American Home Life Insurance: Plans for Middle-Market Buyers
- People in more than 30 U.S. states can purchase life and preneed policies from American Home Life Insurance. Learn why an AHL plan may be a good choice for you.
Individuals in more than 30 U.S. states can purchase life insurance policies and annuities through American Home Life Insurance, and because AHL operates as a mutual insurance company, policyholders may reap benefits not available through traditionally structured financial corporations. Explore the company’s available policies and learn why an AHL plan may be the right choice for you.
About American Home Life Insurance
Founded in 1909, American Home Life Insurance Company got its start as Kansas Home Mutual Life Insurance Company and later merged with American Mutual Life Insurance Company, taking on its current name. The firm, which has a corporate culture that embodies traditional midwestern values, is owned exclusively by its policyholders, so decisions aren’t impacted by the interests of shareholders.
AHL believes in low-risk investments that prioritize long-term financial solvency, and the company has maintained its stability for more than 100 years. It specializes in traditional life insurance policies and final expense coverage for middle-market consumers and offers a range of annuities as well.
What Life Insurance Products Does American Home Life Insurance Offer?
American Home Life Insurance offers potential purchasers a comprehensive selection of term and whole life insurance, final expense policies, preneed funeral funding and annuities. The availability of products varies by state.
Whole Life Insurance
AHL's whole life plans offer permanent protection for policyholders and their families. Its whole life policies feature guaranteed premiums, death benefits and cash value components and offer optional riders, including disability, accidental death, children’s term coverage and waiver of premiums.
The company offers two main categories of whole life plans:
- Participating whole life: AHL’s American and Young American whole life plans have a minimum face value of $5,000 and a reduced paid-up option, so policyholders can opt to stop paying premiums as the plan’s cash value accrues. Plan holders are also eligible to receive company dividends annually.
- Low-cost whole life: Designed for affordability, AHL’s value whole life plans feature reduced premiums and a level death benefit. Policies have a minimum face value of $25,000, but they don’t pay dividends, so the value of the cash component accrues more slowly than in participating whole life plans.
Term Life Insurance
Term life insurance policies are available for 10- or 20-year periods. Plans include a conversion option, which lets policyholders convert their coverage to a whole life policy without requiring evidence of insurability. Optional waiver-of-premium and children’s term riders may be added on at the time of purchase.
Final Expense Insurance
AHL's final expense insurance policies are simplified-issue plans, with an underwriting process that consists solely of a nine-question application. Plans are available to individuals between the ages of 50 and 85, and no medical exam is required for approval.
Similar to traditional whole life plans, AHL's final expense policies include a guaranteed death benefit and a cash value component, and their face value typically ranges between $1,000 and $35,000. Funds from these plans are generally meant to cover end-of-life costs, such as funeral services, burials and any medical bills left behind.
Preneed Funeral Funding
Designed to remove the burden of decision-making from grieving loved ones, preneed funeral funding lets policyholders prepay and preplan their final arrangements and locks in the costs of products and services at the time of purchase. Preneed funeral funding through American Home Life Insurance is currently only available through select funeral homes in Kansas, Nebraska, Oklahoma and Ohio.
AHL’s flexible-premium annuities can be started by investing as little as $25 per month. These plans have a minimum guaranteed interest and a five-year surrender period, and policyholders won’t encounter hidden charges or fees. The company offers both qualified and nonqualified plans to suit various tax needs.
The Pros and Cons of American Home Life Insurance
Because AHL is a mutual insurance company, which is a business that's owned solely by its policyholders, it offers several distinct benefits to potential purchasers. Essentially, the company isn’t publicly traded, so it can prioritize the needs of its policyholders without having to consider the interests of shareholders, and it typically pays annual dividends to its customers. In addition, the firm’s long-term, low-risk investment strategy keeps it financially stable so policyholders can feel confident in its ability to withstand market downturns.
However, the downside to purchasing a policy through AHL may be its selection of products. Because the company specializes in life insurance products, customers can’t bundle in home or auto policies for multi-plan discounts, and its preneed products are currently only available in several states.
American Home Life Reviews: What People Are Saying
Reviewers of American Home Life Insurance appreciate the company’s great rates and quick processing of claims. Several policyholders also note that the firm's customer service agents have proven sympathetic and easy to deal with during a difficult time for their families. However, some reviews note the lack of brick-and-mortar offices in certain states as a barrier to doing business with the company.
Is an American Home Life Insurance Policy Right for You?
Consumers who are seeking life insurance, annuities or preneed coverage may find the right policy through American Home Life Insurance. Because the company is policyholder-owned, it’s a great choice for purchasers who don’t want to do business with companies that prioritize shareholders’ needs over those of their customers. Some potential policyholders may also appreciate the lure of added annual dividends, which comes with being a partial owner in the company. In addition, the company’s conservative investment strategy, stable finances and midwestern values may make it a good prospect for hesitant investors.