Planning for your future | Life Insurance

USAA Life Insurance Review

An In-depth review of USAA Life Insurance

If you are thinking about developing a strong financial strategy that will help you out in the future, you need to think about getting life insurance. It secures the immediate financial future of your family and loved ones after your passing away. There are a lot of options in the market when it comes to life insurance, but that also means that you must do your research to find the right one for you.

For people serving in the military it can be harder to find coverage that will protect their loved ones, should anything happen to them. USAA is a big insurance and financial services company that only offers it services to actively serving U.S. military members and their families. The company has been in operation for close to a hundred years and offers an extensive range of insurance policies and products that cover auto, home, life, and more coverage for all service men and women.

The company markets itself as someone that understands the needs of military families, and different features to their insurance products that can’t be found elsewhere. USAA is a company that has a solid reputation due to their excellent record of paying claims to policyholders. There are very few insurance companies that can match the insurance products, services, and benefits that they offer to members. We take a deep looker into the life insurance products offered by USSA Life Insurance Company in our in-depth review.


Company History

The United Services Automobile Association, also known as USAA, isn’t a business that deals with automobiles. The company started in 1922, and that was the name it has operated under for nearly a century. USAA was found when a small group of Army officers was unable to acquire proper insurance coverage for their vehicles. This prompted them to open their own insurance company, and they did that by ensuring the vehicles of one another.

This was the beginning of the United States Army Automobile Association, but they changed the name a couple of years later. These days the USAA operates under the same foundation of trust, leadership, and service it began with. Throughout the years the company achieved rapid success, and growth opportunities were easy to come by. It was in the 60’s when the company decided to adopt telephone sales, and started its life insurance and homeowner’s insurance coverage.

The next thirty years, were even better for the company, as it added banking and investment brokerage services for its military members. Currently, all service men, women, and their families from the past and the present can qualify for membership. The company is headquartered in San Antonio, Texas and has billions of dollars of assets today.

Company Overview

USAA or the United Services Automobile Association is a collection of companies that provide investment opportunities, banking, and insurance for people in the military. The company had more than 10 million members last year, who regularly used its services. The company has been in operation for nearly a hundred years and has grown exponentially over the years. It is one of the top Fortune 500 companies in the country and has provided a niche market for members of the military and their families. The life insurance company is ranked as the 24th largest life insurance company, based on total insurance coverage offered to members.

There are a lot of great reviews available on the internet about USAA, but most of them don’t go into the details of what this company offers to its members. We have taken a closer look at the products, along with the pros and cons of using the services of this company. The only major problem when reviewing this company is that it only offers its services to members of the military and their families.

This makes it harder to compare their policies and coverage options with other major insurance companies in the United States. However, we have reviewed all the services they offer to members, including their impressive life insurance policies.


Financial Stability and Customer Service Ratings

When it comes to financial strength, you will struggle to find other companies with stronger financial stats and numbers. Their customer service ratings are exceptional, and they have been given high marks and scores from all major insurance rating agencies. A.M. Best Company gave USAA a rating of AA++, which is the highest rating they give out, and here is what they got from others:

  • M. Best rating: A++
  • Standard and Poor’s rating: AA+
  • Moody’s rating: Aa1
  • Fitch rating: AAA
  • Comdex ranking: 99 (out of 100)

Make no mistake. These ratings aren’t just good, they are spectacular. Only a select few insurance companies can claim to have higher ratings than the ones given out to USAA.

USAA Life Insurance Coverage

United States Automobile Association provides several different products to all members, which includes life insurance protection. They offer an extensive range of coverage options, which can be chosen by member depending on their needs. The life insurance coverage options offered by USAA include the following:


Ø  Level Term Life Insurance Coverage

Term life insurance provides members with the option to buy life insurance death benefit protection, but they won’t get any cash value to build up or savings. Pure death benefit coverage has lower premiums, which makes the policy affordable for people who are in good health and young. The level term life insurance coverage offered by USAA has lengths that go till 30 years, and there is also a separate policy for children as well.

The premiums will remain the same during the coverage term, and it can also be converted into a permanent life insurance policy without the need for a medical examination to prove insurability. The beneficiaries of the policyholder also get free financial advice.

Ø  Military Term Insurance Coverage

The military term life insurance coverage policy provides term lengths that go till 30 years, but the premiums in the policy will remain the same throughout the term. The plan comes with a $25,000 severe injury benefit as well. The military term policy ensures that policyholders will be covered before their deployment, and in the event of death by war, they will still get coverage. This is different from other life insurance policies.

There is also a Military Future Insurability Benefit option that is replaced if the policyholder buys another policy after their military service finishes. This can be done irrespective of the health of the policyholder, and the policy also provides the beneficiaries with free financial advice.

Ø  Universal Life Insurance Coverage

The universal life insurance coverage policy is a type of permanent life insurance, which provides policyholders with death benefit protection in the coverage. The policy also allows cash-value build-up, which is done on a tax-deferred basis, which means nothing will be taxed until the policyholder withdraws the money. The universal life insurance coverage is very flexible, as it allows policyholders to choose limits after the premium has been paid. They can also decide how much premium should go towards the cash value, and how much to a death benefit.

The universal life insurance coverage provided by USAA will last throughout the life of the policyholder. The cash can be taken out through loans or withdrawals, and cash value grows with high-interest rates. All beneficiaries of policyholders also get free financial advice with the policy.

Ø  Whole Life Insurance Coverage

The whole life insurance coverage is also a type of permanent insurance and comes with a cash value component and death benefit. This insurance coverage guarantees death benefit and premiums, while the company can’t cancel coverage for any reason, other than non-payment of premiums, irrespective of the health condition of the policyholder.

USAA Life Insurance Company offers a whole life insurance policy that offers policyholders with additional protection with permanent insurance for different life events, like getting married or having a baby, without any need for a medical examination. There is also free financial advice provided to the beneficiaries of policyholders.


Other Products Offered

United States Automobile Association is a diversified and large company that provides an extensive range of different products and services to all members. It serves members of the U.S. armed services both past and present, along with their families. Know about USAA vs other Life Insurance Companies. The company is dedicated to making a difference in the lives of everyone and repeatedly offers amazing discounts to all members. The impressive array of products they offer apart from life insurance includes the following:

  • Retirement planning
  • Rental Insurance
  • Real estate search assistance
  • Property and Casualty Insurance
  • Mortgages
  • Long-term Care Insurance
  • Investment products and advice
  • Insurance for Young Drivers
  • Homeowner’s Insurance
  • Health insurance
  • Banking services
  • Auto insurance homeowner’s insurance
  • Annuities
USAA is also renowned for providing an impressive array of benefits, which are a part of their products. These benefits include the following:
  • Home improvement discounts
  • FTD discounts
  • Free nationwide ATMs
  • FedEx Shipping discounts
  • Credit cards
  • Car buying service
  • Auto Loans
  • Vehicle storage discounts
  • Utility marketplace
  • Turbo Tax assistance
  • Travel insurance
  • Travel discounts such as flights, hotels, resorts, and cruises
  • Supplemental health insurance
  • Savings on car rental
  • Renters insurance
  • Mortgages
  • Home security and monitoring discounts

All members of USAA can access information from the company website, related to the insurance products and services offered. These will include health insurance information, retirement planning, real estate, investing, banking products, and services. They also provide discounts for car buying, online shopping, travel deals, and home solutions.

USAA has an advice center dedicated for providing military members with advice on retirement, family living, financial resources, estate planning, military life, buying/selling a home, car buying, disaster and recovery information, and more.

The Bottom Line

If you have been searching for a high-class and top-quality insurance company, then USAA makes it to the very top of any list. The only drawback is that they primarily serve members of the U.S. armed forces and their families. They do offer their services and products to non-military personnel, but they don’t provide them with the same benefits offered to military personnel.

The company is one of the best-ranked insurance company in the country, and always feature at the very top for customer satisfaction. They are renowned for offering a lot of great discounts and their outstanding rates for policies. It can be difficult for non-military members to qualify for their insurance policies and other products, and if you do manage to qualify then you’re in for a treat.

The impressive range of products offered by USAA is perfect to meet the insurance needs of anyone and the additional coverage options they provide with their benefits is very helpful. They also offer benefits that other insurance companies don’t offer, which is what further enhances their appeal. They have an outstanding reputation in the industry, and if you are in the military then there is only one option out there when it comes to insurance products and services, and that is USAA.

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