Amica Life Insurance Company Review 2018

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Amica Mutual Insurance Company is known for marketing home and auto insurance. However, just like most other huge car and homeowner insurance companies like Farmers and State Farm, they can’t resist the temptation to offer their current clients life insurance products. Most who buy life insurance products from their property and casualty company not only pay more for coverage but most often, they are given the wrong coverage for their circumstances.

Remember, your agent can offer you one company while a broker works with dozens of companies and can place you with the appropriate company based on your overall health, goals, and financial needs. Let’s get to our Amica Life Insurance Company Review to find out if they are a good option for those who seek life insurance.

Amica Mutual Insurance Company History

Amica was established in 1907 by A.T. Vigneron and is the oldest mutual company for automobiles in the United States. In the early days, they only sold auto, fire, and theft insurance. Since then, they have added other lines of insurance such as home and life insurance. They also own a number of subsidiary insurance companies. In 1941, Amica opened its first branch office in Boston, Massachusetts, and now has 44 locations nationwide.

Amica Mutual Insurance Company Subsidiaries

  • Amica Mutual Insurance Company
  • Amica Life Insurance Company
  • Amica Property and Casualty Insurance Company
  • Amica General Agency, LLC

Amica Mutual Insurance Company Ratings

According to A.M. Best, the most widely recognized and oldest provider of financial ratings, Amica has an A+ (Superior) rating. Keep in mind, having a high financial score has nothing to do with the products or the quality a company offers. Simply put, the company is solvent (has more assets than liabilities) and can pay your claim without going under.

Products Offered by Amica Life Insurance

Amica offers the basic life insurance coverage term and whole life. Each one has a few sub-products that are tailored to specific needs such as simplified issue whole life, which is geared towards end-of-life expenses, and annual renewable term for those who seek short-term coverage. Let’s take a look at each product in detail.

Level Term Life Insurance

Amica Life’s level term is the most affordable, straightforward, and easy-to-understand product you can buy. As the name implies, term life insurance covers an individual for a specified period of time or term. The term lengths are 10-, 15-, 20-, 25 or 30-year level-premium coverage. If death occurs during the covered period, your beneficiaries will receive the death benefit amount.

The premium and death benefit remain level throughout the contract’s period, and at the end of the term, you may convert the policy to permanent coverage without proving insurability, renew it on an annual basis to age 95, or drop the policy.

Term life insurance is a favored solution for younger individuals who wish to protect their families should they die prematurely. They get the most coverage for the lowest cost. Amica reserves the right to require a medical exam which includes blood and urine samples. However, some may qualify for a no-medical-exam option if you meet certain health criteria.

Plan Highlights

  • Minimum face amount: $100,000
  • Guaranteed level premiums for 10, 15, 20, 25, or 30 years
  • Conversion option
  • No-exam option if you qualify
  • Terminal illness rider
  • Optional cost of living adjustment rider

Annual Renewable Term

Annual renewable term (ART) is temporary protection for a duration of one year. The renewal happens each year automatically at an increased premium based on your current age. You will not need to undergo an exam or underwriting again—only to pay your premium each year. The protection is guaranteed to age 85, and your face value (coverage amount) will not decrease as you get older.

The policy is fully convertible to any permanent product Amica has, regardless of your health. ART policies are for those who need short-term coverage or are in between jobs.

The annual renewable term isn’t recommended for a longer-term coverage such as 20 or 30 years. Your premiums will increase each year as you get older and will eventually become unaffordable.

Plan Highlights

  • Minimum face amount: $250,000
  • Guaranteed level premiums for one year
  • Conversion option

Whole Life Insurance

Amica Life’s whole life coverage is for those who seek permanent protection with cash value accumulation. As the name implies, whole life lasts for your entire life as long as premiums are paid. Unlike term life, it doesn’t expire at a particular time. Instead, your premiums and death benefit remain the same even when you get older or if your health deteriorates.

Whole life insurance can cost substantially more than term life because of its cash value accumulation component. Each time you make a premium payment, a portion is used to pay the cost of insurance (COI) and the remainder sits in a savings account which accumulates interest and dividends. You can get access to this cash via a loan, withdrawal, or when you surrender your policy.

Plan Highlights

  • Minimum face amount: $25,000
  • Guaranteed level premiums for the insured’s lifetime
  • Cash value accumulation
  • Terminal illness rider

Simplified Issue Whole Life Insurance

Amica Life’s simplified issue plans are for those who seek final expense or burial insurance. Simplified issue means an expedited underwriting process because there are fewer health questions than a traditional policy and there is no required exam as part of the underwriting process. The process is reasonably fast but don’t get your hopes too high.

The maximum death benefit you can get is $25,000. If you need more than $25,000, you will need to apply for the conventional whole life policy and take the exam. If you only need a small end-of-life policy, this may be a good option. The coverage is permanent, premiums are fixed, and it also carries a cash value component which you can tap into should you need it.

Plan Highlights

  • Available face amounts: $5,000, $10,000, $15,000, $20,000 and $25,000
  • Guaranteed level premiums for the insured’s lifetime
  • Cash value accumulation
  • No medical exam to apply

Amica Life vs. Other Carriers’ Sample Monthly Rates

Amica Life insurance sample rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 AAA $14.52 $20.68 $47.74 $123.86
 SBLI $14.79 $21.67 $51.68 $147.70
 Amica $14.89 $21.14 $46.60 $126.43
 State Farm $18.70 $30.23 $58.95 $147.90
 Allstate $31.46 $29.92 $60.50 $160.16
 Farmers $25.81 $36.85 $78.10 $257.88

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 AAA $13.20 $18.04 $36.74 $85.80
 SBLI $13.31 $18.99 $36.46 $90.37
 Amica $13.59 $18.55 $36.46 $88.89
 Allstate $14.74 $23.98 $46.64 $113.08
 State Farm $22.40 $34.80 $66.35 $138.78
 Farmers $19.14 $36.02 $73.72 $226.63

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 SBLI $21.32 $36.92 $96.06 $286.85
 AAA $23.32 $34.76 $89.32 $238.48
 Amica $23.30 $35.81 $86.73 $246.39
 State Farm $28.30 $41.75 $96.15 $273.20
 Allstate $32.56 $52.80 $110.44 $281.16
 Farmers $39.77 $58.10 $138.93 $483.91

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Foresters $18.81 $27.13 $57.75 $165.81
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 Amica $20.71 $30.64 $66.45 $171.31
 AAA $20.24 $29.48 $66.44 $162.36
 Allstate $27.28 $40.92 $82.28 $190.08
 State Farm $33.05 $53.50 $109.20 $258.85
 Farmers $28.93 $58.10 $129.76 $420.58

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 Amica $40.13 $65.16 $166.99 $486.30
 AAA $41.36 $60.72 $169.84 $462.88
 State Farm $44.35 $72.25 $174.85 $519.35
 Farmers $56.01 $98.51 $252.67 $808.48

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 Amica $34.95 $54.80 $126.43 $336.14
 AAA $35.20 $52.80 $124.08 $311.52
 State Farm $53.95 $87.85 $199.25 $499.35
 Farmers $41.02 $97.68 $233.51 $584.33

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Nov 2018 and are subject to underwriting approval.*

Bottom Line

When it comes to Amica Life’s term insurance, they are the most competitive, rate-wise, among other property and casualty insurance companies such as Farmers, Allstate, State Farm, and AAA. However, when it comes to the big boys in the insurance industry who only sell life insurance products, such as AIG, Banner, or Protective Life, they aren’t in the same arena.

I love the internet age with the speed and comfort it brings to clients such as yourself, but buying life insurance was never meant to be a natural process like purchasing an iPhone case from Amazon. My point is simple: comparing rates is a good idea but buying life insurance from your agent makes no sense. An agent represents one company while a broker represents dozens.

Hence, you have a better chance of not only getting a better rate but having the right policy for your needs. Amica Life offers the fundamental term and whole life coverages but lacks the variety of other coverages such as universal life insurance or guaranteed universal life. When it comes to their final expense product, the maximum death benefit is only $25,000 while other carriers offer up to $50,000 or more.

We at Effortless Insurance work with more than 50 top-rated insurers, and our job is to find the best company for your needs, goals and overall health. You can go ahead and run the rates on this page or give us a call at 866-326-3053, and we will present you with no-obligation quotes and encourage you to compare it with the quotes from your Amica agent.

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2018-12-09T18:02:25+00:00November 14th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, strong coffee, ultra runs, critical thinking, and reading.

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