AAA Term Life Insurance Review: What You’re Missing (2023)
AAA Term Life: 60-Second Review
AAA Life Insurance Company Customer Reviews
AAA, also known as the American Automobile Association, is one of the most well-known life insurance companies.
This review will provide valuable insights if you are looking for AAA term life insurance. This review will examine AAA’s term life insurance products and services to help you determine if they fit your needs.
Additionally, we will delve into the underwriting guidelines and approval process, premiums, discounts available, renewal options, aaa life insurance rates, and the pros and cons of choosing AAA’s term life insurance products over its competitors’ offerings.
For a look at all of AAA’s life insurance products, see the linked article.
Types of Term Life Insurance Products Offered by AAA
AAA offers two term life insurance products: Express Term Life Insurance and Traditional Term Life Insurance. While both policies offer guaranteed level premiums, a death benefit paid tax-free to beneficiaries, and the ability to convert to a permanent life insurance policy, there are some differences that potential customers should be aware of.
|Feature||Express Term Life Insurance||Traditional Term Life Insurance|
|Coverage Amounts||$25,000 – $500,000||Up to $500,000|
|Term Lengths Available||10, 15, 20 or 30 years||10, 15, 20 or 30 years|
|Medical Exam Required?||No||Yes|
|Approval Timeframe||As little as 10 minutes||Varies depending on underwriting guidelines and state of residence|
|Premiums Guaranteed Level?||Yes, for the entire term length selected||Yes, for the entire term length selected|
|Are Additional Riders and Benefits Available?||Yes, for an additional cost. Riders include Accelerated Death Benefit Rider, Children’s Term Rider and Waiver of Premium Rider. Benefits include Estate Planning Assistance, Funeral Planning Assistance and Grief Counseling. Not all riders and benefits may be available in all states.||Yes, for an additional cost. Riders include Accelerated Death Benefit Rider and Children’s Term Rider. Not all riders may be available in all states.|
Express Term Life Insurance
Express Term Life Insurance offers a quick and easy online application with no medical exam required for most applicants. Policyholders can choose coverage amounts ranging from $25,000 to $500,000 and level term lengths of 10, 15, 20, or 30 years.
This policy is a great option for those who need coverage quickly, and the policyholder will receive an approval decision in as little as 10 minutes.
However, this policy may not be available in all states and may not offer as much coverage as Traditional Term Life Insurance.
Traditional Term Life Insurance
On the other hand, Traditional Term Life Insurance requires a medical exam for most applicants but offers higher coverage amounts ranging from $100,000 to $5 million.
Policyholders can choose level term lengths of 10, 15, 20, or 30 years. This policy is a great option for those seeking higher coverage and comfortable with undergoing a medical exam.
It’s important to note that not all products and their features may be available in all states. Potential customers should contact their local AAA Life Insurance Company to determine what policy options are available in their state.
AAA Life Insurance rates are highly competitive, and the company has earned high marks for customer satisfaction.
AAA's Term Life Underwriting Guidelines and Approval Process
When applying for AAA term life insurance, it is crucial to understand the underwriting guidelines and the approval process. This can vary depending on the applicant’s location and the type of life insurance product. Below is a summary of AAA life insurance company’s underwriting guidelines and approval process:
- Applicants must provide information about their health history, including pre-existing conditions or previous surgeries.
- Medical questions about the applicant’s health and lifestyle will be asked during the application process.
- Some applicants may undergo a health screening to evaluate their health thoroughly.
- Approval decisions can be made in as little as 10 minutes for Express Term Life Insurance if the applicant has no significant health issues.
- Traditional Term Life Insurance may take longer since it requires a medical exam, which can take several weeks to complete.
- AAA life insurance review professionals vet applications thoroughly and ensure every applicant qualifies for coverage. However, not all applicants will be approved for coverage; some may receive lower coverage amounts or higher premiums.
AAA Term Policy Premiums, Discounts, and Renewal Options
AAA life insurance guarantees level premiums for the term you selected.
Express Term Life Insurance is more expensive than Traditional Term Life Insurance, as a medical exam is not required.
Discounts are available on term life insurance premiums for eligible AAA members. The discount is typically 10% but varies depending on the state of residence.
Policyholders have the flexibility to renew their policy at the end of the initial term, and renewal rates can be higher because of age and health changes. It’s essential to note that all products and their features may not be available in all states.
AAA term life insurance provides competitive premiums, discounts, and flexible renewal options for eligible customers.
Term Life Additional Riders and Benefits
AAA Life Insurance offers additional riders and benefits to customize your life insurance policy, which can enhance your coverage and fit better with your circumstances.
Some of the additional riders and benefits that AAA offers are:
- Accidental Death Benefit Rider: Provides additional death benefits if the death was due to an accident
- Accelerated Death Benefit Rider: Allows policyholders to receive a portion of their death benefit if identified with a terminal illness. The AAA life insurance Cash Value can be used to fulfill financial requirements.
- Children’s Term Rider: Offers coverage to the policyholder’s children, providing additional protection to your family.
- Disability Waiver of Premium Rider: Waives premium payments if the policyholder becomes disabled, providing financial security during challenging times.
- Terminal Illness Rider: Allows the policyholder to receive a portion of their death benefit upon diagnosis of a terminal illness, offering financial relief during difficult times.
- Travel Accident Rider: Provides coverage for accidents that occur while traveling.
In addition, AAA Life Insurance offers other extra benefits such as Estate Planning Assistance, Funeral Planning Assistance, and Grief Counseling to help your loved ones through the difficult time following your death.
Note that adding riders will increase your premium, so you should choose them based on your needs and budget is advisable.
Pros and Cons of AAA Term Life Insurance
Here are some of the key advantages and disadvantages of AAA term life insurance policies you should keep in mind:
- Cost-effective coverage: AAA’s term life insurance products offer affordable coverage for most budgets.
- Customizable policies: You can choose from various life insurance coverage amounts and term lengths and additional riders like accidental death benefit riders to customize your life insurance policy based on your unique needs.
- No medical exam required: Express Term Life Insurance does not require a medical exam. This is a convenient option for those who want coverage quickly.
- Guaranteed level premiums: Premiums are guaranteed level for the selected term length.
- Limited coverage options: AAA’s term life insurance products only offer coverage up to $500,000, which may not be enough for some individuals or families looking for whole life insurance options.
- The approval process may vary: The underwriting guidelines and approval process may vary depending on the type of term life insurance policy selected and the state where you reside.
- Additional riders and benefits cost extra: Additional riders like child term riders and benefits can enhance your policy, but they come at an additional cost.
Overall, AAA life insurance policies offer affordable and customizable life insurance coverage. However, it’s important to carefully consider your needs and budget before selecting a life insurance policy.
AAA also offers universal life insurance policies with lifelong coverage and greater maximum coverage amount. Their guaranteed issue life insurance policy guarantees acceptance without asking any health-related questions. The company offers accidental death insurance, auto insurance, and travel accident endorsement. AAA’s online policy feature makes it convenient for its members to purchase life insurance and pay premiums.
AAA life insurance reviews have also shown strong customer satisfaction and financial strength ratings. A AAA membership can also include emergency roadside assistance and even provide retirement income. If you want maximum coverage, a lifetime AAA membership is also available.
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AAA term life insurance might be right if you want affordable and flexible life insurance coverage.
Applying for AAA term life insurance is easy – contact an insurance professional or visit the AAA website to get started. With strong financial strength ratings and a commitment to customer satisfaction, AAA sells life insurance policies you can trust. And with approval decisions made in less than an hour for some policies, you can get the coverage you need quickly and easily.
Don’t wait – purchase life insurance today and have peace of mind knowing that your loved ones will be protected in the event of your unexpected death. Whether you need traditional term life or universal life insurance policies, AAA has the coverage to secure your family’s financial future.
Our carriers beat Colonial Penn, Globe Life, and AARP 96% of the time*
* Based on website quote requests, through 5/31/23.
(Check your rate to see their rates vs. ours)