American Income Life Review

Have you got questions about American Income Life?

I believe you found this web page because you’re looking for information on the insurance business opportunity that is being put forth by the American Income Life Insurance company.

I’ve done some research and have put together this American Income Life review in the hope that I can help you and others like you who are looking for information regarding this opportunity.

While I was doing my research into this biz opp one question seemed to be popping up more than anything else.  People were asking this all over the place it seemed, and that question was, Is American Income Life a scam?

I’ll tell you just what I believe is the answer to that question In a couple of moments, but first, let’s take a quick look at the company itself.

What is American Income Life?

American Income Life Insurance Company (AIL for short) is a life insurance company that is based in the United States.  it was founded in 1951 by Harold Goodman and Bernard Rapoport using $25K worth of OPM (other people’s money).  It has headquarters in Waco, Texas, USA.  That’s the same city famous for that standoff between the Branch Davidians and agents of the ATF back in 1993.

Today American Income Life is one of the premier providers of supplemental life insurance coverage for america’s credit unions, labor unions, and related associations. The company has a range of different types of insurance policies on offer including the following.

Whole Life Insurance policies

Term Insurance policies

Critical Illness policies

Cancer Protection policies

Hospital Indemnity policies

Children Protection and Insurance policies

Accident and Hospital Insurance policies

Final Expenses Insurance policies

Now there have been mixed feelings about the company’s product offerings including the American Income Life Child Safety Kit which some persons have said is a scam that’s used to initially attract parents who are then pressured into purchasing life insurance.

American Income Life Business Opportunity
Opportunity by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

But I’m not going to get into that side of the business today.  That would take a whole other review to cover.  Instead, we’re going to be looking specifically at the American Income Life business opportunity.

Yes, believe it or not, there is a business opportunity that’s provided by AIC.  This gives you the chance to become an American Income Life contractor.  Or rather an Independent Contractor would be a better term to use.  Now i don’t know if you’ve had any experiences with MLM companies, but i have, and using that term gives me the shivers.


Because the term Independent Contractor and its counterpart Independent Distributor is used so widely in MLM companies to describe the people who sell their products.  When i saw that term used in conjunction with this company i immediately began to wonder If this was an American Income Life MLM.

But that could have just been me being paranoid because of my experience with MLM’s so i continued my research in order to bring you this review.  After all, researching a company before you take the big plunge is one of the best ways to help you to navigate and avoid the scams out there.

With that said i must congratulate you for taking the time to do your own due diligence by searching the internet and finding this American Income Life review.

Who owns American Income Life?

This insurance company is now owned by Torchmark Corporation, which is an insurance holding company.  They bought the AIL from the original owners in 1994 for $563 Million.  The parent company (Torchmark) now has a total of 5 insurance companies under its banner.  Including Globe Life Insurance, United American Insurance Company, Liberty National Life Insurance Company, and Family Heritage Life Insurance Company of America.

How does American Income Life work?

If you’re thinking of becoming an insurance sales agent with AIL then you need to hold up a minute.  This insurance sales job is not even really a job.  See for yourself below.American Income Life agentsAIL’s insurance sales personnel are not employed in JOB’s.  No, they are Independent contractors who are in business for themselves, but not by themselves.  There’s a helluva difference between that and being an employee holding down a company job.

This opportunity is entirely commission-based. There is no basic salary. So if you know that you’re not some hotshot door to door salesman type; full of swag, pizazz, mojo and all that.  Plus you cringe at the thought of being told NO! and you don’t think that working on a 100% commission only basis is totally awesome.

Then i don’t think this business opportunity is a good fit for you.

If you weren’t reading this AIL review and had just gone in to apply for what you thought was a job, you’d be initially but hopefully not intentionally misled because the whole process of going for an interview, signing up papers and forms and even going in for training, etc. is just like what you would be tasked with when applying for a real job.

You gotta pay

One other thing that i should mention about the process of getting started with AIL is that you are going to have to pay some money before you can start working.  Yep, after training, you have to at least pay the requisite fees for your license.  I can’t say specifically how much this fee is because it is different for each state but just bear in mind that you have that to pay.

It’s also rumored that you might have to pay a training fee as a new Independent contractor, but i wasn’t able to verify that so i only mention it here for reference.  It may be true or it may not, and seeing as the sales agents are all independent contractors it could also be that only some of them charge fees for training their new downline contractors.  For whatever reason, they deem it necessary.

Another little thing that you will find you need to dig into your pockets for is the cost of transportation, meals, etc. to the mandatory training events that you have to attend.  And of course, you don’t get paid to attend these things either.

American Income Life salaries

You won’t be getting a salary, my friends.  Because you will not be employed by the company as a salaried staff member.  Nope, you will not receive salaries as an independent contractor.  Instead, you will have the opportunity to participate in the American Income Life compensation plan.

Finding information on that plan is not an easy task.  A check on the Glassdoor website came up with this.  (See image)

American Income Life SalariesThat’s clearly not correct because this company is basically an MLM company hiding in the shadowy recesses of the insurance industry. Well as far as the operation of its independent sales team is concerned. The first thing wrong with the image above is the idea of a base salary. We’ve already learned that the contractors do not receive that. The only pay they receive is the commissions from the sales they make.

No sales = No money

Now here’s how they get paid for the sales that they generate.

Each policy that a contractor sells will earn them a 50% sales commission. But they do not receive that 50% commission right away. Instead, they get an initial 65% of the commission due, while the remaining 35% is kept by the company for a period of 6 months. Then it is paid out.

Contractors are also paid a residual income based on the sales generated by the contractors that they recruit into the companies sales force. This naturally encourages people to go out and recruit, recruit, recruit.

Is that an MLM or what?  Maybe it’s an American Income Life Pyramid Scheme instead.

Just kidding there folks.

In my opinion, the difference between American Income Life Insurance Company and other companies that operate using the MLM model is the fact that they also employ recruiters who are not insurance salespeople. These are Non-Agent Recruiting Consultants who are contracted to provide a service by recruiting new Independent Contractors to the company.American Income Life Lawsuit

These Non-Agent contractors receive a one-time payment of $250.00 for each new Independent Contractor recruit that they bring to the company. Apart from that, the only other distinction is that AIL does not publicly disclose their compensation plan for the Independent Contractors.

American Income Life Lawsuit

Times may be changing for AIL, in terms of the way it provides compensation for its contractors.  A Class action lawsuit was filed against the company in the United States District Court for the Northern District of California on January 23, 2019, by 2 former American Income Life agents on behalf of themselves and all others similarly situated.

The plaintiffs made the following claim:

American Income deliberately and systematically fails to pay its employees for all hours worked: Its insurance salespeople, while training, do not receive a minimum wage, overtime pay, reimbursement for business expenses, or the meal and rest breaks they are entitled to under California law.

A settlement figure of $5,750,000.00 was agreed upon by the parties.  So this could, in fact, be a ground-breaking precedent that may lead to some changes within the commission structure in the future.

American Income Life Customer reviews

It would be a mistake to complete an American Income Life review without even taking a little look at what the customers had to say about the company.  After all, they are the ones who purchase the company’s products and without them, the company couldn’t be in existence.

So here’s what the customers had to say.

American Income Life Customer Reviews

I tried to find positive customer reviews about AIL but it seems as if everyone has something negative to say online about them.  I’m sure there must be some positives though because a company that’s been in business for 69 years must have brought some customer satisfaction to stay in business so long.

While i was hard-pressed to find positive reviews i did learn that AIL does try to give back to the communities from time to time.

American Income Life Gives Back

According to what’s on the company website, the founder Bernard Rapoport (now deceased) was a man who believed that if you take from the community, you should also give back to the community.  Apparently, the company has been doing that over the years.  Here’s some of what has been happening.

January 2018 in Waco, TX, USA
AIL/NILICO gave their support to McLennan County Pack of Hope at their fundraising event where they were presented with a donation of $10,000 to help support their work in the local community.

Fall of 2016 at Half Moon Bay, CA
Donations of $10,150 to Square Peg Foundation which pairs rescued horses with autistic kids as a part of their therapeutic riding program.

Spring of 2016 in Destin, FL, USA
Donation of $28,700 to Children in Crisis, an organization that provides hope for abused, neglected, and abandoned children in the community. AIL volunteers also helped with spring cleaning the group homes in the Children’s Neighborhood.

What’s the verdict?

Ok, so what’s the verdict?  Is American Income Life Insurance legitimate?

I have to say yes, it is actually a legitimate company with many years of experience in the business of insurance.  They’ve even been accredited by the Better Business Bureau, and that’s quite a feat in itself.  The business opportunity is also legitimate too.  Even though it is based on an MLM income model and seems to have a very high turnover rate for such an established business.

But remember, they do not offer jobs to their salespeople.  They have to work to pay themselves, totally.  With all that there are people who actually make money with American Income Life.  Apparently, some people make lots of money too if this couple in the video below is to be believed.

AIL money-making couple in the business for many years.

A great story isn’t it?  But you know what?  I wouldn’t recommend the American Life Insurance business opportunity for anybody.

Here’s why.

1.  First of all, they start off on the wrong foot by advertising for a job when the position isn’t a job at all.

American Income Life Job Scam 1From Glassdoor

2.  The job is hard.  Involving lots of cold calling of leads and door to door prospecting

American Income Life is hard dworkFrom Glassdoor

3.  High turnover rates and all related expenses leave you out of pocket.  Without you even being guaranteed an income in any way.  If you don’t sell it, they won’t pay it.

How to Make Money From Home Free

There are much better, easier ways to make money.  Some of the best ways are internet-based.  There’s even one particular way to make money from home that can be done absolutely free of cost.  That’s the method that i use right now to make money from home, and you can do it too.

That method is called Affiliate Marketing and it is working really well for me.  It’s much better than any MLM based opportunity because

You don’t have to be cold calling or canvassing anybody.

You don’t have to travel for training.  Get training right from your computer in the comfort of your home.

It’s not expensive like MLM’s and you don’t have any quotas or sales volumes to meet.

There’s no ceiling on the amount of money you can make.

There is no boss  (i love that one).

You start absolutely free.

You don’t need a fancy college degree or letters behind your name.

If you want to learn more about how you can be living the laptop lifestyle and making a substantial residual income, just click here.

Make Money From Home

Other Interesting Posts:

Why Work Online?                                                            Finding Your Niche

Categories: Reviews


David nelson · at 4:12

For me  i must say that i believe this company is ok and legit although I have not worked or had any service related business with them.   

I think that because American Income Life has served working class families since 1951 with life, accident, and supplemental health products that help protect members of labor unions, credit unions, associations, and their families that means they must be doing something good to have been around for such a long time.  

They must be providing something that people need, and working with them could prove to be a good experience too.

Juliet · at 8:28

Thanks for the excellent review on American Income life Insurance company. It was really an eye opening review. This will indeed make anyone who wants to join the company at any capacity to know what he is in for, how to brace up to get the most out of it and what to expect at the tail end. Kudos 

Md. Asraful Islam · at 8:14

Thank you for sharing this interesting review with me. The content of your article has helped me to know more about American Income Life and the different insurance business benefits they offer.  I’ve heard that American Income Life Insurance Company (AIL) is one of the largest providers of supplemental insurance coverage to labor unions, but is not a really great place to work.  

Your article seems to be saying something similar.  I want to share your review on my Facebook account.  Is that ok with you?

Nimrodngy · at 8:11

In the last period I noticed that the insurance business is doing very well and many who have started this activity say that they are very satisfied.
Thank you so much for sharing this review with us about American Income Life Review. But if I want to make a lot of money from home and online I would definitely choose your number 1 recommendation.
Wealthy Affiliate is the platform where I discovered success. Here I learned how to set up my own website and turn it into my own business. I think everyone should read your review of Wealthy Affiliate and consider this opportunity to make money online and at home.

Ivan · at 8:08

Thanks a lot for reviewing American Income Life. I was looking for more details about this insurance company, mostly because I was interested in the MLM offer. However, judging by those complaints as well as many other mistakes they make, I don’t believe that I’ll jump on board. It does sound interesting though. But I have a great deal with another company right now and getting into this would be too much on my hands. I appreciate your honesty and thanks again for helping me to learn more!

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