So one of my readers asked me to do a review on American Income Life.
That's why I did my diggings, and I'm here to share with you my "findings".
So is American Income Life a scam or a legit business opportunity?
I'd like to tell you that this review is not about the insurance side of American Income Life.
This review focuses on the business opportunity and how you can make money from American Income Life.
So if you want to know if American Income Life is a good company to work with or not, then you want to stick to this honest review!
American Income Life Summary Review
Name: American Income Life
Founder: Harold Goodman & Bernard Rapoport.
Price: $490 training fee + other expenses.
Best for: People good at network marketing & face to face selling.
Summary: American Income Life is a legit company, but in this review, you will read some ugly truths about it and reasons why you should not work with them.
There a specific kind of people that is perfect for this company.
I'll give you more info in the full review.
What is American Income Life?
American Income life is an insurance company that uses an MLM (multi-level-marketing) compensation plan, and it's a subsidiary company of "National Income Life Insurance Company."
When you join American Income life to sell financial products, you're going to be selling products for its subsidiary company.
American Income Life is based in Texas, and it was founded in 1951 by Harold Goodman & his nephew Bernard Rapoport with a borrowed capital of $25,000.
Currently, this company is owned by Torchmark corporation which is a financial services holding company that is listed on the NYSE (New York Stock Exchange).
How Does American Income Life Work?
American Income Life does NOT work as you think.
If you think that you're going to get a job with a fixed salary with this company then you're wrong.
So basically, you're going to get hired as an independent contractor which is a big difference.
But the whole onboarding and interview process makes it look like it's a job with a salary.
As an independent contractor, you can only make money when you manage to sell insurance products or when you recruit people.
The bad thing about this opportunity you can work day and night and get back home with $0 in earnings.
So in a Few Words...
American Online Life is going to train you (the training comes with a fee) on how to become a sales agent that works on a strict commission basis.
Which means you need to go out and do lots of face to face selling & cold calling and face lots of rejections.
American Income Life Product Line
As I said above American Income Life (aka AIlife) sells insurance products.
How they sell these insurance products?
They train ordinary people like you and me on how to go out there and do face to face selling and create a professional & personal relationship with your clients.
The target audience that American Income life sells insurance policies to & to whom you will be sent out to meet are:
- People in Churches
- Credit & Labour unions
- Youth groups
- & more.
So if you join American Income Life as an agent you'll be able to earn commissions when you manage to sell the following products:
- Whole Life Insurance
- Term Life Insurance
- Accident & Supplemental health insurance
- Final Expensive Plan
- Terminal Illness Rider
- Accident Protection
- Hospital Indemnity
- Cancer Protection
- Critical Illness
So you have different types of insurance policies to sell.
Your job is to go door to door & make a personal relationship with your clients and try to sell them an insurance policy that will be a good fit for them.
How Can I Make Money from American Income Life?
There are two ways to make money working with American Income Life.
I have already talked about the first way which is selling the insurance policies to other people.
But there is another way to make money with American Income life which is recruiting new members.
When I say recruiting new members, I mean convincing people to join and do what you do.
The people you recruit will also be American Income Life sales agents.
This is a Red Flag!
Yeah I have read many comments from people wondering if American Income Life is a pyramid scheme or not.
Since there is no info about the compensation plan it looks like the company is an MLM or even worse a pyramid scheme in disguise.
I'm going to talk more about American Income Life being a pyramid scheme concern later.
How to Get Started & How Much Does it Cost?
To get started you will need to go through a mandatory training which is going to cost you $490.
The training is not digital or something like that it's like an event that you need to attend in a particular city.
And chances are the training is not going to be held in your city.
You need to remember that there going to be more expenses that are not covered by American Income Life which include:
- Taxi or gas money
- Train or plane tickets
- And other expenses...
How Does American Income Life Pay You?
With American Income Life you won't get a fixed salary but you will be paid in strict commission basis.
There are two types of commissions you will make with this company.
1) Sales Commissions
You will earn 50% of commissions on each insurance policy you sell.
But you will be paid out only the 65% of your earned commission the other 35% will be paid out after six months.
Here's an Example
If you earn $1000 you will get the 50% of it which is $500.
But you will be paid out only the 65% of $500 which is $335.
You will get the %35 of your commission (in this case $175) after six months.
2) Residual Commissions
You will earn residual commissions when you recruit new members to become sales agents for American Income Life.
There is no information or details about the residual commissions.
All we know is American Income Life has an MLM compensation pay plan.
If you have no idea what is an MLM compensation plan this video will give you a basic idea on how it works.
The problem with American Income Life does not disclose that they are operating under an MLM scheme.
A Quick Note!
Although MLM schemes are hated by most people and are known to be a very difficult way to make money they are still legitimate and legal.
What you need to always avoid though is pyramid schemes because they are illegal.
American Income Life Problems & Concerns
1 - Is American Income Life a Pyramid Scheme?
There is a big concern that I see many people wondering if American Income Life is whether a pyramid scheme or not.
The good news is American Online Life is NOT a pyramid scheme.
Because pyramid schemes don't have any real products to sell they just rely on recruiting.
This is obviously NOT the case with American Online Life because they do sell real insurance policies.
2- Negative Customer Reviews
I have read a lot of concerning negative reviews and complaints from both American Income Life customers & also agents.
Below I have included some screenshots of these complaints.
Please remember that you should NOT take these complaints blindly because most of the time the negative reviews are personal and not recurring.
I Work from Home & Earn a full-time Income
I Don't do Any Hard Selling or Recruiting!
3- The Deceiving Job Interviews
Another thing that I saw people complaining about is the job interviews.
So American Income Life is pretty misleading about their interviews.
So when you join this company, you're going to go through to what seems to be a job interview.
But only when you get interviewed you'll realize that there is not going to be any salary and you will be paid in commissions that you need to earn by recruiting or selling insurance policies.
The worst part about this is if you recruit someone to join this opportunity you have to lie to them and mislead them into thinking they're getting a job.
Another ugly thing about this is during the training you're going to be told that you can earn six figures in less than a year.
And that you can retire in less than 10 years.
4- The American Income Life Lawsuit
Recently Classlawgroup.com filed a class action lawsuit on behalf of the AI life sales agents.
Because the American Income Life sales agents complained about the AI Life payment structure being illegal.
You can read the full lawsuit details by reading the text in the screenshot below and by following the source link under it.
5- You Need to Pay to Get A Job?
It does not make sense to pay money in order to get a job.
Well that's why people call American Income life a scam because of their misleading claims.
So to get started you will need to pay $490 which is an administration fee that will also cover your training sessions.
PS: I started making $3,000 a month online at the age of 24 without recruiting!
6- You'll Need a License...
Another thing that is hidden from you is the fact that you will need a license in order to sell financial products in the US.
So you will need to spend even more money on the license because you will need to attend courses and an exam for this.
Everytime you fail the exam and you want to retake it you will need to put in more money.
The worst part is after you get your license you'll realize that the knowledge you got is not going to be used so much when selling American Income Life.
Because what you need to succeed with AI life is the ability to relate to people and be able to sell them products related to their needs.
8- High Turnover Rates
When a company is misleading and sends you misleading employment emails like this:
Of course a lot of complaints are going to pop up and also the turnover rates are going to be huge!
As you can read above, American Income Life sends out very misleading emails.
AI Life is advertised in the emails like a job opportunity with a fixed salary right?
But when you get interviewed you will realize you're getting paid only based on the commissions you generate by yourself.
When the AI Life agents realize this they decide that they don't want to do this or even if they do it they will quit within a few months.
8- Face to Face Selling & Cold Calling
In a few words, American Income Life is a sales job.
If you're not the type of person that is comfortable knocking on doors every single day and cold calling people outside trying to sell insurance policies this business opportunity is NOT for you.
I used to do this kind of job in Italy with a local cellular network where I had to distribute sim cards in my local area.
I had to spend like 5 to 9 hours a day walking around cold calling people outside.
The rejection rate was like 95% & some people would even insult me!
The worst part is the commissions I used to earn were peanuts.
But I have to admit one thing.
It Was a Life Lesson...
This job made me strong mentally and I have learned many things thanks to it but unfortunately, it did not pay the bills so I had to find a job with a fixed salary.
But fast forward I have even quit this 9-5 job and started My own affiliate marketing business which makes me over $3k/Month from home!
8- You Need to Cover your Own Expenses...
If you're on a tight budget and have a 9-5 job that does not give you enough time then American Income Life is not for you.
First of all, you need to spend $490 just for the training which is an in-person training where you need to travel to another city to attend it.
Apart from the $490 fee for the training, all the traveling, food and hotel accommodation costs are on you.
You'll also need a license to sell financial products in the US which require you to take courses and an exam which obviously cost money.
On top of that every few months there are big meetups and mandatory conventions that you must attend if your sponsor requires it.
The trips to these conventions are not even covered they are all on you.
So this opportunity is so expensive that American Income Life even offers you loans in some cases which obviously need to be paid back.
What I Liked About American Income Life
1- Make Money & Improve Your Personality
This kind of job that American Income Life offers in one hand can make you money if you put in the work and find the right clients.
On the other hand, it will improve your personality and make you a better person with a strong mindset.
Talking to people outside every day and facing rejections will make you stronger mentally.
This is the biggest benefit I personally got thanks to this kind of jobs.
2- BBB Accredited with A+ Rating
American Income Life is BBB accredited with a A+ rating.
The company has got over 200 complaints but closed 95 of them which shows they are a company that cares about their image and clients.
On top of that AI Life has got strong financial ratings from:
What does that mean?
It means American Income life is able to provide insurance money to their clients. 🙂
Is American income Life A Scam?
American Income Life is not a scam, it's a reputable and a legitimate company that sells real insurance products.
However, I personally don't recommend them because they are very misleading in their advertisements.
There are many complaints from the members that have even filed a lawsuit against the MLM scheme and the payout structure of AI Life.
Another reason why I don't recommend American Income Life is that they are pretty expensive and they have a high turnover rate.
So Who is American Income Life for?
American Income Life is for you if:
- You can face rejections
- Have a strong mindset
- Outgoing & you can relate to people
- Have good communication & listening skills
- Have good work ethics
American Income Life is NOT for you if:
- You're uncomfortable with selling
- You hate facing rejection
- Can't deal with emotional stress
- You don't like MLM or network marketing
How I Make Money from Home...
I personally would avoid any company with an MLM structure.
They are not illegal like Pyramid schemes but they are VERY hard to succeed with and so expensive.
I started making money when I was introduced to affiliate marketing.
Affiliate marketing is better than MLM, here's why:
- You can make money from home
- No need to recruit, cold call people outside or knock on doors!
- It's free to get started & it's not expensive like MLM's!
In fact, thanks to affiliate marketing I created a full-time income from home where I can make delicious affiliate commissions like these.
The best part I can earn affiliate commissions like these without any college degree or experience!