Is American Income Life Insurance a Scam? You're here right now looking for answers to this question. Before we proceed…
Welcome to my review of American Income Life Insurance!
It's safe to say we don't want to waste any money on sudden expenses. But, we can't predict the future. In other words, we don't know what's going to happen in the next minute or tomorrow. Now, you might be sitting in front of your desk reading this article. Tomorrow, paramedics might be carrying you to the emergency room (knock on wood).
Insurance plans help cover for a large part of the total costs of specific expenses. It can even cover for the repairs and replacement of areas in your house. Above all, there are insurance plans to help your family survive financially when you die.
To sum it up, American Income Life Insurance comes into the larger picture. This insurance firm offers many policies to its clients.
So, what separates this insurance company from others?
Brief Details About American Income Life Insurance
Product Name: American Income Life Insurance
Founders: Harold Goodman and Bernard Rapoport
Price: $490 USD plus additional training fees and other expenses
What is American Income Life Insurance About?
Based in Waco, Taxes, American Income Life Insurance is an insurance firm at its core. It has policies to help supplement expenses for credit unions, labor unions, and other associations. Founded in 1951, American Income Life (AIL) operates in 49 states across the US. It also carries its operations to the District of Columbia, Canada. Also, AIL is a registered business entity in New Zealand.
It seems like an ordinary insurance firm, until…
You have to pay the company to become an employee. Now, most companies won't request payment for applicants. But, this trait is where AIL separates itself from the pack. Interested applicants would have to shell out at least $490 to be part of the firm. Still, that payment is all you need to become a member.
At this point, you might be wondering, "Is American Income Life Insurance a scam?" Before we get to that assumption, let's try to dig a little deeper into the issue first.
Now, like most MLM companies, you're going to get a set of products to sell. In this case, it's going to be insurance policies. You sell insurance plans to earn while you're staying in this business.
Here's the catch.
Still, you can apply for a job in an insurance company without shelling out any capital. Yes, there may be a rigorous application procedure. But, at least you'll get the job without paying anything. The company has a compensation plan for your efforts. Try to search about that topic on Google, and you'll find zero results.
But, you'll see the standard compensation plans for most insurance companies. That is to say, you'll earn commissions for each policy sold. Also, you'll also earn more from the total sales. You, as a sales agent, will also gain extra income from residual commissions. In other words, you'll earn with each policy sold from the people you recruit.
Wait, what? Recruitment?
That's right - AIL also lets its sales agents gain extra profit by recruiting. That's already a red flag right there. Personally speaking, there are other ways to increase your income potential without recruitment.
How Does American Income Life Insurance Work?
So, at this point, you might still be wondering, "Is American Income Life Insurance a scam?" Now, you're already leaning to the answer that it's not a scam. But, there are still things we need to cover. Let's continue with how the company works.
To start your journey as an AIL agent, you'll have to shell out $490 USD. Also, the organization doesn't hire sales representatives. So, if you decide to apply for the company, you'll become an independent contractor instead.
After that, you'll continue with pretty standard stuff. You'll enter into a job interview environment. Then, you'll have to sign the required documents. Training follows afterward, along with other employment processes.
Everything looks standard practice.
Yes, everything does look normal on paper, except for the part about the application fee. Remember, you're not going to be a regular employee.
What does it mean?
Bear in mind, you're an independent contractor. So, you won't receive a salary if you can't sell anything. All your income comes from personal and residual sales. It's like coercing your downlines to earn more so you can gain more profit.
Herein lies another problem.
Teaching your downlines to sell more means you can rest easy if they work hard enough. Remember, you can still earn income from residual sales. So, even if you're not doing anything but your new recruits are trying to sell, you'll still earn cash. That's not a pretty picture for everyone.
AIL also advertises their training programs to help contractors retire after 10 years. It cements the thought of earning while doing nothing. Why? It's because the company highlights the residual income more than personal sales profits.
What are the Costs to Start in American Income Life Insurance?
Let's get this straight - it's not easy to look and get a job. If someone approaches you with a promise to retire after ten years, it may look enticing at first. Many MLM recruiters sugarcoat and overpromise to attract potential members. But, they might not explain to you about the initial costs of joining upon first meeting.
The cost of training.
As mentioned earlier, you'll have to pay an upfront fee of $490 USD to become an independent AIL contractor. This overhead cost will pay for the training and other expenses. After the company receives the payment, the firm requires you to attend interviews.
The training covers the tips and tricks needed to land sales. But, are these tools worth it? Look around the Internet for American Income Life Insurance reviews. You'll see articles to see is American Income Life Insurance a scam. More importantly, you'll see what other people have to say about the company.
American Income Life Insurance Reviews
Take a look at this comment from an Arlene Williams written on Expert Insurance Reviews. She says AIL charged her for cocaine possession and use. Still, the company gave her a full refund for the amount she paid. Nonetheless, it was all because of a system error. It would be better if an investigation took place. It would seem AIL is adept in making rash decisions.
That's not all.
Here's another review from glassdoor.com written by a former AIL employee.
As you can see, the company won't give you your commissions in sales until after six months. There are also hidden charges involved. If you don't ask these questions from the start, chances as you won't notice the answers until it's too late.
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What are the Products of American Income Life Insurance?
Is American Income Life Insurance a scam? Before we continue, let's look at the definition of the word. BusinessDictionary.com describes the word as:
A fraudulent scheme performed by a dishonest individual, group, or company in an attempt obtain money or something else of value. Scams traditionally resided in confidence tricks, where an individual would misrepresent themselves as someone with skill or authority, i.e. a doctor, lawyer, investor. After the internet became widely used, new forms of scams emerged such as lottery scams, scam baiting, email spoofing, phishing, or request for helps. These are considered to be email fraud.
Scam enterprises are business promises employees compensations when there is, in fact, none. Make no mistake, there's still a compensation plan given by AIL. But, it's not clear upon first glance. To finally put things in the clear, AIL isn't a scam. It has products in the form of insurance in which you can sell.
The company's main product line includes:
#1. Whole Life Insurance
An insurance coverage protecting the finances of your dependents when the policyholder dies. The coverage covers the policyholder for life.
#2. Term Life Insurance
This insurance plan is like whole life. But, the coverage will only last for the designated period.
Customers can put extra coverage called riders in their chosen life insurance plan. Aside from these two insurance policies, AIL also offers other coverage plans. These products include:
There are also products that policyholders can include with no extra fees, and these are:
Who are the Founders of American Income Life Insurance?
Before we move to the founders of AIL, let's talk a bit about its history.
It all began in 1951 when AIL's humble beginnings began with the name American Income. The company was a mutual assessment association located in Indiana. It became the American Standard Insurance Company in March of the same year. Soon, it became the American Income Insurance Company in May of the same year.
The company's history began with Harold Goodman and Bernard Rapoport.
The man in the picture above is Bernard Rapoport, Harold Goodman's nephew. Unfortunately, my Google search to look for a picture of Harold is in vain. Any extra information about Harold's contribution to the company is average at best.
In the picture, we see Bernard receiving the Central Texas AFP Lifetime Achievement Award in 2011. This accomplishment is because of his extensive philanthropy. It was only a year after he received the award when the AIL co-founder passed away.
Is American Income Life Insurance a Scam? Here's the Truth.
So, is American Income Life Insurance a scam? Let's find out!
Let's start talking about the problems associated with AIL.
#1. Is it a Pyramid Scheme in Disguise?
A pyramid scheme is a business model relying on about 80% or 100% in recruitment. According to the Federal Trade Commission (FTC), it finds all pyramid schemes illegal.
So, is AIL a pyramid scheme?
The good news here is that AIL isn't a pyramid scheme. Remember, the company still has products to sell. Even though there's recruitment involved, it doesn't mean you should rely on that model. Also, all insurance policies sold by AIL are 100% legit.
#2. Mounds of Negative Customer Reviews
Search online for American Income Life Insurance reviews. In your search efforts, you'll see many complaints about the company. Many negative reviews come from contractors working before with the firm. Let's take a look at a few points of protests from different communities.
I'll let you be the judge after reading these comments.
#3. Deception From the Start
It's safe to say that people want to know what they're getting into from the start. On the other hand, the problem with AIL is that they don't state about the MLM business model from the beginning. Instead, it's advertised as a traditional life insurance firm with a normal job opportunity. Everything changes once you start applying for a job in AIL.
#4. A High Turnover Rate
A company with a high turnover rate will already mean a red flag. Check out all the negative reviews found on the Internet. You'll see several comments from past contractors stating their bad experiences.
#5. The Lack of a No Income Disclosure Statement
AIL promises its independent contractors a chance of early retirement. Nonetheless, what you might not know from the beginning is that you're not going to get a salary from the company. You'll earn your income from selling and residual commissions, and that's it! If you're expecting a bi-weekly or monthly salary from AIL, that desire will only remain a wish.
After looking all the negative aspects about AIL, there are some good things about it. Now, let's talk about the positives.
#1. It's a Well-Established Company
Despite all the negative reviews, you can't deny that AIL is a well-established company. It's been around for over 70 years.
#2. The Money is Good
Take into account the 50% commission for each personal sale. With that in mind, the payout from AIL isn't as bad as it looks. Then again, you have to wait six months for your first payout. Also, you need to work extra hard because you're not going to get a salary from the firm.
#3. A Good BBB Rating
The Better Business Bureau recognizes AIL with an A+ rating. The score is quite high even if you checked all the customer and past contractor complaints.
The PROS of American Income Life Insurance:
The CONS of American Income Life Insurance:
Now, you've reached the end of my AIL review. Now that you're here, are you still thinking, "Is American Income Life Insurance a scam?" I'm going to put it out on a limb and say you know it's not a scam. But, I can't find it within myself to recommend this company as well.
It's not a good life insurance firm for both client and contractor. Its cons outweigh the pros in several aspects. The good news here is that there are other ways to earn money, even without the thought of recruiting.