Amica Life Insurance Review
Are you an Amica Mutual client interested in seeing whether or not bundling life insurance with your home and auto coverage is worthwhile?
Are you researching different insurance companies and wanting to see how Amica’s life insurance policies stack up against dedicated life insurance providers?
At Best Life Quote, we’ve conducted thorough research into the company when drafting a comprehensive Amica Life Insurance review for our readers.
About Amica Life Insurance
Amica Mutual has a reputation as America’s oldest mutual automotive insurance provider.
Founded in 1907, Amica started by offering automotive, theft, and fire protection.
Over the decades, the company has expanded its available policies.
Amica owns several subsidiaries and multiple locations across the country today.
Life insurance is one of 11 insurance categories that Amica provides.
It is no surprise that the company’s available life policies are simple compared to those that are more specialized in life insurance.
Amica Life Insurance’s Financial Ratings
While Amica’s pride in being the oldest mutual automotive insurance provider is justified, longevity alone is not proof of a company’s financial viability.
Independent resources are the best place to find information on a company’s financial ratings, so that is where we looked.
Amica Life Insurance has been a Better Business Bureau accredited company since 1957. Its BBB rating is an A+, the highest overall grade available.
While it does receive several complaints annually, the company addresses and resolves them quickly.
A.M. Best Company, one of the top independent review sources for business financial ratings, consistently rates Amica as A+ on its scale.
On A.M. Best Company’s scale, a rank of A+ is the second-highest possible rating.
What does all this mean?
Amica Life Insurance is profitable enough to pay out death benefits without bankrupting the company.
So you can purchase life insurance through them with confidence.
Amica Life Insurance Products
You can find three main types of life insurance policies: term, whole, or universal.
Term policies cover a set time, whole life policies are permanent, and universal policies combine aspects of both term and whole life options.
Amica Life Insurance offers both term and whole life policies.
Term Policies
Amica’s term life insurance policies are simple and well-priced. The company offers terms lasting 10, 15, 20, 25, or 30 years, with stable premiums.
If the insured dies during the term, their benefactors receive their death benefits. Or, the policy may be canceled, renewed, or converted to a permanent policy when its term ends.
Due to the relatively low risk of death occurring during the policy term, these plans are often the most affordable options for young adults.
Term life insurance plans protect the policyholder’s family due to premature or accidental death during life stages where they are least likely to own their home outright.
Medical exams are not always required during the application process if the insured qualifies.
Still, Amica may require blood and urine samples for those deemed higher risk due to health or lifestyle factors.
ANNUAL RENEWABLE TERM POLICIES
Amica offers a variation on a term life insurance policy that some other providers do not.
Annual renewable term (ART) policies are short-term life insurance policies lasting one year.
They are renewable annually, but the premium increases each year.
Annual policy renewals do not require repeating exams or new underwriting. And they are convertible to Amica’s regular whole life or permanent life insurance policies.
If you lose employer-provided life insurance or have other short-term life insurance needs, annual-term policies provide a means of remaining covered.
However, yearly premium increases make them unideal over the long-term.
Whole Life Policies
Although intimidating at first glance for some, whole life insurance policies are a powerful investment for those who can afford them early on.
What exactly is a whole life policy?
It is a type of life insurance policy that keeps your premiums and death benefit stable for your whole life.
During so, it is building a cash value available to you if you need it.
Term policies carry higher premiums as you age or accumulate health problems because of increased risk of death during their term.
The death benefit for whole life policies is a certainty, not a possibility.
Life insurance companies calculate premiums with this in mind. And they remain constant over the years regardless of health changes.
The premium for a young adult is much higher with a whole life policy, but this difference shrinks with each term renewal.
The premium for a term policy gets recalculated with every renewal, rising over time with increased risk while whole life premiums remain the same.
Later in life, those who purchased a whole life policy early on have lower premiums than peers who chose a series of term life policies.
SIMPLIFIED ISSUE WHOLE LIFE
Amica Life Insurance offers a variation on the policy type that some other companies do not.
Those who want the benefit of a whole life plan but only need to cover their final expenses have the option of Amica’s simplified issue whole life insurance.
These plans offer much smaller death benefits designed to cover burial expenses, but they are faster to underwrite due to no exam requirement and fewer questions during the application process.
They share the fixed premium rates, permanent status, and ability to gain cash value as more traditional whole life plans, but their death benefits cap at a $25,000 maximum.
Amica Life Insurance Riders
Here is where Amica Life Insurance begins to fall behind companies specializing in life insurance. Their rider selections are limited.
Amica’s terminal illness rider gets underwritten into all life insurance policies within states where it is available, and it carries no additional charge.
The rider allows the insured to receive some of their death benefits if they receive a terminal diagnosis with a life expectancy of fewer than twelve months.
Other life insurance riders that Amica offers are as follows:
Cost-of-Living Rider
Children’s Insurance Rider
Accidental Death Rider
Waiver of Premium Rider
Eligibility and Application Process
The application process for Amica Life Insurance is quick and straightforward for those in good health.
You can fill out their online form to get a free quote based on your home state and coverage desired and answer a few health and lifestyle questions.
Amica will contact you if more information is needed or to finalize your approval.
What signifies low risk?
Individuals who do not smoke, who maintain a healthy weight, have good blood pressure, have no history of drug or alcohol abuse, and maintain a clean driving record usually receive low-risk classifications.
Amica Life Insurance Pros & Cons
Pros
affordable coverage
easy-to-understand policy options
simple application process
strong customer service
Cons
no universal life insurance options
limited options for riders
If you want basic, straightforward coverage with affordable premiums, be sure to give Amica Life Insurance a closer look.
