The life insurance industry has a ton of well-known insurance companies that can trace their roots back to the early 1900s. American Amicable is one of those historic companies that specialize in niche insurance products.
One of American Amicable’s life insurance innovations is with no-exam life insurance. Our American Amicable life insurance review will take a deep dive into their life insurance coverage to determine if they can compete with the giants in the industry.
American Amicable History
The American-Amicable life insurance company can trace its founding back to 1910 in Waco, Texas. In 1965, Amicable Life Insurance Company and American Life Insurance Company merged to become the American-Amicable Life Insurance Company.
After the mergers, the new company moved into the now historic landmark ALICO building in Waco, Texas. ALICO’s building survived a tornado and is considered a company symbol of pride and strength. American-Amicable continued to grow until it was acquired in 2010.
American-Amicable Life Insurance Company of Texas was acquired by Industrial Alliance Insurance and Financial Services, Inc. in 2010. Even though American-Amicable is owned now by a Canadian company, it still holds true to the core values that made it the success it is today.
The Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that was founded in 1892. The company has operations over North America. The Industrial Alliance employs over 5,000 people and manages and administers over $109.5 billion in assets.
American-Amicable Ratings and Financial Strength
The life insurance industry is an industry that only survives due to the trust and goodwill that has been built up in the industry over the years. When the time comes to write the check, you want to be with a life insurance company that has the financial means to pay.
The American-Amicable life insurance company has solid financials. The A.M. Best company is a third-party rating agency that evaluates the financial strength of life insurance companies.
A.M. Best rates American-Amicable with an A (Excellent) rating, which is one of their top marks. This indicates that American-Amicable should have the financial resources available to pay your claim when and if that day comes.
American-Amicable has an investment portfolio consisting of investment grade bonds, diversified mortgage loans, and the common stock of large companies with high yielding dividends. This investment process creates a stable and highly profitable business.
American-Amicable is also an accredited business of the Better Business Bureau (BBB) since 2011. The BBB gives American-Amicable life insurance company a rating of A+, which is their highest award.
American-Amicable Life Insurance Solutions
American-Amicable has a number of life insurance solutions for its policyholders including term life insurance, universal life insurance, and final expense whole life insurance. American-Amicable also has a term option for government employees and civil servants.
American-Amicable Term Life Insurance
American-Amicable offers no-exam term life insurance as a way to secure convenient and affordable life insurance coverage temporarily.
Term life insurance is an excellent option to cover temporary life insurance needs, such as paying off your mortgage balance if you die before your house is paid off.
American-Amicable no-exam term life insurance underwrites you without the hassle of the medical exam but is different than guaranteed issue life insurance that has no medical underwriting at all.
Skipping the medical exam is a great innovation. Everyone is busy these days. Finding time to schedule a medical exam to get life insurance is hard, and we see a lot of people fall out of the process due to scheduling conflicts.
American-Amicable Simplified Issue Term:
While American-Amicable has quality no-exam life insurance, many people need greater coverage amounts than $250,000 death benefits. There are companies like Sagicor Life that are leading the way in accelerated underwriting offering up to $500,000 in death benefits and preferred rates.
Term life insurance does not have any cash value associated with it. It is pure insurance. You can purchase your coverage in term durations of 10, 15, 20, and 30-years. During the term duration that you select, your monthly payment remains level.
The life insurance company cannot increase the cost of your life insurance during the level-term period that you select even if you get sick. However, after your level-term period ends, the life insurance company can increase your rate annually.
While you could keep your life insurance and pay annually, in practice this rarely is the best option. The cost to keep your coverage after the level-term period ends can be costly. Most people will replace their policy with another policy if they still qualify or convert it.
A term conversion is when you exchange your term life insurance policy with a permanent policy without having to requalify. This option is built into your term life insurance contract, but it does have limitations.
Term conversion options usually will expire after the level-term period ends or you reach a certain age, for example, age 65 or age 70. It is wise to reevaluate your life insurance needs before your conversion period ends so you do not miss your conversion window.
American-Amicable also offers a special term life insurance for government employees and civil servants. This plan is a 10-year renewable term with no medical exam. You can only apply for it if you belong to one of the following groups:
American-Amicable Final Expense Insurance
American-Amicable is well known for its final expense whole life insurance. These policies are sometimes referred to as burial insurance and are designed to cover your funeral costs and final expense.
Final expense whole life insurance has a simplified underwriting that waives the medical exam. All that is required is a few health questions and a prescription check to verify your health making final expense life insurance very easy to both qualify for and purchase.
Many of the best final expense companies today are offering instant decisions. You will know at the end of your application if you have been approved and the cost of your policy. It does not get much simpler than that.
Burial insurance is just a marketing term, but you are merely purchasing a whole life insurance policy. Therefore final expense insurance has all the advantages of a whole life policy making it the ideal type of life insurance to cover your burial needs.
Once you are approved, the life insurance company cannot raise your monthly premium for the rest of your life. The truth is most people outlive their term life insurance policies. Whole life gives you peace of mind since it is a permanent policy with no expiration.
As long as you pay your monthly premium, your death benefit is guaranteed for the rest of your life. You can count on the money being there when your family needs it the most.
The policy will also generate a guaranteed cash value accumulation. The cash value grows tax-deferred within the policy, and you can access the cash value through tax-advantaged loans.
If you cannot repay the loan, that is OK. The life insurance company will pay if from your death benefit when you pass away as long as the policy is in force. Make sure that you monitor your burial insurance policy to be sure it does not lapse from non-payment.
Amicable-American Universal Life Insurance
Universal life insurance is another form of life insurance that can be highly customizable. You can pick your premium based on your needs. The more premiums that you pay into the life insurance policy, the longer the death benefit lasts.
The benefit here is cost. Universal life insurance is usually a more cost-effective way to purchase permanent death benefit because it comes with fewer guarantees than whole life insurance. However, you need to monitor your policy’s funding frequently.
If you are not funding the policy appropriately, it may lapse. To alleviate this problem, some life insurance companies began adding a secondary guarantee to their life insurance policies with a minimum required a monthly premium.
American-Amicable offers no-exam universal life insurance up to $250,000 of death benefits with a 15-year no-lapse guarantee. Unlike American-Amicable’s term life insurance, you can get higher amounts of coverage with full underwriting.
While American-Amicable universal life insurance is good, there are affordable universal life companies, like AIG life insurance, that allow you to add additional riders to your universal life insurance policy for chronic illness protection.
Additionally, life insurance companies, like Ameritas Life, offer no-exam indexed universal life insurance with living benefit riders for critical and chronic illness up to $300,000 death benefits. While American-Amicable is an excellent option, it is worth comparing multiple options.
These living benefits give your life insurance versatility especially as you get older in life. The odds of receiving a chronic illness are high as we age. This feature protects your death benefit and gives you a pool of money that you can tap should you become chronically ill and need it.
Final Thoughts: Is American-Amicable Worth It?
American-Amicable Life Insurance is a quality option for life insurance, but may not be the right life insurance company for you. Their underwriting innovations and focus on no-exam life insurance is an advantage, but not everyone qualifies for no-exam life insurance coverage.
If you have a pre-existing health condition, you may not qualify for no-exam underwriting. Even if you do qualify for no-exam life insurance, we suggest comparing the rates of multiple life insurance companies before making a final decision.
All the best life insurance companies have different opinions on rates and underwriting. Independent brokers can compare the rates of multiple life insurance companies. Although, make sure that your independent broker is knowledgeable and a veteran field underwriter.
Thank you for reading our American-Americable life insurance review. If you have any questions or want to compare rates, please contact us or request a quote from our site.
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Resources – American-Amicable Life Insurance
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.