American Income Life Insurance: Is It Worth The Hype?

American Income Life Insurance Company (AIL) is an international company that offers life, accident, and supplemental health insurance products. The company was founded in 1951 and currently operates in the US, Canada, and New Zealand. AIL caters to working families, members of labour unions, credit unions, and associations, providing them with insurance coverage. The company has received mixed reviews, with some customers praising its services while others have complained about its aggressive sales tactics, difficulty in cancelling policies, and poor customer service. It has also faced investigations and allegations of customer abuse. Overall, AIL has a reputation for being a poor choice for insurance due to its higher-than-average number of customer complaints and lack of transparency.

Customer service

American Income Life Insurance (AIL) has a customer service phone line available during regular hours, Monday to Friday. Customers can also contact the company through email and snail mail. However, AIL does not offer 24/7 support or online claims reporting, which is inconvenient for many customers.

AIL's customer service has received mixed reviews. While some customers have praised the helpfulness of their agents, others have complained about the company's lack of responsiveness and difficulty in cancelling policies. There have also been numerous complaints about aggressive sales tactics, including incessant phone calls and pressure to upsell.

The company's response to negative reviews on the Better Business Bureau (BBB) website has been generally apologetic, inviting customers to send further details via email to investigate the matter.

AIL has also been criticised for its lack of transparency regarding policy details and discounts, as well as its cumbersome claims process. The company's website outlines a detailed procedure for filing life insurance claims, which can only be done via snail mail.

Overall, while AIL has a strong financial standing, its customer service has been a source of frustration for many customers, with complaints about its outdated contact options and lack of online support.

Financial strength

American Income Life Insurance Company (AIL) has consistently earned high financial strength ratings. AIL has a combined $3 billion in assets along with its subsidiary, National Income Life, located in New York. Together, the carriers have more than $46.6 billion of life insurance policies in force. AIL and National Income Life have combined assets of almost $8.7 billion with more than $88 billion of life insurance in force as of December 31, 2023.

AIL has earned an overall “A+” rating from AM Best, indicating that the carrier is a superior choice for insurance customers. High ratings from AM Best assure customers that American Income Life offers guaranteed, reliable coverage. Reviews from AM Best indicate an insurance company’s financial strength and creditworthiness and are based on comprehensive evaluations of the company’s operating performance, business profile, and annual report.

AIL has also been rated "A+" (excellent) by the Better Business Bureau (BBB).

Coverage

American Income Life Insurance offers a range of coverage options, including life insurance, accident insurance, and supplemental health insurance. Their policies are available in 49 US states, as well as Canada, New Zealand, and New York (through its subsidiary, National Income Life Insurance Company).

The company's life insurance products include term life insurance, whole life insurance, and final expense insurance. Term life insurance provides a death benefit for a fixed term, with set premiums that won't increase during that period. Whole life insurance, on the other hand, is meant to last your entire life and builds cash value over time. It also comes with set premiums that won't change and offers the option to borrow against the value of the policy.

American Income Life also offers the Head Start Children's Life Insurance Program, which provides up to $25,000 in lifetime coverage for dependents, with the option to purchase up to $150,000 in coverage later in life. The premiums for this policy are set at a standard rate, regardless of the child's health.

In addition to life insurance, the company offers accident insurance, which covers benefits for accidental death, dismemberment, hospital confinement, and intensive care treatment resulting from an accident. They also provide supplemental health insurance, which can be used to cover out-of-pocket medical expenses, alternative treatments, lost income, and daily or monthly household expenses.

American Income Life Insurance has been in business since 1951 and has a strong financial strength rating, indicating that they are likely to pay out claims. However, their policies may be more expensive than those of their competitors, and there is limited information available about policy details online.

Claims

American Income Life Insurance offers a claims portal on its website that clearly explains the claims process.

For life insurance policies that have been in force for more than two years, the company requires the completion of sections A and C of the printable Proof of Death Claimant Statement. This must be mailed, along with a certified death certificate, an obituary, and other supporting documentation, to the following address:

American Income Life Insurance Company Claims Department

PO Box 2500

Waco, TX 76702

For life insurance policies that have been in force for less than two years, all sections of the Proof of Death Claimant Statement must be completed. This also needs to be mailed, along with a certified death certificate, an obituary, and other supporting documentation, to the address listed above. If the death was accidental or a homicide, additional documentation is required, including autopsy, toxicology, and police reports, as well as a certified copy of the coroner's report.

American Income Life also offers separate claims forms for its accelerated death benefit and waiver of premium riders on its website.

The company can be reached at 800-433-3405, Monday through Friday, from 8 a.m. to 5 p.m. CST, for assistance with filing claims or for any queries. However, it's important to note that they do not offer online chat or weekend hours for customer service.

While American Income Life has an A+ rating from AM Best for its financial strength, indicating its ability to pay out claims, there are numerous negative reviews online, with customers reporting difficulty in receiving payouts and issues with the company's sales and marketing tactics.

Pros and cons

Pros

American Income Life Insurance Company (AIL) has several positives, including:

• A longstanding carrier with decades of experience.
• High ratings from AM Best and the Better Business Bureau (BBB).
• Coverage available in 49 states, as well as Canada and New Zealand.
• Portable insurance coverage—if you move or change jobs, their insurance coverage stays with you.
• Individual, single parent, and family policies are available.
• Offers affordable, permanent, portable life insurance.
• Offers supplemental insurance benefits to working families.
• Has a strong financial outlook, with a combined $3 billion in assets with its subsidiary, National Income Life.
• Provides two major forms of life insurance: term life insurance and whole life insurance.
• Offers a Head Start Program and a Final Expense Program.

Cons

There are also several drawbacks and negative reviews of AIL, including:

• Discount information is not readily available.
• No online claims reporting.
• Only two kinds of coverage are offered.
• No specific claims response time frame.
• Largely negative customer feedback and reviews, with complaints about difficulty cancelling policies, poor customer service, and pushy sales tactics.
• Hundreds of complaints have been filed against AIL through the BBB in recent years.
• Outdated customer service contact options.
• Does not provide 24/7 customer support.
• Does not offer online chat or weekend hours for customer service.
• No virtual claims portal to begin filing a claim online.

Frequently asked questions