AAA Life Insurance Review
Most consumers have heard of AAA Insurance because of the Motor Club, but AAA is also in the life insurance business. They don’t refer you to a company like AARP does, they are an actual life insurance company.
AAA Life Insurance should be considered when shopping for life insurance and in this article we will review AAA Life Insurance and the products offered.
The History of AAA Life Insurance
In 1969, AAA Life Insurance was founded as a subsidiary of AAA or the American Automobile Association. They were established to offer life insurance and annuities to AAA’s members and consumers everywhere.
AAA Life Insurance is headquartered in Livonia, Michigan and they service over 1.3 million insurance policies. You are not required to buy life insurance if you become a member of AAA, but being a member does come with added perks.
AAA Life Insurance Company underwrites all of their policies, unlike AARP who uses New York Life to distribute there policies.
AAA Life Insurance Company Ratings
When shopping different companies for life insurance, it’s important to buy from a company with strong financial ratings. Doing business with a company with less than perfect financials can lead to possible disaster.
AAA Life Insurance Company boasts an “A” (Excellent) with A.M. Best rating service. That is up from an “A-” in 2017. The company’s outlook is stable according to A.M. Best which means AAA Life Insurance Company should be able to meet their claim expectations.
The BBB or Better Business Bureau gives AAA Life Insurance Company an “A-” rating even though they are not an accredited member. AAA Life Insurance Company has 27 complaints which is nothing to worry about. The top life insurance companies available average more than 27 complaints.
Products Offered By AAA Life Insurance Company
AAA Life Insurance offers many different insurance products, in order to provide solutions for all consumers.
AAA Term Life Insurance
Term Life insurance is coverage that is designed to last for a certain period of time. AAA Term Life insurance covers you from 10-30 years depending on your age.
AAA Life understands that consumers needs change over time. This is why you can convert your term policy to permanent life insurance policy without any medical questions or exams.
AAA Life offers 2 types of term life insurance:
- Traditional Term Life
- Express Term Life
AAA Traditional Term Life insurance is offered though their agent distribution network and is fully underwritten (meaning an exam is required). AAA Traditional Term Life offers higher face amounts to applicants.
AAA Express Term Life insurance offers a no exam option for consumers who don’t have the time for an exam. Death Benefits are limited to a maximum of $500K.
You can customize your AAA Term Life Insurance by adding riders that fit your needs. Both Traditional Term and Express Term offer these riders:
- Terminal Illness Rider
- Disability Waiver of Premium
- Child Term Rider
- Travel Accidental Death
Traditional Term Life by AAA also offers a return of premium rider, which allows you to receive all premiums paid in back at the end of the term period (not available for 10 year term).
Check out our chart below:
Sample Rates for $250,000 Male, Standard Non Tobacco
Sample Rates for $250,000 Female, Standard Non Tobacco
AAA Whole Life Insurance
AAA Life Insurance offers two whole life insurance products:
Simplified Issue Whole Life
Simplified Issue Whole Life is a no medical exam permanent life insurance policy with a guaranteed premium and guaranteed cash value accumulation.
While these policies require the applicant to answer some health questions, they are not as hard to qualify for in comparison to life insurance that requires a health exam. The maximum death benefit is $25k.
Guaranteed Issue Whole Life
AAA Life offers a guaranteed issue whole life insurance product that is designed for consumers whose health won’t allow them to qualify for the simplified whole life product.
No exam is required and there are no health questions on the application. Everyone is approved.
Check out the differences below:
AAA Universal Life Insurance
Universal life insurance is a permanent life product designed for flexibility. They are built to provide flexible premiums, death benefit, and the ability to build cash value over time. AAA Life Insurance Company offers two universal life policies:
LifeTime Universal Life
LifeTime Universal Life offers a guaranteed premium and death benefit to age 120, no matter what happens to interest rates. Minimum face amount starts at $100K and this policy does require a health exam.
Accumulator Universal Life
Accumulator Universal Life was created to protect families while building up cash value to help with needs that may arise. You can use the cash value to supplement your retirement (also called a LIRP) or to skip premiums.
Premiums are not guaranteed and rely on interests rate earned to remain level. Death benefit starts at $100K and also requires an exam.
Check out the differences below:
AAA Life Insurance Company Accident Insurance
The AAA Life Insurance Company Accident product is a great way to supplement your existing life and health insurance. AAA Accident policy will pay benefits if you die or hospitalized due to an accident.
It does not pay on natural deaths and should not replace any existing life insurance you may own.
The AAA Accident policy is “guaranteed issue” to all AAA members. The benefit you qualify for is based on the number of years you have been an AAA member.
Check out the specs. below:
AAA Life Insurance Company Annuity Products
AAA Life Insurance Company understands in a world that is a financial roller coaster at times, consumers are looking for something conservative to invest in.
AAA Life Insurance Company offers three fixed annuites:
EliteGuarantee Deferred Annuity
The EliteGuarantee Deferred Annuity offers a 3 year guaranteed interest rate. At the end of the 3 years you can choose to let it automatically renew or walk away. The minimum amount to start an EliteGuarantee Deferred Annuity is only $3,000.
Platinum Bonus Annuity
The Platinum Bonus Annuity is a deferred annuity also with a longer investment period, usually at least 5 years. This annuity also offers a first year bonus on all premium paid in and allows for a 10% withdrawal each year.
Guaranteed Income Annuity
AAA’s Guaranteed Income Annuity offers a guaranteed income for consumers who want to invest one lump sum. The amount you would receive is based on how much you invest, your age, and how long you want to receive the guaranteed payments.
There is also an option for Joint Lifetime Guarantee which ensures your beneficiary continues to receive the income after you have passed away.
Final Thoughts
AAA Life Insurance Company is definitely a company you want to look at when shopping around for life insurance. They have strong ratings and many products to choose from.
With that said, their life insurance rates sometimes tend to be on the high side. It’s important to look at multiple companies before deciding which company to buy from.
At EasyQuotes4You, we can help with this decision. We are licensed with multiple carriers and know each one’s niches. If we can help or if you need a quote, let us know.
Does AAA Life Insurance offer no exam life insurance?
AAA Express Term Life insurance offers a no exam option for consumers who don’t have the time for an exam. Death Benefits are limited to a maximum of $500K.
Is AAA Life Insurance a strong company?
AAA Life Insurance Company boasts an “A” (Excellent) with A.M. Best rating service. That is up from an “A-” in 2017. The company’s outlook is stable according to A.M. Best which means AAA Life Insurance Company should be able to meet their claim expectations.
When was AAA Life Insurance Company started?
In 1969, AAA Life Insurance was founded as a subsidiary of AAA or the American Automobile Association. They were established to offer life insurance and annuities to AAA’s members and consumers everywhere.
