AAA Life Insurance Company Review

Background and Information

One of the easiest brands of life insurance to recognize, AAA Life Insurance has been part of the American Automobile Association (AAA) since 1969. Owned by several AAA entities, the organization is headquartered in Livonia, MI. The company offers term, whole, and universal life insurance as well as accident insurance and annuities.

A premier financial services company, helping people protect their loved ones by providing financial security through careful planning, AAA Life has an AM Best rating of excellent (A) for 2017.

AAA has more than 1,200,000 policies in force and has one of the best customer service programs in the life insurance industry.

This all means that AAA Life Insurance has the financial strength and services to offer people the protections they want and need. In fact, here is an overview of AAA’s financial ratings:

Company Financial Rating
Moody’s N/A
A.M. Best A-
Fitch N/A
Standard & Poor’s N/A

Being a major force in the life insurance industry AAA is aware of the needs of their policyholders. The company’s reputation for customer service is legendary and continues at that level of excellence today.

The company’s focus is on delivering quality service on everything from quotes to claims. LIMRA, an independent life insurance organization, conducted a survey of the top life insurers and found AAA Life Insurance had the highest rating overall.

What Does AAA Offer Their New Policyholders?

Competitive Rates

AAA Life has always strived to the providing the most competitive rates in the industry. Almost always a rate less than the competition, AAA life products are designed to produce peace of mind and a sense of stability for their clients.

The table below shows the monthly premiums for a $500,000 face value, 10-year term life policy for a female 35 years of age, non-smoker who is in good health.

Company Monthly Premium
AAA Life $13.98/mo.
New York Life $19.40/mo.
Allstate $22.56/mo.
StateFarm $24.35/mo.

Customer Satisfaction

AAA Life Insurance customers are the company’s top priority. The service is based on experienced life insurance agents who can help anytime and anywhere. AAA doesn’t just think their clients are happy – they actually ask them. Research into customer satisfaction has shown a 95% satisfaction rate in services provided and overall experience with the company and its employees.

LIMRA, an insurance research company has determined that AAA has the best overall claims practices since 2015. The company has some of the fastest disbursement rates for claim payments in the industry.

It is important when considering the top companies for purchasing life insurance that the insured takes the time to consider how the company treats the policyholder and the beneficiaries after the initial sale are complete.


AAA has some the most diverse and comprehensive products – in the insurance sector, but also the quality of financial products you have come to expect from this top insurer.

AAA offers many options to meet the needs of its prospective clients. The first step in the selection process is a little background. After a short description, the different types of policies that AAA Life offers can be laid out for careful consideration.

Types of Policies

There are two types of life insurance policies – term and permanent.

Term Life Insurance

Term Life Insurance is a policy that covers the insured for a specified period of time (a term). It is often called “pure insurance” because the policy protects the insured’s beneficiary in the case of unexpected or premature death.

There is no ancillary benefit to a term policy – if the insured dies during the term, the named beneficiary receives the death benefit. This type of insurance usually cost less during the term, and than the premium increases over time substantially.

Permanent Life Insurance

Permanent Life Insurance is more a more complex form of insurance. It usually costs more and has a cash value that increases over time and sometimes can pay for the policy if there is a problem paying the premiums.

As long as the premiums are paid on the policy this form of life insurance never ends, nor does the premium increase. With permanent life insurance, there are different types. At AAA Life there are whole life insurance and universal life insurance policies.

AAA Life Insurance Policy Offerings

What exactly does AAA Life offer prospective clients? The types of policies a life insurance company offers are vital to its foundation and continued growth. AAA has some of the best policy features in the life insurance industry, to date. Their products set the standard by which many other companies try to emulate.

We spend, on average, 8 dollars a day on extras, like bottled water, crafted coffee, and snacks at work. That 8 dollars multiplied by 5 days a week is 40 dollars.

That sum can be multiplied by 4 weeks per month and you have $160.00 per month – that doesn’t even cut into your meal budget. You can get a fairly hefty term policy for that much money. Let’s look at AAA’s offerings.

AAA Term Life Insurance Products

Express Term

Express Term can be applied for online. Application and approval in as little as ten minutes. Death Benefits from $25,000 to $250,000. 10, 15, 20, 25, or 30-year terms. This benefit never changes, up or down, you get the same death benefit for the life of the policy.

Traditional Term Life

Traditional Term Life can be bought with an agent, or through an agent. This type of policy has a broader scope and a wider selection of death benefit amounts. From $100,000 to 5,000,000 death benefit at a very affordable rate, some of the lowest in insurance circles. 10, 15, 20, 25, 30-year terms, with the help of an experienced agent.

AAA Whole Life Insurance Products

Simple Whole Life

Simple Whole Life is the type of policy that does not require a medical exam, just a few questions and you can have from $5,000 to 25,000 in cash generating benefits.

Guaranteed Issue Whole Life

Guaranteed issue whole life insurance an be applied for by mail or right on the phone, coverage is immediate and no need to worry over a medical exam or health questions. Benefit from $5,000 to $25,000. The premium never changes, for your entire life. The cash value builds over time.

AAA Universal Life Insurance Products

Lifetime Universal Life Insurance

Lifetime Universal Life Insurance is permanent insurance that allows the insured to leave a legacy for those they care about. Designed to last for a person’s entire life, this coverage can offer peace of mind for insured, that what they leave behind is substantial enough to cover any costs that might come up.

Coverage amounts vary, from 25,000 to 5,000,000. A medical exam may be required, health questions are required, and premium payments that never change, until age 100, at which time premium payments end. This policy can be bought for anyone 15 days old to 85 years old.

Accumulator Universal Life 

Accumulator Universal Life is a cash accumulation life insurance policy meant to offer a financial feature that other policies don’t offer, or do not offer at this type of increased rate of return. It is an investment for the future and can be bought for anyone 15 days old to 85 years old.

Use the cash value for college tuition or as a retirement safety net – anything you could imagine. Death benefits start at $25,000 and go up to just about any amount you can imagine. This is the type of insurance that brings comfort and peace of mind to young families and those seeking help with retirement funding.

AAA Life Insurance for High Risk Individuals

There are always variances within the life insurance purchase process. At AAA lifestyle and health questions for some of their products are a given. These questions are meant to help the process, not hurt it.

Higher premiums for such things as smoking or tobacco use and physical and mental illnesses play an important role in the classification and rating process.

When insurance companies come upon a case that is inordinately high-risk, it is usually classified as “special cases.” Usually, the people who fall into the special case risk category are assessed as a group and then rated to actuary and aggregate tabling for mortality rates.

That means the question is asked, do they die at a younger age, or prematurely, and do they have that problem consistently?

AAA calculates such risks and populates the special cases as follows:

AAA Life Insurance for Smokers

The smoker class of risks has many complications in rating due to the severe health risks posed by tobacco use.

AAA offers policies based on whether or not a smoker has quit for at least a year or a higher rate for regular use of tobacco products.

AAA Life Insurance for People with Medical Conditions

Having medical conditions is probably the easiest way to get placed in the special case category. This type of low health rating can extend beyond such devastating illnesses as cancer, ALS, heart disease, stroke, but chronic illness can also populate these categories.

It is unfortunate but a lengthy underwriting process may be called for these cases. AAA has shown a desire to offer an affordable rate, even to those with less than perfect health.

AAA Life Insurance for the Elderly 

As the definition of elderly often varies from company to company, it is seen as a liability to the life insurance industry. There will be – for those policies requiring it – a long and sometimes arduous underwriting process. For this reason, AAA offers the guaranteed issue policies.

AAA Life Insurance for the Disabled and Special Needs 

Just like elderly clients, the permanently disabled and those needing special care, or have long-term care requirements are more of a risk than others. This means all sides of the issue will be looked at carefully and appropriate ratings will be applied.

AAA Life Insurance Review – Wrapping it Up 

When choosing any life insurance company it is best to research the independent reviews and the company’s own documentation. AAA has some of the best policy features and offerings in the industry.

There is a simple and straightforward reason for this, it matters to them. The effort put into bringing this large company’s offerings to everyone at an affordable rate and to try their best to get everyone coverage has made them the premier company they are today.

At the end of the day, AAA is just one of many life insurance providers on the market.  While internet quoting engines have made finding affordable life insurance within a few seconds very easy, they often fail to truly take into account the unique characteristics that define your specific rates, such as:

  • Health
  • Lifestyle
  • Coverage goals
  • Financial situation

Because of this, we always recommend speaking with an independent life insurance agent when considering your life insurance options.  We are able to compare rates from dozens of the best life insurance companies in seconds.

Not only this, but we are able to speak with you one-on-one about your specific situation to help find the best coverage options for you, and then discuss them with you to help you understand the intricacies of the policies themselves, and weigh which one is best for you.

Contact us today to get started, or begin with a quick quote below!

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About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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