Everyone that knows Good Life Protection knows what we like to do and how we like to do it. We enjoy bringing you (the consumer) the most up to date life insurance reviews you can ask for. This AAA Life Insurance review will follow suit with that. We review hundreds of companies and rank them accordingly in our weekly life insurance reviews.
With AAA, most of you probably think of the batteries in the television remote or the automobile insurance that they offer. We aren’t going to touch much on that. In our review of AAA Life Insurance, 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. On Life Insurance, not the rest of the products AAA offers. 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.
Sorry to ruin your day.
It’s important to know all the facts before choosing a life insurance company. All companies have strengths and weaknesses and AAA is no exception to this rule. Let’s start looking at who AAA Life Insurance really is and see how good they really are compared to the other companies you can choose.
Our goal is for you to always know who has the best life insurance policy for your family and that your hard-earned dollars can buy.
History of AAA Life Insurance Company
Many people are probably wondering, does AAA sell life insurance? If they do, is it even worth it or good life insurance? What about other products such as whole life insurance? Don’t worry we will get into all of that in detail but first let’s look at AAA from the beginning.
Triple A life insurance or “AAA” as they like to display it is 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”.
No, the bundle discount won’t be worth it so get rid of that idea immediately.
Back to the story.
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.
Triple A Life Insurance 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. Triple A is primarily renowned for its roadside assistance program.
It took quite some time for AAA to enter the life insurance industry. 1969 to be exact. It was a comfortable barrier to entry for AAA 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 Policies Currently in Force
Currently, AAA 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.
AAA Life Insurance Financial Strength Rating Review
You guys know how we roll over at Good Life Protection. 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 look on the good ole’ balance sheet and rating reviews?
Currently, AAA is holding down the following financial strength ratings
This isn’t top ratings by any means but it’s by no means a bad rating. It’s still very impressive. Here’s Good Life Protection’s Grade of AAA Life Insurance Financial Strength
A.M. Best is claiming that AAA still holds a stable and promising future when it comes to economic strengths, so it appears this would not fall onto a list of cons about AAA Life Insurance Company.
This would be a solid rating and shows no signs to be concerned. Although AAA is 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.
Is life insurance AAA’s specialty?
Maybe not, but that doesn’t mean it’s the worst option you can look at either.
Any Other Known Issues with AAA that we are aware of? How about Consumer Complaints?
AAA 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 dive into some of the fun stuff.
Let’s touch on the AAA Life Insurance Products and Life Insurance Rates.
AAA Life Insurance Products and Options
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 Express Term Life Insurance or Traditional Term Life Insurance.
Let’s cover the difference briefly.
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 10,15,20,25,30-year term policies
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 an agent at one point or another.
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 and if we 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 but 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.
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 an 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 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.
It returned my quote at 83.09 per month and gave me the option to “buy now.”
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. Here are the options it presented me.
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.
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.
Alternatively, you have the second option.
Traditional Term Life Insurance with AAA.
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.
AAA Life Insurance Rates for Traditional Term Life Insurance
Here are the AAA life insurance rates that were returned directly from the AAA website. The same old story for the factors we used to determine the prices. 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.
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. Your welcome. Here are the results.
Keep in mind, this would depend on underwriting and if you were able to achieve Preferred Plus, Preferred or 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.
Top 5 Rates with other Life Insurance Companies- 250,000.00 coverage for 30 years.
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
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 coverage up to 25,000.00, but it would be level or immediate benefits. They also state that it will grow cash value overtime “guaranteed”. Here’s 3 More Facts About AAA Whole Life Coverage.
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’s some fun facts. Please take note. You can do much better with companies with these products with AAA Life Insurance. It’s not a top life insurance company for seniors or guaranteed issue life insurance. Plain and simple
The Fun Continues, for those of you interested in Universal Life Insurance with AAA, this section is for you. Here’s what we found diving into the Universal product they offer.
You have 2 options. The LifeTime Universal Product and the Accumulator Universal Life product.
Here’s a break down of each side by side.
AAA Group Term Life Insurance
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.
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.
Here’s Some Major Pros and Cons of AAA Life Insurance
AAA Life Insurance Customer Service and company contact information.
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.
Here is Good Life Protections Final Grade Report of AAA Life Insurance Company and Products.
AAA Life Insurance isn’t The Worst but Isn’t the Best. What to do now?
I think you know just about everything you need to about AAA Life Insurance company by now. We hope that our review helped clear things up and paint a picture for you that can help aid you in your decision on whether they are the right fit for your family and your life insurance coverage.
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.
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.
Till Next Time and thanks for reading. We appreciate you.
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Josh Martin is the founder of Good Life Protection. He began his career as a captive Agent working for New York Life Insurance Company. After continued education and designations, Josh founded Good Life Protection to provide consumers with more options and insurance that truly fits into your budget and health classification.