March 29, 2021

Is American Income Life a Scam? Insurance Pyramid Scheme or Necessary Fund Savings

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Many people are looking for a stable source of income these days. And it might so happen that you are one of those guys who are looking for an opportunity to work from home.

You then came across American Income Life. But you asked yourself…

Is American Income Life a scam? No, American Income Life is not a scam. The company is legal and has been around for decades. It’s established and reputable, and also sells legit life insurance to customers. They also pay members correctly.

But does this immediately mean that it is a legit opportunity to make money from home and leave your day job?

This American Income Life review is going to answer that question, by showing you the real deal with this company, including their pros, cons, and many more.

This way, you’ll know if this is an opportunity right and fit for you.

American Income Life Review

The overview and rankings

Name: American Income Life

Founder: Bernard Rapoport

Type: Insurance MLM

Products (Including Pricing): 50/100

Success Stories: 4/100

Price To Join MLM: $490 subscription and training

Is American Income Life a Scam: Logo

What to look for in a MLM:

  • Low start-up fee & maintenance cost
  • High-quality affordable products
  • You don’t have to carry inventory
  • An affiliate-like system 
  • Generous compensation plan
  • Company is in the early momentum phase

American Income Life Pros

  • Positive product reviews
  • Established reputation
  • Wise investment for clients

American Income Life Cons

  • Expensive subscription
  • Stiff competition
  • Lacks income disclosure
  • Pyramid scheme in disguise?
  • Downward trend


American Income Life is a company that sells life insurance. They do this by following a MLM business model where members are paid commissions every time they sell insurance plans and recruit people into the company.

Make Time Online Rating: 50 out of 100 

Recommended: No

What is American Income Life?

American Income Life is an insurance Multi-Level-Marketing company that was founded back in 1951 by Bernard Rapoport. Its headquarters is in Waco, Texas.

Over the years, the company has grown from a small firm into a globally-renowned brand that sells life insurance plans.

The main purpose of the company is to ensure the life of customers by creating plans and giving them the assurance that anything that happens to their lives which includes hospital bills, accidents, and many more, are well compensated for.

Check out this 1-minute video about the company...

Let us then learn...

Is American Income Life a pyramid scheme?

American Income Life is not a pyramid scheme. It’s a legal and legitimate insurance company that sells real life insurance plans.

These are well compensated for and they pay their customers on their terms, of which includes the profit their customers have made. Their members can also still earn money without recruiting people, and that is by selling life insurance plans. 

ut even if this happens, it’s still worth asking… Is American Income Life a pyramid scheme in disguise?

What is a pyramid scheme?

A pyramid scheme is a company that operates and survives by means of recruitment alone. They let their members recruit people for them to earn money.

Because of this, many governments from across the globe have already banned companies such as this because it’s impossible for them to continue operations knowing that their only means of earning money is recruitment.

Here is a diagram from Wikipedia that clearly shows how this happens...

Members who are making the most money are those who recruit a lot of people.

So, the more recruits they get, the more money they make.

And check back on the diagram above, and you’ll see that it’s just impossible for members to make money in the long run because the number of potential members are going to run out sooner or later...

Here is a 5-minute video that is going to show you how you can spot a pyramid scheme in disguise...

Know more about your chances of success by learning why...

Success is rare with American Income Life

Success is hard to achieve with MLMs such as American Income Life.

Note that between 72.5% and 99.9% of members lose money.

92.3 Percent of Members Lose Money in MLMs

This is because MLMs have a sales quota that forces members to sell a certain number of products so that they can get commissions.

Failing to do this means that they’ve got no other choice but to just buy the products themselves just for them to stay active.

This is why members are losing a lot of money from their own pockets before they can get their first recruit.

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How does American Income Life Work?

American Income Life works by selling insurance plans to companies and individual clients.

These insurance plans are called life plans because they insure a specific amount of money whenever the customer goes through specific life happenings such as hospitalization, injuries, accidents, or even death.

Aside from this, the company also has an affiliate program which gives people an opportunity to work from home by selling these life insurance plans in exchange for commissions and bonuses.

It sounds nice for both sides, but it’s actually just the company that is gaining a lot from this because they save millions of dollars in supposed marketing campaigns as they just let the members do all of the hard work in promoting and marketing.

American Income Life products

It is important to know the products or offerings that American Income Life has for you to have a better understanding of the company.

In this case, American Income Life sells various life insurance plans that covers different situations and life scenarios.

Here are some of their best-selling life insurance plans:

  • Life insurance - An insurance plan that covers the life of the customer. This means that if something happens to them, such as death, their family can receive a certain amount of money. If nothing happens to them in a certain time frame, they get the money back, plus the bonus additional payment.
  • Accident and health insurance - An insurance plan that covers all the health-related expenses of a healthy person.
  • Accident protection - An insurance plan that covers the expenses if the person is caught in an accident. The person’s family can also get cash benefits if the person dies from an accident.
  • Hospital indemnity - An insurance plan that covers all the hospital bills of a person.
  • Critical illness - An insurance plan that covers all the health-related expenses of a person diagnosed with terminal illness.
Is American Income Life a Scam: Products

Also, note that there are many other similar companies that sell the same stuff, such as :

Now that you know what they are really offering, it’s now important to learn if...

Check out this 2-minute video to learn more about the company's offerings:

It is then important to ask...

Can you make money with PRODUCT?

Yes, you can make money from American Income Life. But it is going to be hard especially if you don’t have a huge network.

The money you’re going to make will also be small, and can even be compared to that of minimum wage. And you have to work for more than 8 hours a day just trying to convince people to join.

The company does not even have an income disclosure to prove that the members are indeed making money...

How to make money with American Income Life

You have to do these 2 things to make money:

  • Sell life insurance plans
  • Recruit members to the company

But take note that you can only earn bonuses from your downline members’ sales and not from just recruiting them...

How much does it cost to join American Income Life?

The subscription fee to become a member of American Income Life is $490.

It might sound expensive, but this already includes all the comprehensive training you need to become an effective and successful sales agent.

American Income Life monthly cost

There is no monthly quota for you to become an active member.

So, that means that the minimum costs you are going to take on your first year is…

  • $490

Minimum costs for year 1 = $490

But also take note that this does not yet include the other costs you have to consider such as marketing, travel, gasoline, food, and many more miscellaneous plans.

American Income Life compensation plan

Most MLMs always have complex and confusing compensation plans. The same goes for American Income Life.

Good thing, though, you have found this article, because I’ll be simplifying things up for you.

American Income Life offers members 2 main ways for them to make money:

  • Sales commissions - Earn a 50% commission from every life insurance plan you have sold.
  • Residual commissions - Earn a commission from the life insurance plan sales of your recruited members. I’ve scoured the internet to find the percentage amount, but there’s none to be found.
Is American Income Life a Scam: Compensation

Some might find this confusing, while some might see it’s simple.

Nonetheless, that’s the oversimplified version of their complicated compensation plan.

To make things even simpler, you really just have to do 2 things. These are:

  • Sell products
  • Recruit people

I can't find a video that specifically talks about their compensation plan.

But here's a 1-minute video that is going to help you know how much to make from American Income Life...

Or you can find the full compensation plan here.

Is American Income Life a scam?

No. American Income Life is not a scam.

The company is one of the pioneering life insurance MLM companies in the US, sells legit life insurance plans, and pays members correctly.

But some members are disgruntled to know that they still haven’t broke even with their subscription fee because they still can’t recruit members.

Hence, they then immediately call the company a scam.

Just to be fully transparent with you, I am not a distributor myself and I do not endorse it in any way.

I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn how to “Spot an Online Marketing Scam” then click the highlighted text.

Tired of MLMs? Check out how I make money online here!

What I like about American Income Life

Key Terms:

  • Pyramid Scheme – recruits members via a promise for payment from recruiting others into the company rather than providing a product
  • Affiliate Marketing- Connecting a customer to a product they are looking for and receiving a commission for doing so
  • Red Flag - A warning sign

#1 Positive reviews

There are a lot of positive reviews about American Income Life.

Here’s one good example of that…

Is American Income Life a Scam: Pros

As you can see, it’s accredited by the Better Business Bureau. It also has an A+ rating, which means it’s a good company.

This is a good sign that you can sell the insurance plans of the company...

#2 Established reputation

MLMs have an average lifespan of 5 years.

Well, American Income Life was founded back in 1951. That’s a full 69 years of continuous operations.

I’m sure no words needed to be said about that, because this proves the company is legit and will continue to operate for many more years to come.

#3 Wise investment for clients

Life insurance plans are a wise investment for customers because they cover all the bills and expenses if you get yourself in an accident, hospitalized, or some other life situation.

If none of these happen to you, you can still benefit from it because you get an additional cash benefit...

What I don't like about American Income Life

#1 Expensive subscription

Becoming a member is expensive because you have to shell out a massive $490.

That’s still just too much even if they say that this already has all the necessary marketing tools and seminars...

#2 Stiff competition

There are a lot of life insurance companies out there. They number in the thousands.

And here are some of them…

Is American Income Life a Scam: Cons

Are you sure that you can compete with all of these brands? I doubt so...

#3 No income disclosure

American Income Life has been operating for more than 69 years.

But still, they don’t have an income disclosure.

This is important because this is where other people will see if they can actually make money from the company or not.

#4 Is American Income Life a pyramid scheme in disguise?

American Income Life is not really a full-fledged pyramid scheme. This is how their system looks...

MLM pyramid scheme

But it has some elements and signs that it is a pyramid scheme in disguise. This is because the only real way you can make a lot of money is by recruiting people.

The more people you recruit, the more money you make.

#5 Downward trend

Google Trends shows me this…


As you can see, there are less people who are searching for American Life Income on the internet.

This means that it is not anymore that popular.

You are going to have a hard time selling their life insurance plans knowing that not many people are interested in it...

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I've made a special video for you to explain exactly how I did this. 

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My opinion - American Income Life

American Income Life is a pioneering life insurance MLM company founded back in 1951.

They sell legit and useful life insurance plans, and also pays members correctly. But the subscription is just too expensive.

Add in the fact that there are a lot of life insurance companies out there and you’ll see that it’s going to be hard to sell their offerings.

And what can I say about their business opportunity?...

The only way to make money is by means of aggressive recruitment.

You need to know a lot of people and entice all of them to join American Income Life.

And you still do this even if you already know that they are going to have a hard time getting back their invested money in the subscription.

This isn’t a very attractive business for you.

Good thing there are many other business opportunities that are better out there and you can try for now...

How I make passive income online

MLMs are not scams or illegal. However, I'm not a fan of them because of the restrictions to the expensive products you have to promote.

Once I learnt about affiliate marketing, I realised it's a far superior business model because:

  • You can promote anything you want and truly own the business
  • You never need to sell to friends and family
  • It's completely free to start

In 2018 I had no idea what affiliate marketing was.

But I went from a full time PE teacher to making a passive income online within one year...

Mike PE teacher to Passive Income Online

If you want to discover how I did it then check out this special video I created which explains exactly how. You can also get your free 7-day bootcamp to get started.

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