American United Insurance Review

Whole and Term coverage through a financial professional

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American United Insurance

American United Insurance

overall rating
4.5

Our Take

American United offers term and whole life insurance policies sold exclusively through financial professionals or group life insurance programs through your employer. It’s a great option if your employer is offering its plans or if you need affordable coverage to take care of your life insurance needs. 

  • Pros & Cons
  • Key Takeaways
  • Specifications
Pros & Cons
Pros
  • Can get term coverage of 10, 15, 20, or 30 years

  • Level premiums

  • Level death benefits of policies

  • Offers life insurance with added long-term care benefits

  • Sells annuities with or without long-term care benefits

Cons
  • Unclear what riders are available on which policies

  • Does not offer universal or universal life policies

  • Likely to need a full medical exam

  • Few policy details on website

  • Does not offer auto or home insurance

Key Takeaways
  • American United sells term and whole life insurance policies via brokers, agents, dealers, producers, and other financial professionals or directly to employers through group plans. You cannot buy coverage directly from the company.
  • The company offers fee-based asset management to help you with things like stock and bond trading, mutual funds, variable annuities, and life insurance. 
  • While they offer annuities and long-term care coverage, American United does not offer other kinds of coverage such as critical illness insurance or disability coverage.
  • American United has a level benefit period on their term policies. When it ends, the death benefit reduces in value annually over five years until the policy is worth nothing.
Specifications
  • Year Founded 1947
  • Kinds of Plans Term, whole
  • Number of Plans 2
  • Payment Options Online, automated payment, bank transfer, credit card, payroll
  • Official Website https://www.oneamerica.com

Introduction

American United is a mutual and insurance company that sells term and whole life insurance products directly to consumers and through employer group plans. It also sells annuities, long-term care insurance, and operates as a fee-based investment service. 

We reviewed American United’s policy offerings, riders, pricing, customer service, industry ratings, and more to help you decide if its policies are right for you.  

Company Overview

American United is headquartered in Indianapolis, Indiana, and claims to hold over one million life insurance policies. The company, which, since 2004, also operates under the name OneAmerica, was founded by the Knights of Pythias in 1877 and has over 2,000 employees. It is rated A+ by AM Best for financial strength and also owns and does business under the following companies: The State Life Insurance Company, Pioneer Mutual Life Insurance Company, and McCready and Keene. 

American United is licensed for business in every state except New York. 

Available Plans 

American United offers term and whole life insurance policies through a network of financial professionals rather than directly through the company. The company offers a few options to customize your coverage and some unique types of insurance that mix long-term care coverage and life insurance. It does not explicitly state the terms of the group coverage on their website. For more information, contact your HR department if they have an American United plan. 

Term Life Insurance

American United offers term coverage in policy terms that range from 10, 15, 20, and 30 years. The company does not list the minimum or maximum coverage amounts on its website, although it does indicate that the policy’s premiums are level, which means that they remain the same for the life of your term policy. Your death benefit will also not decrease during your term.

After the level benefit period ends, the death benefit then decreases annually and the policy will be worth nothing five years after the level benefit period. You can convert your term life insurance policy into a permanent life insurance policy at any time. 

Whole Life Insurance

American United also offers whole life coverage that covers you your entire life. The company does not list minimum or maximum coverage amounts for their whole life policies, so you will have to contact a financial professional to find out more. Note that whole life policies tend to cost more than term life policies, but this whole life policy has a level premium and a level death benefit. 

You can also customize your whole life insurance with several riders, including long-term care coverage. One benefit of American United’s whole life policy is that it allows the cash value to grow in your policy that you can borrow in the form of a policy loan. You can also earn dividends on your policy. 

Note

A medical exam is often required for underwriting both term and whole life insurance policies by American United.

Available Riders

American United offers a wide variety of life insurance policy riders on its whole life insurance policies but they are not all listed on the website. For a full list and information about the costs involved, you will need to speak with a financial professional or your HR administrator

Here are some riders American United offers: 

  • Accelerator paid-up additions rider: This rider allows you to purchase completely paid-up insurance that provides you with a guaranteed cash value under a limited payment term. 
  • Accelerated death benefit rider: This rider provides access to part of your death benefit if you are diagnosed with a terminal illness. 
  • Long term care rider: This rider is only available on a whole life insurance policy and allows you to get life and long term care coverage in one policy. 

Customer Service: Good Phone, Mail, and Email Options

American United has a call center to provide policyholders and potential customers with help and support from 8:00 a.m. to 10:00 p.m. ET Monday to Friday. The company can be reached by calling 1-800-249-6269.

You can also contact the company via mail and email. 

Customer Satisfaction: Fewer Complaints Than Average 

The National Association of Insurance Commissioners (NAIC) provides insurance companies with ratings that are meant to help insurance customers view customer satisfaction based on complaints. If a company has an NAIC rating of 1, it means that it fields an average number of customer complaints. If a company gets an NAIC rating of more than 1, then it fields an above-average number of complaints, and if a company receives an NAIC rating of below 1, then it receives a below-average number of complaints. 

American United has an NAIC complaint index of 0.63, meaning that it receives fewer complaints than its competitors. In total, it has a 0.03% of the national complaint market share. Many of the complaints received were for issues with billing or complaints about the company’s coverage. 

Financial Strength: A+ (Superior)

AM Best is known for its ratings of companies for financial strength or their likely future ability to fulfill their financial obligations. To get a rating, AM Best assesses factors including the company’s relative strength, balance sheet, performance, and liabilities.   

American United has an A+ (Superior) rating from AM Best. 

Cancellation Policy: Must Contact the Company for Cancellation Info

American United does not list its cancellation policies online. However, most insurance companies offer a free look period on life insurance where you can cancel your coverage at any time within the free look period without penalties and with a full refund of your premiums. Typically, free look periods last between 10 and 30 days. 

Before you purchase a policy, be sure to read through the fine print so that you know if there are any cancellation fees. Also, if you purchase a permanent life insurance policy from American United, be sure to look at how they calculate the policy’s surrender value, which is the cash value amount that your policy is worth that they have to pay out to you if you cancel your policy. 

Price Of American United Life Insurance: Varies by Policy Type

American United doesn’t give out online quotes for their group or individual policies. To learn more about the price of a policy, you will have to reach out to a financial planner who sells American United products or your HR representative at work. 

As with most life insurance, your premiums will likely vary greatly depending on variables like your age, general health, pre-existing conditions, gender, smoking status, and other factors that influence your risk profile. 

Note

Your pricing might depend and change depending on if you are purchasing a plan from a group plan or individually. Generally, companies offer better rates on group policies.

How American United Compares to Other Life Insurance

American United offerings are limited compared to some of its competitors, but there are other competitors such as Companion Life Insurance that only offer term policies and fewer customizable options. 

American United vs. Companion Review

American United and Companion Life Insurance are both insurance companies that offer group insurance plans, but Companion Life Insurance does not also offer individual plans. Both American United and Companion Life Insurance offer term insurance but they structure it differently. Companion Life Insurance offers coverage that is in yearly amounts with the potential to lock in your rate for five years whereas American United offers conventional term lengths. Both companies have several accessible customer service options through which to contact them. 

These are some other key differences between American United and Companion:  

  • American United offers whole life insurance coverage options.
  • Companion Life Insurance has a much higher complaint index rating. 
  • Companion Life Insurance offers riders to cover your spouse and children. 
  • American United sells riders that allow you to pay off your coverage premiums earlier and offers level premiums—two things that Companion Life Insurance does not offer.
  American United Companion Life Insurance
Types of Plans Term, whole Term
Customer Service  Phone, email, mail Phone, email, mail
NAIC Complaint Index 0.63 1.47
Optional Riders Available Yes Yes
AM Best Rating A+ A+
Expert Tip

Paying a higher premium over a 10-year period might allow you to save money in the long term, but do the calculations to ensure you’re actually saving.

Final Verdict

American United has a limited number of life insurance options for groups and individual customers. There are companies that offer more coverage options, riders, and types of life insurance directly to consumers that might be a better fit for your needs and give you more choice. However, their group coverage might be a good option if you can access a reasonable rate at a level premium and be able to choose between term and whole life coverage through your work. 

American United is a good choice for people whose employers have a group plan and it might also offer you the coverage that you need individually through their direct-to-consumer plans, depending on the policy details and your particular situation.  

Methodology 

All of our reviews of life insurance companies are based on extensive research and analysis of each company’s offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.