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American Home Life Insurance Company Review

review of american-home-life-insurance

In the following American Home Life review we will focus on the company’s history, financial ratings, life insurance policies, and the policy riders offered so that you can make an informed decision on which company will provide the the best whole life insurance for you — based on your unique need, goals and objectives.

Review of American Home Life Insurance Company

The first step to find the best life insurance is to get familiar with all the players in the industry. At Insurance and Estates, we have compiled different life insurance reviews, including our picks for the best mutual insurance insurance companies.

About American Home Life Insurance Company

American Home Life was founded in 1909 under its original name of Kansas Home Mutual Life Insurance Company. Three years later the company merged with American Mutual Life Insurance Company and became American Home Life Insurance Company.

What is a mutual insurance company?

Mutual insurance companies are owned by policyholders, rather than shareholders, as is the case with publicly traded companies. Rather, mutual insurance companies and policyholders share in the ownership rights of the company, as well as take part in the company’s profits through dividends. The primary advantage of mutual insurance companies is the focus can be on long-term, low risk investments, since the focus is not on enriching stockholders in the short-term.

American Home Life typically pays an annual cash dividend to policyholders. The amount of dividend to be paid to participating policyholders is determined by the board of directors.

American Home Life Ins Co
P.O. Box 1497
Topeka KS 66601-1497
785-235-6276

American Home Life Ratings

American Home Life has a solid rating from A.M. Best. However, it is certainly not one of the highest rated life insurance companies in the U.S.

AHL Financial Rating:

A.M. Best rating: B++ (5th highest out of 15) with a “Stable Outlook”

Rating current as of May 1, 2018.

American Home Life Products

AHL offers both annuities and life insurance products.

Annuity Products

  • Flexible Premium Annuities

Life Insurance

  • Term Life Insurance
  • Whole Life Insurance
  • Final Expense Insurance
  • Preneed Funeral Funding

American Home Life Insurance Policies

American Home Life offers both term and whole life insurance. The primary uses of both include the following.

Benefits of Term Life Insurance

  • Lower Initial Cost
  • Income Protection
  • Mortgage Protection
  • Conversion Option

Benefits of Cash Value Whole Life Insurance

  • Business Continuity Planning
  • Buy Sell Agreements
  • Key Person Insurance
  • Estate Planning
  • Infinite Banking
  • Executive Bonus Plans
  • Deferred Compensation Plans
  • Wealth Building

American Home Life Policies Offered

Although we believe term life has its place, we certainly don’t subscribe to the tired Dave Ramsey mantra of “buy term and invest the difference.”

Term life insurance allows you to leverage a relatively small monthly premium for a large guaranteed death benefit with a lower initial cost than cash value life insurance.

American Home Life Insurance Company offers 10, 15, 20 and 30 year term lengths. The policy is renewable to age 90.

The policy can be converted from term to whole life insurance. A conversion option allows the insured to convert all or a portion of the policy to permanent coverage with no evidence of insurability, i.e. no medical exam needed.

American Home Life Whole Life Insurance

  • American Whole Life
  • Young American Whole Life
  • Value Whole Life Plan

Whole life insurance provides specific guarantees including:

  • Guaranteed death benefit,
  • Guaranteed cash value growth and
  • Guaranteed level premiums.

Additional cash value growth is available through dividends. Although not guaranteed, American Home Life has paid life insurance dividends to participating policyholders for many years.

Dividends are valuable and can be used to:

  • Purchase paid up additions
  • Pay premiums
  • Earn interest with the company
  • Pay down policy loan balance and interest
  • Cash Out

Additional Benefits of Whole Life Insurance

Tax free life insurance policy loans

You can take out a tax free life insurance loan by using your cash value as collateral. There is no limit as to what you can do with your policy loan, but we would recommend using it to buy additional income producing assets, such as a real estate wealth building strategy using life insurance.

Tax deferred cash value growth

The Internal Revenue Code Section 7702 is all about cash value life insurance. One of the incentives offered by the code is that your cash value grows tax deferred. And as mentioned above, policy loans are income tax free. Therefore, if you use policy loans to access your cash value you may never have to pay taxes on your gains.

One word of caution, beware of over funding your policy and creating a modified endowment contract (MEC). If your policy becomes a MEC, many of the provisions of the IRC will not apply to your policy.

Tax free death benefit

The life insurance proceeds from your death benefit are not taxable to your beneficiary. A death benefit is taxed if your estate exceeds the federal estate tax exemption limit. If you have a large estate, careful asset protection using an irrevocable trust may be necessary.

American Home Life Insurance Riders

Guaranteed Insurability Rider: If you are considering whole life insurance for children, the guaranteed insurability rider is essential. This rider allows the owner to add additional whole life coverage at specific years or at specific life events, such as the birth of a child. The additional coverage can be added with no evidence of insurability.

Waiver of Premium Rider: if you are diagnosed as totally disabled, the waiver of premium rider kicks in and your premiums will be waived.

Child’s Term Rider: Allows you to add coverage for all your children under the required age.

American Home Life Insurance Company Review Conclusion

American Home Life is a great mutual insurance company offering participating whole life insurance. Although the company’s financial rating could use some improvement, our overall assessment is that American Home Life is a solid choice for anyone considering whole life.

Interesting in finding out more about the different carriers we represent? Please give us a call today for a free strategy session.

1 comment… add one
  • Zareda L. Penny February 15, 2019, 1:23 pm

    American Home Life Insurance handled my claim very quickly and was very sympathetic to me at the loss of my husband.

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