American Amicable Life Insurance Review 2022

Pros Explained 

  • Wide selection of riders: The company offers a wide selection of riders, beyond what many insurers provide, including a disability income rider which is only offered by a handful of the companies we reviewed. 
  • Return of premium (ROP) term available: Term policies are designed to last a certain number of years, such as 20. But if you don’t die during that period and the policy expires, you have nothing to show for it. ROP policies, however, return some or all of the premium if you outlive the policy. 
  • No-med-exam life insurance available: American Amicable offers term, whole life, and universal life policies that don’t require a medical exam. For example, you can apply for a universal policy with a death benefit up to $500,000 without taking an exam.

Cons Explained 

  • More complaints than expected: National Association of Insurance Commissioners (NAIC) reports that this insurer has about twice as many complaints as expected for a company of its size. 
  • No online quote or applications: You can’t get an online quote or apply for coverage on the company’s website. 

Complaint Index 

One concerning factor about American Amicable is that it has a high number of customers who aren’t fully satisfied, according to complaint index data provided by the NAIC.

The NAIC tracks the number of complaints companies receive and scores them based on how they compare to other companies of the same size. An index of 1.0 means a company’s complaints are in line with what’s expected for the market share that company holds. Indexes above 1.0 mean the company has more complaints than average while indexes under 1.0 mean they have fewer complaints than average. 

In looking at American Amicable’s NAIC complaint index data over a three-year period, the company scored a 2.13 which means it has more than twice the number of complaints expected for a company of its size. Compared to the 91 other life insurance companies we reviewed, it ranks in the bottom third. 

Third-Party Ratings

On a more positive note, American Amicable earned high marks for its financial strength from the well-respected credit rating agency, AM Best. As a customer, that means the company is very likely to be able to pay out on your policy as planned. 

AM Best’s Financial Strength Rating evaluates an insurance company’s ability to meet its policy obligations by looking at factors such as a company’s balance sheet strength, enterprise risk management, and operating performance. 

American Amicable’s current AM Best rating is an “A,” the third-highest possible rating, which means it has an excellent ability to fulfill its obligations. Most insurers on our list earned ratings of A or higher. 

Policies Available 

American Amicable provides a respectable lineup of insurance options:

Term Life Insurance

Term life insurance is a type of policy that provides life insurance coverage for a set amount of years. American Amicable offers policies with term between 10 and 30 years. If you die before the term ends, your beneficiary receives the death benefit. However, if the term ends and you don’t renew the policy (at a higher rate), your coverage ends as well. American Amicable also offers a return of premium option which allows you to recoup some or all of the premiums you paid if you outlive the term.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that offers you coverage for the rest of your life, as long as you pay your fixed monthly premium. No matter when you pass away, your beneficiary will receive the death benefit. These policies also build a cash value that you can borrow against during your lifetime. 

Universal Life Insurance

Universal life (UL) insurance is similar to whole life insurance in that it’s permanent life insurance with a cash value component. The difference is that universal life policies enable you to adjust your premium amount throughout your life to better fit your budget. However, you may need to pay more premium during the later years of your policy if you don’t make sufficient premium payments early on.

Final Expense or Burial Insurance

Final Expense insurance, or burial insurance, is a whole life insurance policy with a smaller death benefit that’s easier to get approved for as it doesn’t require a medical exam. This policy type is designed to help people cover their funeral costs if they have health conditions that might make it difficult or impossible to be approved for coverage otherwise.

Available Riders

Insurance riders enable you to add additional coverage to your life insurance policy for specific purposes, often at an additional cost. American Amicable offers various options including the following. 

Guaranteed Insurability Rider 

A guaranteed insurability rider gives you the option to increase your life insurance coverage in the future upon certain triggering events without undergoing a medical exam. These events might include the birth of a child, marriage, or when you reach a certain age.

This rider is often no longer available once you reach age 40 or 45, depending on the insurer. 

Child Rider

This common life insurance rider lets you add a limited amount of coverage to your life insurance policy for your child or children. The policy stays in effect until they reach a certain age at which point it can often be converted into a whole life or endowment policy. The subsequent policy can have up to five times the rider amount of coverage and doesn’t require evidence of insurability. 

Waiver of Premium 

A waiver of premium rider waives your insurance premiums if you become permanently and totally disabled. As a result, you can keep your coverage without needing to make the monthly payments. 

Disability Income Rider 

A disability income rider provides income protection for a set period if you become totally disabled. For example, American Amicable enables you to add this rider to a term insurance policy and receive up to $1,500 per month for up to two years if you become disabled.

Accidental Death Benefit 

An accidental death benefit  (AD&D) rider adds an additional benefit to your policy that’s paid out in the event of accidental death, such as dying in a car accident. In that situation, your beneficiary would receive both the regular death benefit and the additional one from this rider. 

AD&D covers death from accidents, not natural causes or illnesses. Policies often also exclude deaths that result from illegal activities or hazardous hobbies such as bungee jumping or race car driving.

ADB: Terminal Illness Rider

A terminal illness rider is an accelerated death benefit (ADB) that enables you to receive a portion of the death benefit if you are diagnosed with a terminal illness that will result in death within a certain period of time. Some companies limit this period to 12 months, but with American Amicable, your life expectancy must be 24 months or less to qualify. 

ADB: Chronic Illness Rider

Another ADB, the chronic illness rider, also enables you to receive a portion of your death benefit during your life. To qualify, an authorized physician will need to declare that you are unable to independently perform at least two activities of daily living such as using the bathroom or eating. 

Customer Service

American Amicable offers customer support Monday through Friday from 8:00 AM to 4:45 PM Central Time. Its main toll-free customer service phone number is 800-736-7311. You can also contact the company by mail or by email. The company has dedicated email addresses for general inquiries, claims, complaints, and client experiences. There’s currently no live chat, however, most life insurers we’ve reviewed don’t offer that option. 

Our Methodology: How We Review Life Insurance Carriers

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.

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