AAA Life Insurance Review

About AAA

Founded in 1969 by AAA, a well-known provider of roadside assistance and travel services, AAA Life Insurance Company offers term, whole, and universal life insurance. With over 1.7 million active policies, its coverage is available nationwide, including all 50 states and the District of Columbia.

While AAA membership is not required to purchase a policy, members can take advantage of exclusive discounts. The company’s no-exam life insurance options and member benefits may be attractive to some buyers, but its higher-than-average number of consumer complaints is an important factor to keep in mind.

Coverage

Term Life Insurance

Term life insurance offers coverage for a set period, known as the term. If the policyholder passes away during this time, the beneficiaries receive a death benefit. Once the term ends, coverage ceases. Usually, term life insurance is more inexpensive than permanent life insurance. AAA members can take advantage of a 10% discount on premiums for both of the company’s term life insurance policies. AAA offers two term life insurance options:

• Traditional Term Life: The Traditional Term Life policy offers high coverage limits, ranging from $50,000 to $5 million or more. While quotes are available online, purchasing this policy requires a medical exam and must be completed through an agent. Additionally, an optional return-of-premium rider allows policyholders to receive a refund of premiums paid if they outlive the term.
• Express Term Life: The ExpressTerm Life policy offers term lengths of 10, 15, 20, or 30 years, with coverage amounts ranging from $25,000 to $500,000. Applicants can obtain a quote and complete the application process online. Those who qualify may be able to secure coverage without a medical exam in as little as 10 minutes.

Universal Life Insurance

Universal life (UL) insurance is a type of permanent coverage that includes both a death benefit and a cash value component. Policyholders may have the flexibility to adjust their premiums and death benefit over time by utilizing the accumulated cash value.

AAA’s UL policies do not come with automatic member discounts. However, members who purchase a UL policy may qualify for additional savings on a AAA home or auto insurance policy. AAA offers two universal life insurance options:

• Accumulator Universal Life: The Accumulator Universal Life policy from AAA offers flexible premiums, allowing adjustments based on the available cash value. It provides the same coverage limits as the Lifetime Universal Life policy.
• Lifetime Universal Life: The Lifetime Universal Life policy is available for purchase only through an agent, and a medical exam may be required. Coverage limits range from $100,000 to $5 million or more, depending on your needs. Premiums for this policy are guaranteed to remain level throughout the duration of the policy.

Whole Life Insurance

Whole life insurance is a permanent policy that offers lifelong coverage, ensuring that beneficiaries receive a death benefit regardless of when the policyholder passes away. Additionally, it accumulates cash value over time, which can be borrowed against or withdrawn while the policyholder is still alive.

AAA members can access exclusive savings on the company’s whole life insurance policies. Members receive a 10% discount on the annual premium for the traditional whole life policy, while both members and their spouses can save $60 per year on the guaranteed issue policy. AAA offers the following whole life insurance options:

• Traditional Whole Life: AAA’s traditional whole life insurance policy requires full underwriting, meaning applicants seeking more than $30,000 in coverage must undergo a medical exam. Available to individuals between 18 and 85 years old, this policy offers death benefit amounts ranging from $5,000 to $75,000. To obtain a quote or purchase coverage, you’ll need to speak with an agent.
• Guaranteed Whole Life: This policy is a true no-medical-exam option for individuals aged 45 to 85. Applicants can receive a quote and secure coverage online without undergoing a medical exam or answering health-related questions. Approval is guaranteed regardless of health status. However, the maximum death benefit is limited to $25,000, which may not provide sufficient coverage for all needs.

Riders

Life insurance riders are optional add-ons that enhance coverage for specific needs. AAA offers the following riders:

• Waiver of premium rider: If you become totally disabled, this rider waives your premium payments while keeping your policy active.
• Travel accident rider: This rider provides an extra death benefit for beneficiaries if death occurs in a qualifying travel-related accident.
• Terminal illness rider: This rider lets you access your death benefit while you’re still alive if diagnosed with a terminal illness and given less than a year to live.
• Return-of-premium rider: Available with Traditional Term Life Insurance, this rider allows you to get back the premiums you’ve paid if you outlive the policy term.
• Child term rider: This rider allows you to purchase life insurance coverage for each eligible child.
• Guaranteed purchase option rider: This rider allows you to buy additional life insurance coverage in the future without undergoing another medical exam.
• Accidental death benefit rider: If death results from a qualifying accident, this rider provides an extra death benefit of up to $150,000 for your beneficiaries.

Pricing

AAA offers some of the highest term life insurance premiums compared to other insurers we reviewed. However, AAA members can receive discounts that may help lower the annual premium. Below are the average term life insurance premiums for both males and females in various age groups.

Here are the monthly premiums for a 20-year, $500,000 term life insurance policy from AAA. These sample rates are based on a nonsmoking man and woman in excellent health. The actual quote you receive will be influenced by factors such as age, health, lifestyle, occupation, and driving history.

Submit a Claim

To file a claim, it’s helpful to have the policy number and key details about the policyholder, such as their last name and date of birth. If the policy cannot be found, check the location of other important financial documents. You will also need a death certificate and a completed claim form.

Once you have gathered the necessary information, you can contact AAA Life to start the claims process. The documentation required may vary depending on the policy’s specifics, but the Claims Department will notify you if any additional information is needed.

The claim verification process can take a few weeks, as it is a crucial step to protect both you, our policyholders, and the company from fraud. Once the claim is verified, beneficiaries will need to decide whether to receive the payment as a lump sum, in installments, or held in an interest-bearing savings account until the payment is made. Please note that opting for an electronic bank transfer will result in faster payment compared to waiting for a check by mail. AAA Life suggests consulting with a financial advisor if you’re uncertain about the best payment method for your needs.

Customer Support

If you have a policy with AAA, you can reach customer service at 855-598-0890 on weekdays from 8 AM to 8 PM ET and Saturdays from 11 AM to 3 PM ET. For other inquiries, call 888-422-7020 Monday through Thursday from 8 AM to 10 PM ET, Fridays from 8 AM to 8 PM ET, and Saturdays from 9 AM to 3 PM ET. You can also email membersvc@aaalife.com for assistance, or claim-related inquiries can be sent to claimssvc@aaalife.com.

AAA also provides live chat support for policy questions and general assistance. Live agents are available via chat Monday through Friday from 8 AM to 8 PM ET and Saturdays from 11 AM to 3 PM ET.

Conclusion

AAA earns a place among our top term life insurance providers due to its standout return-of-premium life insurance. AAA members also benefit from exclusive discounts that help reduce premium costs. However, the company has a higher-than-expected volume of customer complaints relative to its size, and its term life policies tend to be among the pricier options available.