Based in Livonia, Michigan, AAA has become one of the most popular life insurance companies in the U.S. today. The big question is are they one of the best life insurance companies?
Is AAA life insurance good for the average consumer? They have an abundance of glowing reviews from satisfied customers, and over a million life insurance in place. But are they suitable and the best insurance company for your term life policy’s needs? Our AAA Life Insurance Company review will answer that question.
AAA Life Insurance Company
Review Summary
AAA provides shoppers with a variety of life insurance products. The AAA Life Insurance Company can provide you several options for life insurance coverage. These options include both term and permanent life insurance policies
AAA Life Insurance Company Review
We work with dozens of top rated life insurance companies, and understand that everyone’s needs differ. AAA insurance may be the right fit for one person yet unfit and more expensive for someone else. If you have any questions about AAA life insurance or our AAA reviews and ratings – you can always contact us.
AAA Life Insurance Company History
For over 40 years, AAA Life Insurance Company has been providing insurance protection for its customers, and currently has over a million existing policies in place. In 1969, AAA Life Insurance Company integrated with AAA. This allowed AAA to provide a competitive collection of life insurance products, including annuity income products, so customers can financially prepare for their retirement.
AAA Life Insurance Quotes
AAA term life insurance quotes: You need to get quotes directly from AAA as they don’t share rates online. Make sure to get instant quotes here and compare them with any quotes you get from AAA. Remember, insurance rates vary per individual and are based on several factors, including gender, age, tobacco use, health conditions, and more.
These aspects are all taken into consideration upon choosing a policy, and a medical exam may or may not be required. If you’re looking for additional information, read more about No Exam Life Insurance here. As such, it is very hard to guess precisely what rates AAA will provide you with for a term life insurance policy.
Will AAA give you the best rate?
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AAA Life Insurance Products
AAA offers 3 types of life insurance options for shoppers:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
AAA also provides term life insurance coverage for travel accidents.
AAA Term Life Insurance
AAA provides a traditional term life insurance option and a simplified issue No Medical exam policy called Express Term.
| Details | Traditional Term | Express Term |
|---|---|---|
| Term Lengths | 10, 15, 20, 25 & 30 years | 10, 15, 20, 25 & 30 years |
| Coverage Amount | $50,000+ | $25,000 to $250,000 |
| Issue Ages | 18-75 years old (coverage will end at age 95) | 18-75 years old (coverage will end at age 95) |
AAA Whole Life Insurance
If you’re looking for Whole Life, AAA only offers 2 options. They have a simplified issue as well as a guaranteed issue whole life insurance policy. Both of these policies are “no medical exam” policies and have a maximum benefit of $25,000.
| Details | Simplified Issue Whole Life | Guaranteed Whole Life |
|---|---|---|
| Maximum Benefit | $25,000 | $25,000 |
| Qualifying | Health questions, no exam | No health questions or exam, acceptance guaranteed |
| Issue Ages | 0-80 years old | 45-85 years old |
AAA Universal Life Insurance
If you’re wanting a permanent life insurance policy with higher coverage amounts, AAA sells two universal life insurance policies. They offer their LifeTime and Accumulator policies.
With the AAA LifeTime UL policy, you’re getting permanent coverage that is like a guaranteed universal life insurance policy. This means that your premiums will be guaranteed to be the same over the life of the policy. Rates for coverage are lower compared to other permanent products because it’s not designed to build cash value.
Want cash value? The AAA Accumulator universal life policy is more expensive – but has an opportunity to grow cash value as well as flexibility with premium payments.
| Details | LifeTime Universal | Accumulator Universal |
|---|---|---|
| Minimum Benefit | $25,000 | $25,000 |
| Qualifying | Fully underwritten with a medical exam | Fully underwritten with a medical exam |
| Premiums | Can remain level until age 100, after which not required | Can be adjusted based upon your cash value and preferences |
| Issue Ages | 0 – 85 years old | 0 – 80 years old |
Does AAA Term Life Insurance Offer Value?
AAA term life policies provide life insurance coverage for a set duration of time. Premiums generally are locked-in and won’t rise until the end of the period. Assuming you choose to extend it, AAA term life insurance policies last from 10 to 30 year terms, with coverage amounts that range from $100,000 to $5,000,000…even up to $10,000,000!
You can change your term life policy to a permanent one before you turn 65 years old, or before 80% of your term is up.
This “changing” or converting your term to permanent is a great thing to have. If you choose to do so, your rates will increase and will continue to do so each and every year. That said, if you need some type of permanent coverage, this is a convenient way to get it. Further, with AAA, you could get as much as 50% of your coverage amount before you die, assuming that you have been diagnosed with a fatal condition and have a life expectancy of less than a year.
AAA Life Insurance Advantages
- The insurer provides reduced rates for AAA members on several term life policies.
- Many whole and term life policies can be attained without a medical exam.
- Bigger term life coverage amounts can be attained with a medical exam.
- A- AAA insurance rating from A.M. Best
AAA Life Insurance Disadvantages
- Provides less policy options in comparison to bigger insurers.
- Only small coverage amounts are attainable for whole life insurance.
- Can be more expensive compared to other companies for the same policy type.
Life Insurance Riders
AAA offers life insurance riders with some of their policies. The riders that are available vary depending if you choose term, whole life or universal life. Here are the riders they offer:
- Terminal Illness: Included at no extra cost, the terminal illness is also referred to as an accelerated death benefit rider. You may get up to 1/2 of your policy’s death benefit if you’re diagnosed with a terminal illness.
- Child Rider: You are able to get coverage on each of your children with up to $5,000 of life insurance.
- Disability Waiver of Premium: What happens if you become disabled? This rider will waive your premiums but your policy remains active.
- Accidental Death: What happens if you die in an accident? You can add this rider to your policy and your beneficiary gets a bigger death benefit. (by up to $25,000). Some people prefer to buy a separate accidental death policy.
- Return of Premium: All premiums paid are returned to you after the term ends (not available for 10-year term)
- Travel Accident: If you die during travel or from a traffic accident, this rider will pay extra.
How To Get the Best Quotes from AAA Life Insurance Company
When comparing life insurance quotes on AAA Life Insurance Company products or any other insurance carrier the most practical approach to do so is to work with an agency or company that can access several insurance providers.
Shopping with an independent agent will allow you to directly compare the best life insurance companies, policies, premium amounts and benefits with an unbiased approach in order to figure out which one is most suitable for you.
When you are buying a life insurance policy, there are several main components to keep in mind, which include the term length, amount and type of coverage bought. There are also things you won’t be aware of like underwriting rules and how a company will rate your health.
Getting the best term life insurance policy may seem daunting. Keep in mind that, of the 100s to choose from, at least one of them may be the right fit for you.
Life Insurance Blog will be happy to help you find it. After all, we’ve already done the research!
AAA Life Insurance – The Bottom Line
What about consumer reviews and complaints? Just how long does it take to get life insurance money from AAA? We haven’t found anything significant online with regards to complaints about payout times. The most frequent AAA life insurance complaints that we receive are typically related to price. However, AAA is one of the most popular life insurance companies and has a strong reputation overall.
With that in mind, term life insurance might not be the best option for you, as AAA doesn’t always offer the lowest rates for it.
It is prudent to compare coverage options and rates between carriers prior to committing to one.
Life Insurance Blog
Contact us if you need help making sure you’re applying with the right company. We work with over 60 top rated and most reputable life insurers in the marketplace.
We’ll help you get the information you need to make an educated choice.
To get started, simply fill out our free life insurance quoter on this page.
If you think you need more details, you are welcome to give us a call directly. Life Insurance Blog can assist you in going over any uncertainties or inquiries on your mind. We’d love to help you make this process as simple as possible.
If you would like to learn more about AAA or life insurance choices in general. We are ready to help you obtain the greatest term life insurance rate possible.
AAA Company Details
Is AAA an insurance company? This is one of the most frequent questions we get about AAA. In the late 1960s, AAA Life Insurance Company became a part of AAA. They began to offer life insurance products as well as annuities. AAA Life has over 1,200,000 active policies.
Name(s): AAA Life Insurance Company; AAA Life Insurance Company of New York; American Automobile Association
Address:
17900 N. Laural Park Dr.
Livonia, MI 48152-3985
Phone: 800-684-4222
Website: www.aaalife.com
AAA Insurance Ratings: A.M. Best (A-)
