Is American Income Life A Scam? An MLM In Disguise EXPOSED

Is American Income Life A Scam? An MLM In Disguise EXPOSED

Welcome to my American Income Life review!

If you ever received an email saying that you got a job as a customer representative for an insurance company, you've probably been contacted by American Income Life. 

First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.

That's the way to avoid scams and find the legitimate way to make money online!

Let me be completely transparent with you, I'm not associated with American Income Life in any form.

So, rest assured that I'm not here to pitch or sell anything to you.

Instead, I'm here to reveal what this insurance company is all about, and why they're an MLM company in disguise. 

Is American Income Life a scam? 

Read on and find out.. 

American Income Life Review Summary

Product Name:  American Income Life

Founder: Harold Goodman and Bernard Rapoport

Product Type:  Insurance Policies MLM

Price:  $490 for training fee

Best For:  People who are good at selling insurance policies

American Income Life Summary Image

Summary:  American Income Life is a legitimate insurance company with a legitimate business opportunity.  But this is not a program that I would recommend to anyone. First, they're an MLM company and they're not offering you a job, and they don't disclose this when they advertise. Second, they have a very high turnover rate for their sales representatives (and I'll show you in this article). Lastly, any business-related expense comes out of your own pocket, so if you're spending a lot to close a sale, then you've probably lost money. 

Rating: 20/100

Recommended:  No


What is American Income Life?

American Income Life is an insurance company that utilizes an MLM or multi-level marketing compensation plan.

The company started out from a meager $25,000 borrowed capital by Harold Goodman and his nephew, Bernard Rapoport, and originally chartered an office in Indianapolis, Indiana.

Now, American Income Life has its headquarters in Waco, Texas.

Torchmark Corporation, a company listed on the NYSE or New York Stock Exchange as NYSE:TMK now owns the company.

Torchmark is a financial services holding company located north of Waco in McKinney Texas and they include brands like Liberty National and Globe Life.

American Income Life Sales Representatives

American Income Life does not employ their sales representatives. Instead, they are considered as independent contractors that paid to get into the company.

American Income Life Training

Yes, you read that right. American Income Life requires a joining fee of sorts before you can become a sales representative.

From there, you’ll go into job interviews, signing the required papers, going on training, and all the other on-boarding processes that’s required for a normal job.

Except that this is not a normal job. Sales representatives are not issued a salary so if you do nothing, you’ll earn nothing.


In their training, they’ll convince you by telling you things you want to hear like being able to make a six-figure income, or be able to retire in 10 years because of the residuals you’ll be earning.


Oh, what’s residuals got to do with insurance, you ask?

That’s because they’re an MLM company in disguise, but I will explain later down the line.

American Income Life Product Line

American Income Life, or AI Life, sells insurance products to associations, particularly credit and labor unions.

They also sell group policies to churches, schools, and youth groups.

AI Life sell their policies through their network of agents who are sent out on the field to meet potential clients at home to develop a personal and professional relationship.

Through their agents, they sell the following policies:

  1. Whole Life Insurance – an insurance policy that covers you for your entire lifetime and the premiums don’t increase.
  2. Term Life Insurance – A policy designed to cover recipients for a limited period of time and premiums increase after the initial cover period.
  3. Accident and Supplemental Health Insurance – A policy to cover its members against accidents and illnesses.
  4. Final Expensive Plan – A whole life policy to cover the insured’s funeral expenses.
  5. Terminal Illness Rider – This policy allows individuals diagnosed with terminal illness and their riders an accelerated benefit payment of half the policy’s value if their life expectancy is within a year of diagnosis.
  6. Accident Protection – Provides cash benefits when the insured is killed or injured accidentally.
  7. Hospital indemnity – Covers additional expenses related to long hospital stays caused by illness or injury.
  8. Cancer protection – A coverage that provides financial aid to help with medical expenses and/or lost work due to cancer treatment.
  9. Critical illness – A policy that provides financial assistance with paying out-of-pocket medical expenses for patients who experience critical illnesses like stroke or heart attack.

Do The Products Work?

Insurance policies are usually judged based on how easy it is to file and settle the claims.

Customers who bought their policies complained about the poor support and service they received when filing claims.

American Income Life Yelp Review 1

Some of them even say that most agents that have sold their customers the policy leave the company, so there’s little to no accountability at all.

American Income Life Yelp Review 1

Granted, filing claims is always a common problem for insurance companies.

But if an agent from AI Life leaves the company, the policy that he or she sold goes to another incoming agent, and then so on and so forth.

Jerry Huang, Founder of Smart Affiliate Success

I'm Jerry!

I Created My Own 4-Figure Monthly Passive Income at just 21 Years Old!

4 figure monthly passive income

How Do You Make Money From American Income Life?

American Income Life provides their sales representatives with two ways to make money:

  1. Commissions from selling insurance policies
  2. Residual commissions

How To Get Started With American Income Life?

To get into the company, you’ll need to pay for the training fee of $490.

You’ll also need to pay for your own expenses (gas money, plane ticket, hotel accommodations, and others) in case the training will be held in a different state or city.

American Income Life Compensation Plan

American Income Life is an MLM company in disguise, much like Primerica.

The only difference being that American Income Life does not disclose their compensation plan to the public.

And to my surprise, I couldn’t find any traces of it online.

1. Sales commissions

For each policy sold, you earn a 50% commission payout.

However, you will only be paid 65% of the total commission earned. The remaining 35% is withheld for 6 months.

Which means that if you sell a $1000 insurance policy, you’ll earn $500 as commission.

However, you only get $325 upfront and the remaining $175 is withheld for 6 months.

2. Residual Commissions

Sales representatives will earn commissions from the sales of the persons they referred.

No information has been made available online about their residual commissions, other than the company encouraging their sales representatives to recruit more people into joining.

American Income Life Ugly Truths Revealed

#1 - It’s An MLM Opportunity, Not A Job

The company does not disclose upfront that they operate on an MLM business structure when they advertise. Instead, they present it as a job opportunity, when it actually isn’t.

However, people do get suckered into joining the company because of emails like these:

American Income Life Sample Email
American Income Life Sample Email 2

In their emails, they will say that you’ve applied for a job as a customer service representative, or that they found your resume online and found that you qualified for a position.

Then you’re sweet-talked into paying for the training because you’ll be thoroughly convinced by their people that you’re going to make real money.

It’s only when you’ve signed the papers and completed your training will you realize that you signed up for a network marketing deal and not a real paying job offer.

Tired of MLM? Check out my #1 Recommendation Here!

#2 - High Turnover Rate

AI Life’s turnover rate is high because people think about one thing, only to be disappointed and find out that they joined a network marketing company.

Another American Income Life Complaint From Sales Rep

Sales representatives also leave the company because of the way they are being treated.

American Income Life Complaint From Sales Rep

I won’t go much into detail but going through their reviews on Glassdoor and Yelp makes me wonder why they still even exist.

#3 - Everything Is Your Expense

Apart from the training fee, you’ll also need to cover your own expenses for travelling where the training will take place, as well as accommodation and living expenses.

After you’ve completed the training, you will start to sell their policies and earn via commission.

Your day to day expenses, like fuel for travelling, will also come out of your pocket and not the company’s.

Basically, you pay all the expenses, do all the work, and receive only a part of the income they generate if you do manage to sell something.

What I Like About American Income Life

#1 - You Can Earn Money

If you put in the hard work and retain all of your clients, you’ll be able to make money out of their business opportunity.

A 50% commission from an insurance policy sold and as long as they don’t cancel will probably net you a decent amount of passive income.

Now, if we’re talking about consistency of passive income, that’s a different story. You probably won’t get that from AI Life, but affiliate marketing can guarantee that.

#2 - Good BBB Rating and Financial Ratings

AI Life is an accredited company of the BBB or Better Business Bureau and currently have an A+ rating. They listed a total of 267 customer complaints and closed 92 complaints over the last 12 months.

Most of their complaints are centered around the products, services, and their advertising (email spam).

American Income Life Financial Ratings

They also have strong financial ratings from AM Best, Fitch, and Standard & Poors, which indicate that they are financially capable in terms of providing insurance money for their customers.

Is American Income Life A Scam? 

American Income Life does not even come close to being categorized as a scam.

They are an insurance company that uses an MLM structure for compensation. However, I do not recommend anyone to join their program.

First, it’s an MLM company in disguise and not a job. They don’t disclose this when they advertise to the public, which makes it kind of a scam because it borders on deception.

Second, the turnover rate is high because once their sales representatives find out that they’re joining a network marketing company, they leave.

There are also issues and complaints about maltreatment from other AI Life employees as well.

Third, everything comes out of your pocket to make a sale, and that means gas money, and living expenses for out of town trips.

How I Make A Living Online? 

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

  • You don't have to recruit anyone to make money
  • You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
  • It's Free to get started

In fact, with affiliate marketing...

I've personally created a 4-Figure Monthly Passive Income Stream and become financially independent at just 21 years old without any College degree or working experience!

Through my own hard work, I went from a broke restaurant waiter to living my dream laptop lifestyle in less than a year's time...

If you want to discover the secrets of how I did it at such a young age, click here!

Justin Hagen

Justin has worked as an SEO and content specialist for the last 9 years. His success in the industry has allowed him to graduate from college, pay for a wedding, and pay for their first car. He recently joined Jerry as a writer for the Smart Affiliate Success blog.

Click Here to Leave a Comment Below 5 comments
Stacey Busby - November 27, 2019

I am about to partner with this company, yes I said “partner”. To anyone that signs up with AIL you need to have an entrepreneurial spirit. The cost to purchase your own insurance license is a business tax deduction as well as if you utilize your own laptop, gas and mileage. So if you just want a job, this company would not be for you, but if you are about making money on your own terms then this would be a perfect career for you.

I know the first few months I will have commit more of my time, but once I get up and running, I will make the schedule work for me. The office in which I am partnering with requires at least 12 bookings a week. Yes, do your research before you take on any endeavor such as this. The company was very thorough & forthcoming regarding expectations for success. Bottom line, if you truly tried and failed, then just keep pushing, eventually you will find your niche.

James - August 19, 2019

This is hilariously hypocritical. AIL provides valuable free sales training and the only thing they require you to purchase is your state license (a state requirement for all insurance professionals). Meanwhile, you’re using their popular name to shill your own “method” of making passive income, which is – and here’s the kicker – funneling other people to Wealthy Affiliate using your affiliate id, which is how you made your passive income. So to sum up, AIL is a real company that employees real people to sell real products that they can make a good living from. You built a website to tell people how you “make 4 figures/month passive income”, and the way you make this passive income is by directing other people to sign up for an online course and collecting commissions from it. Which one of these sounds more like an MLM to you?

Nunya - August 13, 2019

AIL is a total scam. A true MLM that hurts a lot of people. Anyone that defends this company is a paid employee.

al - August 10, 2019

hahaha ‘investment in yourself’ @john. I’m sure this is one of the slick lines they feed you when they take your money. I had a close relative with a resume on monster. they called him for an interview. He didn’t go after a bit of research. They still kept calling.
This company is like a cancer to society. feeding on the desperate, inexperienced. From interview, training, getting paid, all scam.
if you are a total weasel, liar and suck up to management, and even then by great chance if they promote you to manger, maybe you can make it. otherwise it’s in their interest to fire you so they can take all your residuals.

John McCarthy - May 6, 2019

This is not true, there are no joining fees, merely an investment in yourself to buy your license which is a state requirement for any life insurance distribution. The licensing process consists of study material online with an outside company for $100 and a test date for $56. Once you’ve passed, fingerprints in AZ are $20 and the license is about $140. None of which is paid to American Income Life. This is not MLM, this is traditional capitalistic business compensation plans. I do not sell used life insurance policies that I had to buy first before I resold it.. so check your facts on what a pyramid or MLM scheme is before you go writing about a company you’re not even affiliated with to have first hand knowledge on.


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