Is American Income Life Insurance worth it? 2024 Review
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Discover the methodologyIn a sea of over 150 life insurance providers in Canada, finding the perfect fit for your family's financial security can be a daunting task. Enter American Income Life Insurance Company, a trusted company making its mark in Canada.
In this comprehensive review, we delve into American Income Life's coverage options, their pros and cons, how to apply, how to cancel, and all the information you need to see if it fits your needs and budget.
If you don't think it's the right choice, you can use our free comparator to compare personalized quotes from Canada's best life insurance companies online.
American Income Life Insurance Canada: Key Points
- Whole and Term Life Coverage: Offers straightforward life insurance options but lacks Universal Life policies.
- Terminal Illness Benefit: Provides up to 50% of the death benefit if diagnosed with a terminal illness.
- Family-Oriented Features: Includes a child rider and free legacy will kit for added family protection.
- Labour-Focused Approach: Partners with unions and credit unions to serve working families.
- Financial Stability: Rated "A" by A.M. Best, ensuring reliability and trustworthiness.
Our American Income Life Insurance review
American Income Life Insurance (AIL) offers two main types of life insurance: Whole Life Insurance and Term Life Insurance. Whole Life provides lifelong coverage with fixed premiums, accumulating a cash value that can be borrowed against.
Term Life, on the other hand, offers affordable, temporary coverage for a specific period, such as 10, 20, or 30 years, making it ideal for families with temporary financial obligations like mortgages or childcare expenses. While its offerings are straightforward, the lack of Universal Life Insurance limits its appeal to those seeking more flexible, investment-oriented plans.
The company differentiates itself with unique features like a terminal illness rider, allowing policyholders to access up to 50% of their death benefit if diagnosed with a terminal illness. Additional benefits include a free legacy will kit and a child rider program to secure insurability for children, which other providers often charge for.
These value-added features make this an attractive choice for families looking for comprehensive and supportive insurance solutions. However, compared to fully digital providers like PolicyMe Life Insurance, the absence of online quotes and a digital application process makes it less accessible for tech-savvy buyers.
Despite these limitations, American Income Life Insurance remains a solid option, particularly for working families and those affiliated with labour unions or credit unions. Its partnership with such organizations and its strong financial rating ("A" from A.M. Best) ensure reliability and stability.
While it might not cater to every customer’s needs, its specialized offerings and pro-labour commitment set it apart from more conventional insurance providers.
Expert advice
American Income Life Insurance is a financially stable company with an 'A' (Excellent) rating from AM Best, offering supplemental term and whole life insurance tailored for working families. While many customers appreciate its affordability and personalized service, others report issues with policy cancellations and customer support. It’s a good choice if you want focused supplemental coverage but consider these challenges before committing.
Before deciding that AIL is the right choice for you, we recommend you compare multiple policies. You can do it right here using our comparator below and get over 20 free tailor-made life insurance quotes in seconds.
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Is American Income Life Insurance legitimate?
Yes, American Income Life Insurance is a legitimate company. While it may not be as popular in Canada and you may have seen searches for "American income life insurance scam", it has been operating since 1951, holds a strong "A" Financial Strength rating from A.M. Best, and offers a range of insurance products to customers.
It is headquartered in Waco, Texas, and serves customers not only in the United States but also in Canada and New Zealand. Throughout its history, American Income Life has been recognized for its pro-labour approach and steadfast dedication to serving its clients' insurance needs.
Pros of American Income Life Insurance Canada
- Terminal illness rider included without any additional cost
- Policyholders with a diagnosis giving <12 months to live, can receive 50% coverage amount upfront
- Free legacy will kit for American Life Income holders
- Offers children's life insurance program
- American Income Life Insurance Company has a strong reputation for serving union members and their families with specialized benefits
Cons of American Income Life Insurance Canada
- No online quotes are available
- You must speak with an agent for quotes
- Agents paid 100% on commissions
- Online policy information is limited
- No universal life insurance is offered
American income life insurance reviews from customers
American Income Life Insurance Canada has received mixed customer reviews. On the Better Business Bureau (BBB) website, AIL holds an average rating of 1.51 out of 5 stars based on 792 customer reviews, with common complaints about aggressive sales tactics and difficulties in policy cancellation. Conversely, on Trustpilot, AIL has a higher rating of 4.5 out of 5 stars from over 1,000 reviews, where customers often praise the company's customer service and affordable premiums, though some report issues with claims processing.These contrasting reviews suggest that customer experiences with AIL can vary significantly.
How much does American Income Life Insurance cost?
Unfortunately, American Income gives no indications of price on its website, making it difficult for prospective buyers looking to compare quotes. You must contact an agent by telephone at 1800 433 3405 to get American Income Life Insurance quotes. The lack of this online feature has been criticized in several American income life insurance company reviews.
To find an agent specific to your location, you must go to their website and navigate to the "Find a Local Agent" that you will find under the FAQs option in the "About AIL" menu.
Term life insurance costs in Canada in 2024
| Age | Monthly Premium for 10-Year Term ($500,000) | Monthly Premium for 20-Year Term ($500,000) | Monthly Premium for 30-Year Term ($500,000) |
|---|---|---|---|
| 25 | $20 – $30 | $30 – $40 | $40 – $50 |
| 35 | $30 – $40 | $40 – $50 | $50 – $60 |
| 45 | $50 – $80 | $70 – $100 | $90 – $120 |
| 55 | $100 – $150 | $150 – $200 | $200 – $250 |
Before settling on an American Income policy, we recommended comparing the competition. Canada has many life insurance providers. You can get free quotes and compare options from many of the leading insurers right here using our comparator below.
Compare the best life insurance companies
Factors deciding American Income Life Insurance cost
Like any provider, the price for your American Income policy will vary depending on the following factors:
- Policyholder’s age: In general, younger buyers are usually in better health than older buyers so they get cheaper insurance rates.
- Health status: A person with excellent health can purchase life insurance for a more affordable price than those with pre-existing conditions or tobacco use.
- The type of coverage: whole life insurance policies are typically more expensive than term life insurance.
- Coverage amounts: The higher the death benefit, the higher the insurance premiums
- Riders: Additional protections can be worthwhile, but purchasers should assess their needs as they can drive up the cost.
What does American Income Life Insurance cover?
American Income Life Insurance Company Canada covers Canadians who want to protect their families and loved ones from the potential financial burden of their passing. Life insurance policies typically cover all causes of death from natural to accidental including homicide and suicide after two years of continuous coverage.
An American Income life insurance policy is a solid choice for providing financial security when planning for family protection including the following needs:
- Mortgage and rent payments
- Final expenses such as funeral costs
- Survivor’s income
- Higher education and tuition fees
- Charitable donations
What types of life insurance does American Income Life Company offer?
American Income Life Insurance Canada offers term and whole life insurance policies. Here’s a table highlighting what they have to offer and how they differ:
| Characteristics | Whole Life Insurance | Term Life Insurance |
|---|---|---|
| Coverage | For life | For a specific term |
| Premiums | Level premiums | Premiums increase after a term expires |
| Value vs Price | Builds a cash value | Typically more affordable than whole life insurance |
| Terminal Illness Rider | ||
| Legacy Will Kit |
Both policy types allow policyholders to include a free Legacy will kit: including a will, power of attorney, and advance health care directive forms.
Good to know
A Terminal Illness rider is available too. Get 50% of your death benefit If you are diagnosed with a terminal illness with less than 12 months of life remaining.
American Income Term Life Insurance
Term life insurance pays out if the policyholder passes away during the term of the coverage. Once that term is up, there is usually the option to either renew coverage or let the policy lapse. In some cases, it's possible to convert a term policy into a whole one.
Term life insurance is less expensive when compared with permanent life insurance. It is an excellent option for buyers who need financial protection for a specific period of their lives.
Term life insurance is recommended for the following profiles:
- Young families
- Homeowners with a mortgage
- Someone whose debt would be inherited by their beneficiaries in the event of their passing
American Income Whole Life Insurance
American Income Life's whole life insurance offers protection for life. The coverage cannot be cancelled because of your age or health developments and premiums are guaranteed to never go up throughout the policy.
Because there is a definite payout, permanent life insurance plans are more expensive than term life insurance policies. Additionally, whole life insurance accrues a cash value that can serve as a resource during financial hardships.
Whole life insurance can be a good fit for buyers interested in:
- Estate planning
- Building cash value and diversifying their investments
- Buyers who want to lock in coverage for life
Final Expense American Income Life Insurance
Final expense coverage from American Income Life is a policy created to cover end-of-life expenses. This is a type of guaranteed whole-life insurance with a lower benefit. These policies are often referred to as funeral or burial insurance. Your family receives the death benefit directly, and they are free to select the funeral director and the particular services they prefer.
To allow your family to grieve without worrying about preparations, you can have the payout issued directly to your funeral home with the Freedom of Choice Program.
While it does not offer Universal Life Insurance, several providers in Canada offer this option. You can find them right here using our comparator below, compare multiple Universal Life Insurance policies, and get free quotes based on your unique preferences and needs in seconds.
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How to contact American Income Life Insurance?
American Income Life Insurance Login
An American Income Life login is available for their customers and agents. To know exactly how to connect to your profile and get more information about your life insurance follow the steps below.
- Navigate to the company website
- On the top of the page, select “Customer Login”
- Fill up the information requested
- All done, you are now logged in.
American Income Life Insurance customer service
The American Income Life Customer Service can be reached in three ways: by telephone, email, and social media.
| Contact | Contact information |
|---|---|
| American Income Life Insurance phone number | 800-433-3405 Monday to Friday 8:00 am to 5:00 pm Central time zone |
| Through an online form on their website | |
| Social Media |
How to cancel American Income Life insurance policy?
To cancel your American Income policy, you have several options. You can contact an agent directly, fill out an online contact form, or submit a written request via mail or email. Below is a table summarizing the key contact methods:
| Method | Details |
|---|---|
| Phone | 1-800-433-3405 |
| Online Contact Form | Fill out the form on the company's website to request a callback. |
| Send a written request to: American Income Life Insurance Company PO Box 2608, Waco, TX 76797 | |
| Send your cancellation request to [email protected]. |
Be sure to provide all necessary details, including your full name, policy number, and reason for cancellation (optional). Keep confirmation of your cancellation for your records.
Policies You Can Cancel
- Term Life Insurance: You can cancel at any time, and coverage will cease from the cancellation date. Unused premiums, if applicable, may be refunded based on the policy terms.
- Whole Life Insurance: Canceling is possible, but you may receive a cash surrender value if the policy has built up cash value over time.
- Supplemental Policies: Riders or additional coverage, such as accidental death or critical illness riders, can usually be cancelled individually without terminating the main policy.
Policies You Cannot Cancel
- Employer-Provided Group Policies: If your coverage is part of a group plan provided through your employer or union, you may need to work with the plan administrator to make changes.
- Paid-Up Policies: If your policy is fully paid up (no further premiums required), cancelling may not be straightforward, and you might lose any accrued benefits.
FAQs on American Income Life Insurance Company
Yes, American Income Life Insurance is a legitimate and well-established insurance provider. Founded in 1951, it operates as a subsidiary of Globe Life Inc. and focuses on providing life and supplemental insurance to union members and working families. AIL is licensed in 49 U.S. states, Canada, and New Zealand.
American Income Life Insurance offers term life insurance, whole life insurance, and final expense insurance. These policies are designed to meet various needs, such as income replacement, lifetime coverage, and covering end-of-life expenses. AIL specializes in offering simplified products tailored for working families and union members.
American Income Life Insurance is owned by Globe Life Inc., a publicly traded company on the New York Stock Exchange (NYSE: GL). Globe Life Inc. is a reputable financial services company specializing in life and supplemental health insurance products.
To cancel your American Income Life Insurance policy, you need to contact their customer service department. You can reach them at 1-800-433-3405 or send a written cancellation request to their official address. Include your policy number and personal details for a smoother process. Keep in mind that cancellation terms may vary, so review your policy documents for specific details.
