Alyssa Lane
TIAA, formerly known as the Teachers Insurance and Annuity Association of America, no longer offers new life insurance policies as of 2020. However, the company continues to service its existing policies, which include term, universal, and variable universal life insurance. TIAA had offered life insurance for over a century, focusing on serving academic, medical, and research professionals. While TIAA has discontinued providing new life insurance policies, the company still offers a range of financial services, including retirement plans, annuities, and IRAs.
| Characteristics | Values |
|---|---|
| Life Insurance Offered | No longer offers new policies, but services existing policies |
| Types of Life Insurance Offered | Term, Universal, Variable Universal |
| Sample Monthly Rate | $10 for a 20-year term life insurance policy with $100,000 worth of coverage |
| Customer Experience | Negative reviews on BBB's website; 0.15 complaint index on the National Association of Insurance Commissioners (NAIC) Complaint Index |
| Financial Strength Ratings | A++ from A.M. Best; A- from Better Business Bureau (BBB); Aa1 from Moody's; AA+ from Standard & Poor's (S&P); AAA from Fitch Ratings |
What You'll Learn
TIAA stopped selling life insurance in 2019
TIAA's decision to exit the life insurance business was confirmed by its director of insurance wholesaling, Dennis Rupp, in a memo. The company's annuity business will remain unaffected by the change.
TIAA sold life insurance for over a century, originally selling retirement plans and low-cost life insurance to professors. The company was founded in 1918 by Andrew Carnegie, and the goal was to produce a sustainable and guaranteed income for individuals in academic, government, and non-profit fields.
TIAA is headquartered in New York and has offices in Atlanta and San Francisco. It has a strong financial strength rating and is considered to have fewer complaints than most other insurance companies.
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The company still manages existing policies
TIAA stopped selling new life insurance policies from 1 January 2020, but it still manages existing policies. The company sold life insurance for over a century before it left the market at the end of 2019.
TIAA's existing policies include term, universal, and variable universal life insurance. Policyholders can continue to manage their policies and related investments, and beneficiaries can still file a life insurance claim.
The company's life insurance rates by age are similar to the averages of other top life insurance companies. The rates are based on factors such as age, gender, and coverage amount. For example, a 20-year TIAA term life insurance policy with $100,000 worth of coverage starts at $10 per month. Generally, life insurance rates increase with age, and men tend to pay more than women.
TIAA's financial strength ratings are high. The company has an A++ rating from A.M. Best, indicating that it is capable of fulfilling its financial obligations. It also has strong ratings from Moody's (Aa1), Standard & Poor's (AA+), and Fitch Ratings (AAA).
Although TIAA no longer offers new life insurance policies, it still offers a wide range of financial services, including retirement plans, annuities, and IRAs.
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TIAA life insurance rates by age
TIAA stopped issuing new life insurance policies in 2019 and now focuses on other financial services. However, the company continues to service its existing policies, which include term, universal and variable universal life insurance.
TIAA's life insurance rates by age are no longer available as the company no longer offers new policies. As of 2019, TIAA's average life insurance rates by age were similar to those of other top life insurance companies. The rates varied based on factors such as age, gender, and coverage amount. Generally, life insurance rates increase as one gets older, and men tend to pay more than women.
For example, a $100,000/20-year term life insurance policy for a healthy 25-year-old female would have a lower monthly rate compared to a 50-year-old male with the same policy. Additionally, life insurance for smokers is significantly more expensive, averaging three to four times more than non-smokers.
While TIAA no longer offers new life insurance policies, they still manage existing policies and offer other financial services such as retirement plans, annuities, and IRAs.
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Types of life insurance policies offered by TIAA
TIAA is no longer in the business of life insurance, having left the market in 2019. However, the company continues to service its existing policies, which include term, universal, and variable universal life insurance. Here is a detailed overview of the types of life insurance policies previously offered by TIAA.
Term life insurance is temporary protection that provides a level death benefit and fixed premiums for the duration of the contract. TIAA offered typical term lengths of 10, 15, 20, or 30 years, with a minimum death benefit of $100,000. This type of policy is often a logical choice for parents as it is affordable and can provide a safety net during their children's formative years. It can also be useful for adults in debt, as it can help loved ones avoid additional financial stress in the event of the policyholder's passing.
Universal life insurance offers flexibility in coverage and premiums, allowing policyholders to customise their death benefit and payment schedule. It also includes a cash value portion that can be accessed through loan or withdrawal.
Variable universal life insurance offers a greater cash value accumulation option compared to traditional universal life insurance. TIAA's investments within the stock market become further entwined with the cash portion of the policy. This option is often favoured by high-net-worth individuals but is not recommended for those who are not stock market savvy, as the cash value can decrease.
In addition to these types of life insurance policies, TIAA also offered various riders, or add-ons, to customise coverage. Some of the most popular riders included the accelerated death benefit, charitable giving benefit, over-loan protection endorsement, and waiver of monthly charges.
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Pros and cons of TIAA life insurance
Pros of TIAA Life Insurance
TIAA has a strong financial foundation and is capable of fulfilling all financial obligations. It has a history of recognition and awards, including being named the Best Overall Large Fund Company by Lipper for six consecutive years. The company has a rich history dating back to 1918 when it was founded by the Carnegie Foundation to provide educators with life insurance and guaranteed retirement income. Today, TIAA offers a range of financial products and services to the general public and has a presence in over 50 countries.
TIAA offers both term and permanent life insurance options, including survivorship universal life, life insurance with long-term care benefits, variable universal life, and survivorship variable universal life. Their term life insurance is available for people between the ages of 20 and 75 and offers early access to benefits in the case of terminal illness.
The company has very high financial ratings from independent insurance rating agencies, indicating stability, strong claims-paying ability, and overall financial strength. TIAA has also been recognised for its corporate giving and support for nonprofit organisations.
Cons of TIAA Life Insurance
TIAA no longer issues new life insurance policies as of 2020, although it still manages existing policies. This could be a concern as it may indicate financial troubles or a declining market share. While TIAA has a strong reputation, its focus on a wide range of financial products and services may be a drawback for those seeking a specialised life insurance provider.
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Frequently asked questions
No, TIAA stopped offering life insurance policies at the end of 2019. However, the company continues to service its existing policies, including term, universal, and variable universal life insurance.
TIAA offered term life insurance, universal life insurance, and variable universal life insurance. Term life insurance provides temporary protection with a fixed premium and death benefit, while universal life insurance offers flexibility in coverage and premiums. Variable universal life insurance provides greater cash value accumulation through investments in the stock market.
No, TIAA no longer issues new life insurance policies as of January 1, 2020. However, the company still manages and services existing policies.
Yes, you can cancel your TIAA life insurance policy, but you may face surrender fees if you cancel within a few years of purchasing the policy. To cancel, contact your agent or TIAA customer service, and submit a written copy of your cancellation request.
