AAA Life Insurance Company Review

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AAA Life Insurance

AAA Life Insurance

overall rating

Our Take

AAA Life Insurance Company is an excellent option for AAA members. The company offers several types of life insurance including high-dollar coverage for term and universal life. If you’re an AAA member or looking for life insurance coverage from a company with high customer service ratings—that you can cancel anytime if you aren’t satisfied—be sure to consider AAA Life.

Based on our review of more than two dozen life insurance companies, AAA Life was not one of the best companies we found. To see other options that may be better, visit our list of the best life insurance companies.

  • Pros and Cons
  • Key Takeaways
  • Specifications
Pros and Cons
  • 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

  • Claims can’t be started or managed online

  • 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%

  • AAA Life isn’t directly owned by AAA

Key Takeaways
  • Life insurance pricing from AAA Life is reasonable but not great. 
  • Non-AAA members can probably find better coverage elsewhere. 
  • AAA Life has more than 1.5 million active policies and has paid over $3.8 billion in claims. 
  • AAA Life has an A+ rating from the BBB and very few complaints. 
  • AAA Life policyholders can cancel coverage at any time free of charge.
  • Year Founded 1969
  • Average Cost Per Month $22.88 per month for $250,000 of coverage on a 20-year term for a non-smoking 35-year-old male customer in good health.
  • Kinds of Plans Term, whole, universal, accident insurance.
  • Number of Plans Seven
  • Payment Plan Options Monthly, quarterly, annual, online
  • Official Website

AAA Life Insurance Company 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.

Company Overview: Special Benefits to AAA Members

AAA Life Insurance Company 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 more than 1.5 million active policies and has paid over $3.8 billion in claims. 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:

  • ExpressTerm: AAA Life’s ExpressTerm 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 $50,000 to over $5 million is available from AAA Life if you apply through an agent. Coverage is available on 10-, 15-, 20-, 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 for life 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 with an agent. Coverage is available from $3,000 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 suffer from a non-accidental death 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. The policy is available to those between 15 days and 80 years years old. They also accumulate cash value, and policyholders can also customize their premiums and coverage if their needs or goals change over time. The cash value can be used to support retirement income.

Accident Insurance

Accident insurance from AAA Life 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 up to achieving PREMIER benefits level 5 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 Life 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 term life policy expires before they die.

Child Term Rider

A child term rider allows select policies to add term life coverage to a permanent or term life insurance policy. 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 term or whole 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 and term life policies if the insured person dies as the result of an accident. The amount of extra benefit varies by policy but can be up to $150,000 in extra benefits.

Travel Accident Rider

A travel accident rider pays extra benefits on whole life 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 universal 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 1-888-422-7020 Monday to Friday between 8 a.m. and 8 p.m. or on Saturday between 11 a.m. and 3 p.m. (all times Eastern). Customers can also email or fax 888-223-6534. All claims must be submitted either via email (, 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.

Reviews of AAA Life are generally positive, especially from AAA members who want to add life or accident coverage to a roadside assistance plan.

Financial Strength: Rated Excellent

AAA Life has an A rating from AM Best. There are no reports of AAA failing to pay death benefits that were owed. The company has paid over $3.8 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.

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 — A+ (Superior) — than AAA Life and also offers life insurance coverage for lower costs than AAA Life in many cases. 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.

  AAA Life Mutual of Omaha
AM Best Rating A A+
Types of Policies Available Four Four
Final Verdict

A Good Option for AAA Members

AAA Life Insurance Company 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.


All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, cost, and more. For over two dozen companies, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown on what we evaluated.

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Better Business Bureau. "AAA Life Insurance Company." Accessed Aug. 27, 2021.

  2. Better Business Bureau. "AAA Life Insurance Company." Accessed Aug. 27, 2021.

  3. AM Best. "AAA Life Insurance Company." Accessed Aug. 27, 2021.

  4. Fortune. "Fortune 500 Mutual Of Omaha Insurance." Accessed Aug. 27, 2021.

  5. AM Best. "A.M. Best Affirms Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries." Accessed Aug. 27, 2021.