Americo Life Insurance: Is It A Good Choice?

Americo Life Insurance has been in business for over a century and is considered one of the largest privately held independent insurance companies in the United States. The company offers a range of life insurance products, including term, universal, and whole life insurance, designed to protect individuals and their families at different stages of life. With a strong financial position, Americo provides peace of mind and security to its customers. However, it's important to consider both the pros and cons of Americo's offerings, including the ease of qualification, range of riders, and customer satisfaction. In this discussion, we will delve into the specifics of Americo's life insurance policies, their unique features, and how they compare to other options in the market.

Americo's financial strength and stability

Americo Life Insurance has been in business for over 100 years and is considered one of the largest privately held independent insurance companies in the United States. It has more than more than $6 billion in assets, over 650,000 written policies, and more than $32 billion of in-force life insurance premium.

Americo's financial stability and strength are reflected in its high ratings from independent rating firm A.M. Best. In 2021, Americo received an "A" rating, indicating its "excellent" ability to meet its senior financial obligations. This rating is based on a comprehensive quantitative and qualitative evaluation of the company's balance sheet strength, operating performance, and business profile.

In addition to its strong financial position, Americo also offers a wide range of insurance products, including term, universal, and whole life insurance policies. These policies are designed to protect individuals and their families at different stages of life, such as helping to pay off mortgages, covering final expenses, and providing financial security in the event of disability or critical illness.

Furthermore, Americo provides innovative product solutions and is committed to service and customer satisfaction. The company's priority is the financial security of its clients, and it strives to meet and exceed industry standards.

Overall, Americo's long history, strong financial ratings, diverse product offerings, and customer-centric approach contribute to its financial strength and stability.

Pros and cons of Americo's final expense life insurance

Americo Life Insurance has been in business for over a century and is considered one of the largest privately held independent insurance companies in the United States. It has a strong financial position, with an "A" (Excellent) rating from A.M. Best, indicating an excellent ability to meet financial obligations.

The company offers a range of insurance products, including term, universal, and whole life insurance, with a focus on final expense policies for seniors. These policies are designed to cover funeral and other final expenses, as well as provide financial protection for surviving family members.

Pros of Americo's Final Expense Life Insurance:

• Guaranteed issue and whole life policy with no medical underwriting, exams, or reports.
• Available for people aged 50-80, with a death benefit ranging from $2,000 to $30,000.
• Easy digital application process in most states.
• Coverage for children and grandchildren, with the option to include stepchildren, available at an extra cost.
• Accidental Death Benefit provision included at no additional cost.
• Direct line for claims assistance, with the option to fax in a claim to expedite the payout process.

Cons of Americo's Final Expense Life Insurance:

• Longer graded period of 3 years (2 years in some states) compared to the typical 2 years offered by other carriers.
• Smaller first-year payout with only a 5% additional benefit if death occurs within the first year of the policy.
• Unavailable in AR, MA, MN, MT, NY, PA, VT, and WA.
• Higher prices compared to most final expense companies.
• The guaranteed issue option is limited to $10,000 and is expensive.
• Tobacco users are discouraged due to Americo's unique tobacco policy.
• Unable to pay quarterly or semi-annually.

Americo's annuity features

Americo Financial Life and Annuity Company offers a range of annuity products to help you protect and grow your retirement income. The company has been in the insurance business for over 100 years and is committed to providing products that meet the needs of its customers.

Americo offers both fixed index annuities and MYGAs (multi-year guaranteed annuities), giving potential customers a solid mix of choices. The fixed index annuities are available in two groups: the Ultimate One Index Series and the Americo Elite 5. The Ultimate One Index Series is based on the performance of the S&P 500 and offers four credit rating options, while the Americo Elite 5 offers 10 index options. Both options include standard benefits such as the ability to withdraw 10% of the annuity's value each year without penalty and a waiver of the surrender charge if the annuitant enters a nursing home or requires an extended hospital stay.

The MYGAs, offered through the Platinum Assure Series, provide guaranteed interest rates and allow you to remove all your money without penalty when the term ends. The Platinum Assure MYGA is available in terms of two to seven years, with a minimum issue of $25,000 and a maximum of $1 million.

Americo annuities offer principal protection and growth potential. They provide a guaranteed income for life and also offer a death benefit to a beneficiary of your choice if you pass away before the annuity is depleted. The company has a financial strength rating of A (Excellent) from AM Best, indicating its ability to meet ongoing senior financial obligations.

While Americo offers a diverse range of annuity options, it is important to note that the company has received a high number of customer complaints relative to its market presence, with a 3.63 NAIC (National Association of Insurance Commissioners) Complaint Index score.

Americo's customer satisfaction

Americo Life Insurance has been in business for over 100 years and is considered one of the largest privately held independent insurance companies in the United States. It was established in 1946 as The College Life Insurance Company and is based in Kansas City, Missouri. The company provides a suite of products designed to cover all types of policyholders, from new families to senior citizens. Americo offers term, universal, and whole life insurance products, as well as annuities.

While Americo boasts a sound financial position and a range of products, its consumer-facing website is lacking in policy specifics, and the company has received a high number of customer complaints. In 2021, Americo had a complaint index of 1.27 from the National Association of Insurance Commissioners (NAIC), indicating that it received more complaints than expected for a company of its size and struggled with customer satisfaction that year.

However, Americo has also received positive ratings and reviews. According to A.M. Best, an independent rating firm, Americo Financial Life and Annuity Insurance Company is financially stable and has a rating of "A" (Excellent). This rating indicates Americo's ability to meet its ongoing senior financial obligations. Additionally, Americo has been praised for its easy application process, direct line for claims assistance, and coverage for children and grandchildren.

Overall, while Americo has a strong financial position and offers a range of insurance products, there are some concerns about customer satisfaction due to the high number of complaints received. The company's easy application process and coverage options may be appealing to some, but it is important for potential customers to consider all factors before making a decision.

Americo's insurance products

Americo Life Insurance has been in business for over 100 years, providing life insurance and annuity products to protect you and your family. The company offers a strong portfolio of Term, Universal, and Whole Life insurance products, as well as retirement annuities, designed to meet your needs at all stages of life.

Whole Life Insurance

Whole life insurance, or permanent insurance, offers lifetime protection. As long as premiums are paid, the policy remains active. The monthly rate remains the same for the duration of the policy and cannot be cancelled due to age or health. Whole life insurance policies accrue cash value over time, which the insured can borrow against.

Indexed Universal Life Insurance

Indexed Universal Life (IUL) is a form of permanent life insurance that combines protection with the potential for cash value growth linked to stock market performance. IUL policyholders can benefit from market gains without being exposed to market losses. This type of policy offers flexibility in premium payments and death benefits, allowing adjustments according to changing financial needs.

Term Life Insurance

Term life insurance provides coverage for a specified time period, typically 10, 15, 20, or 30 years. If the policyholder dies within the term period, the beneficiary receives the death benefit. Term life insurance does not accrue cash value and usually expires at the end of the term unless converted to permanent coverage. Americo offers products that can return the money paid if the coverage is never used, as well as options to extend coverage to permanent status at the end of the term without raising monthly rates.

Retirement Annuities

Americo recognizes the importance of retirement planning and offers retirement annuities to help secure your financial future and that of your family.

Final Expense Insurance

Americo offers final expense insurance, a type of whole life insurance designed for individuals with pre-existing health conditions who may not qualify for traditional policies. This coverage ranges from $5,000 to $40,000 and does not require a physical exam, although medical questions are asked. Rates are locked in for life and the policy cannot be cancelled due to age or health as long as premiums are paid. This type of insurance is often used to cover final expenses, such as medical bills, funeral costs, or housing expenses for surviving family members.

Riders

Americo offers a wide variety of riders, including living benefit riders, disability income riders, waiver of premium riders, and child term riders. These provisions extend protection or provide additional coverage, allowing customers to customize their policies to meet their specific needs.

Frequently asked questions