Usaa Life Insurance: Annual Fee Or Free?

USAA provides insurance and financial services to U.S. military members, veterans, and their families. The company offers a wide range of insurance products, including life insurance, which is available to the general public. While most of USAA's insurance offerings are limited to military-affiliated individuals, its life insurance policies are accessible to any U.S. citizen or permanent resident. USAA offers term, whole, and universal life insurance plans, with various benefits and coverage amounts. The company has a strong financial stability rating and has received positive reviews for its life insurance products, especially for those serving in the military.

USAA life insurance policy options

USAA offers term, whole, and universal life insurance policies. Here is a detailed overview of the options available:

Term Life Insurance

USAA's term life insurance provides coverage for a specific period, ranging from 10 to 30 years. The Level Term V policy is available for individuals aged 18 to 70, with coverage amounts ranging from $100,000 to $10 million. This policy offers additional benefits for active-duty military personnel, including coverage during wartime, a $25,000 payment for severe injuries, and guaranteed coverage after leaving the military. The Essential Term policy, on the other hand, is a simplified issue policy with no medical exam required and is designed for young adults aged 21 to 35, with coverage capped at $100,000.

Whole Life Insurance

USAA offers two types of whole life insurance: Simplified Whole Life and Guaranteed Whole Life. The Simplified Whole Life policy is available for individuals aged 15 days to 85 years, with coverage ranging from $25,000 to $10 million. The Guaranteed Whole Life policy, underwritten by Mutual of Omaha, is available for individuals aged 45 to 85 (50 to 75 in New York) and provides coverage from $2,000 to $25,000. This policy does not require a medical exam and is guaranteed issue.

Universal Life Insurance

USAA's Universal Life Insurance policy, underwritten by John Hancock, offers flexible payment options and a guaranteed interest rate of 1%. It is available for individuals aged 20 to 90, with coverage starting at $50,000. Additionally, USAA offers an indexed universal life insurance policy, which ties the cash value growth to a market index.

Riders

USAA also offers various riders, which are optional add-ons to their life insurance policies. These include the Child Term Rider, Waiver of Premium Rider, Military Severe Injury Benefit Rider, Terminal Illness Rider, Accidental Death Benefit Rider, and more. These riders provide additional coverage and benefits, such as coverage for children, waiver of premiums in the event of disability, and increased payouts for accidental deaths.

USAA life insurance riders

USAA offers a range of life insurance riders, which are optional endorsements that allow you to customise your life insurance policy to your specific needs. Riders can fill gaps in your coverage if there are exclusions and provide coverage for specific circumstances you might face. It's important to note that not all of USAA's riders are available on every policy, and some riders are not sold in every state. Here is a list of some of the riders offered by USAA:

• Accidental Death Benefit Rider: If you pass away and your death is caused by a qualifying accident, this rider will provide an additional death benefit on top of your base policy's death benefit.
• Child Rider: This rider provides a limited amount of term life insurance coverage for your young children. The policy expires when the child reaches adulthood, but they have the option to convert it to their own permanent policy when they're older, regardless of their health.
• Military Severe Injury Benefit Rider: This rider provides a payout of $25,000 for medical expenses if you are injured during military duties, including loss of limb function, paralysis, severe burns, and others.
• Military Future Insurability Rider: With this rider, you can increase your life insurance coverage when you separate from the military without taking another medical exam.
• Term Life Event Option Rider: This rider allows you to purchase additional life insurance coverage in the future after a major life event, such as getting married, starting a family, or buying a home. You can buy coverage up to the face value of your base policy or $100,000, whichever is less.
• Terminal Illness Rider: With this rider, you can withdraw money from your death benefit while you're still alive if you're diagnosed with a terminal illness. You can collect up to 50% of your policy's death benefit or $250,000, whichever is less.
• Waiver of Premium Rider: This rider temporarily waives your life insurance premiums if you become totally disabled and unable to work. Your coverage will remain in force while using this rider.

USAA life insurance rates

• For a woman, the monthly rate is $61.28.
• For a man, the monthly rate is $74.18.

USAA's term life insurance rates are higher than most of its competitors. For example, a 20-year, $250,000 term life insurance policy for a female in good health costs around $15 per month, or $175 annually, while the same policy for a male costs $24 per month, or $290 annually.

USAA offers term, whole, and universal life insurance policies. Term life insurance provides coverage for a defined period, while permanent policies typically last a lifetime. USAA's term life insurance is available for periods of one to 30 years, with coverage ranging from $100,000 to $10 million. The universal policy starts at $50,000 in coverage, while the whole life policies can start as low as $2,000 and range up to a maximum of $10 million.

USAA also offers additional life insurance riders, which are optional endorsements that allow you to customize your policy. These riders can fill gaps in your coverage and provide benefits for specific circumstances, such as severe injuries during military service.

It is important to note that USAA's life insurance policies are not available in all states, and some policies have regional restrictions. For example, the universal life policy is not available in New York, and the guaranteed whole life policy is not sold in Montana.

USAA customer complaints and satisfaction

USAA has received a high volume of customer complaints, with 4,113 total complaints in the last 3 years and 1,275 complaints closed in the last 12 months. Many of these complaints relate to issues with insurance claims, including delays in processing, poor communication, and dissatisfaction with the outcomes. There are also complaints about unexpected increases in insurance rates and issues with account management, such as difficulties cancelling policies or accessing funds.

However, USAA has also received positive feedback, particularly for its life insurance policies. According to a NerdWallet analysis, USAA has drawn fewer than the expected number of complaints to state regulators for a company of its size over a three-year period. The National Association of Insurance Commissioners' (NAIC) complaint ratio for USAA is 0.24, indicating above-average customer satisfaction. This ratio reflects a company's number of complaints relative to its size, with a number below 1.00 indicating fewer complaints than the industry average.

USAA's life insurance policies are also praised for their robust features, especially for military members. The company offers a Military Severe Injury Benefit Rider, which provides a $25,000 payout for certain injuries incurred during military service. USAA also has a Survivor Relations Team to assist members dealing with the death of a loved one and provide support with managing USAA accounts.

Overall, while USAA has received a significant number of customer complaints, its life insurance offerings seem to be well-regarded, with low complaint volumes and positive feedback for their military-specific benefits.

USAA life insurance pros and cons

USAA provides insurance and financial services to US military members, veterans, and their families. Its term and other life insurance products are available to the general public. Here are some pros and cons of USAA life insurance:

Pros

• USAA offers term, whole, and universal life insurance policies.
• Membership provides access to other financial products and advice.
• USAA has a Survivor Relations Team that helps members cope with the death of a loved one and manage their accounts.
• USAA's Military Severe Injury Benefit Rider provides $25,000 for certain injuries sustained while performing military duties.
• Policyholders can convert term life policies to permanent policies.
• USAA has top-notch financial strength.
• USAA offers a wide range of coverage options, including health, homeowners, auto, small business, renters, condo, personal property, and umbrella insurance.
• USAA's website provides detailed information about its policies, making it easy for customers to understand their options.
• USAA offers online quotes and applications for some policies.
• USAA's life insurance policies are available in all 50 states, although specific products may vary by state.

Cons

• USAA's term life insurance rates are higher than most competitors.
• Some of USAA's policies are not available in all states, such as New York and Montana.
• USAA's whole life insurance policies do not pay dividends.
• USAA does not offer local agents or brokers, so customers must apply online or over the phone.
• USAA does not offer live chat or customer service via email.

Frequently asked questions