Old American Insurance Company is a Kansas City, Missouri life insurer founded in 1939 that specializes in final expense (burial) whole life insurance for seniors, with coverage typically up to about $25,000. It’s been a subsidiary of Kansas City Life Insurance Company since 1991. AM Best rates Old American B++ (Good) and its parent A- (Excellent) — solid, though both carried a negative outlook as of December 2025. One key point of confusion: the Texas-based auto insurer with a similar name is a completely separate company.
⚠️ First, Which “Old American” Are You Looking For?
This trips up almost everyone, so let’s clear it up before anything else. Two unrelated insurance companies share the “Old American” name:
| If you want… | You want… | Based in | Contact |
|---|---|---|---|
| Life insurance / final expense / a death claim | Old American Insurance Company | Kansas City, MO | 800-733-6242 (oaic.com) |
| Car insurance / an auto claim | Old American County Mutual / Old American Indemnity | Texas (Old American Capital Corp.) | Through your agent/MGA (oldamericangroup.com) |
They are not the same company and don’t share ownership — they just share a name. This review is mostly about the life insurer in Kansas City, with a clearly marked section on the auto company near the end. If you’re holding an auto policy or chasing a car-accident claim, skip to “The Other Old American” below.
Key Facts at a Glance (Life Company)
| Item | Detail |
|---|---|
| Founded | 1939, Kansas City, Missouri |
| Parent company | Kansas City Life Insurance Company (since 1991) |
| Specialty | Final expense / burial whole life for seniors |
| Typical market | Adults roughly ages 50–85 |
| Coverage amounts | Commonly up to about $25,000 |
| Footprint | 47 states + Washington, D.C.; ~200,000 policyholders |
| AM Best (Old American) | B++ (Good), negative ICR outlook (Dec 2025) |
| AM Best (parent KCL) | A- (Excellent), negative outlook (Dec 2025) |
| Customer service | 800-733-6242 |
| Distribution | Through independent agents (no online quote-to-buy) |
If you’ve been researching Old American, you’ve probably already hit the confusion above — half the search results are about senior life insurance in Missouri and the other half are about car-accident claims in Texas. That’s not you missing something; it’s two different companies with the same name. Once you know which one you’re dealing with, the picture gets a lot clearer. Here’s the honest rundown of both, starting with the life company most people mean.
Old American Insurance Company: Overview and History
Old American got its start in 1939 — literally a single desk inside the Thomas McGee & Sons insurance agency in Kansas City, Missouri, with Thomas McGee as its first president. Its founding idea was unusual for the time: that no one should be treated as uninsurable simply because of their age. So it sold coverage to seniors, a market most insurers ignored. It added life insurance to the lineup in 1944, and that became the heart of the business.
After changing hands in the 1980s (it was briefly owned by a bank holding company that ran into the savings-and-loan crisis), Old American was purchased by Kansas City Life Insurance Company in 1991, and it’s been a wholly owned subsidiary ever since. Kansas City Life itself dates to 1895, which gives the group real staying power.
Today, Old American is housed in the Kansas City Life home office in Kansas City and serves nearly 200,000 policyholders across 47 states and the District of Columbia, with more than $1 billion of life insurance in force. It sells almost entirely through independent agents, and that agent-to-customer relationship is central to how it does business — there’s no slick app or instant online checkout here.
What Old American Sells: Products and Coverage
Old American is a focused company, not a one-stop shop. Its bread and butter is final expense (also called burial) whole life insurance aimed at seniors — modest policies designed to cover funeral costs, medical bills, and other end-of-life expenses so they don’t fall on family.
Whole life final expense. These are permanent policies with level premiums that don’t increase as you age, coverage that stays in force as long as you pay, and benefit amounts commonly up to around $25,000. For a senior who wants predictable, no-surprises coverage, that simplicity is the appeal.
Immediate vs. graded benefit plans. If you’re in reasonable health, an immediate death benefit plan pays the full amount from day one. If you have health issues, Old American also offers a modified graded death benefit with a two-year waiting period: if the insured dies of natural causes in the first two years, beneficiaries generally receive a refund of premiums paid plus interest rather than the full face amount, with full coverage kicking in after two years. This is standard for graded final-expense products across the industry — but it’s also the single most common source of “I thought I was fully covered” complaints, so it’s worth understanding before you buy.
Juvenile insurance. Old American also offers whole life coverage for children, which builds cash value over time and can be a way for families to lock in insurability early.
Riders and planning tools. Policies can be customized with riders, and the company offers extras like living-will access and a vital-document registry to help with end-of-life planning. An agent walks you through which options fit your budget and goals.
A realistic note: because everything runs through agents and underwriting, the right plan depends heavily on your age, health, and what you can afford monthly — there’s no one-size answer here.
Financial Strength and Ratings (the Honest Version)
This is where a lot of write-ups get it wrong, so here’s the accurate, current picture from AM Best as of its December 2025 review.
Old American itself carries an AM Best Financial Strength Rating of B++ (Good), with a long-term issuer credit rating of “bbb+.” Its parent, Kansas City Life, is rated higher at A- (Excellent). So when you see articles claiming Old American has an “A- rating,” they’re usually borrowing the parent’s rating — the subsidiary’s own rating is a notch lower at B++ (Good). Neither, for the record, is AM Best’s top mark; the scale runs up to A++.
Just as important: as of December 2025, AM Best revised the group’s outlook to negative. The reasons it cited were pending litigation over universal-life cost-of-insurance charges and strain on Old American’s capital from heavy final-expense sales (the company has posted net losses in several recent years). A settlement on the litigation has reportedly been reached, which AM Best viewed favorably, but the negative outlook signals these are real pressures worth watching.
What does this mean for you in plain terms? “B++ (Good)” and a parent at “A- (Excellent)” both indicate a company that can be expected to pay claims — this is not a fly-by-night operation. But the negative outlook is a genuine caveat, and it’s exactly the kind of detail you’d want to check the current status of (on ambest.com) before buying a long-term policy. An honest review tells you it’s there rather than papering over it with the parent’s rosier number.
How to File a Claim and Contact Old American (Life)
For a death claim, the cleanest path is to work through the agent who sold the policy, or call customer service directly. You’ll generally need a certified copy of the death certificate, the policy information, and the insurer’s claim form, which the company or your agent provides. Submit everything together — incomplete paperwork is the most common cause of delays — and keep copies of everything you send.
- Customer service: 800-733-6242
- Home office: Kansas City Life home office, Kansas City, Missouri
- How it’s serviced: primarily by phone and through agents; Old American doesn’t market a self-service online policyholder portal the way large national insurers do
If a claim stalls, escalate through your agent first, then your state department of insurance, keeping a dated record of every call. Because exact forms and any fax or mailing details can change, confirm the current ones on your policy documents or by calling the number above rather than relying on a number you found in an old article.
The Other Old American: County Mutual and Indemnity (Auto)
If your search is really about car insurance or an auto claim, you want a different company. Old American County Mutual Fire Insurance Company writes nonstandard (high-risk) auto insurance in Texas, and Old American Indemnity Company writes nonstandard auto in other states. Both are part of Old American Capital Corporation (the “Old American Group”), a Texas-based operation — entirely separate from the Kansas City life insurer above.
“Nonstandard” means these policies are aimed at drivers who have trouble getting standard coverage — recent tickets, accidents, or gaps in coverage. The business is run largely through Managing General Agents (MGAs), so your policy may carry the Old American County Mutual or Indemnity name while being serviced by an MGA.
For an auto claim or policy question, the right number and instructions are on your insurance ID card and policy documents (or through the agency that sold you the policy), and general company information is at oldamericangroup.com. I’d point you there rather than to a specific claims line, because with MGA-fronted policies the correct contact depends on your specific program — and calling the wrong “Old American” wastes time you may not have after an accident.
Customer Reviews and Reputation
Feedback on Old American follows a pattern common to agent-sold final-expense insurers. The praise tends to focus on agents — many customers describe them as patient and helpful, which matters a lot for an older buyer working through coverage decisions. The complaints tend to cluster around claims and the graded-benefit waiting period — specifically, families surprised to learn a death in the first two years returned premiums rather than the full benefit, which is how a modified graded policy is designed to work but often isn’t fully understood at purchase.
A couple of honest caveats on reviews themselves: online ratings for niche insurers are based on small numbers and skew negative (happy policyholders rarely post), and the auto-side complaints you’ll find online generally belong to the separate Texas auto company, not the life insurer. The most reliable reputation signal isn’t a star average — it’s the NAIC complaint index (which compares an insurer’s complaints to its size) and your state department of insurance records. Check those before you decide.
Is Old American a “Ripoff”? Addressing the Legitimacy Question
Search Old American and you’ll see “ripoff” in the autocomplete, so let’s address it head-on. Old American is a legitimate, licensed, regulated insurer that has operated since 1939 and is owned by a century-plus-old parent company. It is not a scam.
Most “ripoff” complaints trace back to two things: claim disputes (common across the whole insurance industry) and misunderstood graded benefits (expecting a full payout during the two-year waiting period). Neither makes a company fraudulent — but both are reasons to read your policy carefully and make sure you understand exactly what’s covered, and when, before you sign. To vet any insurer, confirm it’s licensed in your state, check its current AM Best rating and complaint history, and get the policy details in writing.
Pros and Cons
Strengths
- Specializes in seniors and applicants with health issues that bigger insurers may decline
- Guaranteed level premiums and predictable final-expense coverage
- Backed by a long-established parent (Kansas City Life, founded 1895)
- Personal, agent-led service that older buyers often value
Drawbacks
- The company’s own AM Best rating (B++) sits below its parent’s, and the group is on negative outlook
- Graded-benefit waiting period can surprise families if not understood upfront
- Small coverage amounts (around $25,000 max) — not for larger life-insurance needs
- Limited digital tools; little to no self-service online portal
- Final-expense whole life is relatively expensive per dollar of coverage compared with term
How It Compares and Who It’s Best For
Old American competes with other final-expense specialists and with the final-expense arms of big carriers. Compared with large national insurers, it offers smaller coverage amounts and fewer digital conveniences, but it leans into the senior and impaired-health market with predictable, agent-guided plans. Younger or healthier buyers — and anyone needing six-figure coverage — will usually find better value elsewhere, including simple term life.
Old American is best for seniors who want a modest, guaranteed burial/final-expense policy, value working with an agent over an app, and may have health conditions that make other coverage hard to get. As with any final-expense purchase, get quotes from at least three or four insurers and compare both the price and the benefit structure (immediate vs. graded) before deciding.
Conclusion
Old American Insurance Company is a legitimate, long-running final-expense insurer that does one thing — modest whole life coverage for seniors — and does it through a personal, agent-led model. It’s financially backed by a stable century-old parent, though the honest footnote is that its own AM Best rating is B++ (Good) and the group sat on a negative outlook as of late 2025.
If that’s what you need, it’s a reasonable option worth quoting alongside competitors. Just go in clear-eyed: understand whether you’re getting an immediate or graded benefit, confirm the current rating, and — above all — make sure you’re dealing with the Kansas City life company and not its unrelated Texas auto namesake.
FAQs
Who is the parent company of Old American Insurance?
Old American Insurance Company has been a wholly owned subsidiary of Kansas City Life Insurance Company since 1991. Kansas City Life, founded in 1895, is publicly traded (OTCQX: KCLI).
Where is Old American Insurance Company located?
It’s headquartered in Kansas City, Missouri, inside the Kansas City Life home office, and is licensed in 47 states and the District of Columbia.
What does Old American Insurance Company sell?
Primarily final expense (burial) whole life insurance for seniors, including immediate and modified graded death benefit plans, plus juvenile whole life. Coverage amounts are commonly up to about $25,000.
What is Old American’s phone number?
Customer service for the Kansas City life company is 800-733-6242. If you need an auto claim, that’s the separate Texas company (Old American County Mutual / Indemnity) — use the number on your policy or ID card.
Is Old American Insurance Company legit or a ripoff?
It’s a legitimate, licensed, regulated insurer dating to 1939. “Ripoff” complaints usually stem from claim disputes or a misunderstood two-year graded-benefit waiting period, not fraud.
What is Old American’s AM Best rating?
As of December 2025, AM Best rated Old American B++ (Good) and its parent Kansas City Life A- (Excellent), both with a negative outlook. Check ambest.com for the current status.
How does the modified graded death benefit work?
For the first two years, a death from natural causes generally returns the premiums you paid plus interest rather than the full benefit; full coverage applies after two years. Accidental death is typically covered in full from the start.
How do I file a death claim with Old American?
Work with the selling agent or call 800-733-6242. You’ll generally need a certified death certificate, the policy details, and the insurer’s claim form, submitted together to avoid delays.
Is the Old American auto insurance the same company?
No. Old American County Mutual (Texas) and Old American Indemnity (other states) write nonstandard auto insurance and belong to a separate Texas group, Old American Capital Corporation — unrelated to the Kansas City life insurer.
How can I find out if an old life insurance policy is worth anything?
Contact the issuing insurer with the policy number, check for cash value, and if you can’t locate the policy, use the NAIC Life Insurance Policy Locator, a free national search tool.
What is the oldest American insurance company?
The Philadelphia Contributionship, founded in 1752 (Benjamin Franklin was a co-founder), is widely considered the oldest property insurer in continuous operation in the U.S. An earlier 1735 fire insurer in Charleston, South Carolina, is often cited as the first but was short-lived.
What are the “big 3” insurance companies?
It depends on the segment. In U.S. auto and home insurance, State Farm, Progressive, and GEICO are often the largest; in health insurance, UnitedHealth Group is the biggest. There’s no single official “big 3.”
Which insurance company denies the most claims?
There’s no clean, definitive ranking, and it varies by line of business. The most useful tool is the NAIC complaint index, which compares an insurer’s complaints to its market share.
What was GEICO called before?
GEICO is an acronym for Government Employees Insurance Company; it was founded in 1936 to insure federal employees and has used that name throughout.
Does Elon Musk own an insurance company?
Not personally. Tesla, where Musk is CEO, offers Tesla Insurance in some states as a company program, but he doesn’t own a standalone insurer.
About the Author
Md Shahinuzzaman writes about insurance and out-of-pocket costs at InsuranceGuidances.com, focusing on consumer and property/life coverage and turning confusing policy details into clear, source-backed guidance. For this review he relied on primary sources — Old American’s own site (oaic.com), Kansas City Life, AM Best’s December 2025 rating actions, and the Old American Group’s auto-company sites — and deliberately corrected the errors common in other write-ups, including the myth that Old American carries an “A- (stable)” rating and the conflation of the life insurer with the unrelated Texas auto company. Every figure here is traceable to a named source.
Sources
- Old American Insurance Company — Our Story / official site (founding 1939, ~200,000 policyholders, 47 states + DC). https://www.oaic.com/about/Story.aspx
- Kansas City Life Insurance Company — Subsidiaries (Old American market, ages 50–85, phone 800-733-6242). https://www.kclife.com/company/Subsidiaries.aspx
- Kansas City Life — Heritage/History (1991 acquisition; KCL founded 1895). https://www.kclife.com/company/Heritage.aspx
- AM Best — Revises Outlooks to Negative for Kansas City Life; … Old American Insurance Company (Dec 2025: Old American B++ / parent A-, negative outlook). https://www.businesswire.com/news/home/20251204292591/en/
- AM Best — prior 2024 rating action (outlooks revised to stable, ratings affirmed). https://markets.financialcontent.com
- Old American County Mutual / Old American Group — nonstandard Texas auto insurer (separate company). https://www.countymutual.com and https://www.oldamericangroup.com
- Old American Indemnity Company — nonstandard auto in states outside Texas. https://www.oldamericanindemnity.com
- NAIC — Life Insurance Policy Locator and complaint index. https://www.naic.org
- The Philadelphia Contributionship — oldest U.S. property insurer (1752). https://www.contributionship.com
- Kansas City Life Insurance Company — investor/company profile (OTCQX: KCLI). https://en.wikipedia.org/wiki/Kansas_City_Life_Insurance_Company
By Md Shahinuzzaman — Insurance & Out-of-Pocket Healthcare Cost Specialist Reviewed June 2026 ·
