As we continue our list of the top life insurance carriers in America, we would be remissed if we didn’t discuss AAA (Triple A). If you’re thinking about a life insurance purchase, read below to see if AAA might be a good choice for you.
Now, most people automatically think of AAA as something you get pertaining to your car, but it’s only one aspect of the what they do. In fact, did you know AAA Life has more than 1.2 million life insurance policies currently in force?
If you’ve never considered AAA Life Insurance Company for your life insurance, stick around. This is our own review of AAA Life, and should be taken into consideration among many other carriers before you make your purchase. Let’s dive in.
Our AAA Life Insurance Company Review for 2017
An extension of the quite familiar American Automobile Association (usually spoken like “Triple A”) group, who help their members nationwide when in a bind on the road, AAA Life came about to offer something more competitive in the life insurance industry, as well as annuities for those saving for, or in, retirement.
Founded back in 1969, more than 65 years after the more famous automobile arm, AAA Life Insurance Company began its new business model extending life insurance products to consumers nationwide in an attempt to not only take advantage of its already well known brand and market share, but also to add another layer of convenience and affordability to its growing customer base.
Behind the Numbers
Today, AAA Life Insurance Company serves more than a million loyal consumers, with products ranging from life insurance, travel accidents and even annuities. They have been rated by A.M. Best, one of the premiere insurance and financial institution credit rating agencies globally, as an “A-” meaning they are financially secure. This is the fourth best ranking, but still considered “Excellent” by the rating agency.
Having only been in the life insurance business for 40 years, and by comparison of size and scope of its life insurance sector, AAA is not yet one of the elite insurers in the marketplace. However, by taking advantage of the brand already built and giving consumers what they need where their property and casualty agent can’t, they are continuing to grow.
AAA Life is also rated by the Better Business Bureau, and have a current rating of “A+”, though they are not accredited. This rating is based on just one complaint.
AAA’s Product Choices
In addition, new products being brought to the market are also increasing AAA’s footprint in the insurance industry. They have several life insurance products available, some of which are very niche, filling voids the life insurance companies of old have never filled.
Beginning with their term life insurance products, they have three separate kinds:
- Return of Premium
The traditional line of products is what most life insurance companies have, a simple and straightforward life policy which is fully underwritten. This means you’ll need to complete a physical, have your medical history and motor vehicle report checked, and wait as long as several weeks to get insured.
Here are some key features of the Traditional Term Life Insurance product from AAA:
- Affordable cost
- Death benefits ranging from as low as $100,000, and up to $5 million or more
- 10 to 30 years of coverage
- Issue ages ranging from 18 to 75
- Rider availability (Children’s Term, Disability Waiver)
- Conversion privileges
The second option, however, is a very innovative product. The ExpressTerm Life Insurance, which is something very few other companies have yet to compete with AAA for.
This policy offers some of the same benefit periods as the fully underwritten product, but with little to no underwriting and no medical exam. It can be done entirely online from start to finish, as long as you are accepted. However, the policy availability is different than the Traditional:
- Policy death benefit maximum of $250,000
The third option, called the Term With Return Of Premium, is a term product where the insured could potentially receive all their money back if they live to the policy maturation. The premiums are usually more per thousand, though you get 100% of your premiums (without interest) returned once you reach the stated policy’s end. Here are more notes on the policy:
- 15 to 30 year options (no 10 year)
- Minimum of $100,000, but up to $10,000,000 in benefits
AAA Life also offers more permanent products, offering both a universal and whole life insurance option. These offer a wide range of benefits, like stable death benefits, stable or flexible premiums, and even cash growth.
The LifeTime Universal insurance product is their most basic permanent product, allowing you to secure a life insurance policy for the rest of your life, with death benefits as low as $25,000. Typical riders, like Waiver of Premium, Accident, and even Children’s Term are available to add additional protection and benefits, though they may cost more.
For the more growth minded, their Accumulator Universal Life option may be for you.
Among their whole life line, there is a basic whole life policy, as well as a guaranteed issue product, meaning you cannot be turned down.
The Simple Whole Life Insurance choice is a basic, $5,000 – $25,000 death benefit policy, guaranteed to remain the same for the rest of your life. There is no medical exam, and premiums stay level. There is accessible cash growth within the policy, though accessing cash by loan does interest.
Finally their Guaranteed Issue Graded Benefit Whole Life Insurance choice is basically a final expense policy, and has a modified payout structure.
Final Thoughts on AAA Life Insurance Company
While AAA Life Insurance Company is yet to be one of the giants in the life insurance industry, its other products and portions of the AAA family continue to make the AAA brand a household name.
They have offices located in all 50 states, and, of course, their ExpressTerm product can be directly bought right on their website from the convenience of your home. This product is something which is definitely keeping them one step ahead, though they are not yet a major player in our books.
They are not yet listed as one of our top life insurance companies in the United States, but they will remain in consideration as they grow.
AAA Life Company Summary
|Company Name (and Subsidiaries)||American Automobile Association (AAA) (Parent)
AAA Life Insurance Company
AAA Life Insurance Company of New York
|Company Ratings||A.M. Best (A-)
Moody’s Investors Services (n/a)
Standard & Poor’s (n/a)
|Headquarters (Address, Phone, Web)||17900 N. Laural Park Dr.
Livonia, MI 48152-3985
|Policy Types Available||Term