Disclaimer: We are not USAA Life Insurance Company. Rootfin is considered an independent agency that strives to deliver unbiased and honest reviews of insurance companies to help consumers make informed decisions.
Our USAA Life Insurance Review is roughly a 5-minute read from start to finish.
During this review, we will touch on subjects that will help you determine if USAA is one of the best life insurance companies you can choose such as potential rates, the underwriting process and what other consumers have to say about the company.
Lastly, for those in a hurry or for those needing only limited information about the company, we have provided links directly below that will allow you to skip to any specific section of this post that you desire to learn more about.
Here’s what we intend on covering in our review:
- Our USAA Life Insurance Review
- USAA History and Background
- USAA Financial Strength Ratings
- USAA BBB Ratings and Complaints
- Life Insurance Products Offered By USAA
- Riders and Additional Options
- What Makes USAA Unique?
- Who Should Consider USAA For Coverage?
- The Application Process
- What to Do If You Have Been Declined
- Pros of USAA
- Cons of USAA
- Final Thoughts on USAA
For those of you who need the fastest summary of USAA Life Insurance as possible, we wanted to be sure to provide that to you as well.
Directly below, you will find our 2 paragraph 20-second snapshot of the company.
USAA is a reputable insurance company who has been in the industry for a long time standing.
USAA is most widely known for offering great rates on auto insurance to military families.
However, USAA also offers relatively popular life insurance products to military families.
Without being in the Military currently or previously or being related to someone who is, you can’t consider USAA for life insurance coverage.
It’s specifically for Military families.
If, however, you do meet this qualification, USAA may be a great life insurance company to run quotes with.
However, like always, we encourage you to run quotes with about a half dozen life insurance companies before ultimately deciding if USAA is the best life insurance company for your protection needs.
That was the 20-second version of our review.
If you do have 5 minutes to spare and need a more detailed analysis of the company, we highly recommend reading our full review below.
Here are the details that you need to know.
Our USAA Life Insurance Review
USAA is a widely known and reputable life insurance company.
More specifically, USAA is primarily known, loved, and respected by veterans or active-duty military personnel.
USAA dumps a substantial amount of marketing dollars into airing commercials during primetime hours, demonstrating that they offer great insurance products for military families.
USAA may be more recognized for home and auto insurance but don’t be misguided.
USAA is still one of the powerhouse life insurance companies in the country as well.
They offer a wide range of products to military families and are one of the longer-standing insurance companies currently operating in the United States.
Here’s a quick overview of how USAA began.
USAA History and Background
USAA is currently based in San Antonio Texas and is considered a Fortune 500 Company.
USAA was founded way back in 1922 by a small group of 25 army officers to help provide self-insurance to military personnel who at the time, were deemed to be higher risk individuals.
Since the original founding, USAA has expanded into other services such as banking, auto insurance, home insurance, and financial services products geared towards retirement planning.
USAA was initially named the United States Army Automobile Association until later changing its name to the United Services Automobile Association.
Currently, USAA has more than 12 million policies in force and remains one of the top 10 largest insurance provides in the United States.
USAA Financial Strength Ratings
Financial strength ratings can be a great indicator of how liquid an insurance company is and how much the insurance company can fulfill promises to its loyal policyholders.
USAA is one of the highest-rated companies available to consumers in this category.
Currently, USAA is being provided an A++ rating from A.M. Best which is considered the highest rating a life insurance company can be provided and considered “Superior.”
USAA is also being provided the following financial strength ratings from the other major credit rating agencies.
- Moody’s A1
- Standard and Poor’s- AA+
- Comdex Rating- 97
These are about as good as it can get for a life insurance company and part of the reason, they find themselves at the top of their game and resting on the Fortune 500 List.
However, the consumer’s opinion is perhaps one of the most critical considerations to keep in mind.
Here are those details for you.
USAA BBB Ratings and Complaints
Currently, USAA is not accredited with the BBB, and no J.D. Power and Associates rankings are available.
However, the BBB is providing us some insight into the company.
Based on 442 reviews of USAA, they are currently ranked low with a B- rating.
This isn’t necessarily a deal-breaker but should be factored into your decision.
In the last three years, USAA has closed more than 1280 consumer complaints which are close to the average we see with life insurance companies relative in size to USAA.
The complaints seem to focus mostly on billing issues or customer service-related problems.
As far as claims being paid diligently, USAA remains reliable.
Life Insurance Products Offered By USAA
The life insurance products offered by a life insurance provider is likely the second most crucial aspect to consider before ultimately making your decision.
Currently, with USAA, you have the following types of life insurance available to you:
Whole Life Insurance- Whole life insurance builds cash value inside of the life insurance policy.
Whole life insurance is also designed to last a lifetime, assuming you continue to pay for monthly premiums for the coverage.
Term Life Insurance- Term life insurance is life insurance that’s designed to provide income replacement and protection for a duration of time.
Typically, term life insurance comes in the following duration options:
- 10 Years
- 15 Years
- 20 Years
- 25 Years
- 30 Years
You pay the same premium every month for the duration of time you choose.
During that time frame, if anything did god forbid happen to you resulting in death, your family would be provided with the death benefit or “face” amount that you initially chose when purchasing the life insurance.
Riders and Additional Options
USAA does offer a few additions with their life insurance coverage.
For example, USAA will supplement your life insurance coverage in addition to your SGLI Group Life insurance and pay’s 25,000 additional lump sum payment to individuals who are severely hurt but not killed in action.
What Makes USAA Unique?
Only 1 massively significant factor makes USAA extremely unique.
They offer full life insurance coverage to individuals who are currently active duty in the military.
Other life insurance companies simply don’t do this.
In fact, other life insurance companies have what’s known at the “War Clause” that would void the contract if you happened to be KIA.
Who Should Consider USAA For Coverage?
This is obvious.
If you are active-duty military or even retired military, USAA Life Insurance Company is a must consider company.
No doubt about it.
However, no matter how good a company may seem at first glance and even if you are active-duty military, we always strongly urge you to compare rates with a half dozen life insurance companies.
This can help eliminate the chance of being declined for coverage or overpaying for your coverage.
The Application Process
The application is straightforward with USAA.
You can begin by visiting the USAA website.
It will begin asking you the normal demographic questions and even throws in some questions about your current military status.
After doing so, you can continue to stream through the process and selecting your estimated coverage needed and the duration you are looking to purchase.
After doing so, you will need to speak to a USAA life insurance agent.
From here, it would be your typical qualification call, and the agent can set up your medical exam and underwriting.
Yes, we hate to break it to you that are interested, but USAA still requires a medical exam.
After completing these steps, you would “in theory” be complete with the application process.
Now it’s time just to sit back, relax, and wait for your approvals.
What to Do If You Have Been Declined
Unfortunately, this is likely the most significant downfall of working with a company like USAA.
They have relatively stringent underwriting guidelines and don’t make for the best option for individuals with health conditions.
However, you always need to remain shopping for life insurance even if you have faced a decline.
Switch up your approach and work with an independent agent who has access to more high-risk life insurance companies to help secure coverage for you and your family.
Lastly, if it remains a struggle, don’t ignore options such as accidental death or guaranteed issue life insurance
These require no health backgrounds, and some coverage is always better than no coverage.
Pros of USAA
When we review a life insurance provider, we always like to inform the consumers of what we consider to be the most significant advantages of working with the company.
With USAA, here is what cracked our top three.
- Best Option for Military Families
- Competitive Rates on Coverage
- Easy Process to Obtain Quotes and Begin the Application
Cons of USAA
Additionally, we wouldn’t be doing you justice without discussing the significant drawbacks of working with USAA.
Here are the biggest downfalls to consider before purchase:
- Stringent Underwriting Guidelines
- Captive Insurance Agency
- More Robust Life Insurance Products Are Available
Final Thoughts on USAA
Life insurance is imperative for most families and most households.
Choosing the right life insurance company is equally important.
Stick to our advice.
Compare rates with as many life insurance companies as possible before making your final decision.
This is the most sure-fire way to get the lowest rates and have the best chance at approvals.
Best of luck in your search.