American Income Life offers term life insurance, whole life insurance, and final expense coverage through a network of local agents. The company also provides accident and supplemental health insurance coverage.
Business Insider compared American Income Life to the best life insurance companies and found it to be a poor choice, given its multiple investigations and lack of publicly available information on insurance policies. Compared to other insurers, it offers fewer add-ons and has more customer complaints. Also, note that you can't get a quote online.
American Income Life Insurance Review
American Income Life Insurance was founded in 1951 and is owned by Globe Life Inc. While the company offers supplemental health insurance and final expense insurance, AIL products are its whole and term life insurance.
Like many other life insurance providers, AIL offers its products through a network of agents. This means you can't apply for a life insurance quote through American Income Life online or find pricing for its products without speaking with someone in person or over the phone. In fact, AIL offers very little information about its policies publicly.
The main concern with American Income Life is the investigations concerning the company and its owner, Globe Life. In September 2024, the U.S. Equal Employment Opportunity Commission found that Globe Life, AIL, and Arias Organization, an AIL insurance agency, "created, condoned, and actively promoted a work environment that is hostile and abusive to female employees because of their sex."
AIL and Globe Life are also facing a probe from the Department of Justice, which subpoenaed both companies in March 2024 over claims of customer abuse.
Ultimately, it's best to steer clear of this insurance provider.
American Income Life Insurance Pros and Cons
American Income Life Insurance Pros
- No pros
American Income Life Insurance Cons
- No online quotes available
- Very little information online
- No way to file claims online
- Globe Life lawsuits
American Income Life Insurance Plans Available
In addition to having term life insurance and whole life insurance, American Income Life also offers final expense insurance that aims to cover burial costs and other expenses relating to end-of-life care. Customers can also add a terminal illness rider to one of their traditional life insurance policies at no additional cost.
Term Life Insurance from American Income
American Income Life offers term life insurance that provides a death benefit for a fixed term. You get the chance to pay set premiums that will not increase during the term of the policy, and you can tailor your coverage to your needs. When the term ends, however, life insurance coverage stops being in force. At that point, American Income Life says you may be able to pay increased premiums in order to maintain coverage.
While American Income Life does not specify the available terms, it's common to purchase term life insurance protection that lasts for 10 to 30 years.
Whole Life Insurance from American Income
The company also offers whole life insurance that builds cash value and is meant to last your entire life. Whole life also comes with set premiums that will not change over time, and you have the option to borrow against the value of the policy in the future.
American Income Life also offers whole life coverage for children through its Head Start Children's Life Insurance Program. This program lets families purchase up to $25,000 in lifetime coverage for dependents, and the policy can never be canceled unless premiums lapse. Children covered with this plan will have the option to purchase up to $150,000 in coverage later in life, and the premiums for this policy are set at a standard rate regardless of health.
Final Expense Insurance from American Income Life
Final expense coverage, also known as burial insurance, is also available through American Income Life. This type of life insurance plan is meant to help families pay for final expenses, including debt repayment and burial costs. This type of coverage is typically offered in relatively low amounts, usually up to $25,000 or $50,000 at most.
Additional Coverage Options From American Income Life
American Income Life keeps its policies fairly simple, but there are a few waivers you can add in order to beef up your coverage or provide more options when you need to file a claim. American Income Life riders include the following:
Terminal Illness Rider: American Income Life lets insured customers add this rider to their life insurance policies at no cost. The terminal illness rider pays out 50% of the expected death benefit when someone is diagnosed with a terminal illness and expected to live less than one year (or two years in Illinois, Massachusetts, or Washington). Premiums need to be paid during that time, but the policy remains in force and beneficiaries still receive the remaining death benefit when the insured dies.
Waiver of Premium: A waiver of premium rider lets you temporarily pause the payments on a life insurance policy if you become disabled or unable to work. Coverage remains in force without premiums being paid. In many cases, a waiting period applies before a waiver of premium rider can be used.
American Income Life Insurance Cost
American Income Life does not offer any insights into the costs of its life insurance products online, and the customer service representative we spoke to said they do not have a procedure for sharing premiums unless someone actually applies for a policy.
That said, the company did say that its term life insurance policies are typically more affordable than whole life coverage. The company also shared that, with both whole life and term life policies, premiums are guaranteed not to change.
For reference, the average cost of life insurance is $40 to $55 a month, depending on the type of policy and coverage amount you select.
How to File a Claim With American Income Life
American Income Life offers a claims portal on its website that clearly explains how the process works.
For life insurance policies that have been in force more than two years, the company says you should complete sections A and C of the printable Proof of Death Claimant Statement and mail the form 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 less than two years, the company says you should complete all sections on the printable Proof of Death Claimant Statement and mail the form along with a Certified Death Certificate, an obituary, and other supporting documentation to the same address listed above. If the manner of death is accidental or a homicide, however, you'll also need to include the following:
- Autopsy, toxicology, and police reports
- 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. If you need help filing claims or want to speak with a representative to get some questions answered, you can reach out to them at 800-433-3405 on Monday through Friday from 8 a.m. to 5 p.m. CST.
One potential downside of working with American Income Life is the fact the company does not offer online chat or weekend hours for customer service over the phone. It also fails to offer a virtual claims portal that lets you begin filing a claim online, which puts it at a disadvantage compared to many competing providers.
With that in mind, you'll want to make sure you have accurately completed all claims forms and provided all required documentation when you mail in a life insurance claim to the company. American Income Life has an A+ rating from AM Best for its financial strength, so it is financially capable and trustworthy. However, you can expedite the process by following all claims instructions carefully and not leaving anything to chance.
American Income Life Insurance Customer Reviews and Ratings
American Income has overwhelmingly negative reviews online, receiving an average of 1.52 stars out of five on its Better Business Bureau page. Reviewers consistently mention difficulty canceling their policies and reaching customer service.
It's not uncommon for major insurance companies to receive many negative reviews on third-party sites like Trustpilot and the BBB. As customers must go out of their way to leave a review, they're often left by people sharing a negative experience.
The National Association of Insurance Commissioners' complaint index rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. American Income scored 2.29, indicating that it has far more complaints than expected.
American Income Life Insurance Alternatives
American Income Life vs. Fidelity Life
Fidelity Life is another insurance company that offers a range of policies, including term life insurance, permanent life insurance, and final expense insurance. This company also makes it easy to get a quote for term policies online, which is a major advantage if you want to shop around and compare.
Fidelity Life also offers considerably more riders that let you customize your policy than American Income Life does, including an accidental death benefit rider, a child insurance policy rider, a family accidental death benefit rider, an inflation rider, a return of premium rider, and a terminal illness accelerated death benefit rider.
Read our Fidelity life insurance review.
American Income Life vs. Lemonade Life Insurance
Lemonade offers a variety of insurance products including pet, renters, homeowners, auto, and life insurance policies. Lemonade Life Insurance only offers term life insurance with up to $1.5 million in death benefits and terms that last from 10 to 40 years without a medical exam.
The entire life insurance application process takes place online. Lemonade is one of the cheaper life insurance companies, with premiums that fall well below the industry average. Additionally, policyholders who apply for Lemonade's other insurance products can receive bundling discounts.
Read our Lemonade life insurance review.
American Income Life Insurance FAQ
Yes, AIL life insurance is legitimate. American Income Life is licensed to offer life insurance and other financial products in the US, Canada, and New Zealand. However, note the multiple investigations, allegations of customer abuse, and large volume of negative reviews.
American Income Life does not provide life insurance quotes online. You need to apply for a policy to see how much you'll pay.
American Income Life offers term life insurance, whole life, and final expense insurance.
American Income Life Insurance is owned by Globe Life Inc.
Why You Should Trust Us: How We Reviewed American Income Life Insurance
The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.
Read more about how Business Insider rates life insurance.
