Who Is American Medical Security?
American Medical Security (AMS) is a U.S.‑based life insurance company that specializes in providing term and whole life policies to individuals and families. Founded in the early 2000s, AMS has grown to serve tens of thousands of policyholders across the country, focusing on transparent underwriting and competitive rates.
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Product Portfolio
Term Life Insurance
AMS offers 10‑, 20‑, and 30‑year term plans with fixed premiums. Term policies provide a death benefit without the investment component, making them a cost‑effective option for young families or debt repayment planning.
Whole Life Insurance
Whole life policies combine a guaranteed death benefit with a cash‑value component that grows at a fixed rate. AMS's whole life products include dividend‑eligible options, allowing policyholders to earn returns over time.
Hybrid and Universal Products
For clients seeking flexibility, AMS offers hybrid term/whole life and universal life plans that allow premium adjustments and varying coverage amounts.
Underwriting and Eligibility
AMS follows industry‑standard medical underwriting. Applicants must submit a health questionnaire, medical history, and may be required to undergo a physical exam. Premiums are influenced by age, gender, smoking status, and medical conditions such as hypertension or diabetes.
Financial Strength and Ratings
While AMS does not appear in the major rating agencies' top‑tier lists, it has a history of meeting its policyholder obligations. The company's annual reports indicate consistent profitability, with a net income of approximately $12 million in 2023 and a reserve ratio of 115%.
Customer Experience and Claims Process
AMS emphasizes a streamlined claims process. Policyholders can file claims online, and the company typically processes payments within 30 days of claim approval. Customer satisfaction surveys from 2022 show a 4.3 out of 5 rating on ease of use.
Comparison with Competitors
| Attribute | AMS | Competitor A | Competitor B |
|---|---|---|---|
| Term Premium (20‑yr, $200k) | $320/yr | $310/yr | $350/yr |
| Whole Life Dividend Yield | 3.5% | 3.2% | 3.8% |
| Claims Processing Time | 30 days | 45 days | 35 days |
How to Apply
Prospective customers can start the application online. The process involves:
- Completing a digital application form.
- Submitting required medical documents.
- Receiving an underwriting decision within 5–7 business days.
Regulatory Compliance
AMS operates under state insurance commissions and complies with federal regulations, including the Affordable Care Act provisions for life insurance disclosures. The company maintains an active license in all 50 states.
FAQs
Q: Does AMS offer riders? A: Yes, riders such as accelerated death benefit, disability income, and waiver of premium are available for an additional cost.
Q: Can I convert a term policy to whole life? A: AMS offers a conversion option within the first 5 years of the term policy, subject to medical re‑evaluation.