• Report: #25432

Complaint Review: American Income Life Insurance

  • Submitted: Fri, July 26, 2002
  • Updated: Fri, March 18, 2005

  • Reported By:lancaster pa
American Income Life Insurance
845 Sir Thomas Ct. Ste 5 Harrisburg, Pennsylvania U.S.A.
  • Phone: 888-729-8646
  • Web:
  • Category: Employers

American Income Life Insurance Questionable integrity, money oriented management, unhealthy corporate climate. I wouldn't work there. Employees are treated like money making property Harrisburg Pennsylvania

Rip-off Report Investigation: American Income Life / National Income Life join Rip-off Report Corporate Advocacy Business Remediation & Customer Satisfaction Program and submit to independent investigation. American Income Life / National Income Life pledges to resolve all legitimate complaints and address any issues from the past, present and in the future. Waco Texas, Nationwide

*UPDATE EX-employee responds: God complex or Satan, NILICO, AIL, Local 277, Kentucky tobacco chewer, wouln't want to clean your 7 teeth

*Consumer Comment: AIL vs MetLife You said it yourself, you've never worked for AIL.

*UPDATE EX-employee responds: Thanks Joe, I hope all managers read this

*UPDATE EX-employee responds: The IRS and AIL

*UPDATE EX-employee responds: AIL, NILICO , LOSERS LOCAL 277, THEIVES

*UPDATE EX-employee responds: AIL is a rip off *BEWARE OF IRS PROBLEMS WHEN YOU LEAVE*

*UPDATE EX-employee responds: Not for everyone

*UPDATE EX-employee responds: Flat out lie

*Consumer Comment: Independent contractor, franchisee, or direct seller -- which are you?

*Consumer Comment: What is all the complaining about.......

*Consumer Suggestion: Jeff in Lancaster, PA is not alone!

*Consumer Suggestion: Jeff in Lancaster, PA is not alone!

*UPDATE Employee: AIL is tough for sure, but the top people do make good money

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I recently graduated from college with a business degree and was offered a job with this company. I was told their average agent makes $50,000 to $70,000 their first year with some agents earning $100,000. I was fired (my job offer was revoked) after I asked the secretary how many people were successful other similar questions.

Consider the following before working at American Income Life:
Training is approx. 16 hours a day, 6 days a week, for 4 weeks.
Company will NOT pay anything for your instructional training.
Company will NOT even invest $100 for you to get your license.
Company offers no salary and doesn't guarantee a minimum commission.
You are expected to work 60-70 hours a week (evenings and weekends).

Think about it:
If everyone made at least $50,000 a year then why wouldn't the company invest any money for you to obtain a license or pay for your training.

If everyone made $1,000 a week, then why wouldn't the company at least guarantee you a minimum commission.

As far as I know, there are NO BENEFITS like health insurance, dental insurance, or vacation time.

I hope you don't make the same mistake I did. If your want a sales career, I urge you to consider another company.

Jeff
Lancaster, Pennsylvania


This report was posted on Ripoff Report on 07/26/2002 03:24 PM and is a permanent record located here: http://www.ripoffreport.com/r/American-Income-Life-Insurance/Harrisburg-Pennsylvania-17109/American-Income-Life-Insurance-Questionable-integrity-money-oriented-management-unhealth-25432. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 UPDATE EX-employee responds

God complex or Satan, NILICO, AIL, Local 277, Kentucky tobacco chewer, wouln't want to clean your 7 teeth

AUTHOR: Jimmie - (U.S.A.)

There is a fine line and I believe Satan tries to pretend to be a God type to fool the weak. What I saw reminded me much more of Satan than God. You are right he talks the Bible and how his kids do missionary works but he drinks and gambles. He promotes gambling in his office and has a spinning wheel in his meetings that agents are forsced to engage in. They tell so many lies they can't keep them straight. He treats his managers like the crap that they are. He promotes the liars.

He thinks he is doing everything the right way. Why did AIL force him to stop selling the $200 accident benefit? They know he is full of crap. Why does he move around so much? To Paula, your explanations seemed to be some of the most intelligent ones I have read on these sites.

I had the misfortune of working with these liars and thieves for 2 years. Why the state has not pulled their license yet is beyond me. I'm researching that site to learn more about not getting sucked into a crap job like that again.
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#2 Consumer Comment

AIL vs MetLife You said it yourself, you've never worked for AIL.

AUTHOR: Anonymous - (U.S.A.)

Bryan: You said it yourself, you've never worked for AIL. Case and point.
If you had any idea how many people came and went in the year I wasted working for those weasels, how many people who had hard times trying to feed their own KIDS because the job paid so little while they worked so hard, not to mention the countless tearful agents I saw each night after "selling" for 12 hours straight and STILL blanking...it would make you sick.
Let me also say this: any company who deceives their target market in order to get a commission is garbage in my book. And you wanna talk residuals? Good luck getting these people to keep paying on their policies, especially once they've figured out they've been robbed.
AS FOR THE NY BRANCH--I KNOW who your SGA was, and he's got a God complex to begin with. And I bet he was yelling at your MGA's because when their numbers look bad HE looks bad, and plenty of people said from day one he couldn't handle that position to begin with.
Bryan I'm not trying to bash you...but you have no idea what this company is like. Lies, deceit, false hopes...how could ANYone say that's a "good thing?"
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#3 UPDATE EX-employee responds

Thanks Joe, I hope all managers read this

AUTHOR: Jimmie - (U.S.A.)

You never know how bad it is really was until you are gone, like taking a healthy dump. Nobody could have guessed ahead of time that it could smell that bad. I know a manager that left Rochester for Philly a while back with a promise of promotion within 6 months to become a SGA.

Word from the locals is that he got burnt out of that position as well after selling his home and moving.

He is averaging about $300 per week now, for 60-80 hours per week. The Rochester SGA screams at his managers about dropping numbers after taking away the accident benefit every Thursday before the regular meeting, then he can't figure out why the managers are all talking about him behind his back and warning others not to join management since it was the biggest mistake they made.

The office manager lies to the boss every day and the entire office knows it. It's almost hilarious looking back now.

He always wants to know who is talking negative about this great oppurtunity unlimited scam. Hey DOPE, they are all talking about you spittoon spittin chewin tobacky red neck! We all know you are a liar.

Most are looking for a real job right now. The numbers are so bad they don't even share the information anymore.

Why do you think your managers are now asking about the contract they signed and had pulled from their hands.

They want to know how much they owe when they leave not how much they were promised in renewal and bucket money.

You proved it recently and your entire office knows the truth. Have fun recruiting in group interviews (MLM) and training people that last 1-2 3- weeks and once in a great while 6 months but as you said in your meeting only 9% last one full year.

You treat them like your brother, that's right he is still following you.

One loyal employee, I don't think so he even talks about you.
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#4 UPDATE EX-employee responds

The IRS and AIL

AUTHOR: Joe - (U.S.A.)

Here you go.....
Keep in mind this happened to me and all of the co-workers in my office that I kept in touch with. I can't say anything about any other office.

The money that was being paid in to my account, through client premiums, once I left was still being reported as income. So not only did I get taxed on the money that I earned while I was there but then I got taxed on the money that my clients were paying in to their premiums after I left.

Hence you get a tax bill for income that you never received. They tax you b/c at some point it is assumed that you are going to receive the renewals. These tax bills went on for years for some ex-agents.

I was lucky because I was just an agent. The managers tax bills, once they left, were unreal.

If you work there have them close out your account ASAP.

And if you are a manager,limit your debt by decreasing the amount of money they pay you up front on your agents commissions.

Once you leave it is up to them to decide when to close your account and it never happened for me.

Hope this helps.
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#5 UPDATE EX-employee responds

AIL, NILICO , LOSERS LOCAL 277, THEIVES

AUTHOR: Jimmie - (U.S.A.)

Hey Joe,
Tell me more about the IRS scheme, I'm done with these liars and can't get the truth about getting any so-called bucket money that is supposed to be spilling all over the floors. Did they give reports, customers, retention,chargebacks of your money and accounts after you left? Did they ever give you guys a copy of the contract when so-called hired? How many agents know that nobody gets any money for at least 180 days after leaving their dream career? It all goes to chargebacks from deals that drop off. Most get nothing! How do you know if your account is closed? The lies they tell are huge. Have you spoken to Mark Colbert the private investigator who sues AIL? He has his own web site at markcolbert.c*m. He used to be an agent and now sues corrupt insurance companies. Does any union worker of the Local 277, know how to contact their union rep? Why is there no address or phone number on their union cards? Why doesn't the National OPEIU shut down these scammers? Did they take money from your checks for dues and Democratic "DONATIONS"? Here they told us to tell union members to vote for Democrats, the folks who brought us NAFTA, that sent so many union jobs out of the country. They even printed flyers and told us to give them to union members, I took plenty to the nearest dumpster.
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#6 UPDATE EX-employee responds

AIL is a rip off *BEWARE OF IRS PROBLEMS WHEN YOU LEAVE*

AUTHOR: Joe - (U.S.A.)

I understand where people can tell everyone who is complaining to suck it up and so on. I was an agent for a couple of years in their Conshoken, PA office and I will tell you this..it takes two.

Our office went under. Unions realized that we were full of it and they wouldn't talk to us.

Training - We were constantly told by management that we would not have to work bad neighborhoods, but I was constantly sent to the worst sections of Philadelphia. By the way to that moron who said that paying you to sit and learn wasn't worth paying, you have no idea how the business world works. And again moron, if you know so much about insurance you would realize that 50% commision is for bottom feeders. Be a real agent get a 100% contract by contracting yourself out to non captive companies which I have and generate your own leads.

IRS Issues - They talk about renewals but if they do not close out your account,which they never did for any of us, you can end up having to pay taxes on all the money that is being paid by your clients even after you have left the company. A year after I left I got a tax bill of over $2,700.

Credibility - Look at the ads in the newspaper, they don't even tell you they are an insurance company.

No one made money there, they were nothing but liars. STAY AWAY!!!!
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#7 UPDATE EX-employee responds

Not for everyone

AUTHOR: Michael - (U.S.A.)

I used to work for AIL about two years ago and all that they tell you is true. The commissions are high and the earning potential is unlimited. All of that is true. They do give you leads but they are not warm leads. These are union members who have signed up for a health discount card. You call these people to set-up an appointment to deliver their health discount card. You never mention insurance to them and do not mention it until you are in their homes and you hit them with your insurance presentation. I will admit, the leads do help because they give you a reason to call and a reason to go to their home. It's somewhat misleading because these are NOT insurance leads. These people have no idea that you are an insurance agent and that you are there to sell them anything. Also as an agent, there is are no medical, dental, vision, or any other benefits. I was told otherwise during my interview.

I'm not here to bash AIL because it does work for some people. There were people in my office making big bucks. You just need to decide whether or not it's for you and if the efforts are worth the rewards. It wasn't for me but it might be for someone else.
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#8 UPDATE EX-employee responds

Flat out lie

AUTHOR: Patrick - (U.S.A.)

John fron Atlanta wrote...
"AIL's top people will sell $20-25k a month, and with the monthly bonus added in, that's about a $15,000 a month income.."

That is achievable, but there are less than 10 sales people in the company who make that with their own sales. I used to work with a Top 5 agent and their best week ever was $16,000 in sales. A very select few can do that, as in only about 2-3 people in the entire company.

John also said "the average agent sells about $10,000 a month..."

Thats a lie, too. If you look at the company magazine that comes out every month, the top 20 people in sales are listed. Usually the 20th person is in the 10-15k range FOR THE ENTIRE MONTH. What about the other ~2000 agents? The average agent company-wide sells about $4000-5000 PER MONTH.
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#9 Consumer Comment

Independent contractor, franchisee, or direct seller -- which are you?

AUTHOR: Paula - (U.S.A.)

Byran in Northern California wrote: "Also, when your insurance license is granted by the state it's yours for as long as you want it. You can now sell insurance for any company in the state, not just them. Another point being is that if you'd like you can probably go out and get a producer appointment with a health insurance company or two and sell that on the side. Any money you make on that is ALL yours to keep."

Not if your firm has a non-compete agreement, and I can't imagine it doesn't. You should definitely make sure about this before you attempt to sell other carriers' insurance products.

Byran in Northern California also wrote: "As an independant contractor you are your own boss but must kick upstairs as payment for letting you work with their product, just as a subway restaurant owner must pay monthly to the corporate office in order to keep his franchise."

Incorrect. A franchisee is not an independent contractor. Many financial services firms incorrectly tell you they've hired you as an "independent contractor" (IC) when you are in fact a "direct seller" (a type of statutory non-employee), which falls somewhere in between an IC and a franchisee, and is the classification MLMers fall under. You are NOT your own boss (just try to perform your services for others concurrently or take your clients with you as an IC can!), and you lack the rights of a franchisee -- especially the immediate, viable market that franchisees pay for as part of the whole franchise deal. Free leads hardly constitute an immediate, viable market.

Byran in Northern California also wrote: "The bottom line is quit your complaining about all this time and effort you have to put in just to see somebody make money off of your effort. If you're going to have that type of attitude then boy wouldn't you be pissed off you were a programer at microsoft, making a million or two a year while your boss makes BILLIONS off your work."

Weak analogy. If I work for Microsoft, I would be performing a job and enjoying the security of being an employee, along with the benefits that comprise a third of my compensation, as well as eating the income limitations inherent in that choice. Microsoft offers no illusions about employees becoming wealthy franchisees. Microsoft got rich selling products through traditional retail, not direct selling.

Bryan, you might speak to some independent insurance brokers and emulate them, since that appears to be the route you're leaning towards.
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#10 Consumer Comment

What is all the complaining about.......

AUTHOR: Bryan - (U.S.A.)

First of all, I do not work for the company involved but know a few individuals that do.

Second of all, I do work in the insurance industry and when I started it was with the biggest insurance company (in terms of profits) in America....Met Life.

Third, I paid for ALL MY TRAINING AND LICENSING when Met hired me, with the exception of my securities license ( but i did have to pay for the study materials for that license w/o reimbursement).

And yes there were a few people in the MetLife office that were making money for everything I was selling, so by that logic then MetLife must be a MLM scheme to, or any insurance company for that matter, because at the next insurance job I went to there were people in the office making money on everything I sold. ARE YOU SEEING A TREND HERE!!! It's just common sense, not once have i heard anybody talking about having to pay for their own Errors & Ommissions coverage (required to sell insurance products) which leads me to believe that AIL must be picking up that bill and that ranges around $400 per individual/ per year.

Also, when your insurance license is granted by the state it's yours for as long as you want it. You can now sell insurance for any company in the state, not just them. Another point being is that if you'd like you can probably go out and get a producer appointment with a health insurance company or two and sell that on the side. Any money you make on that is ALL yours to keep.

The bottom line is quit your complaining about all this time and effort you have to put in just to see somebody make money off of your effort. If you're going to have that type of attitude then boy wouldn't you be pissed off you were a programer at microsoft, making a million or two a year while your boss makes BILLIONS off your work.

As an independant contractor you are your own boss but must kick upstairs as payment for letting you work with their product, just as a subway restaurant owner must pay monthly to the corporate office in order to keep his franchise.

One thing that intrigues me is the fact that this company generates leads for you, FOR FREE EVEN. If you are in any type of financial industry, this is then I'm sure you understand that this is a HUGE selling point. Leads aren't easy to come by on your own, but if you're just being given them and still can't succeed, go find a different career because sales, insurance, financial services, and brokering are NOT the careers for you.

As I said I do not work for the company but know a few that have. They are very talented when it comes to sales as am I but since they are getting very warm leads and I am doing alot of cold calling, in their short time with the company they are already making 2-3 grand more a month then I'm making at a job that I have been at twice as long.

Needless to say when I see how much they are making and know that I am just as skilled as them, I'm thinking of giving AIL a try.

Like I said, I can still continue to sell financial products and health insurance on the side, and by doing that i will reap all the commissions of those products without having to KICK UP in doing so. Which means I don't have a problem with kicking up for selling AIL products.

Bottom line-----WORK HARD MAKE MONEY, IF YOU DON'T WANT TO WORK HARD THEN WORK FOR THE STATE OR FEDERAL GOVERNMENT. The last time I was in a state agency the whale that helped me was a little irritated because I interupted her eBay browsing. Glad my tax dollars are hard at work!!!
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#11 Consumer Suggestion

Jeff in Lancaster, PA is not alone!

AUTHOR: Paula - (U.S.A.)

I cannot speculate as to whether AIL is scamming anyone, but Jeff in Lancaster, PA is not alone in feeling misled by a company in the financial services industry. It seems that sector is rife with complaints from former employees/contractors, many describing a vague job interview involving a "management-level" position in which details may have been deliberately hidden because the job may be unattractive to most. The job may in fact simply be a way to grab the trainee's "training fees" and clients before leaving him so broke that he must seek steady employment elsewhere (and leave his commission trails behind as well). I seriously question whether John in Atlanta, GA, is still employed with his company; so, so many quit after only a few months of being unable to earn a livable income, and this after supposedly hearing all the "facts" and having no reason whatsoever to fail.

There is an entire site addressing general potential employment scams in the financial services industry at http://www.armydiller.com/financial-scam.index. Those considering a "financial consultant", "management trainee", or "financial sales" job might take a peek before accepting a job offer!

As the old saying goes... if it sounds too good to be true, it usually is.
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#12 Consumer Suggestion

Jeff in Lancaster, PA is not alone!

AUTHOR: Paula - (U.S.A.)

I cannot speculate as to whether AIL is scamming anyone, but Jeff in Lancaster, PA is not alone in feeling misled by a company in the financial services industry. It seems that sector is rife with complaints from former employees/contractors, many describing a vague job interview involving a "management-level" position in which details may have been deliberately hidden because the job may be unattractive to most. The job may in fact simply be a way to grab the trainee's "training fees" and clients before leaving him so broke that he must seek steady employment elsewhere (and leave his commission trails behind as well). I seriously question whether John in Atlanta, GA, is still employed with his company; so, so many quit after only a few months of being unable to earn a livable income, and this after supposedly hearing all the "facts" and having no reason whatsoever to fail.

There is an entire site addressing general potential employment scams in the financial services industry at http://www.armydiller.com/financial-scam.index. Those considering a "financial consultant", "management trainee", or "financial sales" job might take a peek before accepting a job offer!

As the old saying goes... if it sounds too good to be true, it usually is.
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#13 UPDATE Employee

AIL is tough for sure, but the top people do make good money

AUTHOR: John - (U.S.A.)

First off, they DO pay for your training...they just don't pay YOU to sit there and learn.

They don't pay for any of those things because the money would have to come out of everyone's else's commission. The commissions are very high for the agents, but they do have to work hard to get the sale. If they paid everyone $500 a week to sell nothing, then that's what people would do...nothing. Yes, they could put you in a room and line people out the door to sign benefit papers, but then they'd be paying you $5 an hour.

I don't know anywhere that will pay you 50% commission, AND pay a draw AND pay for license...go to Edward Jones and get $2000 a month the first year and then get only 20% commission.

AIL's top people will sell $20-25k a month, and with the monthly bonus added in, that's about a $15,000 a month income..the average agent sells about $10,000 a month...if you're good, you have the *opprotunity* to do that right off the bat...but the top people set 50 appts a week, instead of the req. 25, get the picture? They are doing it, and you could too. If they took 10% from everyone's commission to pay non producers, then this top agent would be out $1500 that month...AIL just dosen't work that way. If you think you're good, and want to create your own business out of free warm leads then come out to play, if not, then stay home.

BTW--go ask a small business owner how many hours he put in at the begining. Go ask a corporate CEO if he works less than 60 hrs a week...this is America buddy, not France!

Also, AIL is a place for those without financial exp. Many use it as a springboard into other more comprehensive areas of financial sales. You MUST prove yourself somewhere...had you rather make 300 cold calls a day at Wachovia Securities or Prudential? Had you rather go independent and pay for leads? your choice.

And finally, after being laid off several times, dont talk to me about employees as 'money making property'...that is the truest definition of ANY employee anywhere.
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