Aaa Life Insurance: Is It Worth The Hype?

AAA Life Insurance Company offers term, whole, and universal life insurance with over 1,500,000 active policies. The company was founded in 1969 by the good people at AAA Motor Club, best known for providing emergency roadside assistance and travel services to its members. AAA Life has received mixed reviews, with some customers praising the company's customer service and easy application process, while others have complained about unexpected rate increases and difficulty making claims. AAA life insurance rates tend to be higher than those of competitors, but the company offers some benefits and riders that other companies do not provide. Overall, AAA Life Insurance is a solid choice, but it is important to compare their rates and benefits with other providers to find the best fit for your needs.

AAA's life insurance policies

AAA Life Insurance Company offers term, whole, and universal life insurance with over 1,500,000 active policies. You do not need to be an AAA member to buy life insurance from the company, but members can access special discounts to get lower premiums.

Term Life Insurance

AAA offers two types of term life insurance: ExpressTerm and Traditional Term. Term life insurance provides guaranteed death benefits and level premiums for a certain number of years.

ExpressTerm

• People aged 18 to 75 can select term lengths between 10 and 30 years, with coverage between $25,000 and $500,000.
• You can apply online for AAA's ExpressTerm policy in minutes by answering a few health questions, and occasionally a medical exam will be needed for approval.
• Active AAA members can save 10% on their ExpressTerm premiums.
• You can get up to 50% of your benefits before death if you are diagnosed with a terminal illness.

Traditional Term

• The Traditional Term policy provides term lengths of 10 to 30 years, with coverage up to $5 million depending on age, gender, and general health.
• A physical exam is needed to qualify for Traditional Term, and you will need to call a licensed AAA agent to complete your application.
• Traditional Term allows you to add a child rider, waiver of premium rider, and accidental death benefit rider for an additional cost.
• Only Traditional Term life insurance can be purchased with a return of premium rider.
• Traditional and ExpressTerm customers can convert their existing term coverage to a permanent policy.

Whole Life Insurance

AAA offers two types of whole life insurance: Traditional Whole Life and Guaranteed Issue Whole Life. Whole life insurance provides lifetime coverage and builds cash value over time, and your premiums will never increase.

Traditional Whole Life

• AAA's traditional whole life insurance is available for ages 18–85, up to a $75,000 death benefit, with an exam typically required for most applicants.
• The whole-life policy allows you to add a child rider, waiver of premium rider, and accidental death benefit rider for an additional cost.
• AAA members can get a 10% discount on the annual rate.

Guaranteed Issue Whole Life

• AAA offers $3,000 to $25,000 of guaranteed issue life insurance, which doesn't require a questionnaire or medical exam.
• Applicants aged 45 to 85 can qualify automatically, but if the insured dies within the first two years, AAA won't pay out the full policy amount unless the death is accidental.
• AAA members and their spouses are eligible for a $60 annual discount.

Universal Life Insurance

AAA sells two types of universal life insurance: Lifetime and Accumulator. Universal life insurance is typically much more affordable than whole-life coverage and offers the flexibility to change your policy in the future.

Lifetime

• AAA's Lifetime policy has premiums and death benefits that are guaranteed not to change despite interest rate variations.
• It automatically comes with a terminal illness rider.
• Coverage amounts range from $100,000 to more than $5 million and require a medical exam.

Accumulator

• This policy is for people who may want to use the cash value later to supplement retirement income or cover other expenses, such as their children’s college education.
• It has an optional guaranteed purchase rider allowing you to add coverage in the future.
• Both universal life policies allow you to add a child rider, waiver of premium rider, and accidental death benefit rider.
• Both universal policies must be purchased through a licensed AAA life insurance agent.

AAA's customer service

AAA Life Insurance Company was founded in 1969 and is headquartered in Livonia, Michigan, with another large customer service center in Omaha, Nebraska. The company has over 1.7 million active life insurance policies and is available in all 50 states and the District of Columbia. AAA Life Insurance offers term, whole, and universal life insurance policies.

Customer Service Ratings

AAA Life Insurance has received mixed reviews for its customer service. On the one hand, some customers have praised the company's customer service representatives for their kindness, knowledge, and helpfulness. On the other hand, there have been several complaints about the company's handling of claims, with customers reporting issues with delayed payments, difficulty reaching a resolution, and increased rates.

Contacting Customer Service

AAA Life Insurance can be reached through various channels:

• Phone: 1-888-422-7020
• Email: [email protected] for general inquiries and [email protected] for inquiries about filing a claim
• Live Chat: Available on weekdays from 8 a.m. to 8 p.m. ET and Saturdays from 11 a.m. to 3 p.m. ET
• Mail: AAA Life Insurance Company, P.O. Box 8106, Livonia, MI 48150-8106

Business Hours

AAA Life Insurance's customer service is available during regular business hours, but the specific hours may vary depending on the type of inquiry and the method of contact. For example, their phone lines have different operating hours for members and non-members. Therefore, it is recommended to check their website or contact them directly to confirm their business hours.

AAA's life insurance rates

AAA Life Insurance Company offers a range of life insurance products, including term life insurance, whole life insurance, and universal life insurance. The rates and coverage amounts vary depending on the specific plan chosen. Here is an overview of the different types of life insurance offered by AAA and their respective rates:

Term Life Insurance:

• ExpressTerm Life: This policy offers coverage limits between $25,000 and $500,000 and terms of 10, 15, 20, or 30 years. The monthly cost for term life insurance starts at around $8.
• Traditional Term Life: This policy provides higher coverage amounts, ranging from $50,000 to $3,500,000 or more, with the same term options as ExpressTerm. AAA members can save 10% on their premiums for this policy.

Whole Life Insurance:

• Whole Life: This traditional whole life insurance policy offers coverage amounts ranging from $5,000 to $75,000 for individuals between the ages of 18 and 85. AAA members receive a 10% discount on their premiums.
• Simplified Issue Whole Life: This policy provides coverage amounts between $5,000 and $25,000 and does not require a medical exam. It starts at around $11 per month.
• Guaranteed Issue Whole Life: This policy is available to individuals aged 45 to 85 without a medical exam or health questions. The maximum death benefit is $25,000. AAA members and their spouses can save $60 per year on this policy.

Universal Life Insurance:

• Lifetime Universal Life: This policy offers coverage limits starting at $100,000 and premiums that remain the same over the life of the policy. It must be purchased through an agent.
• Accumulator Universal Life: This policy provides flexible premiums that can be adjusted based on the cash value and has coverage limits similar to Lifetime Universal Life.

While AAA offers competitive rates and discounts for its members, it is important to note that their term life insurance premiums are considered more expensive compared to other companies. Additionally, AAA has received more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC).

AAA's customer complaints and satisfaction

AAA has a range of life insurance policies available to its customers, including term, whole life, and universal life insurance. However, despite its wide range of offerings, AAA has received numerous complaints about its customer service and satisfaction.

A common issue raised by customers is the long wait times for towing services, with some people reporting waiting for several hours, even after receiving false time estimates from AAA. In addition, some customers have complained about the poor communication and coordination between AAA's drivers and customer service, resulting in cancelled requests and further delays. There are also complaints about AAA's handling of insurance claims, with customers reporting difficulties in obtaining reimbursements and issues with policy cancellations.

According to the National Association of Insurance Commissioners (NAIC), AAA receives a much higher number of complaints than expected for a company of its size. Its three-year average NAIC complaint index is 1.698, indicating that it receives significantly more complaints than expected relative to its size. This suggests that AAA's customer satisfaction may not be on par with other top life insurance companies in the industry.

Despite these complaints, it is important to note that there are also positive reviews from customers who have had satisfactory experiences with AAA's services. Some customers have praised the company's helpfulness and communication during difficult situations, highlighting the dedication of certain customer service representatives.

To address complaints, AAA provides several avenues for customers to file formal complaints. Customers can contact the Member Experience Department, the Emergency Road Service or Member Services departments, or speak with a representative at their local AAA branch. Additionally, complaints can be submitted online through the AAA website.

AAA's life insurance riders

AAA offers a range of life insurance riders, which are optional policies that provide additional protection in specific situations. Here is a detailed overview of the riders available from AAA:

Child Term Rider

This rider allows you to purchase a certain amount of life insurance coverage for each of your eligible children. You can add up to $20,000 of life insurance protection per child.

Waiver of Premium Rider

If you become totally disabled, this rider enables you to stop paying your premiums while still retaining your policy. This ensures that your coverage remains in force even if you are unable to make payments due to disability.

Accidental Death Benefit Rider

In the event of your death resulting from a qualifying accident, this rider provides an additional death benefit of up to $150,000 for your beneficiaries. This rider offers enhanced financial protection for your loved ones in the event of an accidental death.

Terminal Illness Rider

The terminal illness rider allows you to access your death benefit while you are still alive if you are diagnosed with a terminal illness and have a limited life expectancy. You can withdraw money from your death benefit to cover medical expenses and other financial needs.

Return-of-Premium Rider

The return-of-premium rider is available with the Traditional Term Life Insurance policy. It allows you to recoup the premiums you have paid if you outlive the policy term. This rider provides a refund of your premium payments if you do not require the death benefit.

Travel Accident Rider

The travel accident rider provides an additional death benefit to your beneficiaries if you die in a qualifying travel-related accident. This rider offers enhanced protection for your loved ones in the event of a travel-related death.

Guaranteed Purchase Option Rider

The guaranteed purchase option rider gives you the right to purchase additional life insurance coverage in the future without undergoing another medical examination. This rider ensures that you can increase your coverage as your needs change, without the need for additional health screening.

Frequently asked questions