteed not to increase.  Policies accumulate cash value that earns guaranteed interest, and that cash value can be withdrawn, borrowed against, or annuitized to help fund retirement.

A downside of AIL’s whole life coverage is that it is non-dividend-paying.  Many mutual insurance companies pay regular dividends to policyholders—basically, a small slice of the company’s annual profits split among policyholders.

AIL doesn’t offer that, so, while the interest rate paid on cash value looks pretty respectable, it needs to be weighed against the absence of dividends that are available from many other companies.

AIL Freedom of Choice (Final Expense): 

AIL offers a whole life policy specifically marketed as final expense insurance coverage.  The policy is designed to pay for funeral and burial expenses and similar estate-related costs.

Final expense plans are generally marketed to older insureds who might have trouble finding coverage otherwise.

Usually, final expense policies provide less coverage than what is typically required for income replacement but are much easier to qualify for.

AIL Head Start (whole life for children): 

AIL’s Head Start program enables parents and grandparents of minor children to purchase whole life coverage of up to $25,000 for children.

Policy premiums are fixed for life and are based on the child’s age at the time coverage is issued.

A featured Guaranteed Insurability option ensures continuing coverage eligibility.  If elected, the option allows for increases in a policy’s coverage amount at six different points in the child’s life—up to a $25,000 increase each time.

Terminal Illness Rider: 

AIL’s offers a Terminal Illness rider that can be added to life insurance policies without any additional premium.

When the rider is in place, up to half the policy’s coverage amount can be accelerated (i.e., paid out early) if the insured is diagnosed with a “terminal illness,” which usually means less than 12 months to live.

The policy remains effective and, upon the insured’s death, the remaining coverage amounts are paid to the named beneficiary.


American Income Life has high ratings, so you know they are a solid company that will be able to pay out.

However, with so many options out there in the life insurance marketplace, chances are you can find a better deal by shopping around.

If you are interested in comparing AIL to the many other top companies available, please give us a call today and experience the IBUSA difference.

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