Is American Income Life Pyramid Scheme? Honest Review

American Income Life claims to have two million policyholders and a subsidiary of Globe Life Insurance, a company in the S&P 500.

This post is an unbiased review of American Income Life which will go through its company profile, products and agent program. Also, our opinion about this company is shared at end of this post, so let’s get started.

American Income Life
FounderBernard Rapoport
When Started1951
Head OfficeTexas, United States
Opportunity TypeMLM

What is American Income Life?

American Income Life is an insurance firm situated in Waco, Texas. It was first established in 1951 and operates as a multi-level marketing company.

Steven K. Greer

Steven K. Greer currently serves as CEO of American Income Life and has been appointed since 2018.

The motive of American Income Life is to offer insurance to labor, credit unions, and various associations.

Moreover, American Income Life is backed by the registration of a license in 49 states. The contribution in the districts like Columbia, Canada, and New Zealand.

Also, American Income Life has holdings in two subsidiaries and they are as follows.

  • National Income Life Insurance Company in New York,
  • Union Hernian Life Assurance Company Limited (licensed in the Republic of Ireland)

American Income Life also called AIL and operates a direct selling-based agent program.

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American Income Life Products

American Income Life offers various insurance covers which can be purchased through local agents of the company. Products of American Life are divided into 4 categories.

  1. Life Insurance

Life insurance has a bifurcation into term life insurance and whole life insurance.

  1. Supplemental Health

Serious health issues like Cardiovascular, Strokes, Cancer, or any auto accident can be recovered by using supplemental health insurance planning.

  1. No-cost Products

The no-cost is specially designed for parents, guardians, schools, and care centers.

  1. Special Risk Division

American income life insurance has a special risk division for students, youth travel, universities, summer camps, trios, and more.

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Agent MLM Program

Anyone can join American Income Life as an agent and sell insurance to earn commissions.

It costs $490 to be an agent of American Income Life. Moreover, this has comprehensive training, which helps individuals to be sales agents.

Here are 2 ways to make money for agents.

1. Sales Commissions: Agents earn almost 50% commission from all the life insurance that they sell.

2. Residual Commissions: By building a downline network, Insurance Agent can earn residual commissions which depend on network size and sales volume.

Read: American Income Life Review

American Income Life Review

There are very few insurance companies who opted for MLM for their marketing and sales.

MLM itself has a bad reputation and when people know American Income Life follows the same concept, most people want to avoid American Life.

We have checked various reviews over the internet and most negative reviews are related to its MLM model.

Recruitment Driven

Like most other MLM companies, American Income Life is also recruitment driven where agents are not interested in products but want to recruit the maximum number of people in the downline.

Hence agents neglect the importance of the services they offer. Insurance assures the financial safety of customers and everyone wants the best providers.

But American Income Life and its agents emphasize more on expanding the downline network.

In our Family First Life Insurance and LegalShield review, the same issue persist with company associate.

Is American Income Life Pyramid Scheme?

American Income Life is a product-based MLM company that provides insurance services through its agents.

MLM itself is a legal business model in the US and most other countries. So American Income Life is legal as per laws but they have several allegations of being a pyramid scheme.

The obvious reason is the agents are eager to earn residual commissions and not delivering the right services to customers. Now the experience with American Income Life highly depends on the agent who approach you.

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Is American Income Life a legal company?

Yes, American Income Life is a legal company and it is operated through Texas, USA.

What is the joining cost of American Income Life?

Individuals need to pay $490 to become an agent of American Income Life.

Is American Income Life a Scam?

American Income Life can be directly called a scam as MLM is a legal business model. But most people are not happy with the services offered by American Income Life and agents are commission oriented.

Who is the owner of American Income Life?

American Income Life is owned by Globe Life Insurance.

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