AAA Life Insurance Review
Getting more out of your membership with quality protection
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AAA Life insurance offers four main types of life policies. We reviewed the types of coverage available, their eligibility criteria, and prices along with information on AAA Life that includes financial stability and customer satisfaction ratings.
What We Like
Extra benefits for AAA members
Positive reviews for customer service
High dollar policies available (up to $5 million), and policies—even permanent policies—can be canceled anytime for no charge
Guaranteed issue whole life available with no medical exam
What We Don't Like
Claims can’t be started or managed online
Only one to two policies available for each coverage type
AAA Life isn’t directly owned by AAA
Guaranteed issue policyholders who die within the first two years of coverage receive fewer benefits limited to the premiums they paid to-date plus 30%
Company Overview: Special Benefits to AAA Members
AAA Life Insurance is headquartered in Livonia, Michigan. Although AAA Life isn’t owned directly by the American Automobile Association (AAA), it is owned by some of the largest entities that make up the AAA. The company has over $400 million in premiums written, 1.4 million active policies, and has paid over $3 billion in claims paid. AAA Life also has four different types of life insurance and offers certain types of coverage only for AAA members.
Available Plans: A Decent Cross-Section of Coverage Available
AAA Life offers seven different life insurance policies under the four types of coverage including term life, whole life, universal life, and accident insurance. AAA Life is unique in that they offer higher amounts of coverage for some types of insurance when compared with other providers.
The types of life insurance offered by AAA Life include:
Term Life Insurance
Term life insurance from AAA Life provides a pre-determined amount of coverage for a pre-set period of time of either 10, 15, 20, or 30 years. AAA Life offers two different types of term life policies, one of which can be purchased directly online.
Term life policies offered by AAA include:
- Express Term: AAA Life’s Express Term policy can be applied for independently online and customers can get coverage right away if they qualify. Coverage is available from $25,000 to $500,000 on 10-, 15-, 20-, or 30-year terms. Applicants must be between the ages of 18 and 75 to qualify.
- Traditional Term: Traditional term coverage of $100,000 to over $5 million is available from AAA Life if you apply through an agent. Coverage is available on 10-, 15-, 20-, 25-, or 30-year terms. Policyholders can also add a return of premium rider to get more value from their policy.
Whole Life Insurance
Whole life insurance is a permanent coverage offered by AAA Life. Unlike term life insurance, whole life coverage remains in force as long as premiums are paid. Whole life policies from AAA Life are designed to cover final expenses like funeral arrangements and any ancillary debts left for your family to reconcile.
The whole life policies offered by AAA Life are:
- Whole Life: AAA Life’s Whole Life policy is available for applicants age 18 to 85. Policyholders can purchase coverage ranging from $5,000 to $75,000. Monthly premiums will never change once they’re locked in. This plan requires a medical exam.
- Guaranteed Issue Whole Life: Applicants age 45 to 85 are also eligible for AAA Life’s Guaranteed Issue Whole Life policy, which can be purchased online or over the phone. Coverage is available from $5,000 to $25,000, there’s no medical exam or health questions, and premiums are locked in once a policy is purchased. Guaranteed issue policyholders who die within the first two years of coverage will receive fewer benefits limited to the premiums they paid to-date plus 30%.
Universal Life Insurance
Universal life insurance is similar to whole life but is available with much larger coverage amounts. Universal life coverage from AAA Life also accumulates a cash value over time. It’s designed to help transfer wealth to beneficiaries—not just to cover final expenses.
AAA Life offers the following universal life policies:
- Lifetime Universal: AAA Life’s Lifetime Universal policy offers coverage ranging from $100,000 to over $5 million. Policies also accumulate cash value over time and premiums are guaranteed to never change.
- Accumulator Universal: Accumulator Universal policies from AAA Life offer $100,000 to over $5 million in coverage. They also accumulate cash value, and policyholders can also customize their premiums and coverage if their needs or goals change over time.
Accident insurance from AAA Life is only available to AAA members. This insurance protects policyholders if they get in an accident and are killed or seriously injured. However, coverage is less expensive than some alternatives because it doesn’t cover illnesses like cancer.
Accident insurance policies available from AAA Life include:
- Member Loyalty® Accident Insurance: AAA Life’s accident insurance is limited to AAA members age 18 and over. Policies offer accident benefits that increase with each year of membership in AAA and include cash benefits if policyholders have an accident and die or have to visit the emergency room, stay in a hospital, or take time to recover. There is no medical exam and no health questions.
Available Riders: Decent Selection
Policyholders who want to get more benefits from their AAA insurance policies can add riders for an extra fee. Not all riders are available with all policies, but when available, they can help customers to get more out of their AAA Life policy.
Some of the riders available from AAA Life include:
Return of Premium Rider
AAA Life’s return of premium (ROP) benefit isn’t available for all policies (a 10-year term policy, for example) but allows eligible policyholders to recoup their premiums if their policy expires without maturing.
Child Term Rider
A child term rider allows certain policyholders to add term life coverage to a permanent life insurance policy they buy for themselves. The amount of term life coverage available varies by policy and isn’t always available.
Disability Waiver of Premium Rider
A disability waiver of premium pays a Traditional Term or Lifetime Universal life policyholder’s premiums if they become permanently or temporarily disabled so their policy won’t lapse.
Accidental Death Benefit Rider
Accidental death benefit riders provide additional death benefits for universal life policies if the insured person dies as the result of an accident. The amount of extra benefit varies by policy but can range from $25,000 to $150,000 in extra benefits.
Travel Accident Rider
A travel accident rider pays extra benefits on whole life or accident insurance policies if the insured dies or is seriously injured in a covered travel accident or while traveling as a passenger.
Guaranteed Purchase Option Rider
Guaranteed purchase option riders are available for Accumulator Universal life policies and ensure that a policyholder can increase their coverage at some point in the future if they want to, without having to qualify or undergo a medical exam.
Waiver of Monthly Deductions Rider
A waiver of monthly deductions rider is available for traditional term and whole life policies and pays for a policyholder’s monthly deductions if they become disabled.
Customer Service: Solid Service But Few Online Tools
Customers who need assistance from AAA Life can call 1-800-684-4222 Monday to Friday between 8 a.m. and 10 p.m. or on Saturday between 9 a.m. and 6 p.m. (all times Eastern). Customers can also email firstname.lastname@example.org or fax 1-734-591-6602. All claims must be submitted either via email (email@example.com), fax (1-888-223-1509) or traditional mail to AAA Life Insurance Company, 17900 N. Laurel Park Drive, Livonia, MI 48152.
With AAA Life's LifeTime Universal Life Insurance, it's easy to get the right coverage for final expenses, help protect your family, and leave an inheritance for those who matter most.
Customer Satisfaction: Excellent Ratings and Few Complaints
AAA Life is not included in JD Power ratings for life insurance companies. However, the company has an A+ rating from the BBB and very few complaints. Reviews online are also generally positive, especially from AAA members who want to add life or accident coverage to their roadside assistance plan.
Financial Strength: Sound But Not Superb
AAA Life has an A rating from AM Best, which is very good but not excellent. Nevertheless, there are no reports of AAA failing to pay death benefits that were owed. The company has paid over $3 billion in benefits to date.
Cancellation Policy: Cancel Anytime, Free of Charge
AAA Life has an excellent cancellation policy compared to other insurers. Most policies must be canceled with a written request, but there are reportedly no fees to cancel a policy, even for whole or universal life. Policyholders are free to cancel their coverage at any time with no surrender charges.
Price: Nothing Spectacular
Life insurance prices for AAA Life are fairly reasonable but not special. Customers can get quotes for most types of coverage directly through AAA Life’s website.
Below are sample monthly premiums for $250,000 of Traditional Term coverage on a 20-year term for non-smoking customers in standard health. Quotes are for customers who are not members of AAA.
Competition: AAA Life vs. Mutual of Omaha
Mutual of Omaha is a Fortune 500 company one of the largest life insurance companies in the country. The company has better financial ratings than AAA Life and also offers life insurance coverage for lower costs than AAA Life. Customers who aren’t AAA members and want to get the most coverage for each dollar of premium should consider Mutual of Omaha instead of AAA Life.
Final Verdict: A Good Option for AAA Members
AAA Life Insurance offers four types of life insurance that are customizable and a good potential option for AAA members. Non-AAA members can most likely find more suitable coverage for lower premiums through another provider. But, if you’re an AAA member and want to make the most of your membership, consider AAA Life.