USAA Life Insurance Review for 2021
USAA life insurance rates cost $12 to $85 per month, depending on the coverage you need. For cheaper rates, you should consider USAA term life insurance. However, a USAA permanent life insurance policy can provide long-term savings and life-long coverage, but at a more expensive rate. Compare multiple companies and shop around to find the best rates.
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Written by
Sara Routhier
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Reviewed by
Leslie Kasperowicz
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UPDATED: Jan 15, 2021
It’s all about you. We want to help you make the right coverage choices.
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The Brief
- USAA is only available to members of the U.S. Armed Forces and their immediate families.
- Policyholders can upgrade their term life insurance to permanent life insurance.
- When service members leave the military, they lose their Servicemembers’ Group Life Insurance (SGLI).
USAA life insurance is provided by the United Services Automobile Association, usually known as USAA. USAA insurance company offers a range of personal insurance products to military members and their families, including life insurance.
In this USAA life insurance review, we’ll give you the run-down on cheap term life insurance and other life insurance options at USAA life insurance company. We’ll also cover company reputation and rates.
Before you decide whether or not to buy USAA life insurance, take a moment to see what other options you have. Just enter your ZIP code in the free online quote tool above to compare multiple companies in your area.
Table of Contents
USAA Life Insurance Rates
We researched and found the life insurance cost of the best companies in the United States and compared them to USAA life insurance quotes. Take a look at the term life insurance rates below.
| Company | Average Monthly Term Life Insurance Rates | A.M. Best Rating |
|---|---|---|
| Allstate | $15 | A+ |
| Banner Life | $9 | A+ |
| Guardian Life | $10 | A++ |
| Haven Life | $11 | A++ |
| John Hancock | $11 | A+ |
| MassMutual | $10 | A++ |
| MetLife | $9 | A+ |
| Mutual of Omaha | $12 | A+ |
| Nationwide | $13 | A+ |
| New York Life | $11 | A++ |
| Northwestern Mutual | N/A | A++ |
| Pacific Life | N/A | A+ |
| Primerica | N/A | A+ |
| Principal | $9 | A+ |
| Protective | $9 | A+ |
| Prudential | $16 | A+ |
| State Farm | $15 | A++ |
| USAA | $12 | A++ |
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USAA is more expensive than most companies. At $15 per month, you can save a lot of money per month on life insurance.
It’s important to note that your life insurance rates will depend on age and policy type. Continue reading to learn the difference between the major life insurance types.
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Which USAA life insurance policy is best?
When you want to buy USAA life insurance, you’ll have an option between term life insurance or permanent life insurance (also called whole life insurance). Term life insurance is cheaper, but whole life insurance is more expensive.
Why is that? The subsections will explain more about each life insurance type.
What is term life insurance?
Term life insurance is a life insurance policy that lasts for a set period —hence the name “term.” It’s cheaper life insurance than whole life insurance.
Policyholders between 20 and 40 have access to affordable USAA life insurance, which is around $15 per month.
USAA provides term life insurance for up to 30 years.
Married life insurance policyholders that get married, buy a house, or have a child are eligible for $100,000 term life insurance policies. However, you have to be between the age of 18 and 35.
If you need to insure all of your kids onto one policy, USAA provides an $8 per month payment option to insure your children. Your children can take advantage of your life insurance investment by using your policy to start a USAA policy themselves when they come of age.
Additional Benefits for USAA Life Insurance
Any active-duty military policyholders can receive more benefits. Any service member in the war will get coverage right away. Even if you’re severely injured, USAA will provide $25,000 for expenses. And USAA guarantees all coverage after leaving the military.
After your term life insurance policy expires, you will lose the value of your policy. However, a return of life insurance premium rider can refund the money you paid during the term life policy.
What is permanent life insurance?
Permanent life insurance, or whole life insurance, will last throughout your entire life. The average USAA life insurance monthly rate for whole life insurance is $85 per month.
Why should you buy USAA whole life insurance? Whole life insurance carries a money-saving advantage. Under USAA’s simplified whole life insurance policy, your payments will never go up.
The premiums you pay every month will accumulate into a savings account and behaves like retirement savings without massive penalties. There are several permanent life insurance options, such as simplified whole life insurance and universal life variable life. You won’t find indexed universal life insurance at USAA.
USAA’s universal life insurance policy can provide some flexibility for your monthly premiums. Also, it provides life-long coverage.
Why should you choose USAA life insurance?
If you’re in the military or the immediate family of a military member, you should consider USAA life insurance. USAA has life insurance policies designed specifically for veterans.
Before we look at the ratings, let’s look at a USAA company summary.
| Summary | Stats |
|---|---|
| Year Founded | 1922 |
| Current Executive | CEO - Wayne Peacock |
| Number of Employees | 32,896 |
| Total Assets | $26.3 Billion |
| HQ Address | 9800 Fredericksburg Road, San Antonio, TX 78288 |
| Phone Number | 210-531-8722, (Toll-Free 1-800-531-8722) |
| Company Website | https://www.usaa.com/ |
| Direct Premiums Written | $2.4 Billion |
| Best For | Auto, Life, Home, Business |
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USAA insurance is affordable and carries a multitude of services that will allow you to save money overall. However, it doesn’t hurt to compare different companies.
Three Benefits of a USAA Life Insurance Policy
What are the benefits of having a USAA life insurance policy? We found three pros that you can take advantage of when you buy a USAA life insurance policy.
You Can Change Your Coverage
Usually, a life insurance company won’t allow you to shift policies from term life to whole life, but USAA does. If you think you need more life insurance coverage, USAA will enable you to change to whole life insurance.
Get Life Insurance for Someone Else
This benefit is common among life insurance. Although you need consent, the USAA life insurance company will allow you to put someone else on life insurance.
Exclusive Benefits for Veterans and Their Families
USAA is adamant about taking care of the military and their families. Therefore, anyone in the immediate family of someone in the military will be able to find USAA life insurance coverage.
What are some USAA life insurance disadvantages?
There are some downsides to USAA life insurance. Here’s a list of USAA life insurance disadvantages you weren’t of:
- USAA doesn’t carry final expense policies.
- You may not be able to find USAA life insurance in New York.
- All USAA life insurance policies require a medical exam.
- You must be in the United States military or be in the immediate family of veterans to be eligible for a USAA policy.
It may seem strange that USAA doesn’t carry a final expense policy, but it may have something to do with the military covering funeral costs for veterans.
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USAA Life Insurance Company Ratings
As we get closer to the end of the article, we’d like to mention the most reliable financial strength and credit ratings for USAA life insurance. Ratings show customers how well a company manages money and customer feedback.
Let’s examine USAA’s ratings as a life insurance company and see where they stand.
| Agencies | USAA Life Insurance Ratings |
|---|---|
| AM Best | A++ |
| J.D. Power` | Among The Best (5 Power Circles) |
| Moody's | Aa1 |
| NAIC Complaint Index | 0.11 (Lower than NAIC Average Index Ratio) |
| S&P | AA+ |
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Overall, the USAA life insurance company has done well. There are excellent ratings across the board, but what do they mean? Let’s go through each agency and find out.
A.M. Best
According to Bloomberg, A.M. Best confirmed that USAA’s financial ratings remain as A++ (Superior). This means USAA has an excellent financial strength rating and has a superior ability to meet obligations to its customers.
J.D. Power
Under J.D. Power, USAA is rated on their overall customer satisfaction. J.D. Power uses a rating system called Power Circle Ratings, where one is the lowest score and five is the highest. USAA has a Power Circle Rating of five, making the company “among the best” in the life insurance industry.
Moody’s
Like A.M. Best, Moody’s looks at the credit ratings for each company. USAA has the second-highest rating — Aa1. Moody’s rating means that USAA has very low credit risk and meets obligations of the highest quality.
National Association of Insurance Commissioners (NAIC) Complaint Index
The NAIC complaint index is the rate at which USAA life insurance received complaints. The average complaint ratio is one, and USAA had a complaint index of 0.11, which means the company had less than average customer complaints.
S&P Global
The “AA+” from S&P is similar to Moody’s assessment of USAA life insurance, but S&P goes further by saying that a company with “AA+” is susceptible to long-term credit risk.
USAA Life Insurance: The Bottom Line
USAA life insurance is ideal for veterans and immediate families of veterans. Life insurance rates for USAA are more expensive than most companies. However, whole life insurance quotes for USAA are about average. Ultimately, USAA’s ratings show that the company is reliable and affordable.
Now that you have finished our USAA life insurance review, you’re probably ready to start shopping for life insurance. Want to compare rates today? Enter your ZIP code into our free tool to get started.