Introduction

American Income Life Insurance is built on a philosophy of serving working families and reinforces this through the coverages it offers and the issues it supports. It lists defending workers rights as the top item on a list of publicly supported issues, and it also specifies fair trade and environmental sustainability as important causes. Its website states that it paid out more than $271 million in claims in 2022.

Company Overview

American Income was founded in 1951 and is headquartered in Waco, Texas. It is a wholly-owned subsidiary of Globe Life and provides life insurance, accident insurance, and supplemental health insurance in 49 states and the District of Columbia. Its wholly-owned subsidiary, National Income Life Insurance Company, sells policies in New York. The two companies have more than $85 billion of life insurance in force.

Key Takeaways

• Online access: Must speak to an agent for specific information about policies and premiums or to apply
• Riders: Limited information online; terminal illness included at no additional cost
• Customer service: Business hours, Monday through Friday

Pros Explained

• Terminal illness rider included at no cost: If you’re diagnosed with fewer than 12 months to live, you can access up to 50% of the death benefit while you’re still alive. 
• Legacy will kit included at no cost: You can get a free legacy will kit from American Income, which provides a will and testament, power of attorney, and advance health care directive. 
• Guaranteed insurability with children’s whole life plans: Head Start policyholders have the option to purchase additional coverage at later dates, and premium increases are solely based on age, regardless of the child’s health.

Cons Explained

• No online quotes or pricing estimates: If you want to find out your individual premium, you’ll need to speak to an American Income agent. 
• Lack of policy information on website: American Income’s website doesn’t list details like maximum face amounts, maximum issue ages, or term lengths. 
• More complaints than expected: American Income had nearly double the number of complaints expected, given the company’s size, over the last three years.

Complaint Index

American Income Life had more consumer complaints than expected over the last few years, according to the National Association of Insurance Commissioners (NAIC). Each year, the NAIC calculates a complaint index for every insurance company based on the complaints the insurer receives and its size. 

An index of 1.00 indicates an expected number of complaints given the company’s share of the market. Less than 1.00 means the company received fewer complaints than expected; greater than 1.00 means it received more complaints than expected. Over the last three years, American Income had an average complaint index of 1.74. That indicates that American Income received nearly double the number of complaints that were expected for a company of its size. 

Third-Party Ratings

American Income received an A (Excellent) financial strength rating from AM Best, an independent credit ratings agency. A high AM Best grade indicates that a life insurance company will meet its financial obligations and be able to pay claims to beneficiaries. That’s why we typically don’t recommend companies that score below an A-.

Policies Available

Term Life Insurance

Term life insurance is designed to provide a payout if you die during a specific period, typically corresponding with a time of financial responsibility. For example, you might purchase a term life insurance policy for 10 to 30 years to cover the period when you are paying off your mortgage and saving for your children’s college education. If you die outside of the term and haven’t renewed the policy or converted it to a permanent one, your beneficiaries won’t get the death benefit. A term life insurance policy also does not build cash value. 

Child Whole Life Insurance

The Head Start Children’s Life Insurance Program from American Income is a type of whole life insurance policy for children that doesn’t expire as long as premiums are paid. You can purchase up to $25,000 in initial coverage with the option to purchase up to $150,000 later on at standard rates, without your child having to undergo an exam or answer health questions, our research showed. This policy also builds a cash value component that can be borrowed against or withdrawn from. 

Final Expense Insurance

Final expense insurance is a type of whole life insurance with a small death benefit, typically less than $50,000. American Income doesn’t provide any details about its final expense policy online, but final expense insurance is typically offered to seniors and is designed to cover burial expenses and other end-of-life needs. Premiums stay level and the death benefit is guaranteed as long as payments are made. Final expense policies do not require a medical exam. 

Available Riders

Riders add coverage to your insurance policy to provide things like living benefits and the ability to pause premiums if you become disabled. American Income only advertises a couple of riders, but more customization options may be available if you talk to an insurance agent. 

Waiver of Premium

A waiver of premium rider allows you to pause your premium payments in the event that you become totally disabled and unable to work. There’s typically a waiting period, but if you qualify, your coverage will stay the same while your premiums drop to $0. 

Terminal Illness Rider

You can add this rider to any American Income policy at no cost, our research showed. This accelerated death benefit provides you with 50% of the death benefit in the event that you are diagnosed with a terminal illness with a life expectancy of 12 months or less (24 months in some states). You can use the money however you see fit, and your beneficiaries will receive the remaining face amount when you die. 

Customer Service

American Income only provides customer support during business hours. You can call 1-800-433-3405 on weekdays between the hours 8 a.m. and 4:30 p.m. CT. The website warns of long wait times. You can also contact the company through this . There’s no live chat or online claims filing, but you can view your policy details through the company’s online portal. 

Final Verdict

We gave American Income Life Insurance a rating of only 1.7 stars out of a possible five, so we recommend looking at alternatives. It's difficult to information about policies and rates from its website, and our research found that it had numerous complaints online.

Frequently Asked Questions

Is American Income Life Insurance a Good Company?

It does not make our list of the best life insurance companies, largely because of limited information being available online and negative reviews. It does offer some positives, however, in the form of a terminal illness rider and a legacy will kit included at no cost.

How Long Does It Take American Income Life to Pay a Claim?

It depends on the age of the policy. American Income Life considers policies at least two years old to be incontestable, which means claims will be processed as soon as all necessary paperwork is filed. Policies less than two years old may be subject to further review, which can cause a delay. Once a claim is received and and applicable reviews are completed, a check should be received within 10-15 business days.

Is American Income Life Trustworthy?

While we do not rate it highly, American Income Life is a reputable insurance company owned by Globe Life. It also receives an A (Excellent) rating from AM Best, which means it meets its financial obligations.

Methodology

We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost. In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each; we then weighted category scores to determine how companies performed overall.

To learn more, read our full Life Insurance Methodology.