One of the best strategies for ensuring that loved ones will be able to carry on financially in case of the unexpected is to purchase a good, solid life insurance policy. This is because the proceeds that are received through life insurance – which is income tax-free to beneficiaries – can be used for continuing to pay living expenses or to pay off large debts. It can also be used for paying for the funeral and other final expenses of the insured. That way, loved ones will not have to go into debt – especially at an already difficult time in their lives.
When buying life insurance, it is important to consider several criteria. These include the type and the amount of coverage that you are purchasing. This is because you do not want your loved ones to have too little protection.
It is also essential to know that the insurance carrier you are purchasing the coverage from is strong and stable from a financial standpoint. That is so that you can better ensure that the company will be able to pay out its promised policy proceeds if or when the time should come. One company that made our honorable mention for best life insurance companies in the US and many individuals buy life insurance coverage from is Americo Life Insurance Company.
The History of Americo Life Insurance Company
Americo Life Insurance Company has been in the business of offering life insurance and other coverage products for more than 100 years. The growth of the Americo family of companies has built primarily on the successful acquisition of more than 15 insurance entities – each having its specific advantages.
The company has also won other accolades and has been the first insurer in a myriad of different events. For example, in 1922, a predecessor of Americo, Great Southern Life – which was initially founded back in 1909, became the first company in the United States to insure the lives of children.
In 1971, another predecessor of Americo Life Insurance Company, Ohio State Life, was the first insurer to advance death benefit payments to sustain the life of a policyholder. Likewise, in 1981, Great Southern Life led the way as one of the very first insurers in the U.S. to offer universal life insurance coverage – and more recently, Americo was also one of the very first to offer indexed universal life and annuity products.
Americo Life Insurance Company Review
Today, Americo Life Insurance Company has more than 659,000 insurance policies in force. The company has more than $6 billion in total assets, and the company’s statutory premiums have increased substantially over the years. Americo has more than $32.7 billion of just life insurance in force.
Americo is very competitive in the life insurance market – and the carrier maintains a high quality, liquid investment portfolio that consists of more than 95 percent investment grade bonds in its fixed income investments.
Personalized and trusted service is the cornerstone of Americo Life Insurance Company’s business. The company is considered to be progressive in its thinking, and it is highly solutions-oriented.
The company is one of the largest independent and privately held insurance groups in the U.S. Americo is headquartered in Kansas City, Missouri, and it serves it sales force via more than 350 company associates.
Insurer Ratings and BBB Grade
Due to its safe, yet liquid, portfolio, Americo Life Insurance Company has been given a rating of A (Excellent) from A.M. Best Company. This rating is the third highest possible rating on an overall scale of 15 total ratings.
Although Americo Life Insurance Company is not an accredited company through the Better Business Bureau (BBB), the company has been given a grade of C. This is on an overall grading scale of A+ to F.
Over the past three years, the company has closed out a total of 19 customer complaints via the Better Business Bureau. (Twelve of these 19 complaints have been closed out over the past 12 months). Of the 19 complaints, 12 had to do with problems with the company’s products or services. Another six were in relation to billing or collection issues, and one was in regard to delivery issues.
Life Insurance Products Offered Through Americo
At Americo Life Insurance Company, there are many different life insurance plans to choose from. This variety is beneficial in helping clients to more closely plan for their anticipated needs. Americo offers term and permanent life insurance protection.
Term Life Insurance
Term life insurance coverage provides pure life insurance protection only, without any cash value or savings build up in the policy. Because of this, term life insurance is often quite affordable – even for a large amount of death benefit coverage.
With term life insurance, the coverage is purchased for a certain amount of time – or “term” – such as for five years, ten years, 15 years, 20 years, 25 years, or even for 30 years. During this term of coverage, the premium will typically remain the same over time, and the amount of the death benefit will remain level.
Permanent Life Insurance
Permanent life insurance offers both life insurance protection and cash value. The funds that are in the cash-value component of the policy are allowed to grow on a tax-deferred basis, meaning that there will be on tax due on this growth unless or until the money is withdrawn.
The funds that are in the cash value component of a permanent life insurance policy may be withdrawn or borrowed by the policyholder for any reason that they see fit – including the payoff of debts, the supplementing of retirement income, or even for taking a nice vacation.
There can be many different types of permanent life insurance coverage. These include:
- Whole Life Insurance – Whole life insurance offers a fixed amount of death benefit coverage, as well as a fixed premium that is typically locked in throughout the entire life of the policy. Whole life insurance is meant to be kept for an individual entire lifetime, or the “whole” of one’s life. The cash value that is in the cash component of the policy is able to grow via a fixed and guaranteed rate that is set by the issuing insurance company. In some instances, the insurance company will pay dividends to the policyholder of whole life insurance – although these are not guaranteed. A dividend may be taken as cash, or alternatively, it could be used to purchase additional insurance coverage or to add to the cash component.
- Universal Life Insurance – Universal life insurance also offers death benefit coverage, along with a cash value component. In this case, however, universal life insurance is considered to be more flexible than whole life coverage. One reason for this is because a universal life insurance policyholder can – within certain guidelines – determine how much of his or her policy premium will go towards paying for the death benefit, and how much will go towards the cash value. Also, the timing of when the premium is due with a universal life insurance policy may also be altered to better fit with a policy holder’s changing needs.
- Indexed Universal Life Insurance – Over the past several years, indexed universal life insurance has become a more popular product. That is because this type of coverage can be beneficial both for its life insurance coverage, but also for the opportunity that it provides for both growing and protecting funds. In this case, the return on the cash value in an indexed universal life insurance policy is based upon the performance of an underlying market index, such as the S&P 500. If the underlying index performs well during a given time period, the cash value will be credited – up to a certain cap. However, if the underlying index performs poorly in a given period, the cash value’s return for that time will simply be credited with a 0 percent. So, while there is no gain, there is also no loss for that time. Many who are savings for retirement can benefit from this ability to grow, yet still protect their funds.
The company’s specially designed life insurance products offer unique benefits, and there are simplified issue products available. This means that an applicant for coverage may not be required to take a medical examination as a requirement for policy approval. Because of that, there may be a better chance of someone qualifying for the life insurance coverage that they need – even in the event that they already have an adverse health condition.
The face amount of coverage on most of the life insurance policies that are offered by Americo Life Insurance Company can range between $25,000 and $400,000.
Final Expense Coverage
While all individuals and families may have differing needs, most people will have at least some amount of final expenses. Americo Life Insurance Company offers a series of whole life insurance products that are designed for helping to cover the costs that are associated with funeral and burial expenses, as well as uninsured medical bills and other financial obligations that one’s loved ones may face.
These policies can offer face amounts that range from $2,000 to $30,000. There are both fully underwritten and simplified issue policies – and, those who smoke cigars or pipes, as well as smokeless tobacco, could qualify for a non-smoker premium rate.
Mortgage Protection Coverage
One of an individual or a couple’s biggest expenses in life is their home mortgage.
Therefore, if an income earner passes away unexpectedly, this could mean that his or her survivors would no longer be able to pay the mortgage – and in turn, be forced to move from their home. This occurrence can be made even more difficult, as the family is already facing pain.
With mortgage protection coverage, should the unthinkable occur, this policy will pay out an amount that can pay off the survivors’ mortgage balance. Americo Life Insurance Company offers mortgage protection policies with face amounts of between $25,000 and $400,000.
There is no proof of mortgage required, and depending on the policy that is chosen, the applicant for this coverage may not even be required to undergo a medical exam. There are also some optional riders available that can allow policy holders to customize their coverage to better fit with their specific needs.
Other Products Offered By Americo Life Insurance Company
In addition to life insurance protection, Americo Life Insurance Company also offers a wide range of other products that can help its customers to grow and protect their wealth. These products include the following:
- Medicare Supplement insurance – While Medicare Part A and Part B offer a long list of coverages, there are also many out-of-pocket expenses that are associated with Medicare coverage, such as co-payments, coinsurance, and deductibles. Having a Medicare Supplement insurance plan can help with covering some of the costs. There are several different Medicare Supplement plans to choose from – including a basic set of core benefits, as well as more comprehensive coverage.
- Retirement Annuities – A retirement annuity can help individuals and couples to save in a tax-advantaged manner for the future, as well as to lock in an ongoing retirement income that can last throughout the remainder of their life – regardless of how long that may be.
How to Get the Best Life Insurance Premium Quotes
When seeking the best life insurance quotes, it is recommended that you work with an independent insurance brokerage. If you are shopping for life insurance coverage, we can help. We work with many of the top life insurers in the industry. If you are ready to compare, then just take a moment to fill out the quote from on this page.