Old American Insurance Company: A Legacy of Protection for American Families

Table of Contents

Introduction

In today’s uncertain economic climate, finding reliable insurance coverage that truly protects your family’s financial future has never been more important. Old American Insurance Company stands as a beacon of stability in an ever-changing industry, offering dependable insurance solutions specifically designed for mature Americans and their families since 1939.

With over eight decades of dedicated service, Old American Insurance Company has built a reputation for integrity, personalized attention, and specialized products that address the unique concerns of seniors and middle-income Americans. Unlike many modern insurance providers that offer one-size-fits-all solutions, Old American has maintained its commitment to understanding the specific needs of its core demographic.

This comprehensive profile explores the company’s rich history, product offerings, financial stability, customer service approach, and the values that have guided its operations for generations. Whether you’re considering insurance options for yourself or a loved one, understanding Old American’s legacy and current operations provides valuable insight into why thousands of American families continue to trust this established provider with their most important insurance decisions.

History and Heritage

Old American Insurance Company’s story begins in 1939 when it was founded in Kansas City, Missouri. The company was established during the aftermath of the Great Depression, a time when many Americans had developed a deep appreciation for financial security and protection against unexpected hardships.

The founding philosophy was straightforward yet powerful: provide reliable, honest insurance services specifically designed for the needs of middle-income Americans. This focused approach allowed the company to develop specialized expertise in serving this demographic—a tradition that continues to this day.

In 1991, Old American became a wholly-owned subsidiary of Kansas City Life Insurance Company, another well-established insurance provider with roots dating back to 1895. This strategic alliance strengthened Old American’s position in the market while allowing it to maintain its distinctive identity and specialized approach.

Throughout its history, Old American has weathered numerous economic cycles, industry changes, and regulatory shifts. This resilience stems from the company’s unwavering commitment to conservative financial management and an in-depth understanding of its customer base. While many competitors have come and gone or dramatically changed their business models, Old American has remained true to its original mission.

The company’s longevity is particularly noteworthy in an era of frequent corporate mergers, acquisitions, and pivots. For many policyholders, this consistency represents a significant advantage—they know what to expect from Old American and can trust that the company will be there when claims need to be processed.

Product Offerings and Services

Old American Insurance Company specializes in providing life insurance products specifically designed for seniors and middle-income Americans. Their focused product lineup includes:

Final Expense Insurance

Old American’s flagship offering is their Final Expense Insurance, designed to cover funeral costs, medical bills, and other end-of-life expenses. These policies feature:

Face values typically ranging from $5,000 to $50,000
Simplified underwriting processes
Guaranteed level premiums that never increase
Cash value accumulation over time
Policy cannot be canceled as long as premiums are paid

Final expense insurance has become increasingly important as funeral costs continue to rise nationwide. According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial now exceeds $9,000, not including cemetery expenses—making proper planning essential for families wanting to avoid financial strain during times of grief.

Whole Life Insurance

Old American offers traditional whole life insurance policies that provide:

Lifelong coverage
Fixed premiums
Guaranteed death benefits
Cash value component
Various payment options (single premium, limited pay, lifetime pay)

These policies serve as foundational financial instruments for families seeking long-term security and predictability in their insurance coverage.

Term Life Insurance

For those seeking temporary coverage during specific life stages, Old American provides term life insurance options with:

Coverage periods of 10, 15, 20, or 30 years
Higher face values at lower initial premiums
Conversion options to permanent coverage
Straightforward application processes

Additional Features and Riders

Most Old American policies can be customized with riders including:

Accelerated death benefits for terminal illness
Accidental death benefit provisions
Waiver of premium for disability
Children’s term insurance riders

The company maintains this focused product lineup intentionally, preferring to excel at a limited range of offerings rather than diluting their expertise across numerous product categories.

To learn more about the fundamentals of life insurance, watch this informative overview from Khan Academy’s personal finance series.

The S.A.F.E. Underwriting Approach

One of Old American’s distinctive characteristics is its proprietary S.A.F.E. underwriting approach, which stands for:

Simplified application process with fewer medical questions
Accessible coverage for those who might struggle to qualify elsewhere
Fast approval times, often within days rather than weeks
Economical pricing structure for the coverage provided

This approach was developed in recognition of the challenges many seniors face when applying for life insurance. Traditional underwriting processes can be overly restrictive for older applicants or those with common health conditions. The S.A.F.E. methodology allows Old American to offer coverage to many individuals who might otherwise be declined.

The company employs specialized underwriters who are trained specifically in evaluating risk factors common among older Americans. This expertise allows them to make nuanced assessments rather than relying solely on algorithmic decisions or overly rigid health criteria.

For many applicants, particularly those between ages 50-85, this specialized underwriting approach represents a significant advantage over companies that primarily focus on insuring younger, healthier demographics.

Financial Strength and Stability

Insurance is fundamentally a promise to pay future claims, making the financial stability of any provider a critical consideration. Old American Insurance Company has maintained strong financial foundations throughout its long history, demonstrating resilience through various economic cycles.

The company maintains appropriate reserves to ensure its ability to meet policyholder obligations, following conservative investment practices that prioritize security over speculation. This approach has served both the company and its policyholders well, particularly during periods of economic turbulence.

As a subsidiary of Kansas City Life Insurance Company, Old American benefits from the financial resources and stability of its parent organization. Kansas City Life is publicly traded on the NASDAQ exchange (ticker: KCLI) and regularly publishes financial information available to investors and policyholders alike.

Independent rating agencies regularly evaluate insurance companies’ financial strength. While ratings can fluctuate over time, Old American has generally maintained solid ratings appropriate for a company of its size and market position. Current ratings can be verified through agencies such as A.M. Best, which specializes in insurance company evaluations.

For consumers, these financial indicators provide important reassurance that the company is likely to remain viable and capable of honoring its commitments for decades to come—an essential consideration when purchasing products designed to provide long-term protection.

Customer Service Philosophy

Old American Insurance Company has built its reputation not only on its products but on its distinctive approach to customer service. The company maintains a personal touch that stands in contrast to the increasingly automated customer service landscape of many larger insurers.

Key elements of Old American’s customer service philosophy include:

Dedicated Personal Agents

Rather than relying primarily on call centers or online services, Old American maintains a network of dedicated agents who develop long-term relationships with policyholders. These agents are trained specifically in addressing the concerns and questions common among senior clients, including explaining policy details in clear, accessible language.

Simplified Claims Process

Recognizing that claims often arise during already difficult times for families, Old American has developed a streamlined claims process designed to minimize paperwork and delays. The company’s claims department prioritizes prompt, compassionate service during these sensitive interactions.

Regular Policy Reviews

Old American encourages regular reviews of existing policies to ensure coverage continues to meet changing needs. These reviews provide opportunities to adjust coverage, update beneficiary information, or address any questions that may have arisen since the policy was issued.

Accessible Communication Options

While embracing appropriate technology, Old American maintains multiple communication channels—including phone, mail, email, and in-person meetings—recognizing that many of their clients prefer traditional forms of interaction over purely digital engagement.

This high-touch approach to customer service comes with associated costs but reflects the company’s understanding that insurance decisions are highly personal and often complex, particularly for their target demographic.

Community Engagement and Social Responsibility

Throughout its history, Old American Insurance Company has maintained a commitment to the communities it serves, recognizing that corporate citizenship extends beyond business transactions. The company’s approach to social responsibility reflects its foundational values and connection to middle America.

Educational Initiatives

Old American sponsors and participates in various educational programs designed to improve financial literacy, particularly among seniors. These initiatives help individuals make more informed decisions about retirement planning, insurance needs, and protecting their assets for future generations.

Support for Senior-Focused Organizations

The company provides financial support and volunteer hours to organizations serving senior citizens, including:

Elder care facilities
Senior nutrition programs
Organizations researching diseases affecting older adults
Community centers offering programs for seniors

Employee Volunteer Programs

Old American encourages its employees to actively participate in community service through organized volunteer programs and paid time off for charitable activities. This commitment helps strengthen connections between the company and the communities where its employees and customers live.

Environmental Responsibility

Despite being in an industry not typically associated with significant environmental impact, Old American has implemented sustainable practices in its operations, including:

Paperless policy options
Energy-efficient office facilities
Reduced business travel through video conferencing
Recycling programs at all locations

These initiatives reflect Old American’s understanding that responsible corporate behavior encompasses not only financial considerations but also social and environmental impacts.

Technology and Innovation

While Old American Insurance Company honors its traditional values, it has also embraced technological innovation where it enhances customer experience without sacrificing personal service. The company has strategically implemented technology solutions that complement rather than replace human interaction.

Digital Policy Management

Policyholders can access policy information, make payments, and update basic information through secure online portals. This convenience is particularly valuable for family members who may be helping manage a senior’s financial affairs from a distance.

Advanced Underwriting Tools

Behind the scenes, Old American employs sophisticated data analytics to enhance and accelerate the underwriting process. These tools help identify appropriate coverage options for applicants with various health profiles while maintaining the personal touch in final decisions.

Electronic Application Processes

For those who prefer it, Old American offers electronic application options that reduce paperwork and expedite policy issuance. However, these digital tools are always complemented by agent availability for questions and clarification.

Cybersecurity Investment

Given the sensitive nature of insurance data, Old American has made significant investments in cybersecurity infrastructure to protect policyholder information. The company maintains compliance with industry standards for data protection and regularly updates its security protocols.

This balanced approach to technology—embracing innovation while maintaining human connections—reflects Old American’s understanding that different customers have different preferences and comfort levels with digital solutions.

Regulatory Compliance

The insurance industry operates within a complex regulatory framework designed to protect consumers and ensure company solvency. Old American Insurance Company maintains strict adherence to applicable regulations at both federal and state levels.

The company is licensed to operate in multiple states and complies with the specific regulatory requirements of each jurisdiction. This includes:

Maintaining appropriate reserves as required by state insurance departments
Submitting to regular examinations by state regulators
Providing transparent disclosures in all marketing materials
Following strict protocols for policy illustrations and explanations
Adhering to privacy regulations regarding customer information
Maintaining compliance with anti-money laundering provisions

Old American’s long-standing presence in the industry reflects its successful navigation of evolving regulatory requirements over many decades. The company’s compliance department works proactively to implement new regulations as they emerge, rather than merely reacting to enforcement actions.

For consumers, this regulatory compliance provides an additional layer of protection and confidence when considering Old American’s products.

Customer Testimonials

While statistical measures provide important objective information about an insurance company, personal experiences often offer valuable insights into what it’s actually like to work with a provider. Old American Insurance Company has accumulated thousands of testimonials over its decades of operation.

Common themes in customer feedback include:

“The agent took time to explain everything clearly without making me feel rushed or pressured. That made all the difference in my decision.” — Margaret T., policyholder since 2012

“When my husband passed away, I was overwhelmed with grief and paperwork. Our Old American representative guided me through the claims process with such kindness. The claim was paid quickly without any complications.” — Robert L., beneficiary

“I appreciate that they specialize in working with seniors. The questions they asked during the application process were relevant to my situation, and they weren’t surprised or deterred by my health history.” — William S., policyholder since 2018

These testimonials reflect the company’s success in delivering on its promises of personalized service and understanding of senior clients’ unique needs. While individual experiences may vary, the consistency of positive feedback regarding the claims process is particularly noteworthy, as this represents the ultimate test of an insurer’s value.

Industry Recognition

Throughout its history, Old American Insurance Company has received recognition from various industry organizations and publications. These acknowledgments provide third-party validation of the company’s approach and performance.

Notable recognitions have included:

Ratings for financial stability from independent agencies
Compliance certifications from regulatory authorities
Industry awards for customer service excellence
Recognition for low complaint ratios compared to industry averages
Acknowledgment of corporate citizenship and community involvement

While Old American doesn’t pursue growth or recognition at the expense of its core values, these accolades serve as meaningful indicators that the company’s focused approach continues to resonate within the industry and with consumers.

The National Association of Insurance Commissioners (NAIC) maintains consumer complaint data that can provide objective measures of customer satisfaction across insurance providers. These comparative metrics often reveal favorable patterns for established companies like Old American that emphasize customer service quality.

Comparing Old American with Competitors

The senior-focused life insurance market includes numerous competitors, ranging from massive multiline insurers to specialized niche providers. When comparing Old American Insurance Company with alternatives, several distinguishing factors emerge:

Specialization vs. Diversification

Unlike many larger insurers that offer dozens of different products across multiple insurance lines, Old American maintains a deliberate focus on life insurance products for seniors and middle-income Americans. This specialization allows for greater expertise in this specific market segment but means the company doesn’t offer the one-stop shopping convenience of some competitors.

Agent-Based vs. Direct-to-Consumer

Old American primarily distributes its products through dedicated agents rather than focusing on direct-to-consumer marketing or online sales. This approach provides personalized guidance but may involve more steps in the purchase process compared to purely digital alternatives.

Conservative Financial Approach vs. Aggressive Growth

The company’s financial management tends toward conservative strategies that prioritize long-term stability over rapid growth or market share acquisition. This approach has contributed to the company’s longevity but may result in slightly less competitive pricing in some scenarios.

Simplified Underwriting vs. Fully Automated Processes

While Old American has embraced appropriate technology, its underwriting philosophy still incorporates significant human judgment rather than relying exclusively on algorithmic decisions. This approach often benefits applicants with complex health histories but may result in slightly longer processing times.

For consumers evaluating options, these distinctions highlight the importance of aligning insurance provider selection with personal preferences regarding service models, product specialization, and company philosophy.

How to Choose the Right Insurance Plan

Selecting appropriate life insurance coverage involves careful consideration of personal circumstances, financial goals, and family needs. While Old American Insurance Company offers quality products for its target market, consumers should follow a structured approach to determine which specific policy best meets their requirements.

Assess Your Specific Needs

Begin by clarifying the primary purpose of the insurance:

Covering final expenses only
Replacing income for dependents
Paying off specific debts or obligations
Leaving a legacy or inheritance
Combination of multiple objectives

Determine Appropriate Coverage Amount

Calculate how much coverage is actually needed based on:

Outstanding debts and obligations
Estimated funeral and final expenses
Income replacement requirements for dependents
Other financial goals the policy should address

Evaluate Budget Constraints

Consider how premium payments will fit into your overall financial plan:

Monthly budget limitations
Duration of premium payment obligations
Potential for changing financial circumstances
Other insurance expenses already in place

Compare Policy Types

Understand the differences between available options:

Term life insurance (temporary coverage, lower initial cost)
Whole life insurance (permanent coverage, cash value component)
Final expense insurance (focused coverage for end-of-life costs)

Review Company Reputation

Research potential providers thoroughly:

Financial strength ratings
Customer satisfaction indicators
Complaint records with regulatory authorities
Years in business and stability history

Consult Appropriate Advisors

Seek guidance from qualified professionals:

Licensed insurance agents familiar with senior products
Financial advisors who understand your complete financial picture
Elder law attorneys for complex estate situations

For a deeper understanding of insurance concepts and terminology, the Insurance Information Institute provides comprehensive educational resources accessible to consumers at all knowledge levels.

Frequently Asked Questions

Based on common inquiries received by Old American Insurance Company representatives, the following questions and answers may provide helpful clarification:

Q: What age ranges does Old American typically insure? A: While policies are available to adults of various ages, Old American specializes in serving individuals between 50-85 years old, with product features specifically designed for this demographic.

Q: Are medical exams required for coverage? A: Many Old American policies can be issued without traditional medical examinations. The company’s simplified underwriting approach typically relies on health questionnaires, prescription histories, and other non-invasive verification methods instead.

Q: How quickly can coverage be approved? A: With complete application information, many policies can be approved within 3-5 business days. More complex health histories may require additional review time.

Q: Are premium rates guaranteed not to increase? A: Yes, for whole life and final expense products, premium rates are guaranteed never to increase for the life of the policy, providing important budgeting certainty for fixed-income seniors.

Q: What happens if I miss a premium payment? A: Most policies include a 31-day grace period after the due date during which coverage remains in effect. After that, policies with accumulated cash value may have options to maintain coverage temporarily. The company also offers various flexible payment arrangements to accommodate different financial situations.

Q: Can beneficiaries be changed after a policy is issued? A: Yes, as the policy owner, you retain the right to change beneficiaries as needed throughout the life of the policy (unless irrevocable beneficiary designations have been made).

Q: What is the typical claims payment timeframe? A: Once all required documentation is received, most death benefit claims are processed within 7-10 business days. The company prioritizes prompt claims handling during what is often a difficult time for beneficiaries.

For additional questions, consumers are encouraged to contact Old American directly or speak with a licensed insurance agent familiar with the company’s products.

Conclusion

Old American Insurance Company’s eight-decade legacy in the insurance industry represents a commitment to stability, specialized service, and products designed specifically for mature Americans and their families. In an industry increasingly characterized by automation and generalization, Old American’s focused approach provides a distinctive alternative for consumers seeking personalized attention and products aligned with senior needs.

The company’s conservative financial management, specialized underwriting approach, and emphasis on agent relationships have contributed to its longevity through changing market conditions. While this traditional approach may not appeal to every consumer, it continues to resonate with many individuals seeking insurance solutions from a provider with demonstrated staying power and expertise in their demographic.

For middle-income Americans navigating the complex decisions surrounding life insurance and final expense coverage, Old American Insurance Company offers not just products but partnership—a relationship-based approach to financial protection that has stood the test of time.

Those interested in learning more about Old American’s offerings should consult with a licensed insurance professional who can provide personalized guidance based on individual circumstances and needs. Insurance remains a highly personalized financial tool, and appropriate coverage selections depend on thorough evaluation of each person’s unique situation, goals, and priorities.

Disclaimer: This article is intended for informational purposes only and does not constitute financial or insurance advice. Insurance products, availability, and features may vary by state and individual circumstance. Consumers should consult with licensed insurance professionals regarding their specific situations before making insurance decisions.