U.S. Life Insurance: Who Gets The Payout?

USAA offers a range of insurance products, including life insurance, which is available to everyone, regardless of military affiliation. USAA's life insurance policies include term life insurance, whole life insurance, universal life insurance, and guaranteed issue life insurance. The company also offers additional riders, such as a child term rider, which allows parents to add their children to their policy. This rider can be converted into a permanent policy when the child reaches adulthood, regardless of their health. While USAA life insurance is available to everyone, the company primarily serves military service members, veterans, and their families, offering various discounts and benefits tailored to their needs.

Who is eligible for USAA life insurance?

USAA is a member-owned insurance and financial services company that primarily serves military service members and their families. It was founded in 1922 by 25 Army officers who wanted to insure one another's vehicles.

USAA's target eligible group is current and former military members. This includes retired and honorably discharged veterans, as well as National Guard and Reserve members.

USAA also offers insurance coverage to non-military individuals who are related to eligible military members. This includes:

• Spouses of military members, as well as widows, widowers, and un-remarried ex-spouses.
• Children and stepchildren of current and former military members, including adult children.

In order to be eligible for USAA insurance, there must be a military connection. Individuals who have never served in the armed forces and whose parents, step-parents, or spouse never served are not eligible for coverage.

To apply for USAA insurance, eligible individuals must provide their branch of service and start date. If they are retired or honorably discharged, they must also provide their end date. Eligible family members will need to provide their Social Security Number and their military relative's USAA number.

What are the different types of life insurance offered by USAA?

USAA offers term, whole, and universal life insurance policies.

Term Life Insurance

USAA's level term policy is available for 10, 15, 20, 25 or 30 years with coverage ranging from $100,000 to $10 million. Depending on the state, you may receive additional benefits, including:

• Coverage for active duty and reserve duty military members and their spouses during wartime, which is often excluded from life insurance policies.
• A $25,000 payment if you suffer a severe injury while on active duty.
• Guaranteed coverage after leaving the military.
• An option to add $100,000 in coverage if you have a baby, get married or buy a house between the ages of 18 and 35.
• The option to convert to a permanent policy.
• The option to replace your service members’ group life insurance (SGLI) with a USAA term life policy if you leave the military.

Whole Life Insurance

USAA sells simplified whole life insurance, with coverage up to $10 million. You have the option to make payments for 20 years, until age 65, or for the full duration of the policy. You can also increase coverage after certain life events — up to a total of six times — with a free Life Event Option rider.

Universal Life Insurance

USAA’s universal life insurance policy comes with flexible payment options and a guaranteed interest rate of 1%. USAA also sells an indexed universal life insurance policy, which ties the cash value growth to a market index like the S&P 500.

How much does USAA life insurance cost?

The cost of USAA life insurance depends on a variety of factors, including age, sex, location, and policy type. While I cannot provide a specific quote, here is some general information about the cost of USAA life insurance.

USAA offers term, whole, and universal life insurance policies. The cost of a term life policy with USAA is considered above average compared to other companies. 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. A similar policy with a $500,000 coverage amount costs approximately $24 per month or $290 annually.

USAA's whole life insurance policies offer flexible payment options. Policyholders can choose to pay level premiums for their entire lives, until they turn 65, or pay off the policy in full in 20 years. The cost of whole life insurance depends on the coverage amount, which can range from $2,000 to $10 million.

USAA's universal life insurance policy is underwritten by John Hancock and is available for applicants aged 20 to 90. Coverage starts at $50,000, and the policy includes a guaranteed interest rate of 1%. The cost of this policy will depend on factors such as age, health, and coverage amount.

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

To get a more accurate quote for USAA life insurance, individuals can visit the USAA website or contact a licensed USAA agent.

What are the benefits of USAA life insurance?

USAA life insurance policies are available to everyone, although the company's products are designed specifically for military members, veterans, and their families. Here are some benefits of USAA life insurance:

Financial Strength and Customer Satisfaction

USAA has the highest possible financial strength rating from AM Best, indicating its long-term financial stability and ability to pay claims. The company has also received fewer complaints than expected for its size, according to data from the National Association of Insurance Commissioners.

Policy Options

USAA offers term, whole, and universal life insurance policies. The term policies are available for 10, 15, 20, 25, or 30 years, with coverage ranging from $100,000 to $10 million. The whole life insurance policies provide flexible payment options, and the universal life insurance policy comes with a guaranteed interest rate of 1%.

Perks for Military Personnel

USAA provides several benefits for active-duty and retired military members, including coverage during wartime, a $25,000 payment for severe injuries, and guaranteed coverage after leaving the military.

Riders

USAA offers various riders, such as the child term rider, which allows you to add your children to your policy. Other riders include the waiver of premium benefit and the military severe injury benefit rider.

Online Accessibility

USAA's website provides detailed information about its policies and allows you to get a quote and apply for a life insurance policy online. The company also offers a mobile app for account management.

How do you establish membership with USAA?

To establish membership with USAA, you must be either an active, retired, or honorably separated officer of the US military or a close family member of someone who is.

Active-duty military members are typically asked for their current military ID or orders, while veterans might need to submit a copy of their DD Form 214. Pre-commissioned officers can provide proof of commissioning status, such as a statement from their commanding officer or current orders.

If you are a family member of a USAA member, you will need to provide a Social Security number and a valid government-issued ID such as a driver's license, passport, or state-issued ID card. Spouses need to present a marriage certificate, and children of USAA members must provide a birth certificate that lists the name of the parent who is a USAA member.

USAA membership can be passed on to the next generation, but it cannot be passed on posthumously.

Frequently asked questions