American Income Life Insurance Company Review

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 plans to:

• Associations

• Credit Unions

• Labor Unions

The company has more than 2 million policyholders, and it represents more than $130 million in annual insurance product sales. As of year-end 2015, 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 claims, 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 on 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

• A (Excellent) from A.M. Best Company (as of February 2023).

• A+ by the BBB, on an overall grade scale of A+ through F.

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 policyholders, 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 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 on 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.

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/or 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. It 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 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 partner programs, which include the Basic Program Discounts, and the Gold Program Discounts.

Conclusion

American Income Life Insurance Company has charted an impressive journey since its humble beginnings in 1951. With its founder’s vision, Bernard Rapoport, it has evolved from a local enterprise into a national powerhouse in the insurance sector, known for its innovative products, commitment to working families, and generous community initiatives. The company’s diverse range of life insurance products, along with supplementary offerings like accident and critical illness protection, highlights its intent to cater to the dynamic needs of its clientele. Moreover, its free offerings, like the Child Safe Kit and Safe Surfin’ Guide, emphasize the company’s commitment to societal well-being. Coupled with solid financial ratings and a strong history of policyholder satisfaction, American Income Life stands out as a paragon in the insurance industry, merging business acumen with a deep-seated concern for its community.

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