Is American Income Life Insurance Legit? Here’s what you need to know

American Income Life Insurance primarily sells products to associations, particularly labor and credit unions, and focusing on supplemental health and life insurance products. They also sell products to schools, churches, 4-H clubs, and youth groups. But people always ask: Is American Income Life Insurance Legit? Find out in this article.

About American Income Life

Let’s learn more about American Income Life.

American Income Life was started in 1951 by a man named Bernard Rapoport.

He started the company with $25,000 in borrowed capital.

Fast forward to today, American Income Life is a very successful, very large provider of supplemental life insurance.

AIL’s core markets include labor unions, credit unions, and associations for insurance solicitation.

The company has more than 2 million policyholders, producing more than $130,000,000 in annual Insurance product sales.

Pretty impressive! 

American Income Life is headquartered in Waco, Texas. AM Best ranks AIL as an “A+” superior financial strength as of July 2019.

American Income Life is owned wholly as a subsidiary of Globe Life Insurance, operating in the United States, Canada, and New Zealand.

SEE ALSO: How To Login To Globe Life eService Center

Is American Income Life Insurance Legit?

Life insurance is a big investment in your future. When choosing a life insurance provider, you’ll want to make sure that they are someone you and your family can trust during a difficult time. A life insurance provider you may have heard of is American Income Life Insurance.

American Income Life Insurance is sold differently than many other companies, as they use a multi-level marketing structure. American Income Life Insurance offers many legitimate policy types, but there are also some downsides to be aware of before you make a purchase. Here’s what you need to know before you sign up for American Income Life Insurance.

The Downsides of Multi-Level Marketing

As a customer, there are a few reasons to be wary of companies that use multi-level marketing strategies. The first is that many agents are very inexperienced. Agents often join as a way to make a bit of extra income, instead of pursuing insurance sales as a full-time job. This means that they may not be able to give you the expert guidance that an independent, full-time insurance agent would be able to provide.

Additionally, agents are only paid when they make a sale, or when their recruits make sales. This means that they may be biased when providing you with information about their policies or the company in general. Many agents are also more concerned with recruiting new agents than making sales, which can also affect the overall quality of your customer service.


What Kinds of Policies Does American Income Offer?

Although American Income’s multi-level marketing sales strategies are questionable, they do offer legitimate life insurance policies. If you do decide to purchase a life insurance policy from them, you can count on their coverage regardless of the current economic climate. They have an A+ rating from AM Best, which is an independent firm that assesses the financial stability of insurance companies and other financial institutions.

American Income specializes in whole life insurance policies. As the name suggests, these policies will cover you for your entire life, regardless of your age. Whole life insurance policies also have a cash value component, which means that they earn money over time and you can treat them as a financial asset. They also offer a terminal illness rider, which means that you will be able to access your death benefit to pay for medical care if you get sick.

However, American Income’s policy is different from other insurance providers in that they are non-participating and don’t offer dividends. They do guarantee a rate of 4.5% growth on the policy value, but your policy will not earn dividends the same way that other whole life insurance policies would. This means that you won’t have the opportunity to make as much money in the long run.

American Income also offers term life insurance. Term life insurance only lasts for a specific period of time, usually somewhere between 10 and 30 years. It is more affordable than whole life insurance and does not have a cash value portion. For most people, term life insurance provides the best value for money.

American Income also offers a set of what they call supplemental health insurance. These include accident insurance, hospital indemnity, cancer protection, and critical illness insurance. While each of these policy types is slightly different, they generally will offer financial protection if the policyholder ends up in the hospital for an extended period of time or needs ongoing medical care. While these policies might sound appealing, you can usually get better coverage by investing the money in a high-quality health insurance policy. You’ll want to weigh all of your family’s options for healthcare coverage before committing to any of these policies.

What Is American Income’s Customer Service Like?

American Income gets very poor reviews for customer service. Customers report that it is very difficult to get in touch with agents or customer service representatives as needed. It can also take a very long time to get approved for a life insurance policy, and the application process can be confusing. American Income gets poor ratings on the Better Business Bureau website as well as on other customer review sites.

While you can manage some aspects of your policy and view important documents on American Income’s website, you’ll still have to do most things over the phone. This can be very frustrating, particularly for busy tech-savvy customers that may not have time to wait on the phone.

The Verdict – Our American Income Review

American Income does offer legitimate life insurance policies. They are very financially strong and can be trusted to pay their claims. However, there are many aspects of their business that are concerning. Because of their multi-level marketing structure, customers won’t get the expertise and reliable customer service that they would from a larger, more trustworthy company. Their whole life products also won’t provide as much value as those from other companies, and they don’t have many customization options. Most consumers would be better off purchasing life insurance from another company.


Overall, American Income Life Insurance is a solid option for all age groups, but especially great for people with children. The company gives you the option to get a policy for your child or grandchild that can lock in coverage regardless of future health issues. Additionally, the company offers no-cost products to policyholders that can help keep your children safe throughout life.

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