When I sit down with families looking for life insurance coverage, American Home Life is one of the companies that often comes up in our conversations. As an independent agent who’s worked with dozens of carriers over the years, I want to give you an honest, comprehensive look at what American Home Life brings to the table—and help you understand whether they might be the right fit for your family’s needs.
For a complete overview, see final expense insurance explained.
American Home Life has been serving families for decades, and they’ve built a solid reputation in the final expense insurance market. But like every carrier, they have their strengths and areas where other companies might serve you better. Let me walk you through everything you need to know to make an informed decision.
Understanding American Home Life Insurance
American Home Life Insurance Company was founded in 1962 and is headquartered in Kansas City, Missouri. They specialize primarily in final expense life insurance, which is designed to help families cover end-of-life costs like funeral expenses, medical bills, and other debts that loved ones shouldn’t have to worry about during an already difficult time.
What sets American Home Life apart in the final expense market is their focus on simplified issue policies. This means they don’t require medical exams for most of their coverage—just a few health questions on the application. For many families, especially those dealing with health issues that might make traditional life insurance difficult to obtain, this can be a real advantage.
The company holds an A- (Excellent) rating from A.M. Best, which indicates strong financial stability and claims-paying ability. In my experience, this rating gives families confidence that their coverage will be there when it’s needed most.
American Home Life Products and Coverage Options
Final Expense Life Insurance
This is American Home Life’s primary product, and it’s what they do best. Their final expense policies are designed for adults typically between ages 45 and 85, with coverage amounts ranging from $5,000 to $35,000.
The application process is streamlined—usually just 8-12 health questions and no medical exam required. This makes it accessible for people who might struggle to qualify for traditional life insurance due to health conditions like diabetes, heart disease, or other common issues that become more prevalent as we age.
Key features include:
- Immediate coverage (no waiting period if you qualify)
- Level premiums that won’t increase with age
- Cash value accumulation over time
- Guaranteed acceptance options for those who don’t qualify for simplified issue
Guaranteed Issue Life Insurance
For applicants who can’t qualify for their simplified issue coverage, American Home Life offers guaranteed acceptance policies. These require no health questions at all—if you’re within the eligible age range (typically 50-80), you’re automatically approved.
The trade-off is a graded death benefit, meaning full coverage isn’t available immediately. Usually, if death occurs from natural causes within the first two years, beneficiaries receive a return of premiums paid plus interest rather than the full death benefit. After two years, full coverage applies.
How American Home Life Stacks Up Against Competitors
In the final expense market, American Home Life competes with companies like Colonial Penn, Gerber Life, Mutual of Omaha, and Transamerica. Here’s how they typically compare:
Strengths of American Home Life
Health-friendly underwriting: Their simplified issue process is relatively lenient compared to some competitors. I’ve seen them approve applicants with well-controlled diabetes, mild heart conditions, and other health issues that might get declined elsewhere.
Competitive pricing: Their rates are generally in the middle range—not the cheapest, but not the most expensive either. For the coverage and underwriting flexibility they offer, the pricing is usually fair.
Strong customer service: In my experience working with them, their customer service team is responsive and helpful both for agents and policyholders.
Areas Where Competitors Might Be Stronger
Coverage amounts: Some competitors offer higher maximum face amounts, which might be important for families needing more substantial coverage.
Age ranges: Other companies might accept applicants at younger or older ages than American Home Life’s typical range.
Premium rates: Depending on your age, health, and coverage needs, other carriers might offer better rates for your specific situation.
This is exactly why I work as an independent agent—no single company is best for everyone, and comparing options is crucial.
Understanding Final Expense Insurance Needs
Before diving deeper into American Home Life specifically, let me help you understand what final expense insurance is really designed to do. The average funeral in America costs between $8,000 and $12,000, but that’s just the beginning. Families often face:
- Outstanding medical bills not covered by insurance
- Credit card debts or personal loans
- Mortgage payments during the transition period
- Lost income if a spouse was working
- Travel costs for family members attending services
When I work with families, we typically look at coverage amounts between $10,000 and $25,000 to handle these various expenses. The goal isn’t to replace a lifetime of income—that’s what traditional term or whole life insurance is for. Final expense coverage is about making sure your loved ones aren’t left scrambling to cover immediate costs during an already emotional time.
The Application and Underwriting Process
American Home Life’s application process is designed to be straightforward, but understanding what to expect can help ensure a smooth experience.
Health Questions
Their simplified issue applications typically include questions about:
- Current medications and treatments
- Recent hospitalizations or surgeries
- Chronic conditions like diabetes, heart disease, or cancer
- Alcohol or drug treatment history
- Height and weight information
Important note: Always answer these questions honestly and completely. I’ve seen too many families deal with claim issues because something wasn’t properly disclosed on the original application.
Common Approval Scenarios
In my experience, American Home Life tends to approve applicants with:
- Well-controlled Type 2 diabetes
- Mild to moderate high blood pressure
- Previous heart conditions that are stable
- Cancer survivors (depending on type and time since treatment)
- Most prescription medications for common conditions
When Guaranteed Issue Might Be Recommended
If you have more serious health conditions—like recent cancer treatment, congestive heart failure, or COPD requiring oxygen—you might need to consider their guaranteed issue option instead of simplified issue.
Premium Costs and Payment Options
American Home Life’s premiums are typically structured as level premiums, meaning your monthly payment stays the same throughout the life of the policy. This is important because it provides predictability for budgeting purposes.
Premium costs depend on several factors:
- Your age when you apply
- Gender (women typically pay slightly less)
- Coverage amount selected
- Health classification
- State of residence
Payment options usually include monthly, quarterly, semi-annual, or annual premium payments. Many families prefer monthly payments through automatic bank drafts for convenience.
Pros and Cons of American Home Life
Advantages
No medical exam required: This removes a significant barrier for many applicants, especially those with mobility issues or who are uncomfortable with medical exams.
Reasonable underwriting: They’re willing to work with applicants who have common health conditions that develop as we age.
Fast approval process: Most simplified issue applications are approved within a few days to a week.
Cash value component: Unlike term insurance, these policies build cash value that you can borrow against if needed.
A.M. Best rating: Their A- rating provides reassurance about the company’s financial stability.
Potential Drawbacks
Limited coverage amounts: Maximum coverage of $35,000 might not be sufficient for some families’ needs.
Higher cost per thousand than term insurance: Final expense insurance is more expensive per dollar of coverage than term life insurance, though it serves a different purpose.
Age restrictions: Coverage isn’t available for younger adults who might benefit from final expense planning.
State availability: American Home Life isn’t available in all states, so options may be limited depending on where you live.
Is American Home Life Right for Your Family?
Based on my experience helping families navigate these decisions, American Home Life tends to be a good fit for people who:
- Are between ages 50-80 and looking for final expense coverage
- Have health conditions that might make traditional life insurance challenging
- Want a straightforward application process without medical exams
- Need coverage amounts in the $10,000-$35,000 range
- Prefer working with an established company with good financial ratings
However, you might want to explore other options if:
- You need coverage amounts above $35,000
- You’re in excellent health and might qualify for better rates elsewhere
- You’re looking for term life insurance rather than permanent coverage
- You want the absolute lowest possible premiums regardless of other factors
Working with an Independent Agent
Here’s something I always tell the families I work with: no single insurance company is perfect for everyone. American Home Life might be ideal for your neighbor but not right for your specific situation, or vice versa.
As an independent agent, I have access to multiple carriers, which means I can compare American Home Life against their competitors based on your specific age, health, coverage needs, and budget. Sometimes American Home Life offers the best combination of coverage and price. Other times, a different carrier might be a better match.
What I’ve learned over the years is that the “best” life insurance company is the one that accepts your application, provides the coverage your family needs, and does so at a price that fits your budget.
Common Questions About American Home Life
How quickly does coverage become effective?
For simplified issue policies where you qualify based on the health questions, coverage is typically effective immediately upon approval and first premium payment. For guaranteed issue policies, remember there’s usually a two-year waiting period for natural death benefits.
Can I increase my coverage later?
Most final expense policies don’t allow increases to the original death benefit. If your needs change, you’d typically need to apply for additional coverage, which would be subject to your health and age at that time.
What happens if I stop paying premiums?
Like most permanent life insurance, these policies build cash value. If you stop paying premiums, the policy might continue using the cash value to pay premiums for a while. Eventually, though, the policy would lapse if premiums aren’t resumed.
Are there any exclusions I should know about?
Most life insurance policies, including American Home Life’s, have exclusions for death by suicide within the first two years of coverage. Some policies may also exclude death related to certain high-risk activities. Always review the policy documents carefully.
Making Your Decision
Choosing life insurance is one of those decisions that’s important to get right the first time. American Home Life has helped many families protect their loved ones from financial hardship, and they might be the right choice for your situation.
However, the only way to know for sure is to compare your options. Every family’s situation is unique—your health, age, budget, and coverage needs all factor into which company will serve you best.
What I’ve found is that families make the best decisions when they have complete information about their options. That means looking at American Home Life alongside other carriers that specialize in final expense coverage, comparing not just premiums but also underwriting guidelines, coverage options, and company stability.
The peace of mind that comes from knowing your family won’t face financial stress during an already difficult time is invaluable. Whether that protection comes from American Home Life or another carrier matters less than making sure you have coverage in place.
Life insurance is one of those things you want to get right the first time. I help families compare options from multiple top-rated carriers, including American Home Life, so they can make confident decisions about protecting their loved ones.
- American Home Life (founded 1962) holds an A- (Excellent) rating from A.M. Best
- Final expense coverage from $5,000-$35,000 with no medical exam required
- Health-friendly underwriting accepts well-controlled diabetes, mild heart conditions, and cancer survivors
- Guaranteed issue option available for those who can’t qualify for simplified issue
- Compare against other carriers—no single company is best for everyone
Want help finding the right coverage? Reach out for a free quote and let’s talk about your options. I’ll shop multiple carriers to find the best combination of coverage, underwriting, and price for your specific situation.
