American Amicable Life Insurance Review 2022
The benefits explained
- Wide choice of riders: The company offers a wide selection of riders beyond what many insurers offer, including a disability income rider that is only offered by a handful of companies we reviewed.
- Reimbursement of premium term (ROP) available: Term policies are designed to last for a certain number of years, for example 20. But if you don’t die within that time and the policy expires, you don’t have to prove anything. ROP policies, however, refund part or all of the premium if you outlive the policy.
- Life insurance without medical exam available: American Amicable offers term, whole life and universal life policies that do not require a medical exam. For example, you can apply for a universal policy with a death benefit of up to $500,000 without taking an exam.
- More complaints than expected: The 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 quote or online application: You cannot get quotes online or request coverage on the company’s website.
Index of complaints
A concerning factor about American Amicable is that it has a large number of customers who are not completely satisfied, according to Complaint Index data provided by the NAIC.
The NAIC tracks the number of complaints received by companies and scores them based on how they compare to other companies of the same size. An index of 1.0 means that a company’s complaints correspond to what is expected for the market share held by the company. Indices above 1.0 mean that the company has more complaints than the average, while indices below 1.0 mean that it has fewer complaints than the average.
Looking at American Amicable’s NAIC Complaints Index data over a three-year period, the company scored 2.13, meaning it has more than double the number of complaints expected for a company of its size. Compared to the other 91 life insurance companies we reviewed, it ranks in the bottom third.
On a more positive note, American Amicable has earned high marks for financial strength from highly respected credit rating agency, AM Best. As a customer, this means the company will most likely be able to pay your policy as scheduled.
AM Best’s financial strength rating assesses an insurance company’s ability to meet its obligations by looking at factors such as balance sheet strength, business risk management and operational performance.
American Amicable’s current AM Best rating is an “A”, the third highest possible rating, meaning it has an excellent ability to meet its obligations. Most of the insurers on our list have achieved ratings of A or better.
American Amicable offers a respectable range of insurance options:
Term life insurance
Term life insurance is a type of policy that provides life insurance coverage for a set number of years. American Amicable offers policies with terms ranging from 10 to 30 years. If you die before the end of the term, your beneficiary receives the death benefit. However, if the term ends and you do not renew the policy (at a higher rate), your coverage also ends. American Amicable also offers a premium refund option which allows you to get back some or all of the premiums you have paid if you survive the term.
Whole life insurance
Whole life insurance is a type of permanent life insurance that gives you coverage for the rest of your life, as long as you pay your fixed monthly premium. Regardless of when you die, your beneficiary will receive the death benefit. These policies also create cash value that you can borrow against over your lifetime.
Universal life insurance
Universal life (UL) insurance is similar to whole life insurance in that it is permanent life insurance with a cash value component. The difference is that universal life policies allow you to adjust your premium amount throughout your life to better suit your budget. However, you may have to pay more premiums in the later years of your policy if you don’t pay enough premiums early on.
End-of-stay or funeral expenses insurance
Final expense insurance, or funeral insurance, is a whole life insurance policy with a smaller death benefit that’s easier to get approved because it doesn’t require a medical exam. This type of policy is designed to help people cover their funeral expenses if they have health conditions that might otherwise make it difficult or impossible to approve coverage.
Insurance riders allow you to add additional coverage to your life insurance policy for specific purposes, often at an additional cost. American Amicable offers different options including the following.
Guaranteed insurability rider
A Guaranteed Insurability Rider gives you the ability to increase your life insurance coverage in the future upon certain triggering events without undergoing a medical examination. These events may include the birth of a child, marriage, or reaching a certain age.
This rider is often no longer available once you reach age 40 or 45, depending on the insurer.
This regular life insurance rider allows you to add limited coverage to your life insurance policy for your child or children. The policy remains in force until they reach a certain age, in which case it can often be converted to a whole life or endowment policy. The successor policy can cover up to five times the amount of the rider and does not require evidence of insurability.
A waiver of premium rider cancels your insurance premiums if you become permanently and totally disabled. So you can keep your coverage without having to make the monthly payments.
Disability Income Rider
A disability income rider provides income protection for a set period of time if you become totally disabled. For example, American Amicable allows 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 Rider (AD&D) adds an additional benefit to your policy that is paid in the event of accidental death, such as death in a car accident. In this situation, your beneficiary would receive both the regular death benefit and the additional death benefit from this rider.
AD&D covers deaths due to accidents, not natural causes or disease. Policies also often exclude deaths resulting from illegal activities or dangerous hobbies such as bungee jumping or driving a race car.
ADB: Endorsement in the event of terminal illness
A Terminal Illness Rider is an Accelerated Death Benefit (ADB) that allows 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 allows you to receive a portion of your death benefit during your lifetime. To be eligible, a licensed physician will need to state that you are unable to independently perform at least two activities of daily living, such as going to the bathroom or eating.
American Amicable offers customer support Monday through Friday from 8:00 a.m. to 4:45 p.m. Central Time. Its main toll-free customer service number is 800-736-7311. You can also contact the company by mail or e-mail. The Company has dedicated email addresses for general inquiries, complaints, complaints, and customer experiences. There is currently no live chat, however, most life insurers we have reviewed do not offer this option.
Our Methodology: How We Review Life Insurance Companies
We have designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank over 90 insurers in five general categories: financial stability, customer satisfaction, variety of products and features, experience of overall purchase and cost.
To do this, we collected over 5,000 data points and scored each company based on 55 metrics. We’ve grouped the metrics by category to see insurers’ performance in each; we then weighted the category scores to determine overall business performance.