When you’re shopping for life insurance, you want a company you can trust. American Income Life Insurance (AIL) has been around for decades. They offering policies to working families, especially those in labor unions. But online reviews and complaints have raised questions about whether AIL is a scam.
In this article, we’ll explore AIL’s history, products, customer experiences, and recent news to give you a clear picture of what’s going on. By the end, you’ll have the information you need to decide if AIL is right for you.
Table of Contents
A Brief History of American Income Life
American Income Life Insurance was founded in 1951 in Waco, Texas. From the start, its mission was to provide affordable insurance to working-class families, particularly those in labor unions and credit unions. AIL was one of the first insurers to offer unique features, like waiving premiums during authorized union strikes, showing a commitment to its core customers.
Today, AIL operates in the United States, Canada, New Zealand, and New York (through its subsidiary, National Income Life Insurance Company). It’s a subsidiary of Globe Life Inc., a well-established S&P 500 company with over 90 years in the insurance industry (AIL History). This connection to a reputable parent company adds a layer of credibility to AIL’s operations.
What Products Does AIL Offer?
AIL provides a range of insurance products designed to protect families financially. Here’s a breakdown of their main offerings:
- Term Life Insurance: This covers you for a specific period, like 10, 20, or 30 years. If you pass away during that time, your beneficiaries receive a payout.
- Whole Life Insurance: This offers lifelong coverage as long as premiums are paid. It also builds cash value over time, which you can borrow against or use to cover premiums.
- Accidental Death and Dismemberment (AD&D): This pays out if you die or lose limbs or sight due to an accident.
- Supplemental Health Insurance: These policies cover extra costs not typically included in standard health insurance, like hospital stays or critical illness expenses.
One standout feature is AIL’s free terminal illness rider, which lets policyholders access 50% of their death benefit if diagnosed with a terminal illness and given 12 months or less to live. This benefit, offered at no extra cost, can provide significant financial relief.
AIL’s policies are customizable, making them suitable for individuals, families, and businesses. They focus on affordability, which aligns with their mission to serve working-class families.
How Financially Stable Is AIL?
Financial stability is a key factor when choosing an insurer. You need to know they can pay claims when the time comes. AIL has an A+ rating from A.M. Best, a leading credit rating agency for insurance companies. This rating means AIL is highly likely to meet its financial obligations.
Being part of Globe Life Inc. further strengthens AIL’s position. Globe Life has a long track record and a solid reputation, which suggests AIL has the backing to deliver on its promises. In an Instagram post, AIL reported paying over $123 million in claims year-to-date, showing they’re actively fulfilling claims (AIL Instagram).
What Are Customers Saying?
Customer feedback is where things get complicated for AIL. On the Better Business Bureau (BBB), AIL has an average rating of 1.42 out of 5 stars based on 803 reviews (BBB Customer Reviews). That’s a low score, and it’s worth looking at why.
Common Complaints
Here are some recurring issues reported by customers:
Difficulty Canceling Policies: Many customers struggle to cancel policies. One reviewer said they canceled through their bank’s fraud division but still received calls trying to sell more policies (Trustpilot Reviews).
Persistent Sales Calls: Customers often report getting unwanted calls, even after asking to be removed from contact lists. One person mentioned receiving 27 calls despite requesting no contact (BBB Complaints).
Poor Customer Service: Long wait times, unhelpful staff, and slow responses are frequent complaints. A customer reported it took 10 years to fix a policy name issue (BBB Customer Reviews).
Feeling Pressured: Some customers felt pushed into buying policies without fully understanding the terms. One reviewer said their union signed them up for a $4,000 AD&D policy, followed by aggressive sales propaganda.
Claim Delays: A few customers reported delays or complications in processing claims, though this is less common than other issues.
Positive Feedback
Not all reviews are negative. Some customers have praised AIL:
Recent Customer Reviews (2025):
| Date | Reviewer | Rating | Complaint/Review Summary | Company Response Summary |
| 05/15/2025 | Jennifer M | 1 star | Rude representative called union members, asked for personal info, unprofessional. | Apologized, invited email for process improvement. |
| 05/01/2025 | Mary S | 1 star | Constant calls, took 10 years to fix the policy name, no refund after cancellation. | Suggested contacting customer service for help. |
| 05/01/2025 | Douglas G | 1 star | Tried canceling two policies since Feb, issue unresolved. | Apologized, suggested emailing for resolution. |
| 04/27/2025 | ALISON H | 5 stars | Helpful agent, useful cancer policy after mother’s death. | Thanks for the feedback, and wish you continued health. |
| 04/25/2025 | Pam P | 1 star | Constant weekly calls to update info despite no changes in 25 years. | Sorry for the inconvenience, will use feedback to improve. |
- Recent Complaints (2025):
| Complaint ID | Date | Type | Status | Description |
| 0875_90390426_23270014 | 04/30/2025 | Product Issues | Resolved | Cashed out policy for French Drain, delayed payment, resolved by 05/06/2025. |
| 0875_90390426_23256367 | 04/27/2025 | Delivery Issues | Resolved | Received 27 calls despite request to stop, resolved by 05/06/2025. |
| 0875_90390426_23247456 | 04/24/2025 | Billing Issues | Answered | Monthly payments misapplied, resolved by adjusting to May 2025, consumer not satisfied. |
| 0875_90390426_23242956 | 04/23/2025 | Product Issues | Answered | Aggressive sales calls, threats about policy payout, unresolved. |
| 0875_90390426_23242344 | 04/23/2025 | Service/Repair Issues | Answered | Persistent calls after contract ended, harassment reported, unresolved. |
Recent News and Developments
Recent news provides more context about AIL’s operations:
- Union Partnership: In October 2023, AIL partnered with USW 7600, a labor union, reinforcing its focus on union members (USW 7600 Partnership).
- Lawsuit Dismissal: In October 2024, a federal judge dismissed a lawsuit from a former employee alleging wrongful termination, suggesting the claims lacked merit (Insurance Business Magazine).
- Claim Payments: AIL reported paying over $123 million in claims year-to-date, showing they’re fulfilling insurance obligations (AIL Instagram).
- Disaster Assistance: AIL has supported policyholders affected by disasters, such as in Tennessee, indicating a commitment to customer care (AIL Disaster Assistance).
Is AIL a Scam?
The question of whether AIL is a scam is complex. On one hand, AIL is a legitimate company with a strong financial rating and a history of paying claims. It’s been in business for over 70 years and is backed by Globe Life Inc., a reputable S&P 500 company. These factors suggest AIL is not a scam in the traditional sense—it’s a real insurer delivering real products.
On the other hand, the high volume of customer complaints—821 in the last three years, with 358 closed in the last 12 months (BBB Complaints)—points to serious issues. Aggressive sales tactics, cancellation difficulties, and poor customer service have led some to feel misled or harassed. These practices, while not illegal, can feel deceptive to customers, fueling the “scam” perception.
Pros and Cons of Choosing AIL
Here’s a summary of AIL’s strengths and weaknesses:
Pros
- Strong financial stability with an A+ A.M. Best rating.
- Offers customizable policies for individuals, families, and businesses.
- Free terminal illness rider adds value to policies.
- Long history of serving working families and unions.
- Backed by Globe Life Inc., a trusted name.
Cons
- Low customer satisfaction (1.42/5 on BBB).
- Reports of aggressive sales tactics and unwanted calls.
- Challenges in canceling policies and getting refunds.
- Limited online transparency about policy details.
- Higher pricing compared to competitors for similar coverage.
How to Protect Yourself
If you’re considering AIL, here are some tips to make an informed decision:
- Research Thoroughly: Compare AIL’s policies with other insurers.
- Read the Fine Print: Understand policy terms, especially cancellation and claim processes, before signing up.
- Ask Questions: Contact AIL directly to clarify coverage details. Their customer service is available at AIL Policy Management.
- Check Reviews: Look at platforms like BBB and Trustpilot to see what others are saying.
- Be Cautious of Sales Pressure: Don’t feel rushed into buying. Take time to evaluate your options.
Conclusion
American Income Life Insurance is not a scam, but it’s not perfect either. Its strong financial backing, long history, and unique offerings like the terminal illness rider make it a legitimate option for insurance. However, the high number of complaints about customer service, sales tactics, and policy cancellations is a red flag.
If you’re considering AIL, do your homework, compare options, and make sure you’re comfortable with the terms. Insurance is a big decision, and you deserve a company that makes you feel secure, not stressed.
