American Income Life Insurance Company Review in Canada 2024

American Income Life Insurance Company (AIL) is an international life insurance provider that operates in the United States, Canada, and New Zealand. The company offers various insurance products, including term life, whole life, final expense, accidental death, critical illness, and cancer insurance.

In this detailed review, we will provide an in-depth look at American Income Life Insurance in the Canadian context. We examine their history, financial ratings, products, strengths and weaknesses, online reviews, compare vernus another life insurance companies in Canada and buying tips to help Canadians make an informed decision about American Income Life.

Who is American Income Life Insurance?

American Income Life Insurance Company was founded in 1951 in the United States. The company is a subsidiary of Globe Life Inc., an S&P 500 firm. AIL is headquartered in Waco, Texas and serves working families by providing affordable life, health, and accident insurance.

The company mainly sells insurance products to members of labour unions, credit unions, associations, and similar organizations. They rely on captive agents who develop long-term relationships with clients by meeting them in their homes.

While fairly well-established in the US, American Income Life has limited brand awareness in Canada. They entered the Canadian market by acquiring Halifax-based Seaboard Life Insurance Company in 2011. The company operates in Canada through its subsidiary, National Income Life Insurance Company.

What Are American Income Life’s Financial Strength Ratings?

When buying insurance, it is crucial to pick a provider with strong financial health. This gives you confidence that the company will be around to pay future claims. American Income Life Insurance scores well in this aspect.

The company has almost $5.7 billion in assets and collects more than $88 billion life insurance in force. A.M. Best, a leading insurance rating agency, has assigned American Income Life an A rating. This indicates excellent financial strength. (source: https://www.ailife.com/about)

Therefore, Canadians can consider American Income Life, a financially stable insurance provider for long-term coverage. Their strong balance sheet suggests your beneficiaries will receive claim payouts as promised.

What Insurance Products Does American Income Life Offer in Canada?

American Income Life provides a suite of life insurance solutions to Canadian customers. Let’s examine their key products in more depth:

AIL Term Life Insurance

Term life insurance is American Income Life’s most popular insurance product. It provides temporary protection for a set coverage period, such as 10, 20, or 30 years.

AIL’s term life policies offer features like:

• Guaranteed level premiums – Your rates will not increase over the policy term even if your health declines. This provides predictability.
• Renewability – You can renew the policy for an additional term without submitting new medical evidence.
• Convertibility – The option to upgrade to a permanent life insurance policy in the future.
• Terminal illness rider – Provides an accelerated payout of 50% of the death benefit if diagnosed with a terminal illness and life expectancy of 12 months or less.

American Income Life also bundles term life insurance into packaged plans for specific needs:

Mortgage protection – Covers your outstanding mortgage loan.

Education protection – Pays for your children’s future education expenses in the event of your death.

Family protection – Term life bundled with critical illness insurance. (Full review: Family Life Insurance)

Income protection – Replaces your income if you pass away during working years.

AIL Whole Life Insurance

American Income Life’s whole life product provides permanent protection that lasts your entire lifetime. The main perks include:

• Lifelong guaranteed death benefit – The payout to beneficiaries is guaranteed.
• Level premiums – Your premium amount will never increase with age or health changes once the policy is issued.
• Cash value – The policy builds up cash value on a tax-deferred basis, which you can borrow against or withdraw.
• Limited pay – Option to pay premiums for 10, 20 or 30 years, after which coverage continues with no more payments due.
• Paid-up benefits – Once premiums have been paid for a specified period, the policy becomes fully paid-up.
• Terminal illness rider – Get 50% of the death benefit if diagnosed as terminally ill.

Full review: Whole Life Insurance

AIL Final Expense Insurance

AIL’s final expense insurance provides a small lump-sum payout to cover end-of-life costs like funeral arrangements. It is issued without a medical exam, making it easy to qualify for.

AIL Accidental Death Insurance

Pays out if the policyholder dies due to a covered accident. Also provides benefits for dismemberment and hospital stays caused by accidents.

AIL Critical Illness Insurance

Provides a lump-sum payout on diagnosis of major conditions like heart attack, stroke, cancer, blindness, kidney failure, etc. Lets you focus on recovery instead of finances.

AIL Cancer Protection

Gives a one-time benefit if diagnosed with a covered cancer. Supplements your existing health insurance.

Comparison of American Income Life’s Main Products

This table summarizes the key differences between American Income Life’s primary insurance offerings. Term life offers temporary low-cost protection, while whole life provides permanent coverage with cash value. Other products serve specific needs like final expenses insurance or critical illness diagnosis.

Why Consider American Income Life Insurance in Canada?

While American Income Life is still building its brand presence in Canada, it does have some positives that make it worth a look for insurance buyers:

Established History as an Insurer

Even though AIL is quite new to the Canadian market having entered in 2011, it has over 70 years of experience as an insurer in the United States. The company was founded in 1951 and has demonstrated its staying power.

This extensive history provides confidence that AIL has the financial strength, underwriting knowledge, and operational capabilities to thrive in Canada’s insurance industry. Its longevity indicates it can fulfill claims for decades to come.

Focus on the Needs of Unions and Associations

A core part of AIL’s business in the US and now Canada is partnering with and selling insurance to members of labour unions, credit unions, professional associations and related groups.

The company has built trust and goodwill with these organizations for years by sponsoring events, offering financial aid, providing free accidental death coverage, and being involved in causes aligned with workers’ rights.

If you already belong to one of AIL’s partner unions or associations, you may find their insurance offerings competitively priced and well-suited for members.

Availability of Non-Medical Insurance

American Income Life provides non-medical final expense life insurance in Canada, which is approved based on simple underwriting questions.

This makes it easy to qualify if you want a small policy just to cover funeral costs or other final expenses without undergoing medical exams and tests.

Free Child Safety Kit

AIL offers Canadian parents a free child safety kit to document their child’s details. This can provide some security. However, an AIL agent will do an in-home insurance sales pitch when delivering this kit.

Access to Multiple Insurance Solutions

American Income Life sells various insurance products beyond just term and whole life policies. Their lineup also includes accidental death, critical illness, and cancer coverage.

Having access to multiple insurance solutions from one company can potentially simplify the process instead of needing to shop around.

So, in summary, AIL’s history, connections with Canadian unions, range of products, and free child safety kit do give it some advantages that are worth considering if you need insurance coverage.

What Are the Downsides of American Income Life Insurance?

However, American Income Life also has some drawbacks:

Aggressive Sales Tactics

The biggest complaint about AIL is pushy agents who use questionable sales tactics. Many online reviews describe high-pressure sales visits.

Captive Agents

American Income Life agents can only sell their products. They may push a sub-optimal AIL policy on you when better options exist. With independent agents, you get unbiased advice.

Lack of Online Information

American Income Life’s website provides limited specifics about their policies – you can’t get quotes or details online. This makes shopping and comparing difficult.

Premiums Can Be High

Though they offer standard insurance products, AIL’s premium rates tend to be on the higher side compared to competitors.

No Online Purchasing

You cannot buy AIL insurance policies online. Everything must be done through an in-person agent meeting. This process can be inconvenient compared to digitally shopping for coverage.

How Do Canadian Customers Rate American Income Life?

Very few online reviews for American Income Life Insurance in Canada exist. On Google, the company has no reviews. There are also no complaints registered with the Better Business Bureau.

However, reviews in the US show a pattern of negative feedback, with most complaints relating to misleading sales practices. On the BBB Customer Reviews site, American Income Life has 1.5 stars out of 5 based on over 700 reviews. There are similar complaints on other platforms like Yelp.

So while the Canadian picture is unclear, the nature of complaints in America is something to keep in mind. Aggressive and manipulative sales tactics seem to be an issue with AIL based on these US reviews.

What Tips Should You Follow When Buying American Income Life Insurance?

If you do consider American Income Life Insurance, keep these tips in mind:

• Compare quotes – Get quotes from at least three other life insurers before deciding. This gives you a benchmark to assess AIL’s rates.
• Read the fine print – Understand policy details like exclusions, limitations, and definitions of critical illnesses covered.
• Check financial stability – Apart from A.M. Best, look at other financial strength ratings.
• Ask about riders – See if supplementary benefits like terminal illness payouts come at an extra cost.
• Get promises in writing – If an agent promises you any benefits, ensure they are mentioned in the policy contract.
• Know your budget – Have a budget in mind, and don’t get pressured into buying coverage you cannot afford.
• Record agent interactions – This provides proof in case the agent makes verbal promises or gives you incorrect information.

The Final Take – Is American Income Life Worth Considering?

American Income Life Insurance is certainly not a scam or fly-by-night operator. They have a long track record, strong financials, and offer legitimate insurance products. However, limited brand presence and negative reputation for sales tactics make them far from the best insurance provider in Canada.

Canadians looking for life insurance would do better to first consider highly rated insurers with stronger digital presence and purchasing options. Compare AIL’s offerings and rates against competitors before making a decision.

That said, if you belong to an organization partnered with American Income Life Insurance, their products could be worth exploring. Just be wary of agent interactions and carefully vet policies to ensure you get maximum value.

If you are considering purchasing life insurance from American Income Life or any other provider, it’s a good idea to also look at the top life insurance companies in Canada. Comparing quotes and products from the largest Canadian life insurers can help ensure you find the best value. Check out our guides to learn more about the key players and get advice to inform your buying decision: Manulife, RBC Insurance, Canada Life, Desjardins, Wawanesa, Canadian Premier Life Insurance, TD Insurance, Industrial Alliance, BMO Insurance, etc.

Frequently Asked Questions (FAQs)

Article Sources:

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1. View Life Insurance Products from American Income Life – https://www.ailife.com/
2. American Income Life Insurance Review 2024 – https://www.dundaslife.com/
3. American Income Life Insurance Review Canada – https://www.policyme.com/
4. American Income Life Insurance Company – https://www.policyarchitects.com/