Last Updated: February 2020
If you are considering AAA for your life insurance needs, you’re in the right place. Purchasing life insurance is a big decision, and below, we will help you decide if AAA might be a good fit for your needs.
In this article, we will review the history, benefits and policy choices for AAA Life Insurance Company.
- AAA Life Insurance Ratings and History
- Benefits of Choosing AAA Life Insurance
- Types of Policies Offered by AAA Life Insurance
- AAA Life Insurance Review: Takeaways
AAA Life Insurance Ratings and History
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.
- AAA has more than 1,200,000 policies in force.
- They offer one of the best customer service programs in the life insurance industry.
Here are the financial ratings for AAA Life Insurance, along with several other metrics that we use to review carriers.
- A.M. Best: “A” (excellent) rating
- Affordability Index: 9.2
- Ease of Applying: 9.1
- Customer Service: 9.9
- COMDEX Ranking: N/A
A.M. Best is the industry benchmark for financial strength in the life insurance industry. The other three metrics are based on a number of factors including our industry knowledge of AAA compared with other companies. The COMDEX ranking is a composite score that considers A.M. Best and other top rating agencies.
Being a major force in the life insurance industry, AAA is aware of the needs of its 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.
Benefits of Choosing AAA Life Insurance
A major brand and great reputation in the life insurance industry, AAA has several areas where they stand out from other carriers.
AAA has Competitive Rates
AAA Life has always strived to provide the most competitive rates in the industry. They’re often able to offer rates less than the competition.
The table below shows the monthly premiums for a 10-year term policy with $500,000 in coverage. These rates are for a female 35 years of age, non-smoker who is in good health.
|New York Life||$19|
They Have Top-Notch 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 is complete.
They Offer Many Life Insurance Choices
AAA has some of the most diverse and comprehensive products in the insurance sector. They also have the quality of financial products you might 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 Offered by AAA Life Insurance
There are two types of life insurance policies, term and permanent. Below we will show you details of all of AAA’s policies.
AAA Term Life Insurance Products
AAA Life Insurance has 2 different term policies to choose from.
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 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 very affordable rates. This policy comes in 10, 15, 20, 25, 30-year terms, with the help of an experienced agent.
AAA Whole Life Insurance Products
AAA offers two types of whole life insurance.
Simple Whole Life
Simple whole life insurance is a very basic form of whole life insurance.
- It does not require a medical exam.
- There are just a few questions on the application.
- You can have from $5,000 to 25,000 in cash-generating benefits.
Keep in mind that this type of no-exam life insurance is more expensive.
Guaranteed Issue Whole Life
Guaranteed issue whole life insurance can be applied for by mail or right on the phone.
- Coverage is immediate.
- No medical exam.
- No 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
There are two universal life insurance policies offered by AAA.
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 the 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,
- Premium payments 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, or anything else 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.
High-Risk Life Insurance from AAA
AAA offers high-risk life insurance as well. Lifestyle and health questions are required for many of these products.
Higher premiums should be expected for things such as smoking, tobacco use, and physical or mental illnesses.
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 include illnesses such as cancer, ALS, heart disease, stroke, and chronic illnesses.
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 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: Takeaways
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.
However, AAA is just one of many life insurance providers on the market.
Because of this, we always recommend speaking with an independent life insurance agent when considering your life insurance options. You can compare rates from dozens of the best life insurance companies in minutes. You can also use our free quote tool to see rates even faster.
Below are several other guaranteed acceptance life insurance companies to consider.
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