American United Life Insurance Review [2021]

Our American United Life Insurance Company review covers this company's term and whole life insurance with the option to convert from term to whole if necessary. Its financial strength is rated A+ by A.M. Best. American United offers a unique cash value whole life insurance policy that we will explore in more detail as well.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Feb 16, 2021

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Quick Facts

  • American United Life Insurance Company has been operating in the United States selling life insurance since 1877.
  • In 2000, the company joined parent company OneAmerica.
  • OneAmerica also owns a number of financial service firms that offer consumers a host of services from retirement planning to investing.
  • One of American United’s most celebrated life insurance products is its cash value life insurance.

This American United Life Insurance Company review will focus mainly on the life insurance products offered. This company two life insurance products: term life insurance and whole life insurance.

How much life insurance do you need? The answer to this question will help you decide between term and whole life insurance policies.

Our review will also look at the way this company’s cash value life insurance policies work. We’ll help you understand the pros and cons of this type of life insurance.

Even though American United Life Insurance Company has been in business for well over 140 years, they have only recently (in the last 20 years) joined parent company OneAmerica.

OneAmerica offers more broad financial and insurance services to consumers. American United is the main life insurance provider of OneAmerica.

Let’s take a closer look at American United, the life insurance policies they offer consumers and the financial strength of the company. Read more to learn everything you need to know about American United.

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What life insurance products does American United offer?

Compared to many other life insurance providers, American United’s offerings are rather simple. The company offers consumers two life insurance options: term life insurance and whole life insurance.

Depending on your unique situation one of these options may be more attractive than the other. Let’s dive a little deeper.

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Is term life insurance right for me?

Term life insurance is generally the most affordable life insurance option. This type of insurance will only cover you for a specific term. American United offers term life insurance policies with 10, 15, 20, and 30-year terms.

Term life insurance is a great option for protecting income in the event of an untimely death and ensuring the mortgage or another major loan will be covered should you die. Since term life insurance is temporary it’s way more affordable than whole life insurance.

Average Annual Term vs Whole Life Insurance Rates: $100,000 Policy
Policyholder Age & Tobacco UseAverage Annual Term Rates: MaleAverage Annual Term Rates: FemaleAverage Annual Whole Rates: MaleAverage Annual Whole Rates: Female
25-Year-Old Non-Smoker$178.54$160.57$1,124.40$1,018.92
35-Year-Old Non-Smoker$185.04$165.91$1,538.88$1,355.16
45-Year-Old Non-Smoker$267.89$240.25$2,289.48$2,918.04
55-Year-Old Non-Smoker$524.95$406.94$3,538.08$5,060.28
65-Year-Old Non-Smoker$1,273.12$880.66$6,336.00$2,445.24
Average Annual Rates for Non-Smokers$485.91$2,235.31$2,965.32$2,445.24
25-Year-Old Smoker$321.76$248.75$1,387.44$1,282.08
35-Year-Old Smoker$360.23$286.18$1,886.52$1,749.72
45-Year-Old Smoker$637.51$493.20$2,692.44$2,469.12
55-Year-Old Smoker$1,364.09$991.63$4,196.88$3,846.12
65-Year-Old Smoker$3,245.05$2,235.31$7,200.48$2,445.24
Average Annual Rates for Smokers$1,185.73$851.01$3,472.80$3,034.32
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What is cool about American United Life Insurance Company is that they allow you to convert your term life insurance policy to a whole life insurance policy should your needs change. This is a great choice for people who may want whole life insurance but can’t afford it at the moment.

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Why should I consider whole life insurance?

Whole life insurance never expires and it even grows a cash value over time. American United offers an interesting brand of whole life insurance typically referred to as cash value life insurance.

This is a type of whole life insurance that gains value over time by adding interest based on market performance to your cash accumulation.

The great thing about these policies is that even though the market influences the interest accumulated, the policy is not directly tied to the market so any dips will not negatively affect your cash value.

The pros and cons of cash value whole life insurance?

Cash value whole life insurance policies have a lot of positive features. Let’s take a look at some of the top pros:

  • Your policy has a guaranteed cash growth rate each year independent of market performance.
  • You can borrow money from your policy without the obligation to pay it back.
  • You can surrender your policy, or cash out, and be paid the cash value of your whole life insurance policy.
  • Your cash value grows tax-deferred so it grows faster.
  • Death benefits to heirs are typically tax-free.
  • American United offers whole life policyholders the ability to earn dividends on their policies.

As you can see there are many good reasons to choose a cash value whole life insurance policy, but there are some cons to these types of policies too:

  • There are other more affordable tax-deferred cash growth/investment opportunities such as 401(k) and IRA accounts.
  • Cash value whole life insurance policies are a lot more expensive than term life policies, and there could be associated management or surrender fees with these policies.
  • You can borrow from your policy, but this also reduces the benefits for your heirs. It is important to know that you will be reducing the accrued interest on the money borrowed as well.
  • The cash value of your policy can be affected by other factors out of your control including mortality rates in your locality.

There are a lot of good reasons to be both excited and wary about cash value whole life insurance policies. You need to determine if the costs of these policies are worth it for you.

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What is the financial strength of American United Life Insurance Company?

American United Life Insurance Company has the highest possible financial strength rating from independent reviewer A.M. Best. The rating for this company is an A +, which means the financial health of the company is superior.

Why should you care about the financial health of your life insurance company? Companies with high financial ratings are more likely to be able to pay out benefits in a timely manner. Some companies with low financial ratings may not be able to pay benefits at all.

It is very important to check on the financial strength of your insurer before you choose to do business with them.

American United Life Insurance Company Review: The Bottom Line

This company has only a couple of life insurance options: term and cash value whole life. However, the services offered are high-quality and can be completely customized to meet your needs.

If you’re not able to afford whole life insurance at this point in time, American United will allow you to convert your term policy to a whole life policy down the road.

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