Ama Life Insurance: Is It A Good Choice?

Life insurance is a crucial financial decision, and with numerous options available, choosing the right one can be daunting. AMA life insurance, offered through the American Medical Association, caters specifically to physicians and medical professionals. With a history spanning over 170 years, the AMA has been setting standards and working to improve public health. This review will analyse the features, rates, benefits, pros and cons of AMA life insurance to help you decide if it is a good choice for your needs.

AMA's life insurance options for members at various career stages

AMA life insurance is offered specifically to physicians and medical professionals through the American Medical Association. The AMA has been setting standards and working towards improving public health since 1847 and remains one of the largest professional associations in the US.

AMA offers several life insurance options for their members at various career stages. Here is a breakdown of the different plans available:

Level Term Life Insurance

Level Term Life Insurance is AMA's most basic insurance product. It is a standard term policy that allows you to choose from term periods of 10, 15, or 20 years. This plan is offered to physicians under the age of 45, with benefit amounts ranging from $100,000 to $4 million. During the term period, your spouse, children, or other beneficiaries will receive the benefit amount if you pass away. Level Term Insurance offers fixed rates, meaning your premiums will remain the same throughout the policy term. AMA also offers the option to add coverage for your spouse, domestic partner, and children.

Pure Term Life Insurance

Pure Term Life Insurance offers benefit amounts ranging from $250,000 to $1 million. This plan does not require a medical exam and is designed to be used as supplemental coverage to your existing life insurance through your employer. It offers age-based rates, meaning premiums increase annually as you get older. Pure Term Life Insurance is available to physicians under the age of 45 and can be renewed up to age 96.

Preferred Term Life Insurance

Preferred Term Life Insurance allows you to lock in rates for up to five years. This plan offers coverage amounts between $25,000 and $3 million. However, it is important to note that your premiums will increase every five years, and once you reach the age of 70, your death benefit will be reduced by 50%. Preferred Term Life Insurance is available to physicians under the age of 61 and can be renewed up to age 75.

Premier Accident Insurance

This plan provides coverage for accidental death only. You can select a benefit amount of $500,000, $750,000, or $1 million. Physicians receive a 5% rate reduction, while AMA members receive a 20% rate reduction. Spouses and children are also eligible for coverage under this plan.

Medical Student Term Life Insurance

Full-time medical students attending an accredited medical school can enrol in this plan, which offers $100,000 of Group Term Life Insurance for $40 annually or $50,000 of coverage for $20 annually. In the event of a covered accidental death, the benefit amount is automatically doubled. Your spouse or domestic partner under the age of 40 may also enrol, regardless of whether you enrol or not.

AMA life insurance plans are underwritten by the New York Life Insurance Company, which has received high ratings from major ratings agencies. However, it is important to compare rates and coverage options from multiple providers to ensure you are getting the best value for your needs.

AMA's underwriting process

AMAs Underwriting Process

AMA life insurance is underwritten by the New York Life Insurance Company, which has a financial strength rating of A++ (highest) according to A.M. Best. The company has been offering protection since 1845 and receives high ratings from major ratings agencies, including an AAA rating from Fitch and an AA+ rating from Standard & Poor's.

AMA offers three main policy options: Level Term Life Insurance, Pure Term Life Insurance, and Preferred Term Life Insurance.

Level Term Life Insurance

Level Term Life Insurance is AMA's most basic product, offering fixed rates and premiums for a specific duration (10, 15, or 20 years). It is available to physicians under 45 years old and provides coverage amounts ranging from $100,000 to $4,000,000. AMA members receive an 8% rate reduction, and additional coverage can be added for spouses, domestic partners, and children.

Pure Term Life Insurance

Pure Term Life Insurance does not require a medical exam and is designed as supplemental coverage to an employer's plan. The rates are age-based, increasing annually as the insured gets older. It offers coverage amounts from $250,000 to $1,000,000 and is available to physicians under 45, with renewability up to age 96.

Preferred Term Life Insurance

Preferred Term Life Insurance allows rates to be locked in for up to five years, after which premiums increase every five years. The death benefit amount remains the same until the insured reaches 70 years of age, after which it is reduced by 50%. This policy is available to physicians under 61 and is guaranteed renewable up to age 75.

AMA's rates compared to the rest of the market

AMAs Rates Compared to the Rest of the Market

AMA life insurance is offered specifically to physicians and medical professionals through the American Medical Association. The AMA has been setting standards and working towards improving public health since 1847 and remains one of the largest professional associations in the US.

AMA life insurance is underwritten by the New York Life Insurance Company, which has been offering protection since 1845 and has high ratings from major ratings agencies. However, despite its financial strength, AMA is not necessarily the most affordable life insurance option for physicians.

AMA offers a variety of different types of life insurance, with three main policy options: Level Term Life Insurance, Pure Term Life Insurance, and Preferred Term Life Insurance.

Level Term Life Insurance is AMA's most basic insurance product, offering fixed rates for 10, 15, or 20 years. Pure Term Life Insurance offers coverage without a medical exam, with age-based rates that increase annually. Preferred Term Life Insurance locks in rates for up to five years, but the premium increases every five years and the death benefit decreases by 50% after the insured reaches 70 years of age.

AMA members are eligible for discounts on these policies, but even with the discount, rates tend to be higher compared to other providers. For example, a 30-year-old male with a 20-year term and $500,000 coverage would pay an average rate of $19.08 per month, while the AMA rate is $28.33. Similarly, a 40-year-old female with a 20-year term and $1,000,000 coverage would pay an average rate of $41.75, compared to AMA's rate of $55.00.

Companies like Pacific Life, Mutual of Omaha, Banner, and Principal consistently offer lower rates than AMA. Additionally, AMA only offers term life insurance and does not provide universal or whole life coverage options.

AMA's life insurance products are underwritten by New York Life Insurance Company, which has excellent financial strength and ratings. However, their underwriting can be strict, and individuals with health issues or other concerns may find more competitive rates from other top companies.

Overall, while AMA life insurance may be convenient for physicians due to its affiliation with the American Medical Association, it is important to compare rates and coverage options from multiple providers to ensure you are getting the best value for your needs.

AMA's pros and cons

Pros of AMA Life Insurance

• It offers higher coverage amounts than most employer-based group insurance plans.
• AMA insurance provides the option to add coverage for your family.
• AMA life insurance has policies that are guaranteed renewable up to the age of 95.
• It is underwritten by the New York Life Insurance Company, which has received high ratings from major ratings agencies.
• It is exclusively priced and may be ideal for families.
• It offers living benefits of up to 75% of the coverage amount, up to $1 million.
• It provides accidental death and dismemberment coverage.
• It offers a waiver of premium rider, which waives monthly premiums if the insured becomes totally disabled.
• It allows you to provide additional life insurance coverage to any dependent child between the ages of 14 and 26.
• It offers a discount of 8% to AMA members for the Level Term Life Insurance plan.
• It does not require a medical exam for the Pure Term Life Insurance plan.
• It offers a 20% rate reduction for the Premier Accident Insurance plan.
• It provides full-time medical students with affordable term life insurance.

Cons of AMA Life Insurance

• AMA life insurance rates tend to be higher compared to other providers with similar policies.
• AMA only offers term life insurance and does not provide universal or whole life insurance options.
• AMA's life insurance plans do not always offer fixed rates, and rates may increase as the insured ages.
• The benefit amount may decrease as the insured ages.
• AMA only offers terms up to 20 years, which may not be suitable for those seeking longer-term policies.
• AMA is known to have slightly higher rates than other providers, especially for non-AMA members.
• The Preferred Term Life Insurance plan has major pitfalls, including increasing premiums every five years and a reduced death benefit after the age of 70.
• The Pure Term Life Insurance plan is designed as supplemental coverage and may not be sufficient as a primary policy.
• The Level Term Life Insurance plan is only offered to physicians under the age of 45.

AMA's customer service

AMA also provides detailed information on its website about how to file a claim, cancel a policy, and contact customer service, which suggests a focus on customer support. Additionally, AMA offers online services such as accessing policy information, making premium payments, updating personal details, and filing claims through a secure online portal.

Overall, while there are some negative reviews, AMA appears to prioritize customer service and provide multiple channels for customers to reach out for assistance.

Frequently asked questions