AAA Life Insurance Review
Are you considering buying life insurance from AAA? We strongly suggest you shop and compare your other options before you do.
AAA is a great company and offers many benefits to its 60 million members. However, their life insurance offering is less than ideal. AAA’s premium rates are not very competitive, and their coverage limits are low.
We frequently find our clients better coverage and lower premiums with other insurance carriers. We’d love to help you too.
Below we explore AAA life insurance to help you make an informed decision.
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AAA Life Insurance Overview
- You do not need to be a member of AAA to purchase a policy
- Available policies: Term, Whole Life, & Universal life
- No medical exam for whole life policies
- Guaranteed acceptance option for those in poor health
- Enrollment up to age 85
Although AAA offers term and universal life products, our independent agency focuses on permanent senior life insurance options to help pay for end-of-life expenses. Therefore, the remainder of this review will focus on AAA’s whole life insurance products.
AAA Whole Life Insurance Options
AAA does not offer a traditional Final Expense Life Insurance policy.
Simple Whole Life Insurance – is available for healthy individuals who meet the minimum health requirements. There is no medical exam. However, there is a health questionnaire. Those who qualify will benefit from day one coverage and lower premium rates. Policies provide up to $75,000 in coverage.
What we like: AAA’s simple whole life has flexible policy design and competitive rates for healthy individuals.
What we don’t like: Although there are no medical exams, AAA requires an agent to be in person for all applications. Many other insurance carriers allow you to purchase online or over the phone. AAA is also not very friendly towards individuals seeking life insurance with pre-existing medical conditions. Many other insurance carriers are more lenient towards chronic diseases.
Guaranteed Acceptance Whole Life Insurance – is available as a last resort option for coverage for those in poor health. These policies provide up to $25,000 in coverage. And there is a two-year waiting period before the full death benefit is available. If you were to die within the first two years of your policy, your beneficiary would only receive the premiums you paid plus an additional 30%. Individuals age 45 to 85 can apply.
What we like: AAA is one of the very few carriers who provide guaranteed acceptance over age 80. We also like the additional 30% they give you if you were to die during the two-year probationary period. Most carriers return 10%.
What we don’t like: Rates. Several top-rated insurance providers consistently offer lower rates for Guaranteed Acceptance life insurance policies. Other carriers also offer higher policy limits and more convenient applications.
How Competitive Are Their Rates?
AAA has reasonably competitive rates for their term insurance offering. However, their whole life option is rarely the lowest cost option.
Young, healthy individuals may find competitive rates with AAA. Individuals over age 50 will find lower rates with other insurance providers.
Do AAA Members Get a Discount on Life Insurance?
AAA members do receive discounts on some of their policies, but not all. However, the term ‘discount’ is meaningless. The final cost of your monthly premium is what matters. Companies often use wordplay to help sell more policies. Just because AAA says you’re receiving a “discount” does not mean they will be your lowest cost option.
If you’re shopping on a budget, working with an independent agent will help immensely to prevent overspending. Individuals who go about the shopping process alone often overpay for their coverage, or worse, end up completely uninsured.
An independent agent works for you, NOT the insurance company. You’ll get an advocate on your side who looks out for your best interest.
Reviews & Complaints
AAA has earned positive reviews from all the major rating institutions. However, their customer reviews are not so good. Their AM Best rating is A (excellent), which indicates sound investment practices and the ability to payout obligations to policyholders.
AAA Life Insurance Company BBB rating is A+ (Excellent). However, their customer reviews with the BBB shows only 1 out of 5 stars. Consumer Affairs also has quite a few customer complaints that you can read for yourself.
Keep this in mind when reading customer reviews:
AAA is a large company with millions of members. Any company with that many customers is going to have some with negative experiences. And unfortunately, those customers also have the motive to share their experience with others. We highlight these not so favorable customer reviews and let for your own conclusions.
Here’s Our Take of AAA Life Insurance
As a company, we love AAA. They have a long history of providing quality coverage and great customer service. However, we strongly suggest you shop other providers before moving forward with a policy purchase.
As mentioned above, we frequently find out clients’ MORE coverage and LOWER premium rates with other insurance providers.
It only takes a few minutes for us to help you compare life insurance companies side by side. You’ll quickly find your best market offer, and you’ll also save some money.
Our streamlined application process allows you to enroll in your best offer in about 15 minutes. And your coverage can begin the very next day.
We’ve helped thousands of people find affordable life insurance coverage. We’d love to help you too!
See how AAA life insurance compares with other market options. Fill out the form on your screen to instantly see rates from all the top insurance providers.
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