skip to main content

We may earn money when you click on our links. Learn More

Icon Close  Light

Call Today! 888-234-8376

AAA Life Insurance Review 2020

Researcher & Writer
December 10, 2019

About AAA Life Insurance

AAA Life Insurance is a part of the American Automobile Association (AKA Triple A) founded in the early 1900s. It is most famous for its roadside assistance program.

AAA Life Insurance Company came into existence in 1969. Because AAA had already made a name for itself as a reliable company, they were able to leverage this and attract their existing customers for a new product—life insurance. Today, over 1 million people have AAA Life Insurance Company policies.

AAA life insurance policies

The Company offers a wide range of life insurance products including annuities. For those deciding between term and whole life insurance, you should consider the reason you need the coverage. For replacing income or mortgage protection, term is typically the best choice. However, there are times when whole life insurance is better than term life.

AAA term life insurance

The company offers two flavors of term insurance, ExpressTerm life and Traditional term life.

ExpressTerm life insurance

The ExpressTerm allows you to take the DIY approach to insurance and you can complete the application in as little as 10 minutes. You are able to get coverage anywhere from $25K-$500K and the term lengths available are 10, 15, 20, or 30-year terms.1

Individuals who are 18-75 are able to take advantage of this DIY method. In some cases you can receive coverage instantly.

Call Today 888-234-8376

Traditional term life insurance

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 whole life insurance

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.

Guaranteed issue whole life

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.

AAA universal life insurance

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.

LifeTime universal life insurance

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.

Accumulator universal life insurance

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.

AAA life insurance rider options

Child term 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

Disability waiver of premium

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

Return of premium

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

Accidental death

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

Travel accident

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

Waiver of monthly deductions

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

Guaranteed purchase option

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.

How much does life insurance with AAA cost?

Sample AAA life insurance rates

20-year term life insurance for a healthy 25-year-old
Death benefit payout

Monthly male premium

Monthly female premium

$100K

$12

$11

$250K

$17

$15

$500K

$26

$22

$1M

$46

$39

Sample quotes based on AAALife.com and are for illustration purposes only. Rates based on no AAA membership, members receive a discount. Actual quotes may vary. Data effective 12/10/19.

20-year term life insurance for a healthy 50-year-old
Death benefit payout

Monthly male premium

Monthly female premium

$100K

$31

$24

$250K

$55

$42

$500K

$102

$76

$1M

$194

$142

Sample quotes based on AAALife.com and are for illustration purposes only. Rates based on no AAA membership, members receive a discount. Actual quotes may vary. Data effective 12/10/19.

Why you should consider AAA

Policy options for most

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.

AAA Member

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.

How AAA stacks up

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.

Written by
TermLife2Go
We are a team of life insurance experts with the simple mission of helping you find the best coverage for your unique situation. We research, review, and rank life insurance companies to make that process easier.