Life insurance is an essential component of most any financial plan. That is because the proceeds from a life insurance policy can be used for a variety of different needs, such as paying off large debts, continuing with ongoing living expenses, and / or paying off the insured’s funeral and other final expenses.
When purchasing a life insurance policy, it is important to keep several key factors in mind, such as the type and the amount of coverage, as well as the insurance company that you are buying the protection through. This is because you will want to be sure that you are working with a top insurance carrier is strong and stable from a financial standpoint and that it has a good reputation for paying out its policyholder claims in a timely manner. One company that fits this description is American Income Life Insurance Company.
The History of American Income Life Insurance Company
American Income Life Insurance Company was initially founded in Indianapolis, Indiana, in 1951. The company’s founder, Bernard Rapoport, started the company with $25,000 that he had borrowed.
By 1955, the company’s assets had already doubled, and it had more than $15 million of insurance in force. In the early 1960s, American Income Life Insurance Company began selling to labor unions. The company also offered benefits that were not yet being provided by other insurers such as waiver of premiums, a scholarship program for union members’ children, and contributions to the strike fund of unions that were engaged in lawful strikes.
By the early 1970s, the company’s income had doubled again, to more than $31 million. And, by the early 1970s, the company was one of only two insurance companies in the United States that had an official Union Label.
Bernard Rapoport had been known throughout the years for his charitable giving – and, in 1988, he was named to Fortune Magazine’s list of the 40 most generous Americans. In 1994, American Income Life was sold to the Torchmark Corporation for more than $560 million. Today, American Income Life Insurance Company is headquartered in Waco, Texas.
American Income Life Insurance Company Review
American Income Life Insurance Company is one of the nation’s largest providers of supplemental life insurance to labor unions, credit unions, and associations. The company has more than 2 million policyholders, and it represents more than $130 million in annual insurance product sales. As of year-end 015, the company had more than $46.6 billion of life insurance in force and combined assets of more than $3 billion.
In the year 2015, American Income Life Insurance Company paid out more than $172 million in life insurance clams, as well as more than $5 million in Accidental Death and Dismemberment (AD&D) claims.
American Income Life is known for its innovative lead programs for agents, as well as its customer referrals that are primarily based upon high customer satisfaction. The company has operations in the U.S. as well as in Canada, and New Zealand.
The company’s commitment to working families has been recognized by more than 20,000 different groups, which represent labor unions, associations, sporting groups, fraternal organizations, licensed professionals, and non-profit entities.
Insurer Ratings and BBB Grade
Due to its financial strength and overall stability, American Income Life Insurance Company has been provided with very high ratings from the insurer rating agencies. This includes an A+ (Superior) from A.M. Best Company (as of June 2016).
In addition, American Income Life Insurance Company has been an accredited company of the Better Business Bureau since 1952. The company has been given a grade of A+ by the BBB, on an overall grade scale of A+ through F.
Over the past three years, American Income Life Insurance Company has closed out a total of 203 complaints through the Better Business Bureau, of which 77 of these were closed out over the past 12 months.
Of the total 203 complaints, 95 of these had to do with problems with the company’s products and / or services. Another 73 have had to do with advertising and / or sales issues, 32 were in relation to billing and / or collection issues, two had to do with delivery issues, and one was in regard to Other issues.
The customer service representatives at American Income Life Insurance Company can be reached via phone, toll-free, between the hours of 8:00 a.m. and 4:30 p.m. Eastern time on Monday through Friday.
American Income Life Insurance Company policyholders are able to access information about their coverage and their account directly online via the company’s website. Local agents can also be located by searching the AIL site as well.
Life Insurance Products Offered By American Income Life Insurance Company
American Income Life Insurance Company offers a variety of different life insurance products to choose from. This is beneficial to its policy holders, as coverage can often be changed or altered over time, as customers’ needs change.
The company provides both term and permanent life insurance coverage. With term life, a policy is purchased for a certain amount of time, or “term.” These terms may be for five years, ten years, 15 years, 20 years, 25 years, or even for 30 years. During this time, the premium and the amount of the coverage will typically remain level. Because there is no cash value build up that is associated with term life insurance, this type of protection can be a very cost effective way of purchasing death benefit coverage.
American Income Life Insurance Company also offers permanent life insurance coverage. With permanent coverage, there is both a death benefit and a cash value component. These policies do not have a time limit like term insurance. So, as long as the premium is paid, the coverage will stay in force.
At American Income Life, whole life insurance is offered. Whole life insurance offers a cash value component where the funds inside of this portion of the policy are allowed to grow on a tax-deferred basis. This means that there will be no taxes due on the gain in the cash value unless or until the funds are withdrawn. This cash value will grow over time-based upon a guaranteed interest rate that is set by the insurance company.
The premium amount is locked in for life with a whole life insurance policy. This means that even as the insured’s age increases – and, regardless of whether they contract an adverse health condition – the amount of the premium will not increase.
The funds that are in the cash value may be borrowed or withdrawn by the policyholder for any reason, including for supplementing retirement income, paying off debt, or even for taking a nice vacation.
There are also various riders that can be added to life insurance policies. These can help to better adjust the policy to the insured’s potential present and / or future needs. For example, at American Income Life Insurance Company, there is a terminal illness rider available – at no additional cost to the insured.
With this rider, funds can be extracted from the policy while the insured is still living. In this case, the accelerated death benefit will pay 50 percent of the coverage face amount if the insured has been diagnosed with a terminal illness and he or she has a life expectancy of less than one year. (This life expectancy factor is two years in Massachusetts, Illinois, and Washington state). The policy’s premiums will stay the same – even if the accelerated death benefit is paid out. This will keep the policy in force, and allow the remaining 50 percent of the death benefit to be paid to the policy’s named beneficiary at the time of the insured’s death.
Other Products Offered
In addition to its life insurance product offerings, American Income Life Insurance Company also provides the following products to its customers:
- Accident Insurance – Accident insurance can provide coverage for accidental injuries. This type of policy is guaranteed renewable, and cannot be canceled provided that the premiums are paid.
- Supplemental Health Insurance – Supplemental insurance can help to fill in the “gas” in any other type of insurance policy that an individual may already have. With these plans, there are no primary or secondary payor rules. Rather, an insured will obtain the benefits that they signed up for.
- Hospital Indemnity Insurance – Hospital indemnity insurance can provide funds to help families from the unexpected.
- Cancer Insurance – Cancer insurance can help to offset the financial burden if an insured has been diagnosed with cancer. For example, if you are unable to work, this type of policy can help with paying monthly living expenses.
- Critical Illness Protection – If diagnosed with a covered critical illness, this plan would pay out a benefit to also help with paying regular living costs.
American Income Life Insurance Company also offers several products at no cost to its customers. These include:
- No Cost Child Safe Kit – The Child Safe Kit can help to ensure that important information about a child is safe and easy to access by a parent. Every parent has likely had the experience of looking away from his or her child for just a second, and not knowing where the child went. Thankfully, in most cases, the child is found to be safe. If, however, they are not, the Child Safe Kit from American Income Life Insurance Company can make pertinent information about the child available in just one place – which can be extremely beneficial when seconds count. This child safe kit is endorsed and supported by the nation’s leading law enforcement union. Kits are provided by American Income Life to parents and / or guardians, schools, and child care centers.
- Safe Surfin’ Guide – In order to help kids stay safe online, American Income Life Insurance Company offers a no-cost parent’s guide to internet safety. This is a key resource that can be used to help with identifying unsafe online activities. It can also help to eliminate cyberbullying, as well as to record online information such as passwords to social media accounts.
- No-Cost Partners Program – The no-cost partner's program is a way to help reduce the cost of health care services. The American Income Partners program is not insurance, but rather a program that provides discounts at certain healthcare providers for medical services. There are two partners programs, which include the Basic Program Discounts, or the Gold Program Discounts.
How to Get the Best Life Insurance Rates
When shopping for life insurance coverage, it is typically best to work in conjunction with an independent insurance brokerage or agency that has access to more than just one single life insurance carrier. In doing so, you can be better able to shop and compare life insurance policies, companies, and premium rates, and from there you can determine which one will be the best for you and your specific needs.
If you are currently in the market for life insurance coverage, and you are seeking the best premium rate, we can help. We work with many of the top life insurance companies in the marketplace today, and we can assist you with obtaining all of the pertinent details that you need for making a well-informed purchasing decision. We can do so for you quickly, easily, and conveniently – all from your home computer – and without the need to meet in person with a life insurance agent. If you are ready to move forward, then just simply take a minute to fill out the quote form on this page.
Should you find that you have any additional questions regarding American Income Life Insurance Company’s life insurance products – or even if you have a question about life insurance in general – then please feel free to call us toll-free at 888-836-7071.
We understand that the purchase of life insurance coverage can be a big decision. There are many variables to consider – and you want to be sure that you are getting the appropriate amount of protection for your needs. We can walk you through the life insurance quote process, as well as through any other questions or concerns that you may have. So, contact us today – we’re here to help.