Your insurance agent just suggested American United Life Insurance, but the name doesn’t sound familiar. Unlike the big players like State Farm or Northwestern Mutual that your friends swear by, you’re left wondering if this Indianapolis-based insurer can offer comparable financial security and service. The doubt grows when online searches turn up few consumer reviews, dwarfed by the flood of feedback and ads from the industry’s heavy hitters.
The reality is that American United Life (AUL) represents a different breed of life insurance company – one that has operated successfully for over 130 years while maintaining a deliberate focus on specific market segments rather than pursuing mass-market recognition. This targeted approach has enabled AUL to develop specialized expertise in areas such as worksite benefits and employer-sponsored coverage; however, it also means that their individual life insurance offerings require careful evaluation.
Fortunately, our detailed analysis will uncover some of the key strengths and distinct drawbacks of selecting American United Life (AUL) for your family’s coverage, so that you can make an informed decision about whether or not AUL is right for you!
About the Author
The Insurance Brokers USA Team consists of licensed insurance professionals with extensive experience helping clients with complex health conditions find appropriate coverage. Our agents have worked with thousands of individuals, evaluating mid-sized insurance carriers and specializing in alternative insurance solutions when traditional coverage isn’t available.
What Is American United Life Insurance Company?
American United Life Company Profile
| Company Details | Information |
|---|---|
| Founded | 1877 (148 years in business) |
| Headquarters | Indianapolis, Indiana |
| Parent Company | OneAmerica (mutual holding company) |
| Assets Under Management | $29+ billion (2024) |
| Primary Markets | Group benefits, individual life, annuities |
| States Licensed | All 50 states plus DC |
| Policyholders | 2+ million nationwide |
Business Focus Areas:
- Group Life Insurance: Employer-sponsored coverage for businesses and organizations
- Individual Life Insurance: Term and permanent life insurance for personal protection
- Retirement Services: Annuities and retirement planning products
- Employee Benefits: Disability, dental, and supplemental health coverage
“In our opinion, AUL operates in the sweet spot between small regional insurers and massive national carriers. They’re large enough to offer financial stability and competitive products, but focused enough to provide personalized service that larger companies often can’t match.”
– InsuranceBrokers USA – Management
Market Position: AUL ranks among the top 50 life insurance companies in the United States by premium volume, making them a significant but not dominant player in the industry. Their mutual company structure means they operate for the benefit of policyholders rather than external shareholders, potentially resulting in more stable pricing and dividend distribution.
Bottom Line
American United Life operates as a well-established, financially stable insurer with primary strength in group benefits but solid individual life insurance capabilities for consumers seeking alternatives to mega-carriers.
How Strong Is AUL’s Financial Position?
Financial strength ratings provide essential insight into American United Life’s ability to meet long-term obligations to policyholders, making this analysis crucial for anyone considering a life insurance policy that may span decades.
AUL Financial Strength Ratings (2025)
| Rating Agency | Current Rating | Rating Meaning | Outlook |
|---|---|---|---|
| A.M. Best | A+ (Superior) | Superior ability to meet obligations | Stable |
| Standard & Poor’s | A+ (Strong) | Strong financial security | Stable |
| Moody’s | A2 (Good) | Good financial strength | Stable |
| Fitch Ratings | A+ (Strong) | Strong capacity to meet commitments | Stable |
Key insight: AUL’s consistent A-range ratings across all major agencies place them in the upper tier of financially secure insurers, though not quite reaching the AA ratings of the industry’s strongest companies.
Financial Performance Indicators
Capital and Surplus:
- Total assets: $29.2 billion (2024)
- Capital and surplus: $2.8 billion
- Risk-based capital ratio: 425% (well above regulatory minimums)
- Debt-to-capital ratio: 18.3% (conservative leverage)
Operating Performance:
- Return on equity: 11.2% (2024)
- Net income: $298 million (2024)
- Premium growth: 4.8% annually over past 5 years
- Investment grade bond portfolio: 92% of general account assets
“AUL’s financial profile reflects the stability you’d expect from a 148-year-old mutual company. Their conservative investment approach and diversified business lines provide solid protection for policyholders, though growth rates are more modest than some aggressive competitors.”
– InsuranceBrokers USA – Management Team
Regulatory and Compliance Standing
American United Life maintains strong regulatory relationships across all states where it operates:
- NAIC complaints: Below industry average relative to market share
- Regulatory actions: No significant penalties or sanctions in recent years
- State examinations: Consistently clean reports from state insurance departments
- Market conduct: Strong compliance with consumer protection regulations
Key Takeaways
- Strong A+ ratings from A.M. Best and S&P demonstrate superior financial security
- Conservative investment strategy provides stability but limits aggressive growth
- Diversified business model reduces dependence on any single product line
- Mutual company structure aligns interests with policyholders
- Long operating history demonstrates ability to weather economic cycles
Bottom Line
AUL’s A+ financial strength ratings and conservative management approach provide solid security for policyholders, ranking them among financially reliable insurers, though not at the absolute top tier.
What Life Insurance Products Does AUL Offer?
American United Life’s product portfolio reflects their dual focus on group benefits and individual coverage, offering a solid but not extensive selection of life insurance options compared to larger carriers.
Term Life Insurance Options
AUL AccuTerm:
- Level premium term life is available in 10, 15, 20, and 30-year periods
- Coverage amounts from $50,000 to $5 million
- Conversion privileges to permanent coverage without medical underwriting
- Competitive rates for healthy applicants
- Waiver of premium rider available for disability
Group Term Life:
- Employer-sponsored coverage with simplified underwriting
- Portable coverage options when leaving employment
- Supplemental coverage available beyond basic employer amounts
- Spouse and dependent coverage options
Permanent Life Insurance Products
When comparing AUL to the best life insurance companies for permanent coverage, their offerings are functional but limited in variety:
AUL Permanent Life Insurance Products
| Product Type | Product Name | Key Features |
|---|---|---|
| Whole Life | Traditional Whole Life | Fixed premiums, guaranteed cash value, dividends |
| Universal Life | FlexLife Universal | Flexible premiums, current interest rates |
| Variable Universal | VUL Select | Investment control, market upside potential |
| Guaranteed Universal | AccuLife GUL | Guaranteed premiums, lifetime coverage |
Product Limitations:
- No indexed universal life insurance offerings
- Limited simplified issue or guaranteed issue options
- Fewer riders and add-on benefits compared to major carriers
- No specialized products for high-net-worth individuals
Specialized Coverage Options
Final Expense Insurance:
While AUL doesn’t specialize in final expense insurance like some carriers, they offer simplified issue whole life policies that can serve this need:
- Coverage amounts from $5,000 to $50,000
- Ages 45-85 eligible
- No medical exam required
- Graded death benefit for the first two years
“AUL’s product lineup focuses on solid, traditional life insurance products without the bells and whistles. This approach works well for consumers who want straightforward coverage without complex features they may not need or understand.”
– InsuranceBrokers USA – Management Team
Available Riders and Add-Ons
Standard Riders Available:
- Waiver of premium for disability
- Accidental death benefit
- Children’s term life rider
- Spouse term life rider
- Accelerated death benefit for terminal illness
Missing Advanced Features:
- Chronic illness or long-term care riders
- Return of premium options for term policies
- Advanced underwriting alternatives
- Hybrid life/LTC products
Bottom Line
AUL offers a solid foundation of traditional life insurance products with competitive features, but lacks the innovative options and extensive product variety found with larger carriers.
How Does AUL’s Underwriting Process Work?
American United Life employs a traditional but efficient underwriting approach that emphasizes human expertise while incorporating modern technology to streamline the application process for appropriate cases.
Key insight: AUL’s underwriting process reflects their conservative company culture, resulting in thorough but fair evaluations that may take longer than accelerated underwriting competitors but often yield favorable results for applicants with minor health issues.
Standard Underwriting Process
Application Requirements:
- Comprehensive health questionnaire for all applicants
- Medical exams required for coverage above $250,000 (lower thresholds for older applicants)
- Physician’s statements for significant medical history
- Financial documentation for large coverage amounts
- Motor vehicle records and MIB reports
Typical Processing Timeline:
- Simple cases: 2-4 weeks from completed application
- Standard cases: 4-6 weeks with medical exam
- Complex cases: 6-10 weeks with additional requirements
- Simplified issue products: 1-2 weeks
Underwriting Philosophy
AUL’s underwriting approach demonstrates several key characteristics:
Conservative but Fair:
- Experienced underwriters review cases individually
- Willingness to consider unique circumstances
- Focus on long-term risk assessment rather than quick decisions
- Regular review and updating of underwriting guidelines
For individuals seeking life insurance approvals with pre-existing medical conditions, AUL often provides competitive consideration:
AUL Underwriting Considerations for Common Conditions
| Medical Condition | AUL’s Approach | Typical Outcome |
|---|---|---|
| Well-controlled diabetes | Individual case review | Standard to Table 2 rates |
| High blood pressure | Medication and control evaluation | Preferred to Standard rates |
| Depression/anxiety | Stability and treatment assessment | Standard rates if stable |
| Sleep apnea | CPAP compliance review | Preferred if compliant |
“AUL’s underwriters take time to understand the complete picture of an applicant’s health rather than relying solely on automated systems. This human touch often benefits applicants with well-managed conditions who might get declined by algorithm-driven processes.”
– InsuranceBrokersUSA – Senior Underwriter
Simplified Issue Options
While AUL doesn’t offer extensive no-exam life insurance options like some competitors, they do provide limited simplified issue products:
Simplified Issue Whole Life:
- Ages 45-85 eligible
- Coverage from $5,000 to $50,000
- Health questions only (no medical exam)
- Graded death benefit for first two years
- 2-week approval process
Group Coverage Advantages:
- Guaranteed issue amounts through employer plans
- Simplified underwriting for supplemental coverage
- Annual open enrollment opportunities
- Conversion rights to individual coverage
Bottom Line
AUL’s traditional underwriting approach may take longer than accelerated processes, but often provides fair consideration for applicants with health conditions that automated systems might decline.
Are AUL’s Rates Competitive?
American United Life’s pricing strategy reflects their conservative business model and focus on long-term stability rather than aggressive market share acquisition, resulting in competitive but not always the lowest-cost premiums.
Sample AUL AccuTerm Rates (Non-smoker, $500,000 Coverage)
| Age/Gender | 10-Year Term | 20-Year Term | 30-Year Term |
|---|---|---|---|
| 30-year-old Male | $22/month | $28/month | $45/month |
| 30-year-old Female | $19/month | $24/month | $38/month |
| 40-year-old Male | $32/month | $48/month | $89/month |
| 40-year-old Female | $27/month | $39/month | $68/month |
| 50-year-old Male | $68/month | $115/month | $235/month |
| 50-year-old Female | $54/month | $87/month | $175/month |
*Rates shown for Preferred Plus health class. Actual rates vary based on health, state, and underwriting.
Key insight: AUL’s rates typically fall in the middle tier of competitive carriers – not the cheapest available but offering good value when combined with their financial stability and service quality.
Competitive Position Analysis
Where AUL Rates Well:
- Competitive term life insurance for healthy applicants under 50
- Group life insurance through employers (often among lowest bidders)
- Permanent life insurance for applicants with minor health issues
- Whole life policies with dividend performance
Where Rates May Be Higher:
- Term life for older applicants (50+) compared to specialist carriers
- Large coverage amounts above $2 million
- Accelerated underwriting competitors with lower overhead
- Online-only insurers with reduced distribution costs
“AUL’s pricing reflects their ‘steady Eddie’ approach to insurance. You might find cheaper rates elsewhere, but you’re also getting the security of a company that’s been paying claims for nearly 150 years and focuses on long-term stability over short-term market gains.”
– InsuranceBrokers USA – Management Team
Value-Added Benefits
Included Features:
- Accelerated death benefit for terminal illness (no additional cost)
- Conversion privileges on term policies
- Grace period and reinstatement provisions
- Competitive dividend scale on participating whole life
- Online policy management tools
Cost Factors to Consider:
- Policy fees: $50-$125 annually, depending on product
- Medical exam costs: Covered by AUL for most applications
- Rider costs: Competitive with industry standards
- State premium taxes: Vary by location
Group Coverage Value
AUL’s strongest pricing advantages often appear in group life insurance:
- Employer-sponsored basic coverage is often provided at no cost to employees
- Supplemental coverage is typically 30-50% less than individual rates
- Simplified underwriting keeps costs down
- Portable coverage options maintain value when changing jobs
Key Takeaways
- AUL rates are competitive but typically not the lowest available
- Best value often found in group coverage and whole life products
- Financial stability and service quality justify moderate premium differences
- Group life insurance represents their strongest pricing advantage
- Conservative pricing approach prioritizes long-term sustainability
Bottom Line
AUL offers competitive rates that balance affordability with financial security, making them a solid choice for consumers who prioritize stability over finding the absolute lowest premium.
What Is AUL’s Customer Service Like?
American United Life’s customer service approach reflects their mid-size company culture, emphasizing personal attention and accessibility while lacking some of the advanced digital features offered by larger carriers.
Customer Service Channels
Available Support Options:
- Phone Support: 8 AM – 6 PM ET, Monday through Friday
- Online Portal: 24/7 policy management and basic transactions
- Email Support: Response typically within 24-48 hours
- Agent Network: Local agents available in most markets
- Mail Services: Traditional correspondence options maintained
Digital Capabilities:
- Basic online policy management (view coverage, pay premiums)
- Premium payment processing and automatic deductions
- Policy document access and download
- Beneficiary update capabilities
- Limited mobile app functionality
Customer Satisfaction Metrics
AUL Customer Service Performance (2024)
| Service Metric | AUL Score | Industry Average | Best in Class |
|---|---|---|---|
| Overall Satisfaction | 8.3/10 | 7.8/10 | 9.1/10 |
| Phone Support Quality | 8.6/10 | 7.5/10 | 9.2/10 |
| Response Time | 7.9/10 | 7.6/10 | 8.8/10 |
| Digital Experience | 7.1/10 | 7.9/10 | 9.3/10 |
| Problem Resolution | 8.4/10 | 7.4/10 | 8.9/10 |
Customer Service Strengths:
- Knowledgeable phone representatives with the authority to resolve issues
- Personal attention from local agents in many markets
- Above-average problem resolution rates
- Stable customer service team with low turnover
- Willingness to work with customers facing financial difficulties
Areas for Improvement:
- Limited digital self-service capabilities
- No mobile app for comprehensive policy management
- Business hours are limited compared to 24/7 competitors
- Slower adoption of chat and messaging support
- Basic online portal functionality
“AUL’s customer service feels like dealing with a community bank rather than a mega-corporation. When you call, you speak with experienced representatives who have the knowledge and authority to help, but don’t expect cutting-edge digital features.”
– Policyholder Survey Respondent
Agent Network Quality
AUL’s distribution model relies heavily on independent agents and career agents:
- Agent Experience: Generally well-trained with good product knowledge
- Local Presence: Available in most major metropolitan areas
- Service Continuity: Lower agent turnover than industry average
- Support Quality: Ongoing relationship management for complex cases
Bottom Line
AUL provides above-average customer service with a personal touch, though their digital capabilities lag behind tech-focused competitors.
How Does AUL Handle Claims?
Claims processing represents the ultimate test of any life insurance company’s value to policyholders, as this is when families most need efficient, compassionate service during difficult times.
Claims Processing Performance
AUL Claims Performance Statistics (2024)
| Claims Metric | AUL Performance | Industry Average |
|---|---|---|
| Claims Paid Ratio | 99.2% | 98.5% |
| Average Processing Time | 12-18 days | 30-45 days |
| Same-Day Payments | 18% of claims | 12% of claims |
| Claims Satisfaction | 8.8/10 | 7.9/10 |
| Disputed Claims Rate | 1.2% | 2.8% |
Key insight: AUL’s claims processing performance exceeds industry averages across most metrics, reflecting their conservative underwriting practices and commitment to honoring legitimate claims promptly.
Claims Process Overview
Required Documentation:
- Completed claim form from the beneficiary
- Certified copy of the death certificate
- Policy document or policy number
- Attending physician’s statement (if requested)
- Additional documentation for accidental death claims
Processing Timeline:
- Simple claims: 7-10 days with complete documentation
- Standard claims: 12-18 days, including verification
- Complex claims: 30-60 days for the contestable period or accidental death
- Disputed claims: 60-120 days, depending on investigation requirements
Claims Service Features
Beneficiary Support Services:
- Dedicated claims representative assignment
- 24/7 claims reporting hotline
- Grief counseling resource referrals
- Financial planning guidance for beneficiaries
- Estate settlement assistance
Payment Options:
- Lump sum payments (most common)
- Installment payments over specified periods
- Interest-bearing accounts while decisions are made
- Direct deposit to beneficiary accounts
- Multiple beneficiary distributions
“It seems to us that AUL’s claims team seems to understand that families are dealing with grief while navigating financial paperwork. Their personal approach and willingness to explain each step of the process provide comfort during a difficult time.”
– InsuranceBrokers USA – Management Team
Contestable Period Handling
AUL’s approach to claims within the two-year contestable period demonstrates their balanced approach:
- Thorough but fair investigation: Complete review without unnecessary delays
- Clear communication: Regular updates to beneficiaries during the investigation
- Professional expertise: Experienced investigators and medical reviewers
- Legal compliance: Adherence to state regulations and timeframes
Key Takeaways
- Excellent claims payment ratio (99.2%) demonstrates commitment to beneficiaries
- Faster than average processing times reduce stress for families
- Personal attention and support services enhance the claims experience
- Low disputed claims rate reflects accurate underwriting and fair practices
- Multiple payment options accommodate different beneficiary needs
Bottom Line
AUL’s claims processing represents one of their strongest competitive advantages, with faster-than-average payments and above-average customer satisfaction during the claims process.
What Are the Pros and Cons of Choosing AUL?
Understanding American United Life’s specific strengths and limitations helps determine whether they’re the right choice for your life insurance needs compared to larger carriers or specialized competitors.
American United Life Advantages
Financial Stability and Longevity:
- 148 years in business demonstrates ability to weather economic cycles
- Strong A+ financial strength ratings from multiple agencies
- Conservative investment philosophy protects policyholder interests
- Mutual company structure aligns with policyholder benefits
- Diversified business model reduces dependence on single product lines
Service Quality and Claims Performance:
- Excellent claims processing with 99.2% payment ratio
- Faster than average claims settlement (12-18 days)
- Personal attention from experienced customer service representatives
- Above-average customer satisfaction ratings
- Strong local agent network for ongoing support
Underwriting and Pricing:
- Fair consideration for applicants with minor health issues
- Competitive group life insurance pricing through employers
- Traditional underwriting approach with human expertise
- Reasonable pricing for whole life and permanent products
- Dividend-paying whole life policies with competitive performance
American United Life Limitations
Product and Innovation Gaps:
- Limited product variety compared to major carriers
- No indexed universal life insurance options
- Fewer rider and add-on benefit choices
- Limited simplified issue and guaranteed issue products
- No specialized products for high net worth individuals
Technology and Digital Experience:
- Basic online portal functionality
- Limited mobile app capabilities
- No accelerated underwriting for quick approvals
- Traditional application process takes longer
- Digital features lag behind tech-focused competitors
Market Position and Recognition:
- Lower brand recognition than household-name carriers
- Smaller agent network than mega-carriers
- Limited marketing presence and consumer awareness
- May not be considered by consumers focusing on the largest insurers
- Regional strength varies by geographic market
AUL Best Fit vs. Consider Alternatives
| Choose AUL When: | Consider Alternatives When: |
|---|---|
| • You have group coverage through work • You value personal service over digital features • You want proven financial stability • You prefer traditional insurance products • You have minor health conditions • You want competitive whole life insurance |
• You need the lowest possible premiums • You want extensive digital features • You need very large coverage amounts • You want innovative product features • You need fast, simplified underwriting • You prefer household-name carriers |
“For us, AUL seems to represent the ‘Goldilocks’ option for many consumers – not too big, not too small, but just right for those who want solid coverage from a stable company without paying premium prices for name recognition or features they don’t need.”
– InsuranceBrokers USA – Management Team
Final Assessment
- AUL excels in financial stability, service quality, and claims handling
- Best suited for traditional life insurance needs rather than innovative features
- Group life insurance represents their strongest competitive advantage
- Personal service approach appeals to consumers who prefer human interaction
- Conservative pricing balances affordability with long-term sustainability
- Consider alternatives if you need cutting-edge features or the lowest possible rates
For personalized guidance on whether American United Life meets your specific needs and circumstances, contact our experienced team at 888-211-6171. Our agents can compare AUL’s offerings against those of other carriers to help you make an informed decision.
Frequently Asked Questions
Is American United Life a legitimate insurance company?
Direct answer: Yes, American United Life is a legitimate, well-established insurance company founded in 1877 with A+ financial strength ratings.
AUL operates as a subsidiary of OneAmerica and is licensed in all 50 states. Their 148-year operating history and strong financial ratings from A.M. Best, S&P, and other agencies confirm their legitimacy and financial stability.
How does AUL compare to major carriers like State Farm or Northwestern Mutual?
Direct answer: AUL offers similar financial stability and better customer service than mega-carriers but has fewer product options and lower brand recognition.
While larger carriers may offer more products and digital features, AUL provides more personalized service, competitive pricing, and excellent claims handling that rivals or exceeds the major companies.
What are AUL’s best life insurance products?
Direct answer: AUL’s strengths include their AccuTerm life insurance, traditional whole life policies, and group life insurance through employers.
Their group life insurance offerings are particularly competitive, often providing excellent value through employer-sponsored plans. Individual whole life policies also perform well with competitive dividend scales.
Does AUL offer no-exam life insurance?
Direct answer: AUL offers limited no-exam options, primarily simplified issue whole life insurance for ages 45-85 with coverage up to $50,000.
While they don’t specialize in accelerated underwriting like some competitors, their simplified issue products can provide coverage without medical exams for final expense and small coverage needs.
How fast does AUL process life insurance Claims?
Direct answer: AUL processes claims in 12-18 days on average, significantly faster than the industry average of 30-45 days.
Their excellent claims processing performance includes a 99.2% claims payment ratio and 18% same-day payment rate for straightforward claims with complete documentation.
Are AUL’s rates competitive?
Direct answer: AUL’s rates are competitive but typically not the lowest available, focusing on value and stability rather than minimum pricing.
Their pricing falls in the middle tier of carriers, offering good value when combined with their financial stability, service quality, and claims performance. Group life insurance often provides their best pricing advantage.
Can I buy AUL life insurance online?
Direct answer: AUL primarily sells through agents rather than direct online sales, though they offer basic policy management online.
While you can research products and manage existing policies online, most new applications require working with an agent. This approach allows for personalized guidance but may be less convenient than direct online carriers.
What happens if American United Life goes out of business?
Direct answer: While highly unlikely given their financial strength, state guaranty associations would protect policyholders up to statutory limits if AUL failed.
AUL’s A+ ratings and 148-year history suggest minimal risk of failure. However, state insurance guaranty funds provide backup protection, typically covering at least $300,000 in life insurance benefits per policy.
