AAA Life Insurance Review 2020

In this method you are expected to apply through a licensed insurance agent. This term policy comes with higher coverage amounts, from $100K-$5M and is available in same term lengths available for ExpressTerm, plus a 25-year term option.²

Additional add-ons for this policy include a child term benefit, disability waiver of premium rider, and a return of premium rider.

AAA offers whole life policy options that are on the lower end of coverage amounts from $5K-$75K. The lower coverage amounts are intended to be to cover any final expenses that are accrued. You are able to apply for coverage if you are 18-85 years old. The whole life policy is intended to cover you for your full lifetime.³

As with any whole life insurance policy the AAA whole life policy accumulates a cash value over time.

Additional add-ons for this policy include a child term benefit, disability waiver of premium rider, accidental death, and travel accident.

This is a type of whole life policy offered by AAA that is intended to cover final expenses with no health questions or medical exam. The coverage amounts are a little lower for this policy since you get to skip the exam and are offered from $5K-$25K. You are able to apply for coverage if you are 45-85 years old.⁴ Same as the traditional whole life policy, this is meant to cover you for your lifetime and it builds a cash value.

It is good to know your options when looking for a final expense policy. Check out the best final expense and burial insurance companies.

Rather than end at a predetermined time, universal life insurance offers coverage for your entire life. AAA Life insurance offers two types of universal life insurance LifeTime Universal Life insurance and Accumulator Universal life.

This is for people who are looking to increase the size of their life insurance beneficiaries’ inheritance. The product is a good fit if you have a loved one who you want to be financially provided for after your passing, or you need to supplement the loss of your monthly income. If you simply want life insurance for estate planning, this is probably the best choice. However, for those who want some additional cash value, then AAA Life has another option.

This policy allows more flexibility to customize your coverage, but the minimum amount is $100K.⁵

Additional add-ons for this policy include a child term benefit, disability waiver of premium rider, and accidental death rider.

This policy offers more flexibility as it creates more cash value. Cash value can be used for business succession planning, such as funding buy-sell agreements with life insurance or for supplementing your retirement.

The minimum coverage amount for this policy is also $100K.⁶

Additional add-ons for this policy include a child term benefit, waiver of monthly deductions, accidental death, and guaranteed purchase option.

This benefit is able to be added to a traditional term policy or a whole life policy. With this benefit you are able to add up to $20K of life insurance protection per eligible child for Traditional Term and both universal life policies and up to $5K of life insurance protection for the whole life policy.^7,8,9,10

This rider provides protection if you become disabled and are unable to pay your premiums. This is available on the Traditional Term, whole life policy, and the LifeTime Universal life policy and is meant to cover your premiums in the event you are totally disabled so your life insurance policy stays in force.^11,12,13

This rider allows you to collect the premiums back that you paid into a policy if you outlive the length of the term policy you select. This is only available on the traditional term policy.¹⁴

This rider provides an additional payment of up to $25K to your beneficiary should you pass away from a covered accidental death. This is available on both universal life insurance policies and on the whole life policy.^15,16,17

This benefit provides additional payment to your beneficiary in the event you die or are seriously injured in a travel accident or while traveling as a passenger in accidents that are deemed to be covered by AAA. This is only available on the whole life policy.¹⁸

This rider is meant to pay for your life insurance monthly deductions if you become disabled. This rider is only available on the Accumulator Universal life policy.¹⁹

This benefit allows you to increase your coverage at a future date, without proof of insurability.²⁰ As your life insurance needs change, this policy allows you the flexibility of being able to increase your coverage amount. This is only avalaible on the Accumulator Universal Life policy.

AAA doesn't offer every type of life insurance policy out there, but they have the main options that will likely suit the majority of your needs.

You have an a quick, DIY type of term life insurance, in a variety of term lengths. In some cases you will be able to skip the medical exam and get covered right after completing your application. On the other side there is a term option that lets you get guidance from a licensed life insurance agent so you can discuss your needs and determine if term is the right option for you.

AAA also offers a couple of different choices for whole life insurance and universal life insurance depending on your need. Most of these policies are designed to meet a specific financial need.

If you are already a AAA member, you might want to consider life insurance with this company as they offer discounts on a variety of policies if you are a member. If you aren't a member, you are still able to apply for a life insurance policy with AAA, but you won't be eligible for the discount.

Third party rating organizations usually give you a good idea as to the reputation of a company and the quality of products they offer. A.M. Best Company is the most renowned ratings agency, offering consumers ratings on most life insurance companies. So how did they rate AAA Life Insurance?

As of August 2019 A.M. Best gave AAA Life Insurance Company a rating of A, or excellent financial strength.²¹ This is A.M. Best's second-highest rating. Standard and Poors, Fitch, and Moody's do not have current ratings for AAA Life Insurance Company.

Still, an A from A.M. Best  is a solid rating and shows that the company is financially healthy. With this kind of rating, AM Best forecasts a stable future for AAA Life Insurance—something that should put policy seekers at ease.