Paul Sanchez
AAA offers a range of life insurance policies, including term life, whole life, and universal life, with different levels of coverage for each. Term life insurance covers the policyholder for a specific period, while whole life insurance is a type of permanent coverage that remains active as long as premiums are paid. Universal life insurance is designed to provide lifelong coverage and cash value growth. While AAA life insurance policies are available in every state except New York, it is important to note that not all life insurance products and policy types are available in every state. In addition, certain situations or conditions may disqualify an individual from coverage. To cancel an AAA life insurance policy, a written request is typically required, including the policy or certificate number, owner's signature, and date of signature. Understanding the specific terms and conditions of your AAA life insurance policy is essential to know if you will lose coverage upon leaving AAA.
| Characteristics | Values |
|---|---|
| AAA Life Insurance Agency division | Typically known as the club that provides roadside assistance and travel discounts |
| Types of life insurance | Term life, whole life, and universal life |
| Number of life insurance policies | Three types, with multiple policies and optional riders |
| Additional insurance | Accident insurance and annuities |
| States where AAA Life Insurance is licensed | All states but New York |
| Life insurance products and policy types availability | Not available in every state |
| Other common insurance policies | Auto, home, condo, and renters insurance |
| Discounts | For AAA members |
| Traditional term life coverage | Up to $5,000,000 |
| Rider availability | Varies across policies |
| Purchase method | Online or with an agent (via phone or in-person) |
| AAA membership requirement | Not necessary to qualify |
| AAA Life Insurance financial strength rating | A (Excellent) by AM Best |
| AAA Life Insurance consumer complaint index rating | 0.66 by the National Association of Insurance Commissioners (NAIC) |
What You'll Learn
Cancelling AAA life insurance
AAA Life Insurance Company, 17900 N. Laurel Park Drive, Livonia, MI 48152.
Alternatively, it can be faxed to 1-734-591-6602 or emailed to [email protected].
If the policy has automatic recurring payments set up, it is necessary to call the Member Services Department at 855-598-0890 to stop these payments. Requests to stop automatic payments must be received at least three business days before the payment is drafted.
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AAA life insurance discounts
AAA life insurance offers a range of policies to meet various needs. The company offers three types of life insurance: term life, whole life, and universal life, each with multiple policies and optional riders.
AAA offers a few discounts to help you save money on life insurance, especially if you are an AAA member.
Bundling Discounts
AAA offers bundling discounts for customers who combine an AAA life insurance policy with another AAA policy, such as auto insurance, home and condo, or renters insurance.
AAA Membership Discounts
Although AAA does not require a membership to buy life insurance, an active AAA membership can yield savings. AAA members who buy a guaranteed whole life policy will have the annual $60 fee waived. Those who purchase a term life policy could save 10% on their premiums.
AAA Life Insurance Policies
Term Life Insurance
Term life insurance covers the policyholder during a specific period. The beneficiaries receive a death benefit if the policyholder dies during that time. AAA offers two term life policies: Express Term Life and Traditional Term Life.
Whole Life Insurance
AAA offers two whole life insurance options. Whole life insurance is a type of permanent coverage. The policy remains active as long as premiums are paid. The two policy options are Whole Life Insurance and Guaranteed Issue Whole Life Insurance.
Universal Life Insurance
There are two types of universal life insurance policies provided by AAA. They are designed to provide lifelong coverage and cash value growth. Both policies require you to speak with an agent to apply. The two policies are LifeTime Universal Life and Accumulator Universal Life.
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AAA life insurance complaints
AAA Life Insurance has received a range of customer reviews, with some customers reporting positive experiences and others detailing complaints.
On the positive side, some customers have praised AAA's customer service staff, describing them as "kind, understanding, patient, helpful, [and] knowledgeable". One reviewer stated that AAA's customer service was the "best [they'd] ever experienced".
However, there are also several negative reviews from customers who have had issues with their policies, billing, and claims. One common complaint is unexpected premium increases. Some customers have reported that their premiums increased significantly after a certain number of years, contrary to their expectations. Others have complained about difficulties cancelling their policies and long delays in receiving refunds. There have also been issues with claims, including lost paperwork and long processing times.
In terms of ratings, the National Association of Insurance Commissioners (NAIC) gave AAA Life Insurance a 0.66 rating on its consumer complaint index, which is lower than the average company rating of 1.0. This suggests that AAA Life Insurance has fewer complaints than the average company. However, a NerdWallet analysis of data from the NAIC found that AAA has drawn more than the expected number of complaints relative to its size over a three-year period.
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AAA life insurance and taxes
AAA life insurance offers a range of policies to meet various needs. The company provides term life, whole life, and universal life insurance, with optional riders for added customisation. AAA life insurance is available in every US state except New York, and you do not need to be an AAA member to qualify. However, members do receive extra discounts and benefits, such as a 10% discount on term life policies and a waiver of the annual fee for guaranteed issue whole life policies.
When it comes to taxes, AAA life insurance can help cover estate and inheritance taxes. While AAA and its agents do not provide tax advice, they can offer a free life insurance needs assessment to help you decide what coverage is best for your situation. This analysis will consider the expenses your family is expected to encounter, such as funeral expenses, debts, hospital bills, probate costs, and taxes.
It is important to note that life insurance policies, including those offered by AAA, may have tax implications. In the United States, the Internal Revenue Service (IRS) considers life insurance proceeds received by a beneficiary to be non-taxable income in most cases. However, there may be certain situations where the proceeds could be taxable, such as if the policy is transferred or sold to another party. Additionally, any interest or investment earnings accumulated within a permanent life insurance policy may be subject to taxes.
Furthermore, if you have group life insurance through your employer, it is important to understand the tax consequences. While group life insurance is often provided as a benefit by employers, only the first $50,000 of coverage is typically excluded from your taxable income. According to the IRS, the cost of any coverage exceeding this amount needs to be reported as taxable income, regardless of who pays the premiums.
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AAA life insurance beneficiaries
AAA life insurance offers a range of policies and riders, and it has a strong financial rating with AM Best and low customer complaints according to the NAIC. AAA life insurance is available in every state except New York, though not all life insurance products and policy types are available in every state.
The company offers three types of life insurance: term life, whole life, and universal life, each with multiple policies and optional riders. Term life insurance covers the policyholder during a specific period, while whole life insurance is a type of permanent coverage that remains active as long as premiums are paid. Universal life insurance is designed to provide lifelong coverage and cash value growth.
You can have as many beneficiaries as you want on your AAA life insurance policy. However, the benefit percentages must total 100% for primary beneficiaries and 100% for any contingent beneficiaries. It is important to review your beneficiary designations carefully and keep them up to date to ensure that your life insurance benefits are distributed according to your wishes.
To add or make changes to your beneficiaries, you need to submit a written request. You can do this by completing the Beneficiary Change Request form and mailing or faxing it to AAA Life Insurance.
In addition to life insurance, AAA offers other common insurance policies such as auto, home, condo, and renters insurance. The company also provides accident insurance and annuities, which provide guaranteed retirement income.
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Frequently asked questions
You don't need to be a AAA member to purchase a life insurance policy from the organization. However, members get extra benefits and discounts. Members receive a 10% discount on their term life policies and a waiver of the $60 annual fee on guaranteed issue whole life policies.
The company requires a written request to cancel most policies. This request should include the policy or certificate number, the owner's signature, and the date of signature. You can mail or fax the request using the contact information provided on the AAA website.
The grace period for late payments varies by product but is at least 31 days from the due date of your bill. If a premium is paid during the grace period, it is considered on time, and your coverage remains in effect.
Log in to your account on the AAA Life website or the AAA Life Mobile app and click 'Pay Now'. AAA accepts payments by credit card or from your bank account with EFT.
You can set up Autopay by logging into your account on the AAA Life website or mobile app. Payments will be automatically deducted based on the payment frequency selected and the due date on your policy. Alternatively, you can provide authorization over the phone by calling the Member Services department at (855) 598-0890.
