AAA Life Insurance Review (Compare Rates)

aaa life insurance

AAA has an outstanding reputation for its roadside assistance program so when people hear that AAA offers life insurance, common questions are whether AAA insurance is comparable to better known life insurance companies and are the rates competitive. If you are a AAA member, you may be wondering if that means you will get a discounted life insurance rate with AAA insurance. Assurance Life has taken a look at the AAA life insurance coverage and rates so read on to get your questions answered.

Just as important as getting your questions answered is helping you make a well-informed decision regarding any life insurance you may be considering. Assurance Life hopes to answer all your questions and hopefully help you in your decision-making process. As you read about AAA insurance and what Assurance Life can do to help with your life insurance needs, remember that it is important to research several life insurance companies before making your decision. This is the best way to purchase a life insurance life insurance

Our AAA life insurance reviews should give you plenty of information so you can make your own decision on whether to do business with AAA Insurance. Is AAA the right fit for you? Read below to find out.

Assurance Life is not affiliated with the AAA Insurance Company. If you want a AAA quote their phone number is 888-422-7020.

AAA Life Insurance – Company History

AAA (American Automobile Association) was started in 1902 in Chicago, IL. AAA’s headquarters is currently located in Heathrow, FL. AAA is known for its auto clubs nationwide and currently it serves its 58 million members all around the country. AAA’s main focus is providing roadside assistance to its current auto club members but has added several other services over the years. In 1969, AAA Life Insurance Company became a part of AAA and started offering life insurance products to its members.

AAA Insurance today offers several life insurance products including term life, whole life, universal and accident life insurance as well. Some of AAA’s life insurance products can only be sold by a local individual AAA agent and other products you can buy directly online with AAA insurance. AAA Life Insurance is currently located in Livonia, MI and currently has over 1.3 million policies in force. AAA Life Insurance Company has an excellent rating- A rating with AM Best and is financially strong and has a great track record for paying claims to its customers. AAA Life Insurance Company is currently licensed to sell life insurance in all States except NY.

Types of Life Insurance Plans that AAA Life Insurance offers:

  • AAA Term Life Insurance
  • AAA Whole Life Insurance
  • AAA Universal Life Insurance
  • AAA Accident Insurance

AAA Term Life Insurancehappy family

AAA offers two different types of term life insurance policies which are ExpressTerm Life Insurance and Traditional Term Insurance. ExpressTerm Life is simplified issue plan that doesn’t require a medical exam with a plan limit of $250,000. Another feature of the ExpressTerm plan is that the approval process is very quick.  By comparison, AAA’s Traditional life insurance does have a medical exam but AAA insurance allows you to purchase more coverage since additional underwriting is required.

The ExpressTerm plan is more expensive than the Traditional plans due to not requiring a medical exam. You don’t have to be AAA member to purchase either of these plans. Term life insurance plans are great for those who are looking for income replacement if one of the spouses unexpectedly were to pass away. Here are some details of both term plans that AAA offers:

AAA ExpressTerm Life Insurance Highlights:

  • No medical exams just health question
  • Eligible ages 18-75 years old
  • Coverage available between $25,000 to $250,000 (depends on age)
  • Terms Available (10, 15, 20, 25 or 30-year terms) depends on age
  • Can be purchased directly from AAA online
  • Quick approval process within minutes
  • Living benefits included at no charge
  • AAA $60.00 membership fee waived with purchase
  • Child Rider and Accident Rider available

Sample rates taken from AAA’s website: ExpressTerm – 50 year old Male – Non-Smoking

aaa rates

AAA Traditional Term Insurance Highlights:

  • Medical Exam is Required
  • Eligible ages 18-75 years old
  • Coverage available between $50,000 to 5 Million (depends on age)
  • Approval process could take up to 6 weeks
  • AAA membership not required to apply
  • Disability Waiver Available
  • Child Rider and Accident Rider available
  • AAA $60.00 membership fee waived with purchase
  • Must purchase from local AAA agent

Sample rates taken from AAA’s website: Traditional Term – 50 year old Male – Non-smoking

aaa quotes

AAA Whole Life Insuranceolder couple

AAA Insurance Company offers two different types of whole life insurance which are AAA Simple Whole Life Insurance and AAA Guaranteed Issue Whole Life Insurance. Both plans are simplified issue and don’t require a medical exam. Also, the most whole life insurance that you can you purchase with AAA insurance is $25,000 on both of these plans. Both plans are permanent insurance meaning the policies can’t be cancelled and our designed to last a lifetime. Plus, another benefit to AAA’s whole life insurance is your monthly payment never increases which makes this type of policy easy to budget for.

Guaranteed issue whole life insurance or burial insurance plans are plans where everyone is automatically approved. This plan is great for those who have severe health conditions and can’t get approved for traditional life insurance policies Both AAA whole life insurance plans build cash value slowly over time. AAA’s Guaranteed Issue plan does have a mandatory 2 year waiting before paying out your death benefit. This simply means if you die within 2 years of activating your policy, AAA won’t pay out the death benefit. However, if this happens AAA will pay your beneficiary 130 percent of the premiums you paid in. Here are some details of both whole life plans that AAA offers:

AAA Simple Whole Life Insurance Highlights:

  • No medical exam is required
  • Health questions are asked on application
  • Eligible ages 15 days to 80 years old
  • Coverage lasts a lifetime
  • Coverage available between $5,000 to $25,000
  • Policy builds cash value
  • Must be purchased through local AAA agent
  • Several riders available also
  • No AAA membership is required to apply

AAA Guaranteed Issue Whole Life Insurance Highlights:

  • No medical exams or health questions asked
  • Your approval is guaranteed
  • Monthly premium never changes
  • Eligible ages 45-85 years old
  • Policies build cash value
  • Can purchase directly with AAA online
  • Mandatory 2 year waiting period

Sample rates from AAA’s website: Guaranteed Issue – 50 year old Male

aaa life insurance

Sample rates with different companies offering $10,000 Guaranteed Issue – 50 year old Male

aaa life insurance

AAA Universal Life Insurancefamily reading with son

AAA Life Insurance offers two universal life insurance policies which are LifeTime Universal Life and Accumulator Universal Life. AAA’s Universal life policies give you tons of flexibility with protection that lasts a lifetime and both policies build cash value. AAA LifeTime Universal comes with guaranteed premiums that don’t ever change even if interest rates do.  If you are looking for permanent coverage that allows you to leave a legacy, this plan is for you. AAA Accumulator Universal offers tons of flexibility with lifetime protection also. Flexibility on how you make your payments and the flexibility to increase or decrease your policy benefit amounts as well.

This plan is perfect for those wanting to accumulate larger amounts of cash value over time. Both AAA Universal Life products due to their complexity aren’t available for purchase online but one must contact a local AAA agent. Here are some details to both universal life policies that AAA offers:

AAA LifeTime Universal Life Highlights:

  • Coverage last a lifetime
  • Coverage available from $25,000 to 5 million
  • Eligible ages 15 days to 85 years old
  • Permanent Insurance
  • Monthly Premiums never change
  • Living benefits included

AAA Accumulator Universal Life Highlights:

  • Lifetime protection with tons of flexibility
  • Eligible age 15 days to 80 years old
  • Permanent Insurance
  • Ability to adjust your premiums & policy benefits
  • Living benefits included
  • Coverage available from $25,000 to 5 Million

AAA Accident Insurance

AAA’s Accident Insurance is called Member Loyalty Accident Insurance. You have to be a AAA member to apply for their Accident Insurance. Just like AAA’s Guaranteed Issue policy, this policy you can’t be turned down as well. Everyone between the ages 18 and older are automatically approved and that’s regardless of any prior or medical condition. The AAA Accident Insurance covers loss of life, hospitalization, and recuperation.

For hospitalization and recuperation, AAA will cover up to 365 days per occurrence. The amount of Accident Insurance coverage you can purchase is determined by how many years you have been a member of AAA. Coverages available can go up to $500,000 if you have been a AAA member for several years. AAA Accident Insurance policy is for one year and is required to renew annually if you wish to continue your coverage.

Final Thoughts on AAA

AAA is a respectable life insurance company with over 1 million life insurance policies in force. AAA has an excellent reputation and the company is financially strong for the long haul. However, AAA may be an excellent company but are they the right company for you? Once again, the best way to purchase a life insurance policy is to compare several companies before you buy. AAA has few life insurance plans that make sense and few that don’t.

If you are needing  cremation insurance or whole life insurance with a larger face amount, unfortunately you will have to look elsewhere. The most whole life insurance you can purchase with AAA is $25,000. Also, if you look at the sample rates above on AAA’s Guaranteed Issue Whole Life Insurance plan, AAA insurance is almost double what its competitor’s rates are. AAA does offer no exam life insurance on both their Term Life and Whole Life products which makes those plans more appealing.

We hope you enjoyed our AAA review. If you would like to compare AAA insurance rates against other companies, click the Get Quotes Now button on the left of the page.