AAA Life Insurance review June 2019 | finder.com

AAA Life Insurance review

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Find out how to get over $5 million in coverage to secure your family’s future.

Get a quote if…

  • You want a term plan with the option to convert to a permanent one later on.

Pick something else if…

  • You don’t want to be subject to a medical exam.
Free QuoteOnline, Agent
Insurance ProductsTerm, Whole, Universal, Accident
Issue Age18 to 75
Coverage Amount$25,000 to $5,000,000+
Term Lengths10, 15, 20, 25, or 30 years
CostAs low as $8 per month*
Medical Exam RequiredDepends on policy
Ways To File A ClaimMail
Ratings, Accreditation and MembershipsA.M. Best: A (Excellent), BBB: A
State AvailabilityNot available in New York
Customer Service OptionsOnline, Email, Phone, Agent
Policy Riders OfferedYes

What types of life insurance coverage does AAA offer?

AAA Life Insurance offers a variety of term, whole and universal life insurance options to fit you and your family’s specific needs. All of its universal and whole life insurance policies provide you with lifetime coverage and cash value that builds up throughout the life of your policy. You also can get cash value accumulation by going with the Traditional Term with Return of Premium, in which all premiums are returned to you at the end of your term period.

Check out the full details of each plan AAA offers below:

PlanCoverageMedical examMedical questionsAge rangeRate increaseTerm lengthProtection untilTime until coverage begins
Accumulator Universal$25,000–$5 million+MaybeYes15 days to 80 years oldPremiums can be adjusted as your needs changeLifetimePermanent2–6 weeks, potential for temporary coverage during underwriting
Lifetime Universal$25,000–$5 million+MaybeYes15 days to 85 years oldPremiums stay the same until age 100, at which point they’re no longer requiredLifetimePermanent2–6 weeks, potential for temporary coverage during underwriting
Traditional Term$100,000–$5 million+MaybeYes18–75 years oldPremiums increase yearly after term period ends10, 15, 20, 25 or 30 yearsAge 652–6 weeks, potential for temporary coverage during underwriting
Traditional Term with Return of Premium$100,000–$5 million+MaybeYes18–65 years oldPremiums increase yearly after term period ends, but all premiums are returned if you never need your policy’s death benefit10, 15, 20, 25 or 30 yearsAge 652–6 weeks, potential for temporary coverage during underwriting
ExpressTerm$25,000–$250,000NoYes18–75 years oldPremiums increase yearly after term period ends10, 15, 20, 25 or 30 yearsAge 65As little as 10 minutes
Simple Whole$5,000–$25,000NoYes15 days to 80 years oldPremiums stay the same until age 100, at which point they’re no longer requiredLifetimePermanent5–7 days, potential for temporary coverage during underwriting
Guaranteed IssueUp to $25,000NoNo45–85 years oldPremiums stay the same until age 100, at which point they’re no longer requiredLifetimePermanentAs soon as payment processes

What riders can I add to my life insurance policy?

With AAA Life Insurance, you can customize your policy with the following riders:

  • Child term. Can provide life insurance coverage to your children instead of having to take out separate policies for them.
  • Disability waiver of premium. If you become disabled, this pays for your life insurance payments so you don’t lose your policy.
  • Accidental death. An additional payout goes to your beneficiary if you’re in a fatal accident.
  • Travel accident. Your beneficiary receives an additional payment if you should die or become seriously insured in a traffic accident or while traveling as a passenger.
  • Guaranteed purchase option. If you decide you want your coverage increased later, you can do so without have to show proof of insurability.

It should be noted that the Traditional Term plan with Return of Premium doesn’t offer any additional riders.

How do I get a low rate?

Your premium is determined by your age, health, lifestyle, occupation and hobbies, as well as the length and face amount of your policy. The least risky applicants get the best rates. Its underwriting considers:

  • Frequent tobacco use.
  • A history of alcohol or controlled substance abuse.
  • Certain medical conditions in your family history.
  • DWIs or DUIs on your driving record.
  • High-risk hobbies or occupation.
  • High blood pressure or BMI.

Pros and cons of AAA Life Insurance

Pros

  • More than $5 million in coverage is available. Both universal and traditional term policies offer benefits of more than $5 million to customers.
  • All non-permanent plans can convert. You have until age 65 or the end of the term, whichever is sooner, to convert any non-permanent plans.
  • Coverage in as little as 10 minutes. The ExpressTerm option can be applied for online and establishes coverage in mere minutes for those who qualify.
  • AAA membership not required. Though it’s part of the same family, AAA Life Insurance doesn’t require a AAA membership for its life insurance plans. Accident insurance does require membership to qualify, however.

Cons

  • Online application unavailable for all plans. Six of the seven plans offered require you to apply over the phone or by mail rather than online.
  • Physical exam may be necessary for many plans. Four of the seven plans offered may require a simple physical exam, and six of the seven require you to answer questions about your health.
  • Not available in New York. AAA Life Insurance isn’t licensed to do business in the Empire State.
  • No living benefit for Guaranteed Issue plan. Though you can receive coverage right away, you won’t be eligible for a living benefit if you’re diagnosed with a terminal illness after securing the plan. Coverage is also limited in the first two years, and a covered non-accidental death would result in a payout equal to 130% of the premiums you paid rather than the total benefit amount.

Compare Life insurance companies

Name Product Issue Ages Coverage Range Medical Exam Required
20 to 60 years old
$100,000 to $8,000,000
No
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
18 - 64 years old
$100,000 to $3,000,000
No
Customized term life insurance policies up to $3 million, no medical exam required.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
20 - 85 years old
$100,000 to $1,000,000
Depends on policy
Get a term or whole life insurance quote from Fidelity Life - starting as low as $15/day.
21 - 54 years old
$50,000 to $1,000,000
No
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
20 - 80 years old
$25,000 to $10,000,000
No
Quickly get a quote for coverage with this marketplace, which compares term & whole life insurance policies from 45+ carriers.

Compare up to 4 providers

AAA reviews and complaints

As of this writing, AAA Life Insurance is not accredited by the Better Business Bureau (BBB), though it does receive an A+ rating, based on how the business is likely to interact with its customers. It has a total of 26 customer complaints, with half of them relating to problems with the life insurance products themselves, and others unhappy with billing.Other reviews around the web are a mixed bag of favorable and negative. Some customers cite poor customer service with long hold times, issues with getting claims paid out in a timely manner and having the wrong amount of money withdrawn from their bank accounts. Still, others are happy with AAA’s life insurance products and have had no issues with the company, highlighting their fast quotes and good rates.

How does AAA Life Insurance protect my data?

AAA Life Insurance collects your personal information in order to provide you with its products and services and to manage your account. Your information is not sold to third parties, nor is it shared with other companies for marketing purposes.

AAA Life Insurance uses data encryption and SSL protocol to safeguard your data. It also continually monitors its computer networks and tests the strength of its security.

How do I sign up?

  1. To apply for ExpressTerm Life, go to AAA Life Insurance’s term life insurance homepage. From there, click Get a Quote & Buy.
  2. Provide your ZIP code, gender, birthdate and email, then click Next.
  3. Next, enter your height, weight, nicotine use, coverage amount and length of term. Then click See Your Quote.
  4. You’ll be presented with a quote. If you’re happy with the terms of the policy, you can purchase the policy by clicking Buy Now.
  5. Follow the steps to complete your application, answering questions and providing information as prompted. Make sure you have the following information available:
      • Your payment information (bank account or credit card number)
      • Your AAA membership number (if applicable)
      • Your driver’s license or government ID number

Or call AAA Life Insurance Company at (888) 422-7020

I’ve signed up. What happens next?

Once you submit your application, it takes about two minutes to learn if you’re approved. Some applicants may need to supply additional information and complete a medical exam. If this is the case for you, the approval process will take longer.

If you’re approved, AAA Life Insurance will process your payment and coverage begins immediately.

More about AAA Life Insurance

AAA Life Insurance is a company in the same family as the American Automobile Association (AAA). Established in 1969 it has grown to over 1.2 million active policies, according to the AAA Life Insurance website.

You don’t necessarily have to be a AAA member to qualify for many of the plans offered, though there are discounts available if you are. Express and guaranteed plans provide options to those who might not be in the best of health or who have trouble getting insured elsewhere.

In addition to life insurance, AAA Life Insurance has a few other products you may be interested in.

Accident insurance

AAA members may be able to buy accident insurance over the phone or by mail. No health questions or medical exams are necessary.

Hospitalization, recuperation and emergency room and urgent care visits are all potentially covered with cash benefits to help ease the burden of costly injuries that result from an accident. You may also be able to add a loss of life benefit that could pay cash out to your family in the event of a tragic accident.

Annuities

AAA Life Insurance offers three annuity products:

  • EliteGuarantee Deferred Annuity. A solid three-year guarantee is applied to the interest rate you receive upon establishing an EliteGuarantee Deferred Annuity account.
  • Platinum Bonus Annuity. Your rate is guaranteed for the first year of this plan, and you may receive additional first-year bonus interest. Premiums are flexible, so you can add when you want.
  • Guaranteed Income Annuity. This product is designed to help you turn savings into income later down the line. You must be at least 18 years old and able to pay the minimum premium of $10,000.

How do I file a life insurance claim with AAA Life Insurance?

    In order to file a life insurance claim with AAA Life Insurance, you’ll need to send a notice of the claim by mail, fax or email:

    • By mail. AAA Life Insurance Company, 17900 N. Laurel Park Drive, Livonia, MI 48152
    • By fax. 888-223-1509
    • By email. claimssvc@aaalife.com

    While AAA doesn’t list the necessary documents to send, typically you’ll need to produce a certified death certificate and identification documents that show you to be the beneficiary.

    Bottom line

    With seven life insurance policy choices and several rider options, AAA Life Insurance offers the ability to build plans around many different needs. Most of the choices provided by AAA Life Insurance are contingent on a potential medical exam, so you may want to look at another insurer if the few that don’t require it don’t align with your needs.

    Take your time and compare providers to get the policy that’s right for you with our comprehensive guide to life insurance.

    Frequently asked questions

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site