AAA Life Insurance Reviews [Rates, Products + Complaints]

aaa-life-insurance-reviews

AAA Life Insurance Reviews (Updated July 2019)

Researching a life insurance company is always a good idea. It’s part of the reason we provide the reviews we do on all life insurance companies and why we are providing this AAA Life Insurance Review.

Regardless of the situation and why you are searching for life insurance, we always recommend checking rates across the board.

We try and make this easy for you.

You can do this easily below using our instant life quotes rate engine directly below to compare rates with 50 of the top-rated life insurance companies.

AAA Life Insurance will even be one of the options for the rates displayed that you can view depending on the parameters and coverage amount you are searching for.


Our AAA Life Insurance Review

With AAA, most of you probably think about the auto insurance that they offer.

We aren’t going to touch much on that.

In our review of AAA Life Insurance Company, we are going to dive deep into the company and provide you with rates, products and behind the scenes information to help guide you to a wise life insurance purchase.

AAA is one of the better companies in the business.

They aren’t quite one of the best life insurance companies for this year but plenty of other companies fall below them.

That’s for sure.

It’s important to know all the facts before choosing a life insurance company.

All companies have strengths and weaknesses and AAA Life Insurance Company is no exception to this rule.

Let’s start looking at who AAA Life Insurance Company is and how they began in the life industry.

AAA Life Insurance Company History

Many consumers are honestly surprised that AAA Life Insurance Company is a full division of the company.

Many only consider the other coverage that AAA offers.

It’s also common for clients to ask if AAA Life insurance is any good.

We will cover all of these topics but let’s first cover the basics.

AAA Life Insurance company is known as The American Automobile Association.

Pro Tip* This should be your first red flag.

Stick with companies who specialize in life insurance and don’t serve as a “jack of all trades”.

In most situations, purchasing life insurance with a company such as AAA Life Insurance will not be cheaper even if you bundle insurance products.

AAA is a federation of motor clubs in North America.

It’s a privately held National Member Association and currently has over 58 million members throughout the United States and Canada.

AAA Life Insurance Company was founded on March 4th, 1902.

It began in Chicago, Illinois in response to the lack of roads and highways that were suitable for vehicles. It should be no surprise to anyone that this is where AAA gained its popularity.

AAA is primarily renowned for its roadside assistance program.

However, we don’t care about their roadside assistance for this review.

We only care about the products and rates offered by AAA Life Insurance Company.

Plain and simple.

It took quite some time for AAA Life Insurance to enter the life insurance industry.

1969 to be exact. 

It was a comfortable barrier to entry for AAA Life due to the existing client base and trust they had already gained from the public.

This doesn’t mean they are the best option for your life insurance coverage.

AAA Life Insurance Company Financial Strength

Financial strength ratings are a huge indicator of a life insurance company, so we make sure to never review a company without including them.

No exceptions. 

So how does AAA Life Insurance look on the good ole’ balance sheet and rating reviews?

Currently, AAA is holding down the following financial strength ratings

A.M. BestFitch
AA

This isn’t top ratings by any means but it’s by no means a bad rating.

It’s still very impressive.

AAA Life Insurance Policies Currently in Force

Currently, AAA Life Insurance has more than 1 million active and in-force life insurance policies to existing clients and consumers.

It’s still developing products over time and trying to make a name for itself within the life industry.

A.M. Best is claiming that AAA Life Insurance still holds a stable and promising future when it comes to economic strengths, so it appears this would not fall into a list of cons about AAA Life Insurance Company.

This would be a solid rating and shows no signs to be concerned.

Although AAA Life Insurance isn’t the newest company compared to hundreds of other options, they have a stronghold on respect and a good client base that continues to allow the company to grow and prosper.

AAA Life Insurance Complaints and BBB Rating

AAA Life Insurance is looking good in this category as well.

They show an A+ rating with the Better Business Bureau.

The only red flag we see with this is that they are not currently accredited with the Better Business Bureau.

Let’s touch on the AAA Life Insurance Products and Life Insurance Rates.

AAA Life Insurance Products and Options

Currently, AAA Life insurance company offers a wide variety of life insurance products.

None of these life insurance products are necessarily any different than the products by other life insurance companies.

However, AAA Life Insurance does have a few unique strengths that we will definitely point out for you shortly in this post.

Here’s an overview of the life insurance products offered by AAA Life.

  • Term Life Insurance
  • Universal Life Insurance
  • Whole Life Insurance
  • No Exam Term Life Insurance
  • Guaranteed Issue Whole Life
  • Accident Insurance
  • Group Term Life Insurance

AAA Life Insurance Company Rates and Application Process

 

We are going to start this process from the beginning and do all the work for you.

Immediately when you enter AAA’s website, it has a nice big box waiting for you advertising term life insurance as low as 8.00 per month.

Trust us, you’re likely not getting life insurance for 8 dollars per month.

Unless your 21 and are in excellent shape.

I started by running the rates on an individual who is 40 years old.

Once you enter your date of birth and email, you immediately get the option to choose from the following:

  • Express Term Life Insurance
  • Traditional Term Life Insurance

Let’s cover the difference briefly.

AAA Life Insurance Company Express Term Life Insurance

Express term life insurance with AAA is going to be a non-medical exam life insurance policy that ranges in coverage’s amounts from 25,000-250,000.00. 

You can choose from the following durations for your term life insurance policy with AAA.

  • 10 Years
  • 15 Years
  • 20 Years
  • 25 Years
  • 30 Years

This option is advertised on AAA’s website by being a fully buy online process with no speaking to an agent necessary.

News Flash* These policies don’t often go through as easy as you think.

Any red flags and the plan will not be approved.

What do we mean by red flags?

If your driver’s license number returns any bad driving record indicators on an electronic motor vehicle report or even if your prescription report pulls information that they dislike, it’s likely going to prompt you to speak to a AAA Life Insurance Agent.

We dove deeper into the no-exam life insurance with AAA.

We proceeded to step 2 in the process, and we were immediately prompted to enter our height and weight.

In case you weren’t aware, weight or being morbidly obese can significantly impact life insurance rates.

AAA Life insurance will also ask if you use nicotine or have used nicotine in the past 12 months.

We were also asked at this point how much coverage we wanted and for how many years.

It’s also going to ask you to “grade” your health.

I rated myself as “good health” but we have another insider tip for you.

You’re probably not as healthy as you think or not as healthy as you think the life insurance company should grade you at.

This is why it’s always imperative to work with high-risk life insurance brokers instead of directly with companies such as AAA Life.

It’s kind of like that feeling you get when you check the value of your car on Kelley Blue Book.

You think it’s excellent shape, but the truth is only 5% of all used vehicles fall into this category.

The same is true in life insurance. 

Everyone wants to think they are a preferred plus but realistically less than 10% of the U.S. who applies for life insurance falls into the preferred plus categories.

I gave myself a good health rating and entered my height at 6’0 and my weight at 202 pounds.

I also requested 225,000.00 in coverage for a 30-year term.

My rates with AAA Life Insurance came back at 83.09.

This isn’t necessarily bad but I’d venture to say you could likely do better with other life insurance companies.

This sounds great at first sight, but if you read the small print beneath the small print, it clearly states “Term Life Insurance approval is subject to health history and underwriting guidelines.

Rates may vary. 

Not all applicants will qualify.

Coverage ends at 95 years old.”

I was fairly impressed with some of the rates.

AAA Life Insurance Quotes Presented to Me Through Their Website

  • 46.07 P/ Month- 10 Year- 250K
  • 52.21 P/ Month-15 Year- 250K
  • 57.95 P/ Month-20 Year-250K
  • 71.41 P/ Month- 25 Year-250K
  • 83.09 P/ Month- 30 Year- 250K

Here’s some of the competitions pricing for the exact same policies so you can compare and contrast who wins the battle of price.

American National- $58.64 Per Month

SBLI- $64.24 Per Month

Mutual of Omaha-$66.29 Per Month

Phoenix Life Insurance- $73.59 Per Month

Foresters Financial- $86.99 Per Month

As you can see 4 companies beat AAA life insurance rates by a substantial amount.

Also, these companies offer a healthy number of riders and additional options primarily because they focus most of their efforts on life insurance products and financial services.

Many of these companies also offer robust living benefits with their life insurance products which is currently a downfall with AAA.

This is referring back to, “being a jack of all trades” isn’t always the best option for a company and isn’t always the best option for the consumer either.

However, it’s important to note that AAA Life Insurance Company does offer other forms of coverage.

Here’s a look at them.

AAA Life Insurance Company Term Life Insurance

AAA advertises its Traditional Term Life Insurance as a fully customizable plan tailored made just for you for coverage amounts ranging from 100,000.00 and up to 5,000,000.00.

AAA’s website makes it pretty easy to get a rate for this as well, so we took the liberty in doing so once again.

First, we need to add that this product does offer the “return of premium rider” if you choose to opt-in for it.

The rates for these products are also going to be different compared to no-exam life insurance with AAA.

AAA Life Insurance Rates for Traditional Term Life Insurance

Here are the AAA life insurance rates that were returned directly from the AAA website.

We used the same factors to determine our AAA Life insurance rates.

We ran it as a 40-year-old non-smoker male at 250,000.00 in coverage for 30 years.

Here’s how it looked.

  • 51.92 Per Month-250K-30 Year
  • 46.42 Per Month-250K-25 Year
  • 30.58 Per Month-250K-20 Year
  • 25.52 Per Month-250K-15 Year
  • 19.36 Per Month-250K-10 Year

Now let’s see how the AAA life insurance rates stack up against the competition on the traditional term life insurance plan.

We reran the numbers for you again.

Here are the results.

Keep in mind, this would depend on underwriting and if you were able to achieve any of the following health classes

  • Preferred Plus
  • Preferred
  • Standard Rates

With the traditional term life insurance with AAA and other life insurance companies, this will require a medical exam paid for by the company.

That’s the only way to know.

Assuming you were able to get the 2nd best rating for your health, here’s how the competition stacks up.

AAA Life Insurance Vs. The Competition

32.70 Per Month-250K-30 Year- Foresters Financial

33.61 Per Month-250K-30 Year-Fidelity Life

41.14Per Month-250K-30 Year- Protective Life

41.30 Per Month-250K-30 Year-Prudential Life Insurance

43.86 Per Month-250K-30 Year- AIG (American General)

As you can see several companies are offering rates that beat AAA Life Insurance.

Companies that everyone knows and trust such as American General Life Insurance Company.

Additionally, the other options are great companies for term life insurance.

You can’t go wrong purchasing life insurance with Fidelity Life Insurance, Protective Life Insurance Company, Foresters Financial or Prudential Life Insurance (Pruco).

AAA Whole Life Insurance and Whole Life Insurance Rates

We took the time to break down and go behind the scenes of both whole life products that AAA offers for you.

The two options you have with AAA comes down to a Simple or Traditional whole life insurance plan and a guaranteed issue whole life plan.

Here are the key specs

  • Must Apply With Agent
  • 5-25,000 In Coverage Available
  • Price is Locked In

 

We then used AAA’s website and went through the process a little further with each product.

We learned that the Whole life product is a no exam life insurance policy.

The downfall as shown above in our list above is that it’s only covered up to 25,000.00, but it would be level or immediate benefits.

They also state that it will grow cash value over time “guaranteed”.

3 More Facts About AAA Life Insurance Whole Life Insurance

  • Eligible from 15 Days Old to 80 Years Old
  • 5-7 Day Application Process Until Coverage Begins
  • Members May Be Eligible for a Discount

Then we dove into the Guaranteed Issue Whole Life Product a bit further as well.

This policy is a guaranteed issue which means no health questions will be required.

It is only available between the ages of 45-85. Here are some fun facts.

Please take note. 

You can do much better with companies with these products with AAA Life Insurance Company.

It’s not a top life insurance company for seniors or guaranteed issue life insurance.

AAA Guaranteed Issue Whole Life Specs

  • Obtain by Mail or Over the Phone
  • Absolutely Zero Health Questions
  • Claims to build Cash Value

AAA Universal Life Insurance Reviews

AAA also offers universal life insurance.

Here are some of the key details we found reviewing AAA Universal Life Insurance products.

You have 2 options.

AAA LifeTime and Accumulator Universal Life Insurance Reviews

Here’s a break down of each side by side.

Life Time Universal Life with AAA

Apply With Agent Only

25,000.00 Minimum Coverage

Locked In Premiums

Accumulator Universal Life with AAA

Apply With Agent Only

25,000.00 Minimum Coverage

Customize Premiums

Life Time Universal Product

This product is designed for those of you who desire a cheaper option for permanent coverage. It can have advantages such as flexibility, legacy leaving and favorable tax advantages.

Accumulator Universal Life

Keep in mind that most of the time, term life insurance will take care of all the purposes you need the coverage for.

You should have a separate desire for reasons such as additional retirement planning, legacy leaving, or available riders to make this a product to consider.

AAA Group Term Life Insurance

AAA does offer Group Term Life Insurance as well.

For the sake of this article, we won’t dive too much into it but don’t be surprised if you see offered at your next annual enrollment for your work-sponsored life insurance coverage.

AAA Travel Accident Insurance

AAA also offers Accident Insurance, not just life insurance.

It’s only exclusively available to AAA members.

It covers Unintentional injuries which AAA advertises is the leading cause of death in America.

Here’s the inside scoop on the product.

  • Low Rates
  • Available Ages 18-65
  • No Medical Questions- Covers Emergency Room and Emergency Medical Care

AAA states in the product feature that if your over 18 years old, that this may be the product for you.

Policies like accident coverage are usually only desirable if your life insurance needs are already met and ultimately, life insurance is something you need to cover first — not last.

At Good Life Protection we typically don’t dive into any form of accidental coverage unless you can’t qualify for traditional life insurance coverage.

It’s really not necessary unless you are applying for life insurance with pre-existing medical conditions.

Pros of Working With AAA Life Insurance Company

No Exam Term Option

Known Authority in the US

Potential to Bundle Coverage

Cons of AAA Life Insurance

Not Competitive Pricing

Lack of Product Options

Lack of Riders and Added Features

AAA Life Insurance Customer Service

It’s always important to be able to reach the company you have your life insurance with and we realize some readers may land on this post searching for contact information for AAA. 

Here it is as a quick cheat sheet for you.

  • AAA Life Insurance Company-17900 N. Laurel Park Dr.-Livonia, MI 48152-3985
  • Customer Support (888) 223-6534
  • Claims Department (888) 223-1509

AAA Life Insurance Company Is Good But Always Consider All Options

The hopes is that this AAA Life Insurance review delivered what you were looking for.

We also want to be 100% clear that we don’t represent AAA Life Insurance Company.

We also do think AAA is a great life insurance company.

We just believe very strongly about always comparing rates with all life insurance companies.

Plain and simple.  

Life insurance is a huge purchase and feeling good about the decision is imperative. Never hesitate to reach out to Good Life Protection.

We always want to help.

We promise, no hassle, no gimmicks, just answers, and a helpful hand.

You can also get your AAA Life Insurance Quote here!

Do you have any experience working with AAA for your life insurance needs?

Did we leave anything out or do you have any other questions?

Drop a comment below.

We would love to hear from you.

Otherwise, make sure to fill out the rate engine form on the right to get an idea at how much money you can save when you compare prices from over 60 of the top life insurance carriers.

FILED UNDER – INSURANCE COMPANY REVIEWS