Life Insurance Company of Alabama Review

If you reside in the southeastern United States, Life Insurance Company of Alabama offers several options for purchasing life insurance. This small company, which aims its products at middle-income Americans, has an array of products available to individuals and employers. Let’s take a closer look at LICOA and what it has to offer potential policyholders.

About Life Insurance Company of Alabama

Founded in 1952, Life Insurance Company of Alabama sells insurance plans in 11 southeastern states, and its products are designed to satisfy the financial needs of middle-income Americans. In addition to life insurance coverage, LICOA primarily offers supplemental policies, including group plans, which can be integrated with other insurance plans to fill any gaps in coverage. For more than 25 years, the company has been a leading supplier of workplace supplemental products throughout the region, offering employers affordable group rates for benefits.

What Life Insurance Products Does Life Insurance Company of Alabama Offer?

Life Insurance Company of Alabama offers several broad life insurance options so consumers in the southeastern United States can find plans that fit their needs and budgets. Both term and whole policies are available, and coverage levels can be customized to suit individual requirements.

Whole Life Insurance Plans

LICOA’s whole life insurance plans offer lifetime coverage and a guaranteed death benefit. These policies, which can be purchased with customized coverage amounts, have level premiums and are typically designed to provide financial security for loved ones or to cover the costs of final expenses such as a funeral and burial. Whole life plans usually have a cash value component to grow wealth and are sometimes used for estate planning purposes or to leave a legacy for beneficiaries. 

Term Life Insurance Plans

Consumers considering one of LICOA’s term life plans may opt for higher coverage amounts at lower premium payments. Term coverage varies in length and is usually available in 5- or 10-year increments. These plans are designed to offer protection for a policyholder’s short-term needs, and the death benefit can be used to pay off a mortgage, educational expenses or outstanding debts if the insured passes away during the plan’s contractual term.

Additional Product Offerings

In addition to life insurance, LICOA offers supplemental insurance in several categories, including:

• Accident: LICOA’s accident insurance pays benefits if you’ve been injured in an accident. Benefits may include coverage for the out-of-pocket costs that remain after traditional medical insurance pays out, which may include transportation needs, co-pays and deductibles.
• Dental: Dental plans through LICOA provide 100% coverage for most preventative services, including cleanings, examinations and X-rays. Family coverage is available, and there are no network restrictions, so you can see any dentist you choose.
• Hearing and vision: These policies, which may be purchased individually, provide coverage for routine exams and at least a portion of the cost of eyeglasses, contact lenses and hearing aids.
• Cancer: LICOA's cancer insurance pays for expenses left over after traditional medical insurance coverage pays, including treatment costs that exceed the primary plan’s maximum benefit amount.
• Disability: Disability coverage through LICOA replaces a portion of your income if you become disabled due to illness or injury and can't work for an extended time period.
• Critical illness: LICOA’s critical illness policies pay out a lump-sum cash benefit if you’re diagnosed with a critical illness or if you've experienced a stroke, heart attack, kidney failure or other debilitating medical event.
• Hospital indemnity: If you’re confined to a hospital, LICOA’s hospital indemnity plan pays you a set amount per day, week or month, depending on the individual policy.

Because LICOA’s supplemental plans pay benefits directly to the insured, the funds may be used for medical expenses and transportation or to cover routine expenses such as rent, car payments and utility bills. Many of these options are also available as group policies for the workplace.

The Pros and Cons of Life Insurance Company of Alabama

Life Insurance Company of Alabama is a small, regional company that does business in 11 southeastern states. As such, it offers only a small selection of life insurance policies and doesn't offer policies directly. You’ll need to work with an agent to purchase a policy, make changes or file a claim. LICOA also doesn’t offer 24/7 customer service, so you'll have to contact them during business hours if you want to speak to someone at the firm.

However, there are several upsides to doing business with LICOA. The company maintains a convenient client portal on their website, which gives policyholders easy access to their policy details and lets them make premium payments online. Downloadable claim forms are also available on their website, which expedites processing, so money can get into your hands or those of your beneficiaries more efficiently.

Life Insurance Company of Alabama Reviews: What People Are Saying

Reviews of LICOA often remark positively on the company’s professionalism and responsiveness. While some reviewers appreciate LICOA's friendly staff and the ease of chatting with a live operator, other consumers praise the company’s efficient processing of claims. However, some consumer reviews reflect negatively on the small selection of available plans and the lack of an email address where scanned policy documents may be sent.

Is a Life Insurance Company of Alabama Life Insurance Policy Right for You?

If you prefer the more personal nature of doing business with a small, regional company and don’t mind completing transactions through an independent agent, Life Insurance Company of Alabama may be worth looking into. Consumer reviews suggest that the company has a friendly customer service department with live operators readily on hand to provide information, which may be appealing for some consumers. Plus, because the company specializes in supplemental workplace policies, it may be an ideal match for employers looking to create an attractive benefits package for their employees without going over budget.