USAA Life Insurance Review- Can You Do Better? Rates and Plans

USAA Life Insurance Review

Needing an honest USAA life insurance review?

usaa life insurance review

Good News, we are here to deliver just that..

You know how we roll, we review all life insurance companies in depth to bring you the valuable information needed to make an informed decision about your 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. All though USAA can be great in many areas of life insurance, unfortunately, it did not make our list for the best life insurance companies of 2018.

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 USAA Life Insurance Company in our in-depth review.

Our goal of 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 coverage.

 
 
 

Company History- USAA Life Insurance Review Part 1

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 Life Insurance Review Part 2

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.

USAA Life Insurance Rating and Financial Strength Ratings

 
During our USAA life insurance review, we like to do one thing that’s important-
Point out the financial strength ratings of a given company.  We do this with all carrier reviews.  So here it is.

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 Review of Coverage Offered

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 members depending on their needs. The life insurance coverage options offered by USAA include the following:

USAA Term Life Insurance Review- Term Life Products Offered

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.

USAA Term Life Insurance Review for Military 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. 

USAA Universal Life Insurance Review- 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.

USAA Whole Life Insurance Review –Coverage Options and Products Offered

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- USAA Life Insurance Review Part 3

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. 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.

What about the Rates you may pay for coverage for life insurance with USAA?

USAA Term Life Insurance Rates- Can you do better?

We speak to many individuals that are curious about the life insurance rates that USAA has to offer and if they are really that good. We most frequently run into individuals wanting to know about the term life insurance rates.  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.

So how good is the the USAA Term Life Insurance?

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?

Ready for your USAA insurance quote?  Not so fast, but we will get there.  Stay with us.  We want to cover the basics first.

The USAA life insurance rates we are going to display to depend on your individual ability to gain coverage for life insurance.  What do we mean?  The same criteria that applies to other life insurance companies applies 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
USAA Life Insurance Review and Underwriting

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

Questions to Begin USAA Process

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

medical questions, usaa underwriting

Another Step to obtaining your USAA term life insurance rates will ask you the following series of questions.

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 alter coverage amounts and durations.

Keep in mind….

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

Let’s break down what this USAA Term Life Insurance Rate 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 rate 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’s alternatives to that pricing with other carriers.

250,000.00

Term Coverage
$ 16
11
Monthly
  • 20 Year Term -Preferred Health Rating
1st
lincoln financial group

250,000.00

Term Coverage
$ 16
77
Monthly
  • 20 Year Term -Preferred Health Rating
2nd Place
protective life insurance

250,000.00

Term Coverage
$ 16
92
Monthly
  • 20 Year Term -Preferred Health Rating
3rd Place
banner life insurance

250,000.00

Term Coverage
$ 16
99
Monthly
  • 20 Year Term -Preferred Health Rating
4th place
aig

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 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.

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 shop and look at other rates.

Other USAA Term Life Insurance Rates?

How about some more USAA life insurance rates?

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

Other Key Takeaways

Again, we want to make sure we emphasis 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 accident forgiveness 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 beat.  You can always run your own USAA insurance quote simply by visiting there webpage HERE

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

If those aren’t the circumstance, 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.

Our Final Thoughts. Is USAA the right company for you? Can you do better?

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 beat 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 11/21/2018

Leave a Reply