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USAA Life Insurance Review 2020

Researcher & Writer
December 27, 2019

When searching out USAA Life Insurance reviews, one of the main concerns people have is if the company has a good reputation. And as equally important to most, (and the most important reason to some), is if the company truly offers the lowest price for life insurance. But before we touch on USAA Life Insurance Company's reputation and pricing for life insurance, let’s start with a little about who this company is.

Background of USAA Life Insurance

In 1922, a group of US Army officers founded USAA in order to self-insure each other when they could not get proper automotive insurance because they were perceived as a “high risk” group. From humble beginnings, USAA Life Insurance has expanded over the years not only in an increased member base, but also in services from insurance, to banking and investments.

At the time it 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 greatly boosted the number of people within the arena of military service.

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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. Last year, there were millions of members who use the services of this organization.

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

In taking into consideration all of what they offer, the important questions to ask when it comes to USAA life insurance reviews it is important to know what the company is and what are the advantages, potential disadvantages, and alternatives to using their services.

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. However, they do offer their services to enough people so that a fair review of their life insurance policies and features can be made.

Advantages of USAA Life Insurance

There are many interesting 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 have higher ratings than USAA, such as Northwestern Mutual, New York Life, Knights of Columbus and TIAA.

Direct Marketing & Internet Friendly Approach

USAA was one of the pioneers of direct marketing and converted much of its business efforts to that approach for many years before the internet was established in the 1990s. Today, they conduct much of their business over the internet and are well suited to that task.

War Clause

This insurer does not have the “war clause” that many other life insurance companies carry which means that active military personnel who have seen combat do not suffer from having raised rates for their benefits. 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. If you are active military, give us a call to compare pricing to make sure USAA is truly the best option for you.

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:

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, however sind you need to either need to be currently serving or have served in the military or Department of Defense to be eligible, there's not much you can do for folks who haven't served.  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.

Lastly it should be noted that 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.

Granted, the company has some awesome pricing for life insurance and you should check out a quote with USAA if you meet the necessary criteria. However, what if you have been diagnosed with some sort of pre-existing condition such as:

  • Heart disease
  • Diabetes
  • Arthritis
  • Asthma

In this case, USAA life insurance might not be the company to choose even if the company has the lowest quote. You will need to choose an agency that can offer multiple companies, instead of just one. That is why you should always consider an alternative when contemplating the purchase of life insurance.

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 choose an agency (TermLife2Go) that works with the best life insurance companies in the United States as well as the best no medical exam companies.

When going with an agency for your life insurance needs you are giving yourself the best chance at obtaining the cheapest life insurance available with the best company suited specifically for you. And when choosing an agency, make sure you choose one who has the client’s best interest in mind. An agency such as TermLife2Go!

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.