American Family Life Insurance Reviews for 2019- Top Pick?

American Family Life Insurance Reviews

american family life insurance reviews

Who is American family insurance anyways and what do they have to offer?   You’re in the right place.  In this American Family life insurance review, we will fully break them down for you and provide you with everything you need to know. We assure you of that.

It’s what we do, and we do it frequently on hundreds of life insurance companies. Why do we do this?  Well, we want to make sure that you always have the information needed to make the best possible decision you can make when purchasing your life insurance.  Your family depends on it and we understand that.

I mean c’mon, how are you supposed to make these decisions without an agency like Good Life Protection bringing you all the meat and potatoes about these companies?

Having the truth and honest reviews are such a big deal that we have done it for countless other life insurance companies.  You can always see the grading criteria we use by visiting post, life insurance company reviews.

I think we are done explaining why we do what we do but now let us back up that talk about American Family Insurance and bring you the in-depth American Family life insurance review that you initially jumped on google for in the first place.

No Relation to American Family Insurance

Please always keep in mind that we are in no way directly related to American Family Insurance and we are not paid to write these reviews.  Some reviews of life insurance companies will be better than others.

It’s just how it is and how we prove that we have no direct ties to anyone except for you (the consumer) If you are trying to reach American Family Life Insurance then you need to call them directly as we do not route or divert questions or concerns to the company.

American Family Life Insurance Timeline and Company History

Understanding the roots of a company and where it all began is also essential in our eyes, so we want to touch on this area briefly.

American Family Insurance which can also be seen or abbreviated as AmFAM is a private mutual company.  American Families primary business and focus is in the property and casualty arena (This is important and take mental note of this, we will touch on this later)

American Family Insurance also offers commercial insurance, life insurance, health insurance, and investment/retirement planning products. 

For the sake of this article, we know you’re interested in the life insurance side of the equation only, so we will stick to just covering life insurance related topics and questions once we wrap up the relevant information regarding the American Family history and timeline.

It all began for American Family insurance on October 3rd, 1927.  Insurance salesman German Wittwer opened the doors to Farmers Mutual Insurance Company.  Don’t confuse this with Farmers Insurance Group.  These are two completely different companies.  Herman Wittwer began all of this in Madison Wisconsin.

During this time American Family only had one product to offer, and it was auto insurance designed to target farmers.  Yes, marketing was a thing in the 1920’s as well, and life insurance companies have always been known to have a specific demographic or target markets that they prefer to work with or advertise towards.

Wittwer believes his idea was genius because farmers presented much lower risk than city drivers because of the driving be so much less frequent.

After this got the ball rolling for American Family Insurance, the company expanded and began releasing new products in 1963.

Currently on this present-day American family is offering term life insurance, universal life insurance, and whole life insurance as well as key man life insurance and business insurance.  They currently still operate with four regional headquarters located in Minnesota, Missouri, and Ohio.

Here’s an exact timeline of events and when they took place with American Family for all of you with OCD that need every small detail to feel warm and fuzzy about a company before working with them.

Detailed American Family Life Insurance Timeline- The Breakdown Including Dates

  • 1927- American Family Opens their doors and targets auto insurance geared toward farmers
  • 1938- Premiums and total assets surpass 1 Million dollars
  • 1957- American Family begins offering sickness and accident insurance to consumers
  • 1958- Homeowners insurance starts being sold by American Family
  • 1962- American Family starts offering farm owners insurance
  • 1969- American Family begins selling financial services products
  • 1975- Commercial lines insurance is introduced and sold by American Family
  • 1981- Assets surpass 1 billion
  • 1986- American Family post its first 100 million dollars profit year
  • 1992- American Family surplus exceeds 1 billion

We skip some events here in the middle (none of them bad) but fast forward to 2017

2017- American Family Acquires Home Gauge and Network Insights and continues to expand.

Currently, American Family Insurance is only available in 19 total states.  This is a relatively small number for a life insurance company or insurance company in general.  Most are in 45-50 states.  This can be a good and bad thing.

The good part of this is that they are trying to serve a specific demographic and geographic set of individuals which can usually work well for a life insurance company.

The bad thing is that it can limit the growth of the company and, it may be making the coverage unavailable to those of you reading depending on where you live currently.

A.M. BEST Moody's Standard and Poor's
A
NA
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Good Life Protections Grade Report of American Family Life Insurance Company
American Family Life Insurance Company Overall Product Grade Report 92%

 

American Family Financial Strength Rating

American Family is currently boasting an “A” Rating which is considered excellent by A.M. Best.

A.M. Best is one four highly reputable independent ratings agencies that evaluate the good and the bad to a company’s pocket books, overall liquidity and outlook for the company in the future.

Overall, nothing to worry about here with American Family Life Insurance

A Review of the Life Insurance Products offered by American Family Insurance.

American Family offers several different products in the form of life insurance.  We will touch on the term life insurance they offer first.

Simply Protected Term Life Insurance

The Simply Protected product is a term life insurance policy that states on American Families website that you can have coverage approved and in force within 2 weeks.  That may seem fast, but the kicker is that this is a no-exam life insurance policy.

Most no exam life insurance products can be approved and in force in a week or less with other significant carriers, so Good Life Protection believed this to be slow, hurting our overall grade that we were willing to give American Family Insurance.

The coverage comes in term lengths of 10,20 and 30 years.

Only these 3 options are available which is another downfall of the product because some consumers may need the 15 or 25-year options for term life insurance depending on the individual circumstances he or she is currently facing which most other life insurance companies do offer.

The coverage amounts for this coverage and availability comes from 50,000-150,000

This is another massive downfall of the product because we typically see no exam life insurance coverage available up to 400,000 and sometimes, even more, depending on the company you choose to work with.

Consider the Simply Protect a Fancy Name for Mortgage Protection with American Family Insurance.

The Simply Protected product from American Family is available to new homeowners or current/existing homeowners as well as condo owners.  Think of this product as the Mortgage protection life insurance policy that many of you have probably also researched in the past.

Good Life Protection is not big fans of policies structured in this manner and believes you get better or overall more bang for your buck just using a traditional life insurance policy at higher face amounts.

You typically don’t save much on monthly premiums with these mortgage protection type life insurance policies and you limit yourself dramatically on what the plan is capable of.

Back to some standard looking life insurance policies with American Family Insurance

Level Premium Term Life Insurance with American Family Life Insurance

This will be the product with American Family that will require the medical exam.

American Family does offer a regular life insurance policy as well or known as a level term life insurance plan.

This policy looks a little better for us.  It has level premiums and the ability to convert the coverage to permanent insurance if you choose to.

This policy also comes with additional options and riders you can add to the policy if you choose.

Review of American Family Life Insurance Riders

Children Insurance Rider- This rider provides you the ability to add 10,000 in coverage for each child at one locked in price that does not change.  Overall, a nice feature to add if you choose.

The Waiver of Premium Rider– This rider will help cover premiums and will begin if you become disabled.  If you elect to purchase the rider when you begin the life insurance policy, you will be able to keep your coverage in force even if you can’t work anymore or pay the premiums to the company anymore.

The Accidental Death Benefit Rider– This rider is typically going to double or add coverage to the overall death claim and payout to your beneficiaries if you “meet your maker” from an accident related or accident deemed death.

Review of American Family Life Insurance- Whole Life Insurance

The whole life insurance offered by American family comes with two fancy names or products.

First, you have the Freedom whole life policy.  This will allow you to pay up the policy by age 65 or after 20 years of paying premiums. This policy would ensure you have coverage for life and some cash value building will occur faster after condensing premiums into 20 years or to age 65.  Whichever comes first.

Special note- These policies can get pricey.  They always sound great until you see the price tag.  We just wanted to give you that heads up ahead of time. Your Welcome.

You can also look at the Legacy Whole Life Option with American Family Insurance.

This policy will allow you to pay up the policy in either

  • 10 years
  • 20 years
  • 30 years
  • Pay till age 100.

The whole life Offered by American Family Will entail and include the following benefits

Premiums Level and Locked- They won’t go up and they won’t go down

Death Benefit is Locked in and Level– Won’t go up and won’t go down

Cash Growth is Guaranteed– This does not mean the Internal rate of return or amount is ever guaranteed

Dividend Potential– American Family, is a private mutual company which means every year you are eligible for dividends, but they are never guaranteed.

American Family Loans from policies– Like all cash value policies offered by hundreds of life insurance companies, you will have the option with American family to draw money against your permanent life insurance policy, but it’s never recommended.  Weigh your options carefully before going crazy pulling against the life insurance policy you have been paying into for years.

 

American Family Senior Whole Life Insurance Review

American Family Life Insurance does offer these whole products to the senior market as well. The critical thing to keep in mind is that these are not considered final expense plans, so the only difference will be the price. The actual whole life products remain the same.

We always recommend looking at several options before locking down and picking a company a company to begin your coverage with.  Not doing so will cost you. We can promise you that.

Here’s the Overall Pro’s we found when reviewing American Family Life insurance products

They have an outstanding street reputation and look great to the public eye, and the products aren’t necessarily bad.  They are just a bit limited. They have plenty of financial strength and a rich long history in the life insurance industry. 

All we would want to add to this statement is you always have to consider all companies and all options when purchasing life insurance.  Only considering one company will still be a big mistake and often cost you plenty of premium dollars.

American Family Life Insurance didn’t seem to have many negative complaints or negative feedback when searching for them through the BBB or Better Business Bureau, so this is a positive to us as well.

American Family Contact Information and Where to Look for Further Information

You can always contact American Family Insurance with further questions of your own by calling 1-800-692-6326 or visiting there website which we provided a link to earlier in the article.

Did our American Family Life Insurance Review paint a better picture for you? Do you feel you have the information you need?

Again, our goal is simply to educated and bring you up to date information about all life insurance companies.  American Family Life Insurance seems to be a sturdy and strong pick if the price ends up making sense and you live in one of the 19 states where coverage is offered to individuals.

You always need to compare rates and options with other companies and the only way to do this is by contacting an independent agent and agency that can help.  Guess what? 

That’s precisely what we are and what we do.  If you haven’t done so already make sure to check your rates to compare against American Family life insurance rates by using the rating engine to the right or if you’re on your phone, (it will be at the bottom of the page)

Have we left anything out or do you have anything to add?  We would love to hear from you so make sure to drop a comment below.

As always, we appreciate you and thanks for reading.

Till Next Time.

Josh Martin for Good Life Protection

Josh Martin is the founder of Good Life Protection. He began his career as a captive Agent working for New York Life Insurance Company. After continued education and designations, Josh founded Good Life Protection to provide consumers with more options and insurance that truly fits into your budget and health classification.