When I help families research life insurance options, American Benefit Life Insurance Company often comes up in conversations. This Kansas-based insurer has been serving American families since 1890, but like many carriers, they have their unique strengths and considerations that are worth understanding before you apply.
For a complete overview, see how term life insurance works.
In this complete guide, I’ll walk you through everything you need to know about American Benefit Life Insurance Company—their history, financial strength, products, and what to expect if you’re considering them for your family’s protection.
American Benefit Life Insurance Company Overview
American Benefit Life Insurance Company was founded in 1890 and is headquartered in Kansas City, Missouri. They’re part of the Kemper Corporation family of companies, which gives them additional financial backing and resources.
The company focuses primarily on:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Group life insurance products
What sets them apart is their focus on simplified underwriting processes and their strong presence in the Midwest, though they operate in multiple states across the country.
Financial Strength and Ratings
When I evaluate any insurance company for my clients, financial strength is always my first consideration. After all, the strongest policy in the world doesn’t matter if the company can’t pay claims 20 or 30 years from now.
A.M. Best Rating
American Benefit Life currently holds an A- (Excellent) rating from A.M. Best, which is solid. This rating indicates:
- Strong ability to meet ongoing insurance obligations
- Good financial fundamentals
- Stable operating performance
What This Means for You
An A- rating puts American Benefit Life in good company, though it’s not the highest tier (A++ and A+ are stronger). For most families, an A- rated carrier provides adequate security, especially when part of a larger corporate structure like Kemper.
Types of Coverage Available
Term Life Insurance
American Benefit Life offers traditional term life coverage with:
- Level premiums for the initial term period
- Conversion options to permanent coverage
- Competitive rates for healthy applicants
- Terms typically ranging from 10 to 30 years
Whole Life Insurance
Their whole life products include:
- Guaranteed cash value accumulation
- Fixed premium payments
- Potential dividend payments (not guaranteed)
- Loan and withdrawal options
Universal Life Insurance
For those seeking more flexibility:
- Adjustable premiums within limits
- Cash value growth tied to interest rates
- Death benefit flexibility
- Policy loan options
Underwriting and Application Process
From my experience working with American Benefit Life, their underwriting process is relatively straightforward:
Simplified Issue Options
For smaller coverage amounts, they offer simplified issue policies that:
- Require no medical exam
- Use health questionnaires instead
- Provide faster approval times
- Work well for final expense planning
Fully Underwritten Policies
For larger amounts or best rates:
- Medical exam may be required
- Blood and urine tests
- Medical records review for certain conditions
- More comprehensive but potentially better pricing
Health Conditions They Accept
American Benefit Life is generally reasonable with common health conditions when properly managed:
- Controlled diabetes: Often acceptable with good A1C levels
- High blood pressure: Manageable if well-controlled with medication
- Heart conditions: Case-by-case basis depending on severity and treatment
- Cancer history: Depends on type, stage, and time since treatment
Pros and Cons of American Benefit Life
Advantages
- Simplified underwriting options make coverage accessible
- Competitive pricing in their target markets
- Strong regional presence with local service
- Part of larger Kemper Corporation for additional stability
- Flexible payment options and policy management
Potential Drawbacks
- Limited geographic availability compared to national carriers
- A- rating is good but not the strongest available
- Fewer product innovations compared to larger competitors
- Less name recognition than major national brands
How American Benefit Life Compares to Competitors
When I’m shopping coverage for clients, I always compare multiple options. Here’s how American Benefit Life typically stacks up:
Against Major National Carriers
Advantages over big names:
- Often more personalized service
- Competitive pricing in their markets
- Faster underwriting for simplified issue
Where they may fall short:
- Fewer product options
- Less technological innovation
- Smaller agent network
Against Other Regional Carriers
American Benefit Life holds its own well against other regional insurers, often offering:
- Competitive rates
- Solid financial backing through Kemper
- Reasonable underwriting guidelines
Is American Benefit Life Right for You?
Based on my experience, American Benefit Life works well for families who:
Good Fit Scenarios
- Need straightforward term coverage without complications
- Prefer simplified underwriting due to minor health issues
- Want competitive pricing in their available states
- Value regional service and local presence
- Need smaller coverage amounts for final expense planning
Consider Other Options If
- You need the strongest financial ratings (A+ or A++)
- You want cutting-edge product features or riders
- You have complex financial planning needs requiring specialized products
- You need coverage in states where they don’t operate
The Application Process
When working with American Benefit Life, here’s what to expect:
Step 1: Application Submission
- Complete health questionnaire
- Provide basic financial information
- Choose coverage amount and type
Step 2: Underwriting Review
- Medical exam if required
- Review of medical records if needed
- Prescription database check
Step 3: Decision and Issuance
- Approval, counter-offer, or decline
- Policy delivery and explanation
- First premium payment
The process typically takes 2-4 weeks for fully underwritten policies, or same-day to one week for simplified issue coverage.
Cost Considerations
Factors Affecting Your Premium
- Age and gender
- Health status and medical history
- Coverage amount and type
- Smoking status
- Lifestyle and occupation
Getting the Best Rate
To maximize your chances of favorable pricing:
- Apply while you’re healthy
- Be completely honest on your application
- Consider term life if you need temporary coverage
- Work with an agent who knows their underwriting
States Where Coverage is Available
American Benefit Life doesn’t operate in all 50 states. Before considering them, verify they’re licensed in your state. Their strongest presence is in:
- Midwest states
- South-central regions
- Select other markets
Working with American Benefit Life Agents
Direct Agents
American Benefit Life has career agents who represent only their products. Benefits include:
- Deep product knowledge
- Direct company relationships
- Specialized training
Independent Agents
You can also work with independent agents (like me) who can offer American Benefit Life alongside other carriers. This approach provides:
- Multiple company comparisons
- Objective product recommendations
- Broader market access
Claims Experience and Customer Service
From what I’ve observed, American Benefit Life generally handles claims fairly and promptly. Being part of the Kemper organization provides additional resources and oversight.
What to Expect
- Reasonable claims processing times
- Professional customer service
- Regional focus often means more personalized attention
Making Your Decision
American Benefit Life Insurance Company can be a solid choice for the right situation. They offer competitive products, reasonable underwriting, and the stability of being part of a larger insurance organization.
However, like any carrier, they’re not perfect for everyone. The key is understanding whether their strengths align with your specific needs and priorities.
Key Questions to Ask
Before choosing American Benefit Life or any carrier:
- Do they operate in my state?
- How do their rates compare to other options?
- Do their underwriting guidelines work for my health situation?
- Are their product features adequate for my needs?
- Am I comfortable with their financial strength rating?
Finding the right life insurance doesn’t have to be complicated. As an independent agent, I work with multiple top-rated carriers and can help you compare options to find the best coverage at the best price.
- American Benefit Life (founded 1890) holds an A- (Excellent) rating from A.M. Best
- Part of Kemper Corporation, providing additional financial backing
- Offers simplified underwriting options for faster approval without medical exams
- Strong regional presence, but limited geographic availability compared to national carriers
- Best for straightforward term coverage or final expense planning needs
Related Reading
- Guaranteed Issue Term Life Insurance: The Complete Guide
- Life Insurance for Parents: The Complete Guide
- Decreasing Term Life Insurance: The Complete Guide
- Simplified Issue Term Life Insurance: The Complete Guide
Let me do the shopping for you. I’ll compare quotes from American Benefit Life alongside other quality carriers and help you find coverage that fits your needs and budget. Every family’s situation is different, and I can help you navigate the options to make the best choice for your circumstances.
