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USAA Life Insurance Review 2020
March 31, 2020
USAA has some of the highest ratings in the industry but its policies are limited to those who have served in the military or Department of Defense.
When searching for USAA Life Insurance reviews, people are usually looking to find out if the company has a good reputation or if they have affordable rates for a life insurance policy. But before we touch on USAA Life Insurance Company's reputation and pricing for life insurance, let's talk about their history.
Background of USAA Life Insurance
In 1922, a group of US Army officers founded USAA to self-insure since they could not get proper automotive insurance. Due to their positions in the military they were perceived as a “high risk” group. From its humble beginnings, USAA Life Insurance has grown their member base, and the services they offer.
At the time USAA was founded, the world was entering a new period of prosperity and the thought of another great war was far from the minds of the people. In the 1920s and through most of the 1930s relatively few people chose military service. But that all changed with the advent of World War II and the subsequent wars that followed which increased the number of people in military service.
About USAA Life Insurance
The United Services Automobile Association (USAA) is actually a collection of companies that offer insurance, banking and investment opportunities for military personnel.
Ever since their founding nearly 100 years ago, USAA Life Insurance has grown considerably over the years to become a well respected Fortune 500 company. Offering their services to military personnel and their families has provided them with a valuable niche in the market that has grown tremendously over the years.
United Services Automobile Association (USAA) boasts over 12.8 million members1 and is the 7th largest life insurer in the nation based on total premiums written in 2018.2
Reviewing a company like USAA Life Insurance does have its caveat as they only offer their services to military members and their families. Therefore, their qualifications are not as open as other major carriers such as Progressive, State Farm and the like.
Advantages of USAA Life Insurance
There are many advantages that USAA Life Insurance offers, especially when it comes to the company’s financial strength, how they deliver their services and the type of services offered.
USAA Financial Strength Ratings
As you may have read in other USAA Life Insurance reviews, USAA carries an A++ rating from A.M.Best in 2019. This is the highest possible mark from this rating agency and signals that USAA Life Insurance Company has a superior ability to meet its obligations.
Standard and Poor's rating of AA+ and Moody's rating of Aa1 are these agencies' second highest marks. Each suggests USAA will be able to pay your beneficiaries if they make a claim.
USAA life insurance company ratings
- A.M. Best rating: A++
- Standard and Poor's rating: AA+
- Moody's rating: Aa1
All ratings updated 12/27/2019
These are spectacular ratings. There are very few companies that ratings as high as USAA. Other top rated life insurance companies include, Northwestern Mutual, New York Life, Knights of Columbus and TIAA.
War Clause
A unique feature that USAA offers is the lack of a“war clause” that many other life insurance companies carry. This means that active military personnel who have seen combat do will not have their rates raised. For this particular group of people, USAA Life Insurance may very well be the best choice available.
It should be noted that there are other companies that active military can be insured with.
Military Future Insurability Benefit
Policyholders can increase their death benefit without the need for a life insurance medical exam.
Long Term Care Insurance
USAA also provides long term care insurance through John Hancock.
USAA's Life Insurance Products
Life insurance and annuities are issued by USAA Life Insurance Company, except in New York, where products are issued by USAA Life Insurance Company of New York.
USAA offers the following types of life insurance policies:
- Term Life
- Universal Life
- Simplified Whole Life: cash value life insurance
- Combination Life: Combines term and simplified issue whole life insurance
- Provides the needed death benefit protection while you're young
- Provides burial and final expense coverage when you're older
- Military Life
- Coverage on top of SGLI
- $25,000 severe injury benefit
- No wartime exclusion
Disadvantages to USAA Life Insurance
Its tough to really say anything bad about USAA, after all they're at A++ rated carrier with an impeccable customer service record. One caveat is you need to either need to be currently serving or have served in the military or Department of Defense to be eligible. Although, it must be noted that from 2009 to 2013 USAA did offer limited memberships to civilians and they may do so again in the future which makes them a company to check out.
USAA can at times have pretty strict underwriting guidelines. Not all health conditions are looked at the same and you may find that if you are considered a high risk for life insurance that USAA may not the best choice for you.
Our Recommendation for USAA Life Insurance
So... If you think USAA is the right choice for you, what we recommend that you do is... First give them a call and see what they have to offer.... Then give us a call and see what we can do for you.
Alternatives to USAA Life Insurance
An alternative to USAA life insurance would be to compare quotes among a few other life insurance companies. You can do that by visiting our Get A Quote page.
Sources
- USAA, "Key Facts"
- Reinsurance News, "Top 100 US Property & Casualty Insurance Companies"
