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AAA LIFE INSURANCE REVIEW- Pro & Cons - Frequently Asked Questions

Reviewed by:  Chris Lalor | Last Modified: 01/16/2021

AAA Life Insurance Review - Sample Quotes, pros and cons, frequently asked questions

Overview:  AAA Life Insurance - what you need to know when looking for the best life insurance protection for your family.

Here’s What You Need to Know About AAA Life

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 & cons

  • insurance types

  • who is a good fit?

pros & 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 and whole life & universal life - permanent coverage.  The biggest difference between the two types of life insurance coverage is that the term only lasts for a specific amount of time while whole & universal life insurance is permanent coverage.

Did you know?

Insurance companies are NOT all the same.  Some are more lenient on certain health issues, some focus on a no-hassle application without an exam, some are financially stronger than others, and their pricing varies a LOT!  Get 2 to 3 quotes for best results!

We Recommend:

WHAT POLICIES DOES AAA LIFE Insurance OFFER?

Life insurance isn’t the only type of policies AAA offers.  You may also be purchase:

If you’re interested in any of these types of insurance, contact a AAA representative.

a brief history of AAA Life Insurance

AAA, probably one of the most common names in the area of Insurance, and expertly named in the marketing aspect when we looked to the Yellow Pages for a referral.

The AAA organization was 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.  AAA Life Insurance became one those companies in 1969. Strength in numbers, over 50 years in business, and $3 billion in paid claims, AAA Life has earned its bragging rights.

History of AAA Life Insurance - Year Founded - Claims Paid

Americans are terrible at this one thing...

recent study found that more than half of Americans overestimate the cost of term life insurance by three times.  If you've never gotten a personalized quote or only seen quotes from one company, you likely have no idea how inexpensive life insurance really is!

AAA Life Insurance Products

AAA offers 2 types of Term Life Products



Express Term Life: Coverage and Details
  • Express referring to the convenient on-line 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.

LIFE INSURANCE MADE EASY

Select Your State for an Instant Quote



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.

Checkout AAA Members Only Group Term Life Insurance article for group options. 


Permanent Life Insurance Products:  Whole Life and Universal Life 


Unlike Term Life Insurance that 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
  • 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.  BUT 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.
  • AAA membership 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 and have 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.

Check out these competitive prices for AAA Term, Universal, & Whole Life Insurance!

Click How Much Does Life Insurance By AAA Cost?


AAA Life Insurance coverage details and guidelines

Read on to find out who issues AAA Life's policies, how to get an online quote, and how to get a low rate.

Who Issues Their Policies?

Life insurance underwritten & policies are 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.

Find Your Perfect Life Insurance Plan!

Click below to search for life insurance by company, coverage amount, and policy type.

Shortcut:  Our #1 choice for life insurance with health issues is AIG Direct.  If you have any history of heart disease, diabetes, cancer, stroke, or obesity, click here for a free quote.

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 here; apply online for Express Term or with an agent, for Guaranteed Whole Life.  Both of these options are immediate coverage with not 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.

Our Favorite Life Insurance Companies

We've worked with and reviewed dozens of companies.  Here are our faves.

Ladder Life Insurance Logo

Ladder Life Insurance

Best for:  No-Exam Plans Up to Age 60

Ladder is known for a quick and easy online application with no medical exam required in many cases.  They have 10, 20, and 30 year plans.  They offer the most coverage without an exam in the industry. Coverage amounts start at $100,000 and go as high as $8 million.

AIG Direct Life Insurance Logo

AIG Direct

Best for:  Lowest Rates or Health Conditions

AIG Direct offers a range of custom term plans up to 35-year term as well as return of premium, and permanent plans that build guaranteed cash value.  Their rates will beat just about anyone if you take an exam.  They're also terrific if you take medication or have health issues.

Bestow Life Insurance

Best for:  Convenient and Simple Plans

Bestow is known for their simple, straight-forward 10, 15, 20, 25 and 30 year term plans up to $1.5 million.  They never require a medical exam (ever) and have great rates.  Rates start as low as $8 per month.

how to apply for life insurance with AAA Life?

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.

how does the application process with AAA life Insuarnce work?

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.   Complaints based on 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. 

Reviews and Complaints for AAA Life Insurance

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.

Compare AAA Life Insurance VS New York Life Insurance

Both AAA Life Insurance and New York Life Insurance offer an assortment of term life insurance products.  AAA does have better term life insurance prices.

AAA Life Insurance offers universal life Insurance where as New York Life offers whole life insurance on their permanent life time products.  Universal Life is cheaper and more flexible versus whole life.  However, whole life offers more guarantees versus universal life, but is more expensive.  

The biggest difference is how you purchase.  You will have to purchase New York Life from a captive career New York Life agent who only represents New York Life.  AAA on the other hand is readily available through the brokerage market meaning you can purchase it in many more places.

 

How to Compare Companies:

Insurance companies are NOT all the same.  Some are more lenient on certain health issues, some focus on a no-hassle application without an exam, some are financially stronger than others, and their pricing varies a LOT!  The smartest move is to get quotes from two or three companies and compare the pros & cons of each.

AAA LIFE INSURANCE ALTERNATIVES

Many of the following companies have better products and cheaper prices versus AAA Life Insurance.  Some even offer no medical exam policies.

Couple on couch inside their house. They are sitting really close and sharing a laptop while looking at each other and smiling.

CMFG Life Insurance Review

CMFG, through CUNA Mutual Group, uses its TruStage brand to sell life insurance to the public and credit union members. 

Family game of tug-of-war with a rope. Set in a field with a blue sky and white clouds

Ethos Life Insurance Review

Ethos is not a life insurance company.  They are a licensed producer and third party administrator.  Founded in 2017, Ethos has developed an online platform that allows you to apply for life insurance and possibly get instant approval. 

Fabric Logo

Fabric Life Insurance Review

Fabric Life offers affordable life insurance with easy, online quotes and application available 24/7.  The company uses algorithms to speed up the underwriting process, with well-qualified applicants getting approved without a medical exam.

life insurance geico, geico life insurance review

Geico Life Insurance Review

GEICO offers life insurance products through its partner, LifeQuotes.com.  LifeQuotes.com provides access to dozens of life insurance carriers which makes it easy to get a quote for term, universal or whole life insurance. 

Ladder Life Insurance Logo

Ladder Life Insurance Review

Ladder has developed an online platform that allows you to apply for life insurance and possibly get instant approval.  They have teamed up with Fidelity Security Life in 49 states and in New York with Allianz Life Insurance Company of New York.

TruStage Term and Whole Life Insurance Review

TruStage Life Insurance Review

TruStage is convenient and is a solid company, but is a lot more expensive compared to other online life insurance providers, limits coverage to $100,000, and only offers 5-year terms.

For more company information, please visit our Life Insurance Company Reviews Page.   If you’re searching for life insurance by term length or dollar amount, please visit this page

AAA Life Insurance Frequently Asked Questions

  • 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.


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summary

AAA has been servicing life insurance needs of it's 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.  AAA has the products available required to meet your needs.  While Life Insurance is not the most enjoyable purchase, it is a necessary purchase and AAA can help your loved ones.


Written by:  Chris Lalor

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