AAA Life Insurance joined AAA over 50 years ago. It continues to grow —with over 1.4 million active policies— and boasts a current A.M. Best rating of Excellence.
Pros and Cons of AAA Life Insurance
Pros
- A rating of Excellence “A.M. Best”
- Options to obtain insurance coverage without a medical exam
- Reduced rates for members when purchasing multiple policies
- Offers a “Terminal Illness Rider”
- User friendly online access to quotes
- Express Term Life Policy has an online 10 minute application process
- Discounts for AAA members on certain policies
Cons
- Prices tend to be higher in direct comparison to other company’s policies
- Longer approval wait times
- Small benefit amounts on AAA whole life insurance – $75,000 for traditional whole life | $25,000 for guarantee issue whole life
- Can not get instant quotes for traditional whole life and AAA universal life insurance on their website
How is AAA Life Insurance Different?
As an AAA member, you can be entitled to discounts based on multiple policy purchases. You have the ability to “ bundle” your auto, home and life insurance policies in order to optimize your price point.
AAA Life also has the unconventional option of allowing applicants to purchase a Term Life Policy ( up to $500,000.00) without undergoing a medical exam. This means immediate guaranteed coverage regardless of your current health situation , or heath history.
What Types of Insurance Can You Purchase from AAA Life Insurance
Life Insurance Products Offered through AAA Life:
There are three types of life insurance products offered through AAA Life:
Term life, Whole life, and Universal life (permanent coverage).
The biggest difference between the two types of life insurance coverage is that “Term” only lasts for a specific amount of time, while “Whole” and “Universal” life insurance is permanent coverage.
What Other Policies Does AAA Insurance Offer
Life insurance isn’t the only type of policies AAA offers. You may also be purchase:
- Auto Insurance
- Homeowners Insurance
- Accident Insurance
- Annuities
If you’re interested in any of these types of insurance, contact a AAA representative.
Although —if you’re looking to bundle *home, auto, and life insurance* into one package— you may do better using a company like State Farm. They’re pretty expensive, if you buy life insurance alone; but if you are set on a bundle approach… you should compare the two.
We do what’s right for you. Not what’s right just to make the sale. We simply want to help you make an informed decision.
Chris Lalor
A Brief History of AAA Life Insurance
AAA is probably one of the most common names in the area of Insurance (and expertly named, when we used to look to the Yellow Pages for such things).
Founded over 115 years ago, solely for the purpose of Auto Insurance needs, but —with its reputation for excellence— grew exponentially, providing additional services including Life Insurance and Financial Products.
Strength in numbers, over 50 years in business, and $3 billion in paid claims… AAA Life has earned its bragging rights.
AAA Offers Two Types of Term Life Products
Express Term Life:
Coverage and Details
- Express refers to the convenient online application process: you can be approved and have immediate coverage, in as little as 10 minutes; if you qualify
- Offered available Terms – 10-15-20-30 years
- Coverage range is between $25,000-$500,000
- Eligible age between 18-75 years old
- You will need to answer medical questions to determine eligibility and some applicants may need to complete a health exam.
- You do not have to be a AAA member to purchase, BUT AAA members get a 10% premium discount.
- You can get as much as 50% of your benefit (up to $250,000), if you are diagnosed with a terminal illness (with less than a year to live).
- Can convert to permanent insurance up to the end of the initial term period OR to your 65th birthday (which ever comes first).
Traditional Term Life:
Coverage and Details
- Application process through an experienced agent
- Offered available Terms 10-15-20-25-30 years
- Coverage amounts $50,000 – $5,000,000 ( determined by age factor)
- 1-6 week waiting period for coverage
- Premiums do not change during the stated term
- You will need to answer medical questions to determine eligibility and some applicants may need to complete a health exam.
- You do not have to be a AAA member to purchase BUT AAA members get a 10% premium discount.
- You can get as much as 50% of your benefit —up to $500,000— if you are diagnosed with a terminal illness, with less than a year to live.
- Available Life Insurance Riders: Child Rider, Disability Wavier of Premium, Return of Premium.
- Can convert to permanent insurance up to the end of the initial term period OR to your 65th birthday (which ever comes first).
Have you had any first-hand experience with AAA Life Insurance? We’d like to hear about it…
Permanent Life Insurance Products:
Whole Life and Universal Life
Unlike Term Life Insurance —which is purchased for a designated time period— Permanent Life Insurance is just that: Life Insurance coverage for the duration of one’s lifetime.
Whole Life Insurance:
Coverage and Details
- Application through an experienced, licensed agent.
- Coverage range between $5,000-$75,000
- Eligible age between 18 – 85 Medical underwriting protocol for $30,000 + health screening questions and a medical exam
Qualified applicants have a 1-6 week waiting period - Premiums remain the same until age 100
- Permanent Life Insurance that builds a Cash Value
- Offers additional Riders such as Child Term, Disability Waiver ,Travel Insurance and Accidental Death
Offers the Terminal Illness Benefit - It can take up to 6 weeks to get approved for a policy, but you are covered during the underwriting process
- AAA membership not required to apply BUT AAA members get a 10% discount
- You can access up to 50% of the death benefit if you have a terminal illness with less that 1 year to live
Guaranteed Issue Whole Life Insurance:
Coverage and Details
- Application by mail or telephone
- Guaranteed acceptance for Whole Life Insurance
- No medical screening questions
- No medical exam
- Permanent Life Insurance
- Maximum coverage is $25,000
- Eligible age for guaranteed acceptance is 45 to 85 years old
- Immediate coverage, no wait time for processing
- Premiums remain the same until age 100
- This guaranteed life insurance policy builds cash values.
- This policy contains a graded benefit feature, which means:
- if you suffer a covered accidental death, your beneficiaries get the total amount of your coverage.
- if you suffer a covered non-accidental death —within the first two years of coverage— your beneficiaries get 130% of the premiums you paid.
- after two years, the total benefit amount is paid for death due to any cause.
- Membership is not required to purchase, however; the $60 annual policy fee is waived for AAA members and their spouses.
- Available Riders: Travel Accident Endorsement that doubles the death benefit and a Lifetime Membership benefit after the second year of the policy.
Universal Life Insurance:
Coverage and Details
- Universal Life Insurance is permanent coverage but, unlike Whole Life, there is flexibility on premiums and death benefits.
- Designed as lifetime insurance coverage
- Coverage range is $100,000 to $5,000,000 +
- Eligible age between 15 days and 80 years old
- Medical questions must be answered
- Health screening questions may be required
- Qualified applicants have a 1-6 week waiting period
- Adjustable premiums
- Offers the Terminal Illness Benefit
- Additional optional waivers include Child Term, Waiver of Monthly Deductions, Accidental Death, Guaranteed Increase Option, Yearly Renewable Term Life and Travel Accident
- Permanent life insurance that may build cash value
- Members who purchase Lifetime Universal Life from AAA may also receive a discount on their auto and homeowners
- Adjustable premiums. Just pay the “no-lapse” premium amount and the coverage is guaranteed for 10 years
- Get up to 50% of your benefit —up to $500,000— if you are diagnosed with a terminal illness, with less that one year to live
Accumulator Universal Life:
More Cash Value accumulation – More Expensive
- You must use an AAA agent to get a quote and to purchase this policy.
- Permanent life insurance coverage designed to last a lifetime plus an emphasis on cash value growth.
- Coverage Amount: $100,000 to $5,000,000+.
- Issue Ages: 15 days to 80 years old.
- You must answer health questions to apply and a medical exam my be required for some applicants.
- Can take up to 6 weeks to get approved.
- Members who purchase Lifetime Universal Life from AAA may also receive a discount on their auto and homeowners.
- Adjustable premiums. Just pay the “no-lapse” premium amount and the coverage is guaranteed for 10 years
- Get up to 50% of your benefit (up to $500,000) if you are diagnosed with a terminal illness and have less that one year to live.
- Available Riders: Child Term Rider, Wavier of Monthly Deductions, Accidental Death, Guaranteed Increase Option, Travel Accident.
Coverage Details & Guidelines
WHO ISSUES THEIR POLICIES?
Life insurance policies are underwritten and issued by AAA Life Insurance Company, Livonia, Michigan.
AAA Life Insurance Company is licensed in all states except NY.
HOW DO I GET AN ONLINE QUOTE THROUGH AAA LIFE INSURANCE?
You can complete an online quote from your device within a few minutes.
HOW DO I GET A LOW RATE?
Current AAA members get an automatic 10% discount when adding on products and services.
The younger —and healthier!— you are, the lower your rate.
Traditional Term Insurance is the most affordable premium, because you must be underwritten prior to approval.
This could mean answering some medical screening questions.
If any of your responses are “flagged”, then you would require a medical exam (i.e. blood work, weight, height and a saliva test).
Who is AAA Life Insurance For?
- Any member of a family where their income is covering living expenses, mortgage etc.
- Stay at home parent to cover child care services
- Divorced parent to cover support payments
- Parents of a special needs child to cover care-giver services
- Homeowners to cover a mortgage payment
- Individual with a co-signed debt
- Business owner – key man insurance or for a buy / sell agreement
WHO IS THE IDEAL AAA LIFE INSURANCE APPLICANT?
The ideal applicant is young , healthy , does not partake in recreational drugs, smoking tobacco or engage in high risk activities such as skydiving , auto racing, rock climbing, scuba diving, etc.
WHAT IF I’M NOT PERFECTLY HEALTHY?
You would still be entitled to coverage, however; the premiums would be higher. There are choices: apply online for Express Term or with an agent, for Guaranteed Whole Life. Both of these options are immediate coverage with no medical information required. You can also apply for Traditional Term or Whole Life and complete the medical exam. The results may still entitle you to coverage, however; premiums would reflect the health risk.
AAA Life Insurance Application Process
First important resource is to determine what type of insurance best fits your needs. Then you can either call AAA and speak to one of their licensed agents or you can go online to their website and apply without an agent.
Applications require basic personal information, followed by a detailed medical questionnaire. If any of your responses flag further investigation, you will be directed to book an exam with their provider. Typically, they have mobile units —with Registered Nurses who will come to your home— to complete the health assessment.
Once this process is complete, it can take up to 6 weeks for approval and coverage.
AAA Life Insurance Financial Strength and BBB Ratings
AAA has a Better Business Bureau of A+.
Since March 2020, BBB has received a total number of only 20 complaints for AAA Life— most of them related to either the products, the sales advertising, or billing issues.
Additional Ratings
- Consumers Advocate : 4 / 5
- Consumer Affairs: 3 / 5
AAA has an A- rating by A.M. Best who specializes in rating insurance companies. A- is considered a rating of Excellence. Highly rated, AAA is considered to be a strong and stable Life Insurance Company.
AAA Life Insurance Reviews and Complaints
AAA Life has a National Complaint Index Report slightly above the National Association of Insurance Commissioners Index. The National Complaint Index tracks complaints submitted to state insurance departments.
The standard is 1.00 with the AAA Life index being 1.38. This means that AAA Life’s complaint index is more than the standard score.
Since March 2020, there are slightly more that 20 customer complaints— appoximately half of them were “resolved”.
Consumer Affairs scores AAA Life a respectable 3 out of 5. Several commenters complain of difficulty receiving death benefits, sudden price hikes to premiums, and poor customer service.
Frequently Asked Questions About AAA Life Insurance
Does AAA life insurance cover COVID-19 related deaths?
Yes. Life insurance covers death by all causes that are not explicitly excluded in the policy. COVID-19 is not explicitly excluded in the policy therefore they would not deny a claim for that reason alone.
Is AAA a good / legit company?
Yes. Since 1969 AAA has sold over 1.4 million policies and paid over $3 billion in total claims. They have high company ratings and an array of competitive insurance products.
Does AAA have the best prices for life insurance?
No. Compared to other top leading agencies, AAA has competitive prices but they are not the best.
How easy is it to get approved for AAA life insurance?
Depends. Unless you purchase no questions asked guaranteed issue whole life, you will have to answer questions about your health and may even have to pass a medical exam. If you are healthy, it is easy to get approved. It will be more difficult to get approved however if you have certain types of health conditions.
Will I have to give my social security number when I apply?
Yes. AAA will use your social security number to verify your identity. They will also run a credit check and other types of data reporting during the underwriting process.
Does AAA Life have a lot of complaints?
According to the National Association of Insurance Commissioners (NAIC) AAA’s Complaint Ratio is GOOD. The complaint ratio indicates the number of negative reviews a company receives in proportion to its size.. AAA’s complaint ratio was just 0.15 as compared to the national median of 1.00.
Did you find anything in your research during your AAA Life Insurance Reviews process?
AAA is a extremely well known and has a good reputation. Most negative customer reviews focused on the higher policy costs or your basic buyer’s remorse.
What is life expectancy?
Life expectancy is the statistical expectation of how long someone will live at birth based on a number of factors such as socioeconomics, demographic, geographic, thermographic, stenographic, idiographic, and historiographics.
The Bottom Line
AAA has been serving the life insurance needs of its customers for over 50 years. It’s a reputable company, financially stable —with minimal complaints on file, warranting a rating of Excellence from A.M. Best.
We always recommend getting at least 2 or 3 competitive quotes, for comparison purposes; before you buy. You can get started on that, right here…
We do what’s right for you. Not what’s right just to make the sale. We simply want to help you make an informed decision.
Chris Lalor
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