USAA Life Insurance Review [Complaints, Rates + Tips]

usaa life insurance review
USAA Life Insurance Reviews (Updated 2019)

At Good Life Protection we take pride in the fact that we bring the consumers the most up to date and in-depth life insurance company reviews to help aid you in making the best possible life insurance purchase possible.

This comprehensive USAA life insurance review will be no different.

These reviews are always imperative for the consumer.

Especially if you are an individual who may have other concerns when applying for life insurance.

An example could life insurance for high-risk individuals.

If you are thinking about developing a strong financial strategy, life insurance will certainly help you out in the future.

It secures the immediate financial protection for your family and loved ones after your passing.

USAA Life Insurance Company can be great in many areas of life insurance, unfortunately, it did not make our list for the best life insurance companies of 2019.

This is one of the primary reasons we always recommend comparing rates with more than 50 top-rated life insurance companies at the same time.

You can do so easily using our instant quote tool directly below.


It will allow you to gauge your potential rates with all life insurance companies and give you an idea of how much you need to budget for in the immediate future.

Plus, it only takes about 10 seconds.

If that’s not what you need and you simply need an in-depth review of USAA Life Insurance, then let’s get started.

USAA Life Insurance Reviews 2019

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 life insurance and financial services company that markets towards an active or retired military heavily.

USAA Life Insurance Company has been in operation for close to 100 years and offers an extensive range of life insurance policies and products that covers auto, home, life, and other life insurance policy options as well.

USAA markets itself as someone that understands the needs of military families, and different features to their life insurance products that can’t be found elsewhere.

This is simply not true (we will cover this later in the post)

USAA Life Insurance is a company that has a solid reputation due to its excellent record of paying claims to policyholders.

Although USAA Life offers great coverage to certain niche markets, we certainly believe their products can be matched or beat.

To kickstart our USAA Life Insurance review, let’s begin with company history and then transition into USAA life insurance rates, product options, and financial strength ratings.

Our goal with this USAA life insurance review is to deliver all the information needed to make an informed decision about whether or not to use them for life insurance coverage.

USAA Life Insurance Company History

The United Services Automobile Association, also known as USAA, isn’t a business that deals with only auto insurance.

USAA Life Insurance began in 1922, and that was the name it has operated under for nearly a century.

USAA Life Insurance was founded when a small group of Army officers was unable to acquire proper insurance coverage.

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 (USAA), 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, USAA Life Insurance Company achieved rapid success, and growth opportunities were easy to come by.

It was in the ’60s when the company decided to adopt telephone sales, and started its life insurance and homeowner’s insurance coverage.

The next thirty years, we’re even better for the company, as it added banking and investment brokerage services for its military members.

Currently, all servicemen, women, and their families from the past and the present can qualify for membership and life insurance coverage.

The company is headquartered in San Antonio, Texas and has billions of dollars of assets under management.

USAA Life Insurance Company Overview

USAA Life Insurance also provides banking and insurance coverage for people in the military.

USAA had more than 10 million members last year, who regularly used its services.

Currently, USAA Life Insurance Company is a Fortune 500 companies.

USAA Life Insurance company, in particular, is ranked as the 24th largest life insurance company, based on total life insurance coverage in force or active as of 2019.

Plenty of USAA life insurance reviews can be found on the internet but most of them don’t go into the details of what this company offers to its members or if you potentially could work with a much better life insurance company or be provided cheaper overall rates.

We have taken a closer look at the life insurance products, along with the pros and cons of using USAA Life Insurance Company to secure your families financial future.

Don’t worry, we will be sure to provide you with the details you need to know if you stick around for 2-3 more minutes.

USAA Life Insurance Review of Financial Strength

During our USAA life insurance review, we had to make sure to deliver one key piece of information.

We wanted to ensure we delivered USAA Life Insurance’s current financial strength ratings and stability.

When it comes to financial strength, you will struggle to find other companies with stronger financial numbers than USAA Life Insurance.

USAA Life Insurance has exceptional customer service ratings, and they have been given high marks and scores from all major life insurance rating agencies.

A.M. Best Company gave USAA a rating of AA++, which is the highest rating that can be provided to a life insurance company.

A.M. BestStandard & Poor’sMoody’sFitchComdex
A++AA+Aa1AAA99

 

  • A.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 life insurance companies can claim to have higher ratings than the ones given out to USAA Life Insurance Company.

USAA Life Insurance Company Products Offered

USAA Life Insurance provides several different products to all members, which includes life insurance protection and various forms of life insurance coverage.

They offer an extensive range of life insurance coverage options, which can be chosen by consumers depending on their needs.

The life insurance coverage options offered by USAA include the following:

USAA Term Life Insurance Reviews

USAA Life insurance offers what we would consider midline or “decent” term life insurance coverage.

It’s not the best term life insurance and it’s certainly not the worst but you can definitely locate more robust and cheaper life insurance shopping outside of USAA Life Insurance.

Term life insurance with USAA provides members with the option to buy life insurance that’s purely death benefit protection.

Term Life insurance with USAA will have midline pricing and be offered in durations of 10, 15, 20, 25 and 30 years.

The level premium term life insurance coverage offered by USAA is one of the more popular products USAA Life Insurance offers.

This simply means your prices are locked in for the duration you choose when you originally begin the life insurance policy with USAA.

USAA Term Life Insurance Can Be Converted to Whole Life Insurance

USAA term life insurance can also be converted into a permanent life insurance policy without the need for a medical examination to prove insurability. 

This simply means that if you have a USAA 20 year term life insurance policy currently, that you have the ability to shift this into a USAA whole life insurance policy without needing to complete a new medical exam which is a nice benefit to consider.

USAA Term Life Insurance Review for Active Military

USAA offers terms life insurance to the active and retired military as well. This term life insurance with USAA Life Insurance company also offers lengths that go till 30 years.

The plan comes with a $25,000 severe injury benefit as well.

USAA’s term life insurance coverage also ensures that policyholders will be covered before their deployment, and in the event of death by war, they will still be provided the full death benefit.

This is somewhat different from other life insurance companies and honestly, perhaps the only major unique treat that USAA Life Insurance offers currently (not to bash them, of course)

USAA Military Future Insurability Benefits

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.

USAA Universal Life Insurance Coverage 

The universal life insurance coverage policy is a type of permanent life insurance, which provides policyholders with death benefit protection, flexible premiums and the potential for cash growth inside of the life insurance policy.

USAA Universal Life Insurance also allows for cash-value build-up, which is done on a tax-deferred basis, which means nothing will be taxed until the policyholder withdraws the money.

This is again, nothing special and the same way Universal life insurance works with all life insurance companies.

USAA Life insurance company is doing nothing special with their universal life insurance.

Universal life insurance coverage with USAA Life Insurance Company or all life insurance companies in general, is flexible, as it allows policyholders to choose certain parameters such as increasing death benefits or alterations to the investment portion of the life insurance policy.

They can also decide how much premium should go towards the cash value, and how much to a death benefit with USAA or any other life insurance company.

The universal life insurance coverage provided by USAA Life Insurance Co. will last throughout the life of the policyholder.

The cash can be taken out through loans or withdrawals, and cash value grows with interest rates set by the company on a year to year basis.

USAA Whole Life Insurance and Whole Life Rates

USAA whole life insurance coverage is also a type of permanent insurance and comes with a cash value component and death benefit.

Whole life insurance with USAA guarantees the death benefit, level premiums, and the potential to grow a substantial amount of cash over long periods of time.

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.

USAA whole life insurance isn’t bad by any means but we certainly recommend considering other options in this situation as well.

USAA Life Insurance Reviews of All Other Life Insurance Products Offered

USAA Life Insurance Co. is clearly a diversified life insurance 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.

We already know that USAA Life offers term life insurance, whole life insurance, and universal life insurance. In addition, USAA Life Insurance also offers the following products

  • 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 Life Insurance Also Offers Other Services

  • 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

USAA Life Insurance Company Makes it Easy to Communicate

All members of USAA can access information from the company website, related to the life insurance products and services offered.

These will include life insurance product information, retirement planning, real estate, investing, banking products, and other services.

USAA Life Insurance Company also has an advice center dedicated for providing 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.

USAA Life Insurance Rates

When it comes to USAA life insurance rates, we have done some homework and truly advise that you always compare your rates with other life insurance companies.

Simply trusting that USAA life insurance rates are the best you can do is a big mistake and could potentially cost you a substantial amount of money.

USAA Life Insurance Rates For Term Life Insurance

We speak to many individuals that are curious about the USAA life insurance rates for term life insurance coverage.

With that being said, that’s what we are going to focus on briefly.

We have all seen the USAA Life Insurance commercial and advertisements.

It’s no secret that they claim to be the go-to life insurance carrier.

Especially for veterans, active duty or retired military personnel.

We can tell you one thing for sure.

If you are an individual described above, USAA likely will not be your best option for purchasing life insurance with PTSD.

Underwriting guidelines may be much more strict with companies such as USAA Life Insurance Company.

So how good is the USAA Term Life Insurance Rates?

Let’s take a look.

Good Life Protection took a dive into the USAA insurance quote tool and ran the numbers against the competition from over 50 other major life insurance carriers?

USAA Life Insurance Rates and USAA Life Insurance Quotes

The USAA life insurance rates we are going to display to depend on your individual ability to gain coverage for life insurance.

The same criteria that applies to other life insurance companies apply to USAA Life Insurance. 

What Will be Considered?

  • Your Overall Health
  • Tobacco or Non-Tobacco Use
  • Pre Existing Medical Conditions
  • Family History
  • Personal History
  • Driving History
  • Medications or RX Report

Alright, let’s dive into some USAA quotes and USAA Term life insurance rates.

USAA Life Insurance Quoting Tool

*Date Of Birth
*Gender
*State of Residence
*Military Status

medical questions, usaa underwriting

Another Step to obtaining your USAA life insurance rates will be another series of questions asked.

If you answer no to the following questions, it will allow you and prompt you to enter your height and weight.

Once you do that, you have unlocked your USAA Life Insurance Rates where they have a cool interactive tool allowing you to alter coverage amounts and durations.

Keep in mind

This is just for the USAA Term Life Insurance that we are talking about here.

This can also allow you to run rates for USAA Whole Life Insurance and USAA children’s life insurance.

Let’s break down more USAA Life Insurance Rates and what the Screen looks like for the user or consumer such as yourself.

  • 20 Year Term
  • 250,000 Coverage
  • Male- Age 38- Non-Smoker- Healthy

usaa term rates 20 year 250,000

The life insurance rates you are seeing displayed above would be for a USAA 20 Year Term.

The coverage amount would be for 250,000.00

This is also for a Male- Age 38 with ZERO health concerns and a non-tobacco user.

You will also to see over to the top right that USAA advertises that it’s “free to begin an application”.

Don’t be fooled, that’s nothing special.  It’s free to apply and underwrite your health including the medical exam with all life insurance carriers.

So how good is 19.15 a month for 20 Years, 250,000.00 coverage for a preferred plus health rating?

Not very.  It’s more expensive than other carriers.  Here are alternatives to that pricing with other carriers.

USAA Life Insurance Rates Compared to Other Life Insurance Companies

Let’s start by comparing USAA against another very popular life insurance company that many of you would recognize, Lincoln Financial Life Insurance.

250,000.00

Term Coverage
$ 16.11
Monthly

  • 20 Year Term -Preferred Health Rating

1st Place
lincoln financial group

And now we can switch gears and compare USAA Life Insurance Company against Protective Life Insurance Company.

250,000.00

Term Coverage
$ 16.77
Monthly

  • 20 Year Term -Preferred Health Rating

2nd Place
protective life insurance review

250,000.00

Term Coverage
$ 16.92
Monthly

  • 20 Year Term -Preferred Health Rating

3rd Place

Banner and William Penn Life Insurance Company
banner life insurance

AIG Life Insurance Company

Now we can compare one last company to USAA.

We wanted to take the time to break down USAA vs. American General Life Insurance Company which is another powerhouse in the industry.

Not to mention, when reviewing AIG Life Insurance Company, you will come to find out they offer some of the cheapest life insurance options.

250,000.00

Term Coverage
$ 16.99
Monthly

  • 20 Year Term -Preferred Health Rating

4th place
aig

USAA Life Insurance Rates May Go Even Higher

But wait a minute…What if you would have answered one of those questions yes about Military Service on the first screen we encountered?

Then what happens to the USAA life insurance rates.

Does the quote change?

You bet it does. 

It doubles.

  • Male Age-38-Healthy
  • 20 Year Term- Non-Smoker
  • Deployment- 90 Days

USAA-Term-Life-Insurance-20-years-coverage-deployment

That USAA insurance quote above is if you answer you that “you will be deployed in the next 90 days”.

First and most importantly, don’t get us wrong here.

We think it’s great that they offer coverage for active-duty military and actually cover those death claims.

Very few life insurance carriers if any will do that.

However, as an independent agency, we like to make sure consumers understand what’s really going on behind the scenes.

If you really must have the additional coverage, the USAA Life Insurance quote may be your best route.

If and only if you are active duty and need the coverage while on deployment.

If you don’t need additional or don’t necessarily need the combat covered, you have better options.

Cheaper options.

The Good and The Bad With USAA Life Insurance Company.

USAA Life Insurance Company is strong.

Very strong with incredible financial strength ratings so there is nothing to ding on them in that aspect.

We also aren’t trying to ding them on any level.  We are simply pointing that they can be considered the “Military Insurance” of the life insurance world and outside of that, you should stop and look at other rates outside of USAA.

A Last Look At USAA Life Insurance Rates for Final Proof

USAA Life Insurance Rates are displayed one more time below in case any of you needed one last look.

Let’s look at the other term durations.

These will also be run on a 38-year-old male – non-smoker preferred rates WITH NO upcoming deployment in less than 90 days.

  • Non Smoker- Preferred Rates
  • No Deployment Upcoming
  • 10,15,20,25,30 Year Term Pricing
COVERAGE – TERM LIFE INSURANCE$ 100,000$ 200,000
10 – YEARS$ 11.99/month$ 14.99/month
10 – YEARS$ 12.49/month$ 16.03/month
10 – YEARS$ 15.07/month$ 19.15/month
10 – YEARS$ 19.24/month$ 26.86/month
10 – YEARS$ 20.99/month$ 30.20/month

Key Takeaways From Our USAA Life Insurance Review

Again, we want to make sure we emphasize that USAA Life Insurance Company is one of the good ones.

They should be considered. 

They have other positive notes such as the other lines of insurance they offer including auto and home insurance.

They even offer accident forgiveness now, meaning that if you have an accident for the first time, no worries, your car insurance rates won’t skyrocket.

Unfortunately, USAA Life Insurance and accident forgiveness are irrelevant and it doesn’t apply to other areas of the company or add any benefits to the lines of insurance such as life insurance.

Are USAA term life insurance rates the best you can do?

Obviously not.

We can beat it with several other options.

However, they are a great company with great options.

The options lie in your court to decide for yourself.

We have demonstrated that USAA life insurance rates can be beaten.

You can always run your own USAA insurance quote simply by visiting their webpage HERE!

If you are considering life insurance and do need more than what your VGLI and SGLI coverage are providing and have upcoming deployment no better option exists outside of USAA life insurance company.

If those aren’t the circumstances, whether your military or not, you should consider all other life insurance carriers as well.

Chance are we can beat the USAA life insurance rates with another carrier who is just as reputable and financially strong if not stronger.

Get your Life Insurance Quote here!

Final Word, Is USAA Life Insurance Company The Best For You?

We hope we provided you the best USAA life insurance review you could ask for and effectively answered your questions.

USAA is a great company in many ways but can be beaten in other ways.

As always, you need to weigh all your options before making your final decision.

Let us help.

It’s what we are here for.

Fill out the quote form on the right or make sure to leave a comment below.  We would love to hear from you.

Till Next Time and May the Best Price Win.- Updated 07/21/2019

FILED UNDER – INSURANCE COMPANY REVIEWS