USAA Life Insurance Company Review

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Though its rates aren’t the most competitive for high-risk applicants, USAA is a top-notch provider with policy options for all and advantageous coverage geared towards military families.

A.M. Best

A++

Moody’s

Aa1

Standard & Poor’s

AA+

The Good

  • Active duty protection
  • Financial security
  • Military focus
  • Unique riders
  • Options for non-military applicants
  • User experience

The Bad

  • Less competitive rates for impaired risks

Product Availability

Overall

4.34

Price/Value

3.8

Financial Strength

4.1

User Experience

3.9

Product Availability

2.5

Brand/Size

4.6

Price/Value

Several factors will likely influence your choice of life insurance company, and the cost of coverage is chief among them. 

Life insurance rates are based on risk factors like your age, health, family history, and lifestyle.

Each company uses its own scale to assess risk, judging various health conditions differently.

USAA’s score of 3.75 is based on the cost of premiums for the average applicant, taking sample rates for several demographics, policy types, and face amounts into account. 

Though they aren’t the lowest in the industry, USAA offers fairly competitive rates to applicants in excellent health.

Applicants with adverse health conditions will fare better with another provider in terms of cost, though, as USAA’s underwriting is strict towards common manageable conditions and more severe ones alike.

For many members, the higher premiums are worth it for USAA’s customer service, financial strength, and comprehensive coverage for military members.

Financial Strength

Life insurance is a significant purchase that your loved ones could depend on one day, so it is essential to work with a company you can trust to pay out your policy if the time comes.

Credit ratings provide valuable insight into a life insurance company’s solvency and financial outlook.

According to several independent financial rating agencies, USAA is in the 99th percentile of its industry and boasts some of the best ratings nationwide.

Here are USAA’s latest ratings:

A.M. BestA++
Moody’sAa1
Standard & Poor’sAA+

USAA is proud to claim a Fortune 500 spot, with distinguished notoriety as one of the top 100 companies to work for.

The company has grown to nearly $36 billion in total value, or net worth, with $219 billion of assets.

Based on their financial performance and credit ratings, USAA is in great financial shape and fully equipped to keep its promises to policyholders.

User Experience

Whether you’re in the process of applying for a policy or it’s time to file a claim, you should never feel like you’re on your own in the process.

Life insurance companies’ online resources, communication with clients, and application should provide you with a simple and seamless experience.

USAA isn’t rated by J.D. Power or the Better Business Bureau, which can shed light on a company’s commitment to customer experience.

The score above is based on USAA’s website, the application process, and consumer reviews.

Website

USAA’s website is informative, educational, and easy to navigate. 

It has information on membership and all of the products USAA has to offer.

You can learn more about the company and see its financial performance records as well.

The site also provides users with basic details on policies, allowing users to quickly determine what coverage and riders are available to them.

You can easily get quotes online, altering your coverage amounts and term lengths to get an idea of the cost of coverage.

Policyholders can also make some changes to their policy details online and start the claims filing process.

Application

Applying for coverage with USAA is a fairly straightforward process, comparable to what you can expect from other carriers.

Though you can get quotes online without commitment, you have to join USAA to proceed with the application process.

While the company’s civilian policies come with standard underwriting that includes an interview and medical exam, there are more convenient options for members of the military.

Deployed military members can benefit from an expedited non-med policy, which bases the cost of coverage on the applicant’s medical record and application responses.

Military members can also skip out on the medical exam if they choose to convert their military policy into civilian coverage with USAA.

Product Availability

USAA offers term, universal, and simplified whole life policies.

Term

USAA’s term life policies are among their most affordable products. 

These policies come with benefits anywhere from $100,000 to $10 million. Term lengths range from 10 to 30 years, available in 5-year increments.

These are level benefit policies, which means your premiums won’t increase until the initial term is up.

Applicants between the ages of 18 and 35 can get up to $100,000 in addition to their original coverage with qualifying life events like the birth of a child.

Military members can benefit even more from this product, with a war clause, s benefit for injury in the line of duty, and SGLI replacement.

Universal

If you’re looking for more permanent coverage, USAA’s universal policies could meet your needs.

These policies are more affordable and flexible than whole life insurance, while still granting you permanent protection with cash value growth.

You can borrow from your cash value, but any balance remaining at the time of your death means your beneficiaries will receive a smaller death benefit.

USAA’s policies come with a low guaranteed minimum interest rate, unaffected by market changes.

Whole

For even more security and significantly higher premiums, you can opt for a whole life policy from USAA.

These policies provide true lifelong coverage, with locked-in premiums, death benefit, and cash value accumulation.

The cash value portion is accessible with this type of policy as well.

Benefits start at $50,000 and can reach up to $10 million, depending on your level of insurability.

USAA is unique from many providers in that it comes with three flexible payment schedules:

  • 20 years
  • Up to age 65
  • Lifelong

Brand/Size

USAA stands for the United Services Automobile Association, but its services extend far beyond automobile-related business.

The company got its name when it was founded in 1922, when a small collected group of Army officers struggling to find insurance on their vehicles decided to band together and do it themselves.

Each took part in insuring one another’s vehicle, and the company was born under the name United States Army Automobile Association, which would be changed two years later.

Today, it continues to thrive under the same leadership, the foundation of trust, and service.

As the company grew successfully through mail campaigns, it eventually adopted telephone sales in the 1960s, with new arms of business including homeowner’s insurance and life insurance.

Within the next three decades, more expansion came with the addition of a brokerage for investing, and banking for additional convenience to its members.

Today, membership extends to all servicemen and women, past and present, and their families.

In addition, USAA life insurance provides supplemental coverage on top of SGLI (Servicemembers Group Life Insurance) through the VA and even pays a benefit of $25,000 for those who are severely injured but not killed in action.

Moreover, USAA offers:

  • Homeowners Insurance
  • Renters Insurance
  • Auto Insurance
  • Property Insurance
  • Medicare
  • Business Insurance
  • Home and auto loans
  • Credit cards
  • And more

Today, USAA has surpassed 13 million members, with over 35,000 employees on its team worldwide.

It also has over $36 billion in revenue and paid out $2.4 billion in benefits to its policyholders in benefits across its various niches.

Philanthropy

USAA has a heart for service, as exemplified through its donation of time and resources to organizations making an impact.

In 2019, USAA, the USAA Foundation, and the USAA Federal Savings Bank collectively contributed $43 million to charitable causes.

The company’s current and former employees donated more than $10.5 million to philanthropic efforts across the country.

Additionally, USAA was named as one of Forbes Best Employers for Diversity in 2019.

Brand

USAA is one of the most well-respected and popular names in the financial industry. 

With a 96% member retention rate, it continues to build and maintain strong relationships with clients.

It does so not only through its involvement in the community and exceptional service to military families, but also through social media.

The company has over 1 million followers on Facebook, where it shares inspiring stories of its members, financial resources, and more.

USAA uses its Facebook, Twitter, and Instagram accounts to frequently interact with the public, answering client questions and comments quickly and personably.

They also use YouTube to share commercials and educational videos, though less frequently.

Consensus

It’s important to pick a company that has positive reviews from several sources, not just one.

USAA is hailed by many experts in the industry, and by customers, as a solid option for life insurance.

USAA is a powerhouse insurance company and poised among the leading life insurance companies in the United States today.

Though USAA’s rates aren’t always the lowest, the convenience of housing all of your policies in one place could be well worth it.

There are also clear advantages to choosing USAA if you’re an active member of the military, with several benefits not offered by other providers.

Most current USAA members will do excellently with USAA Life Insurance Company. 

With top-notch customer service, good rates, and competitive products, they are a promising choice.

USAA Life Insurance Company Review

Website
usaa.com
Phone
(800) 531-8722
Address
9800 Fredericksberg Rd.
San Antonio, TX 78288

Company Name (and subsidiaries)

  • USAA Life Insurance Company of New York
  • USAA Life General Agency, Inc. (LGA)

Author:

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Jason Fisher

Jason Fisher is the founder and CEO of BestLifeRates.org, LLC. and a multi-state licensed life insurance agent who has helped over a million Americans seek out affordable coverage, compare quotes, or get their family and businesses covered.