AAA Life Insurance Company Review 2018

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I’m sure you’ve heard of the giant company called American Automobile Association, also known as AAA. They offer emergency road services, automobile insurance, homeowner insurance, and life insurance, among many other services.

This post is my independent review of AAA life insurance products and services. I will dig into their life insurance types and rates and compare them against the best in our industry and see if they are a good fit for you. Getting the best life insurance starts with comparison shopping and a comprehensive understanding of available products. Let’s take a look!

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Disclaimer: I am not an AAA Life agent. I am a licensed broker stating my personal opinion about their life insurance products and services.

About AAA Life Insurance

AAA Life Insurance Company became a part of AAA in 1969. They have more than 1,200,000 policies in force and A- (Excellent) rating by A.M. Best. Their headquarters is in Livonia, Michigan. AAA Life is owned by some of the biggest brands in the AAA organization.

Products Offered by AAA Life Insurance Company

AAA Life offers Term, Whole, and Universal life insurance products. They also offer specialty products such as Annuities, but this review will only discuss the life insurance products they sell.

AAA Term Life Insurance

Term life insurance is the most straightforward, easy-to-understand coverage you can buy. It’s favored by young families because of its lower costs when compared to whole life. In essence, you choose a length of coverage, 10, 15, 20, 25, or 30 years.

For that specific time period, your premium and death benefit remain the same. If you die during that time, your beneficiaries would collect the death benefit. At the end of the initial term, you can convert the policy to whole life, renew it on an annual basis, or drop it. AAA Life offers two types of term life insurance: a traditional term, which will require you to undergo an exam; and Express term, which doesn’t require an exam.

Traditional Term Life Insurance

  • Must apply with an agent over the phone
  • Issue ages: 18–75 years old
  • Coverage periods: 10, 15, 20, 25, or 30 years
  • Face value: $100,000–$5,000,000+
  • A fully underwritten policy with an exam
  • Fully convertible to whole life at the end of the initial term or age 65, whichever is earlier
  • Policy expiration at age 95
  • Accelerated death benefit is included, which allows you to withdraw up to 50% of your benefit (up to $500,000) if you were diagnosed with a terminal illness
  • Can save money on your home/auto insurance from AAA

Express Term Life Insurance

  • Can apply online without an agent
  • Issue ages: 18–75 years old
  • Coverage periods: 10, 15, 20, 25, or 30 years
  • Face value: $25,000–$250,000
  • No physical exam needed
  • Fully convertible to whole life at the end of the initial term or age 65, whichever is earlier
  • Policy expiration at age 95
  • Can save $60 per year if you are a member of AAA
  • Accelerated death benefit is included, which allows you to withdraw up to 50% of your benefit (up to $125,000) if you were diagnosed with a terminal illness

AAA Whole Life Insurance

Whole life insurance is a permanent coverage which lasts as long as you live. There is no expiration date like term life has, and your premium and death benefits remain level throughout the insured’s lifetime.

Whole life has also a cash value component built into the policy that you can borrow against in the future or use when you surrender your policy. AAA Life insurance offers two types of whole life policies: Simple Whole Life and Guaranteed Issue Life insurance. Since the maximum death benefit is only $25,000, these policies are for those who are looking for final expense or burial insurance.

Simple Whole Life Insurance

  • Issue ages: 15 days to 80 years old
  • Permanent coverage without waiting period
  • Face value: $5,000–$25,000
  • No physical exam needed
  • Premiums stay level until age 100. After that, premium payments are no longer needed.
  • Accelerated death benefit is included, which allows you to withdraw up to 50% of your benefit.
  • Policy builds a cash value

Guaranteed Issue Life Insurance

As the name implies, guaranteed acceptance policies are guaranteed to accept you. However, all guaranteed issue life insurance policies have a graded benefit clause which will not pay the full death benefit if you die within the first two years of buying the policy.

Instead, your beneficiaries will only collect the paid premium plus 30%. (If the death is a result of an accident, 100% of the death benefit will be paid.) After two years, the full death benefit will be paid regardless of the cause of death.

  • Issue ages: 45–85 years old
  • Permanent coverage with a graded benefit clause
  • Face value up to $25,000
  • No physical exam needed
  • No health questions
  • Your acceptance is guaranteed
  • Premiums stay level until age 100. After that, premium payments are no longer needed.
  • Accelerated death benefit is included, which allows you to withdraw up to 50% of your benefit.
  • Policy builds a cash value
  • Can save $60 per year if you are a member of AAA

AAA Lifetime Universal Life

Universal life insurance (UL) is another type of permanent coverage with cash value which grows, tax-free, with a guaranteed death benefit paid to your heirs should you pass away.

However, unlike a traditional whole life (where the premiums and death benefit are set in stone), with a Universal life policy, you get the ultimate advantage: flexibility. As your life changes, so does your coverage. You can adjust the premium payments and the death benefit as events in your life unfold. For instance, you could lower the death benefit because your last child is out of the house or your mortgage is paid off.

  • Coverage lasts a lifetime
  • Face value: $25,000–$5,000,000+
  • Issue ages: 15 days to 80 years old
  • Fully underwritten policy with an exam
  • Can save money on your home/auto insurance from AAA
  • Premiums stay level until age 100. After that, premium payments are no longer needed.
  • Accelerated death benefit is included, which allows you to withdraw up to 50% of your benefit.

AAA Life Insurance Optional Riders

Life insurance riders are add-on benefits to enhance your coverage. Note that riders are not available on all plans.

  • Child term
  • Disability waiver of premium
  • Accidental death
  • Travel accident

AAA vs. Other Carriers’ Sample Monthly Rates

aaa life insurance sample rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 AAA $14.52 $20.68 $47.74 $123.86
 SBLI $14.79 $21.67 $51.68 $147.70
 Transamerica $20.34 $26.45 $51.17 $135.88
 State Farm $18.70 $30.23 $58.95 $147.90
 Allstate $31.46 $29.92 $60.50 $160.16
 Farmers $25.81 $36.85 $78.10 $257.88

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 AAA $13.20 $18.04 $36.74 $85.80
 SBLI $13.31 $18.99 $36.46 $90.37
 Transamerica $13.98 $21.72 $40.64 $110.51
 Allstate $14.74 $23.98 $46.64 $113.08
 State Farm $22.40 $34.80 $66.35 $138.78
 Farmers $19.14 $36.02 $73.72 $226.63

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 SBLI $21.32 $36.92 $96.06 $286.85
 AAA $23.32 $34.76 $89.32 $238.48
 Transamerica $23.65 $43.00 $95.46 $253.70
 State Farm $28.30 $41.75 $96.15 $273.20
 Allstate $32.56 $52.80 $110.44 $281.16
 Farmers $39.77 $58.10 $138.93 $483.91

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Foresters $18.81 $27.13 $57.75 $165.81
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 SBLI $19.14 $29.67 $65.87 $173.03
 AAA $20.24 $29.48 $66.44 $162.36
 Allstate $27.28 $40.92 $82.28 $190.08
 State Farm $33.05 $53.50 $109.20 $258.85
 Farmers $28.93 $58.10 $129.76 $420.58

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 SBLI $35.24 $56.03 $147.73 $457.62
 AAA $41.36 $60.72 $169.84 $462.88
 State Farm $44.35 $72.25 $174.85 $519.35
 Farmers $56.01 $98.51 $252.67 $808.48

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 SBLI $29.67 $44.28 $104.57 $272.92
 AAA $35.20 $52.80 $124.08 $311.52
 State Farm $53.95 $87.85 $199.25 $499.35
 Farmers $41.02 $97.68 $233.51 $584.33

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of July 2018 and are subject to underwriting approval.*

Last Word

AAA Term Life Insurance is competitive, price-wise, especially when compared to other primarily auto/homeowner insurance companies who sell life insurance, such as State Farm and Allstate. However, when compared to Banner or Protective Life, they have no chance.

I couldn’t find the rates for the other products such as UL, whole life, or the guaranteed issue, so I would advise you to check the rates by calling them first.

I like the fact that they give the insured the ability to apply online for a no-exam policy. However, applying yourself, without an agent, has its own risks and pitfalls. The maximum amount for no-exam policy is only $250,000 while other companies, such as North American, can go up to $1,000,000.

My last point is that they only offer one company. If you have any pre-existing health conditions, you may be declined or pay substantially more. By having only one company on your side, you have fewer options from which to choose. Buying life insurance is never about which company has the lowest rate, but which one will approve your policy at the lowest rate.

You can go ahead and run the rates on this page and see if we can beat AAA Life Insurance rates, or give us a call at 866-326-3053 so we can work for you.

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2018-09-01T16:29:14+00:00July 13th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, heavy squats, critical thinking, and reading.

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