AAA Life Insurance Review (2024) (2024)

We scored AAA Life Insurance a 4.40 out of 5 based on several factors, including offering a full range of term, whole and universal life policies. The company also rates favorably due to the numbers and types of life insurance riders, or add-ons, it offers. For example, with AAA, you can add Accidental Death, Disability Waiver of Premium, Child Term, Travel Accident and Return of Premium riders.

AAA Life also scores high with customer communications and an easy application process. The company also has a strong AM Best rating. AM Best is a credit rating agency that assigns a financial strength rating to insurance companies and the likelihood these companies will pay out their life insurance claims.

You pick how long your policy will last and how much money you will get with term coverage.

Life insurance is a contract between an individual who agrees to make premium payments and an insurer that agrees to pay a death benefit to designated beneficiaries when the policyholder dies. The premium costs and policy amounts vary depending on several factors, such as age, gender, health and lifestyle, among others.

Some whole life insurance policies have a cash value in addition to the death benefit value, functioning as a savings or investment account that earns interest and can be borrowed against in certain situations.

When shopping for a life insurance policy:

• Choose the type: term or whole life
• Identify potential riders to customize the policy for you
• Determine the amount and time you need coverage
• Ensure competitive quotes are for the same coverage
• Check each company’s financial health and customer ratings

AAA Life Insurance offers several types of policies. Here’s a quick overview of each.

Term Life Insurance Policies

Term life insurance is a policy that lets a policyholder buy coverage for a specific time period, generally between 10 and 30 years. If the insured person passes away during that period, the insurance company will pay a predetermined amount to the beneficiaries named in the policy. When the policy period ends, the policy is no longer in force.

Many companies offer term insurance policies, and you can see our top term life insurance providers here.

AAA offers two types of term life insurance, and both are available in 10-, 15-, 20- and 30-year terms. Members save 10% on premiums.

AAA traditional term life insurance provides coverage of $50,000 to $5 million, depending on your age and other factors. To qualify for this policy, you must meet certain health requirements and agree to a possible life insurance medical exam. You must work with a AAA life insurance agent to get the policy.

ExpressTerm offers instant life insurance with no medical exam in most cases. You can choose $25,000 to $500,000 in coverage and buy this policy online after answering questions about your health. Coverage goes into effect immediately if you’re approved.

Whole Life Insurance Policies

Whole life insurance is a permanent life insurance policy that provides coverage for the policyholder’s entire life as long as premiums are kept up to date. Whole life policies also have a cash value component that term policies do not, meaning you can borrow against the premiums you’ve paid into the policy in most cases.

AAA Life offers the following types of whole life policies.

Traditional whole life insurance provides coverage from $5,000 to $75,000. You will need to buy this policy through a AAA agent, and you may need to take a medical exam if you want $30,000 or more in coverage. You qualify for a 10% discount with an AAA membership.

Guaranteed issue whole life insurance offers coverage from $5,000 to $25,000 and does not require a questionnaire or medical exam. Applicants between 45 and 85 can qualify automatically, but if the insured dies during the first two years, AAA won’t pay the full policy amount unless the death is accidental. AAA members and their spouses are eligible for a $60 annual discount.

Universal life insurance insurance policies feature coverage that ranges from $100,000 to $5 million. AAA offers LifeTime and Accumulator policies. Accumulator policies are geared toward people who may want to use the cash value to supplement retirement or cover other expenses. The LifeTime product features more guarantees, including fixed premiums.

AAA Riders

You can customize a AAA life insurance plan by adding riders or endorsem*nts. A rider is an additional provision in your policy that changes or increases your coverage.

AAA life insurance plans offer the following rider options:

• Accidental Death will give your beneficiary up to $150,000 in additional accident insurance benefits if you die from a covered accidental death.
• Child Term rider can provide coverage for up to $20,000 per eligible child.
• Disability Waiver of Premium rider ensures AAA Life will cover your life insurance premiums if you become disabled.
• Return of Premium rider will give back up to 100% of paid premiums if you never use the coverage.
• Travel Accident rider ensures your beneficiary will receive an extra benefit if you die in a covered accident or while traveling as a passenger (requires Accidental Death rider as well).

Life insurance is competitively priced throughout the industry. While each insurer has its own methodology to arrive at policy costs, several factors are standard across the board. The premium you pay will normally depend on the following:

• Age
• Health and medical history
• Gender
• Lifestyle
• Policy type
• Coverage amount
• Credit standing

Various industry price comparisons show that AAA Life insurance rates are average. Policies may start at as little as $8 per month, but the premium you pay will depend on all the other factors listed above.

You can get life insurance quotes and buy some term policies online. For others, you’ll need to work with an AAA Life agent. You can find the agent or office nearest you using the AAA website.

The National Association of Insurance Commissioners (NAIC) tracks the number of complaints insurance companies receive compared to their size and market share and is used to compare a company’s performance to other companies. The National Complaint Index is always 1.00. This means a company with a complaint index of 2.00 is twice as high as expected in the market. The Complaint Index is determined by dividing the company’s share of complaints in the U.S. market by the company’s share of premiums in the U.S. market.

The complaint ratio for AAA Life Insurance Company was 0.66 in 2022, slightly better than the industry average.

The Better Business Bureau (BBB) and Trustpilot also track insurance industry reviews. Here is a sampling of AAA Life reviews.

“I was shopping for guaranteed acceptance whole life coverage and looked at a plan widely advertised on TV and another plan sponsored by a retirement association of which I’m a member. AAA’s policy was hands-down superior coverage for a significantly lower premium. And signing up online was very quick and easy.” —Attila D. via TrustPilot

“The online process was extremely easy to use and I found the rates to be very fair and competitive. I’ve been a AAA member for many years and [am] very glad of it, especially being able to get this life insurance.” —John Petrino via TrustPilot

“My husband had an Allstate life policy that was coming to an end as it was running out of funds. We replaced it with a AAA policy back in July 2022. In October 2022 my husband passed away. I have not received any payout to date. All I keep getting is form after form stating that they are still evaluating the claim. All of the required documents have been submitted for months. This should not take 4 months to settle. Very disappointed with this company.” —Tracy B. via BBB

“I called and was basically called a liar after informing them that earlier I was told my date of payment was changed to the first of the month since my check from social security wouldn’t be put in the bank in time to cover any bill till then. They took the money out [on the 21st] when I didn’t have enough to cover the payment, and the bank charged me 36 dollars, which I asked for it back. I sent them proof from my bank.” —Frederick H. via BBB

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AAA Life is a well-established company with strong financial and customer service ratings. The company offers a full range of term and whole life options with policies that can provide up to $5 million in coverage in some instances. Policies are competitively priced, but you may find better deals when shopping and comparing AAA against other providers.

A nice perk is that AAA members can get discounts, making AAA life policies more competitively priced. AAA Life is a solid choice for a variety of coverage needs. We recommend you gather quotes from at least three different providers to find the best coverage and price.

Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:

• Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy installer important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
• Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
• Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
• Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.

We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read ourfull life insurance methodologyfor reviewing and scoring providers.AM Best Disclaimer