In this post, we’re going to provide you everything to know about the USAA Life Insurance Company. Our USAA life insurance review will go over their history, financial strength, products, Pros/Cons, and what we like (and dislike) about them. Let’s see if they’re one of the Top 10 life insurance companies for you or if another carrier will get you a better deal.
USAA Life Insurance
USAA provides shoppers with several life insurance product options. Depending on your specific situation, they may be a great fit. However, there are situations where they aren't. Let's find out the pros and cons of USAA.
USAA Financial Ratings & Strength
The USAA Life Insurance Company is an extremely secure and stable life insurance company from when evaluating financial strength. USAA has been given the highest ratings from the top life insurance rating agencies.
These agencies include:
- A.M. Best Company: USAA insurance rating given by A.M. Best was an A++ (Superior). This is the highest possible out of 16 total ratings.
- Moody’s Investors Service: USAA rating given by Moody’s was an Aa1 (Excellent). This is the second highest out of 21 total ratings.
- Standard & Poor’s: USAA rating given by Standard & Poor’s was an AA+ (Very Strong). This is the second highest out of 21 possible total ratings.
USAA Life Insurance Products
Unfortunately, there are many life insurance companies who are reluctant to provide life insurance to military members. Luckily, USAA provides insurance products that are targeted for military members (and their families).
Life insurance and annuities are sold by the USAA Life Insurance Company in every state except for New York. If you reside in NY, products are sold by the USAA Life Insurance Company of New York.
USAA Term Life Insurance
USAA offers regular term life insurance policies. This is typically the most affordable option because it’s temporary coverage. USAA offers up to 30 years of coverage. Your policy will have a set amount of coverage over a chosen duration of 10, 15, 20, 25 or 30-year term.
Your premiums and coverage will remain consistent over the life of your term. You can also elect for additional coverage during your deployment with a guaranteed Service-members Group Life Insurance (SGLI) replacement after your service has ended.
USAA Whole Life Insurance
USAA’s whole life insurance plan may be considered the most simple type of life insurance, but also the most expensive. This policy provides you lifetime coverage that pays out a death benefit to your named beneficiary.
USAA Combination Life Insurance (Term & Whole Life)
USAA offers a combination life insurance option. With this option, you’ll combine a term and simplified issue insurance policy. This coverage provides protection while you’re young and old. The term provides temporary coverage in your younger years while the final expense policy will cover you in your golden years.
USAA Universal Life Insurance
Universal life insurance is more expensive than term life, but provides coverage for your entire life. Universal Life is a flexible permanent life insurance policy in that it can have flexible premiums and death benefits.
USAA Life Insurance Quotes
We analyzed a variety of USAA life insurance rates directly on their website. We’re going to show you sample quotes for their Term Life, Permanent Life and Combined Life insurance options.
We ran sample quotes for “Mr. X” who is a 30 year old male in excellent health. Mr X was shopping for a 20-year term with a $150,000 face amount.
Sample Term Life Insurance Quotes
Term life will be the least expensive option for Mr. X. Sample quotes show that he’s looking at $14.90 a month for a 20-year preferred-class policy. Rates are subject to change and underwriting.
Sample USAA Whole Life Insurance Quotes
Now Mr X wants to compare his term quote with USAA Whole life rates. He can buy a $100,000 in coverage with USAA’s Simplified Whole Life policy for as low as $74.74 per month. Rates are subject to change and underwriting.
Combination Life Quotes and Options
Now let’s look at when Mr X adds the USAA Simplified Issue Policy to the Term Life policy for a total benefit of $250,000.
As you can see, the rate changes depending on the payment duration that you choose.
What are the USAA Permanent Life Payment Durations?
As you can see from the graphic above, USAA offers 3 options for paying your Simplified Issue Insurance. Their website describes them as:
- Pay for life: This duration option lets you pay your premiums over your lifetime. This is our most popular payment option because it typically creates the lowest monthly premium. Our sample quote shows a monthly rate of $89.64 for the Pay for Life.
- Pay for 20 years: This method breaks your premiums into equal payments so you pay for your coverage in a 20 year time period.
- Pay until age 65: This method breaks your premiums into equal payments so you pay for your policy by the time you reach 65.
If you go with USAA’s “Pay for 20 years” or “Pay until age 65” options, you will typically have to pay more money earlier since you’re condensing the premium payments over a shorter period of time.
No matter which option you choose, your coverage will last until you are 121.
Sample Universal Life Insurance Quotes
Our last example will look at USAA Universal life insurance policies. The sample rates for our 30 year shows a monthly rate as low as $91.82. Rates are subject to change and underwriting.
Other USAA Products
USAA is one of the biggest and most diverse companies for its members. They provide many products and services for their members including:
- Long Term Care
- Property and Casualty Insurance
- Homeowner’s Insurance
- Rental Insurance
- Supplemental Health Insurance
- Auto Loans
- Auto Insurance
- Car Buying Service
- Bank Accounts
- Credit Cards
- Travel Insurance & Travel Discounts
- Mutual Funds
- Retirement planning
- Turbo Tax Assistance
What we like about USAA Life
Every life insurance company has their pros and cons. USAA is no different. There are many interesting advantages that USAA Life Insurance offers, especially when it comes to the company’s financial strength, how they deliver their services and the type of services offered.
- Product Offering: USAA offers a variety of life insurance types including term and permanent options.
- Financial Stability: USAA has an A++ rating with A.M Best – the highest rating they provide. A.M. Best is the “go to” ratings company when looking for financial strength scores of life insurance companies.
- War Clause: USAA does not include a “war clause” that most of the other top life insurance companies include. The war clause states that any active military personnel with combat experience will not incur a rate increase for the policy they purchase. There are other life insurance companies that do this, but USAA is one of the few.
- Military Future Insurability Rider: This life insurance rider lets service members convert a military policy upon retirement.
What we don’t like about USAA Life
It’s hard to say anything bad about USAA, because they’re a great company. With that said, USAA isn’t the best choice for everyone – in fact no company is a “one size fits all”.
5 Situations When USAA Life is the Wrong Choice
Like all companies, you need to qualify for the best rates with a possible medical exam. If you have any of the following situations, USAA may not offer the best deal for you.
- You need a policy quickly: When it comes to applying and getting your policy approved, industry average is around 4-6 weeks. There are faster life insurance companies available if you need a policy issued quickly. Unfortunately, USAA life insurance is slower compared to the competition.
- Any Impaired Risks: If your health or lifestyle is a little iffy, then USAA may not be the best fit. Preexisting health conditions can throw a wrench into how much you’ll end up paying for a policy. Here are just a few examples of common risks that may increase your premiums: You have a family history of cancer or heart disease where one of your family members died before age 60. Your overall cholesterol levels is above 240 with a 6.0 HDL ratio. Your blood pressure level is 140/90 or worse. You have had a history of alcohol or substance abuse in the past 5 years.
- Tobacco Use: Have you used tobacco products within the past 2 to 3 years? If so, there are other companies who may save you around 50% off your premium.
- DUI: A driving record free of DWIs, DUIs, suspensions and other convictions in past five years. If you’ve had a suspended license, DWI or DUI in the past 5 years – USAA may not be the best choice.
- Cost: If you’re in great health and don’t have any underwriting risks, then USAA may be a great fit. However, if you have any high risk factors, then USAA will not have the best price for you.
>>IMPORTANT: If you are in poor health or have a preexisting health condition – you may even have difficulty passing a medical exam and qualifying for coverage with USAA. Their underwriting guidelines are not flexible and very strict.
USAA Life Insurance Company History
Founded in San Antonio, Texas – USAA Life Insurance Company “opened its doors” in a pretty unique way in 1922. USAA actually started out as the United Services Automobile Association when 25 officers of the United States Army provided insurance for each other’s vehicles. Since that time, USAA has grown considerably. They have more than $59 billion in managed assets and listed at #49 by Fortune 500 when ranking net worth.
USAA has some great rates if you can qualify for them. Remember, you must pass a medical exam and meet their underwriting criteria. Unfortunately, they don’t provide rates outside of their own website. To get a USAA quote visit them here: USAA
How To Get The Best Life Insurance Rates
Finding the best rates, policy, company and options usually is done by working with an independent life insurance agent. It’s always smart to work with an agent who has access to multiple companies – instead of just one.
Find out in 90 Seconds If we can beat USAA Rate
So the question is…Will USAA get you the best rate; or will another company like Nationwide, John Hancock, Assurity or Genworth get you the best deal? If you want to make sure you’re getting the best life insurance policies that are available.
Here’s what you need to do…
Compare Plans & Rates
Steps to get an accurate life insurance quote
We hope that our USAA life insurance review helped you understand the importance of shopping for coverage. Our independent agents work with over 60 of the best companies today. We help with every step in the process- From getting you the information you need before you apply, to the application, and final decision. We even shop for you after the decision to make sure you’re getting the best deal available.
Just know that USAA isn’t your only option when it comes to securing the best life insurance policies. Our team of experienced agents will answer all your questions and take the time you need in order to provide you with the best product at the best price. Our service second to none and we’ll never use pushy sales tactics because we don’t favor one company over any other.
Contact us anytime. We’ll see if we can find you a better deal or if the USAA Life Insurance Co is the best option!
USAA Company Details
Name(s): USAA Life General Agency, Inc. (LGA); USAA Life Insurance Company; USAA Life Insurance Company of New York
9800 Fredericksberg Rd.
San Antonio, TX 78288
Ratings: A.M. Best (A++), Standard & Poor’s (AA+), Fitch (N/A), Moody’s (Aa1)
Originally posted 2019-01-21 18:34:50.