Life Insurance: Usaa's Comprehensive Coverage Options

USAA, founded in 1922, provides insurance and financial services to U.S. military members, veterans, and their families. Its life insurance products are available to the general public. USAA offers term, whole, and universal policies, with coverage ranging from $2,000 to $10 million. The company has an A++ rating from AM Best, indicating superior financial stability. While USAA has received praise for its military-specific benefits and low complaint volume, it offers limited policy options and higher term life insurance rates than some competitors.

USAA life insurance pros and cons

USAA provides insurance and financial services to US military members, veterans, and their families. However, its life insurance products are available to the general public. USAA offers term, whole, and universal life insurance policies. Here are some pros and cons of USAA life insurance:

Pros:

• USAA has a high financial strength rating, indicating its ability to pay future claims.
• It offers flexible coverage options, including term, whole, and universal life insurance policies.
• USAA provides extra perks for military personnel, such as a $25,000 severe injury payment and coverage during wartime.
• The company has a low complaint volume, indicating customer satisfaction.
• USAA offers a child term rider, allowing parents to add their children to their policy.
• It provides a Military Severe Injury Benefit Rider that pays $25,000 for certain injuries sustained during military service.
• USAA has a Survivor Relations Team to assist families of deceased members with survivor benefits.

Cons:

• USAA's term life insurance rates are higher than some competitors.
• Some policies are not available in all states, such as the universal life policy in New York and the guaranteed whole life policy in Montana.
• The application process may be inconvenient, as it requires a physical exam and blood work.
• USAA does not offer a same-day decision on policies.
• Whole life insurance policies do not pay dividends.

USAA life insurance plans

USAA offers a range of life insurance plans, including term life insurance and permanent life insurance. Term life insurance is a policy that provides level rates over a specific period, whereas permanent life insurance provides lifetime protection.

Term Life Insurance Plans

USAA offers two term life insurance policies: Level Term and Essential Term. The Level Term policy is available for applicants between 18 and 70 years old, with coverage ranging from $100,000 to $10 million. A medical exam may be required, unless you are an active-duty service member. The Level Term policy can be converted to permanent coverage after a year without a medical exam. It also provides extra benefits for active-duty and reserve duty service members, such as coverage during wartime and severe injury benefits.

The Essential Term policy, on the other hand, is a simplified issue policy that does not require a medical exam. It is designed for young adults aged 21 to 35, with coverage of $100,000 until the age of 39. This policy cannot be converted to permanent coverage.

Permanent Life Insurance Plans

USAA offers three types of permanent life insurance: Simplified Whole Life, Universal Life, and Guaranteed Whole Life.

The Simplified Whole Life policy is available for applicants from 15 days to 85 years old, with coverage ranging from $25,000 to $10 million. Depending on age and health, a medical exam may be required.

The Universal Life policy is underwritten by John Hancock and is available for applicants aged 20 to 90, with coverage starting at $50,000. This policy requires a medical exam and is not available in New York.

The Guaranteed Whole Life policy is underwritten by Mutual of Omaha and does not require a medical exam. It is available for applicants between 45 and 85 years old (or 50 to 75 in New York), with coverage ranging from $2,000 to $25,000. This policy is not available in Montana.

USAA's life insurance plans offer flexibility and customization options, with varying terms, coverage amounts, and eligibility requirements. The company also provides additional benefits for military members and their families, such as expedited coverage approval during deployment and severe injury benefits.

USAA life insurance pricing

USAA offers a range of life insurance policies, including term, whole, and universal coverage. The cost of USAA life insurance depends on various factors, such as age, sex, location, and health status. While USAA does not provide specific pricing information on its website, we can examine the different types of policies, their features, and associated costs to understand their pricing structure.

Term Life Insurance

USAA offers two types of term life insurance policies: Level Term V and Essential Term. The Level Term V policy is available for individuals between 18 and 70 years old, with coverage ranging from $100,000 to $10 million. The premium rates are level for the duration of the term, which can be 10, 15, 20, 25, or 30 years. This policy includes additional benefits for active-duty and reserve military personnel, such as coverage during wartime and a $25,000 payment for severe injuries sustained during service. The Essential Term policy, on the other hand, is a simplified issue policy with no medical exam required. It is designed for young adults aged 21 to 35, with a coverage limit of $100,000 until the age of 39.

The cost of term life insurance from USAA is generally higher compared to its competitors. For example, a 20-year, $500,000 term life insurance policy for a female in good health costs around $175 annually, while the same policy for a male would be approximately $290 per year.

Whole Life Insurance

USAA provides two types of whole life insurance policies: Simplified Whole Life and Guaranteed Whole Life. The Simplified Whole Life policy is available for individuals between 15 days and 85 years old, with coverage ranging from $25,000 to $10 million. Policyholders can choose to make payments for 20 years, until age 65, or for the full duration of the policy. The Guaranteed Whole Life policy, underwritten by Mutual of Omaha, does not require a medical exam and is available for individuals between 45 and 85 years old (50 to 75 in New York). The coverage amount for this policy ranges from $2,000 to $25,000.

Universal Life Insurance

USAA's Universal Life insurance, underwritten by John Hancock, is a permanent policy with flexible payment options and a guaranteed interest rate of 1%. It is available for individuals between 20 and 90 years old, with coverage starting at $50,000. This policy is not offered in New York.

Factors Affecting Pricing

It is important to note that the pricing of USAA life insurance policies is influenced by several factors unique to the individual. These factors include age, sex, health status, and lifestyle choices. Additionally, USAA offers various riders, or add-ons, to their policies, which can further impact the overall cost. These riders provide additional coverage or benefits, such as the Military Severe Injury Benefit Rider, which provides a $25,000 payout for certain injuries sustained during military service.

USAA life insurance financial stability

USAA has a high financial stability rating, with an A++ (Superior) rating from AM Best. This is the highest possible rating and indicates that the company has the financial resources to pay claims in full. USAA has the highest possible financial strength rating from AM Best, one of only seven out of 45 life insurance companies to earn this rating.

Over the past three years, USAA has had a complaint index of 0.283, which is lower than expected for a company of its size. The National Association of Insurance Commissioners (NAIC) tracks complaints made to state regulators, and USAA has received fewer than expected for a company of its size. This indicates that USAA has above-average customer satisfaction.

USAA has been in business for over 100 years, founded in 1922 by a group of Army officers. The company is based in San Antonio, Texas, and serves over 13 million members across the US.

USAA life insurance accessibility

USAA life insurance is available throughout the US, and you don't need to be a member of the military to qualify for one of its life insurance policies. However, the company does offer perks for veterans, members of the military, and their families. The only exceptions are that its universal life policy isn't available in New York, and its guaranteed whole life policy isn't available in Montana.

USAA life insurance eligibility depends on your health. Some policies don't require a medical exam, which makes it easier to secure coverage if you have pre-existing health conditions. Age may also limit the availability of some policies. For example, the company's no-exam policies have stricter age requirements than USAA's traditional policies.

The USAA Life Insurance Company's phone number is (800) 531-LIFE (5433). USAA's life insurance customer service is available Monday through Friday from 7:30 a.m. to 8 p.m. CST. If you're calling to inquire about claims after a loved one's death, you can call (800) 292-8294 Monday through Friday from 7:30 a.m. to 6 p.m. CST. The USAA Life Insurance Company's mailing address is 9800 Fredericksburg Road, San Antonio, Texas, 78288.

USAA makes it easy to get life insurance quotes and for your beneficiaries to file claims after you die. You can access quotes and estimates online by filling out some simple forms. Each policy comes with access to USAA's Survivor Relations team. Before a loss, team members can help you with estate planning, terminal illness management, and funeral cost protection. During or after a loss, that team can help organize legal and financial business.

Frequently asked questions