Is American Income Life Insurance a Scam

Is American Income Life Insurance a Scam? A Review.

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 ins​urance company from others?

It creates a façade that looks like an ordinary insurance firm. But, dig deeper and you'll see it's a Multi-Level Marketing (MLM) scheme in disguise. How did I come up with this realization? Continue reading as I tell you more about this company.

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

Recommended: NO

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…
Is American Income Life Insurance a Scam

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.

AIL Review

That's not all.

Here's another review from written by a former AIL employee.

AIL Review 2

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.

Would you like to know how to build real and strong, business ? 

See my #1 recommendation here! 

Open your lifelong account right now, without providing even a payment card details!

You will get absolutelly for FREE:

- 2 websites including hosting and backup

- Training course for begginers

- Video Walk-Throughs

- Keyword research tool

- 1-on-1 coaching for the first 7 days.

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. 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:

  • Accident Insurance
  • Supplemental Health Insurance
  • Hospital Indemnity Insurance
  • Cancer Insurance
  • Critical Illness Protection

There are also products that policyholders can include with no extra fees, and these are:

  • No Cost Child Safe Kit
  • Safe Surfin' Guide
  • No-Cost Partners Program

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.

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.

American Insurance Life Company Review 1
American Insurance Life Company Review 2
American Insurance Life Company Review 3

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:

  • Flexible marketing opportunities.
  • No commission cap.
  • Growth is fast if you work hard.
  • 50% commission payout.

The CONS of American Income Life Insurance:

  • High turnover rate.
  • The company has plenty of secrets.
  • No salary.
  • $490 initial payment.
  • Negative reviews outnumber positive comments.


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.  

17 thoughts on “Is American Income Life Insurance a Scam? A Review.”

  1. Glad to come across your site. I have benefited by reading your article. I’ve heard about American Income Life Insurance but was not sure how does it work in reality. I am shocked by their MLM model. 

    This business model is surely not for me. First of all, it’s very expensive and secondly, it looks like a pyramid scheme as it includes recruitment. Unfortunately too many red flags for me. 

    1. Hi Mohammad, 

      thanks for your opinion. 

      Yes, unfortunately, that’s not the best place to start a business. 

      Wish you a lot of success!

  2. First of all, thank you for taking your time reviewing American Income Life Insurance. I just cannot believe that the MLM business plan has entered even the life insurance, it is such a sacred procedure between you and your loved one. When is it going to end… If you have to pay a company to represent them and no salary, that is definitely MLM to me, according to my many failed experiences in my life time. 

    It is so expensive to going for $490 and upsells that is just insane in my opinion. With that price you can buy a domain name and get a site hosting for a whole year and you get to sell anything on your site not just the American Income Life Insurance. On my books, more options the better.  

    In my honest opinion, you sign up for a life insurance is probably cheaper but let’s hope nothing will happen to your loved ones.

    1. Hi Nuttanee, 

      Thank you for leaving a comment!

      We can find MLM everywhere, and unfortunately, even in life insurance, that’s quite sad fact. The reviews what are people writing about them are so horrible! Red flags are everywhere.

      Expensive product with low-quality service!

      Wish you all the best 

  3. Marios Tofarides

    Hey Justin,

    I’m not sure if I’d go for this kind of opportunity. Ok, If you’re a good salesman, you can join and make a living both from selling as well as from recruitment. And anyway, being in the insurance business is all about selling, Whether you are an employee or a representative or an external contractor, you have to sell to make a living. Not for me anyway, but some people could try it. The delayed payments complaint is a huge red flag, though!

    My two cents


  4. Wow, thanks for digging down with the American Income Life Insurance “opportunity” for us with your extensive and useful review. I have been approached by a couple of people urging me to join because “You have the personality to do very well with this business and you can retire a second time with additional residual income easily…” 

    Luckily, I came across your website while doing a Google search and the page came up in the results. You have saved me a lot of headaches. 

    There are so many other ways to make money outside working in an MLM company, which for me is a total non-starter in any case. I have had bad experiences in the past with MLMs and avoid them like the plague. You have offered a better solution, and it is one that I am quite familiar with and can vouch for (Wealthy Affiliate).

    Although there are some pros you have objectively added to this review, the cons far outweigh them for American Income Life Insurance being considered as an employment option. You have rightly stated that although not a scam, they are using deceptive practices to cover up what really is the deal with the company. Good catch and thanks or sharing this with us all.


  5. If I’m being honest – the $490 initial payment would really be enough to put me off signing up with this lot, that’s before I realised that they were a MLM based model. 

    It’s just not the type of marketing that I would be interested in, however, I did check out your recommendation halfway through your review, and it does sound interesting. How long does the free membership last for?

    1. Hi Chris, 

       your FREE membership with Wealthy Affiliate will last for the whole life :)

      Wish you all the best!

  6. Hello, I really appreciate your time and effort on writing about American Income Life Insurance.

    The way you laid it out is perfect. Even though they’re not technically a scam they’re certainly not a very good opportunity. The costs are too expensive and there’s not really a guaranteed income since you’re an independent contractor. My $490 can definitely be invested in something better.

    Your #1 recommendation appears to provide a lot more value, definitely worth checking out. Thanks for the article.

    1. Hi Son, 

      thank you for stopping by and for your comment. 

      There are a lot of business opportunities but the best one if affiliate marketing. Why I call the best is because you don’t have to waste a lot of money, you can build passive income, no need to own any product. Nowadays its the most lucrative online business. 

      Wish you all the best!

  7. Hello. Well maybe American Income Life isn’t a scam, but it’s an MLM company with bad reviews. Also you not recommending it is an extra minus.

    Instead it will be better to start affiliate marketing. You will just have your blog and you can work as long as you like with no need to tell lies or deceive your audience.

    Good job exposing the real identity behind every company. If anyone wanna avoid the hassle, he or she should avoid these types of programs. But of course if you seek trouble, you will find it.

    1. Hi George, 

      Providing useful information is the primary key for me in doing affiliate marketing. As you said no need to lies. All you need to do is to choose a good product that can help others. 

      Wish you all the best!

  8. Hey guys this is dumb there’s literally a high turn over rate everywhere since people don’t ever like what they’re doing or are not committed, I’ve been working here for 2 years and some change and at every firm we’re concerned with GROWTH and you get growth of insurance sales by hiring more agents, duh. Everyone can make any type of weekly income they want as a sales rep, MGA which is a big promotion to get Dont really have to at that Point it’s just managing and helping producers. I don’t they ever promised you guys a w2 and it’s not even worth it. If you’re a person of worth then you can make your own worth you make your job, you don’t wait until people feed you. Except the only thing is that we’re sustainable and working in finance and sales is a great opportunity but a lot of them times there aren’t any Wall Street firms to work for in your hometown, but this is a great place to dive into a new CAREER without being stressed out like real estate agents.

    1. Hi Alexis, thanks for the feedback it’s highly appreciated! I am glad to see you are successful there and I am more than sure you have great sales skills. I know many people who tried doing MLM business but failing rate is really high. All depends as well on the product you are offering. Selling something that people essentially need and use every day has more earning potential than selling creams and decorations. But you are right if you want to be successful you can be in anything you want, you just have to work hard.

Leave a Comment

Your email address will not be published. Required fields are marked *