U.S.A.A. Life Insurance: Conversion Coverage Options Explored

USAA offers a range of life insurance policies, including term, whole, and universal coverage. While USAA's insurance products are typically restricted to military members, veterans, and their families, its life insurance policies are available to everyone. USAA's term life insurance includes additional benefits for active-duty service members, such as coverage during wartime and a $25,000 payment for severe injuries. The company's whole life insurance provides permanent coverage with flexible payment options, while its universal life insurance offers a guaranteed interest rate of 1%. USAA also provides a final expense insurance policy, issued through Mutual of Omaha, which does not require a medical exam.

USAA's term life insurance coverage features

• Expedited Application Process for Deployed Military Personnel: If you are in the military and are deployed, your application process for USAA life insurance is expedited.
• Survivor Relations Team: USAA has a dedicated Survivor Relations Team that assists members in coping with the death of a loved one. They help survivors manage the details of all their USAA accounts, including life insurance.
• Military Severe Injury Benefit Rider: This rider provides $25,000 in the event of certain injuries, such as dismemberment or loss of limb function, sustained while performing military duties.
• Option to Convert to Permanent Policy: Policyholders can convert their term life policy to a permanent policy up to the last day of the level term period.
• Strong Financial Strength Rating: USAA has received the highest possible financial strength rating from AM Best, indicating its superior ability to pay future claims.
• No Dividends on Whole Life Policies: Since USAA is not a mutual company, whole life insurance policyholders will not receive dividends.
• Higher Term Life Insurance Rates: USAA's term life insurance rates are higher than most of its competitors.
• Lower Maximum Issue Age: The maximum issue age for term life insurance is 70, which is slightly lower than some other top competitors.

Overall, USAA's term life insurance coverage features cater well to military members, with benefits such as expedited applications, severe injury coverage, and guaranteed coverage after leaving the military. However, their rates are higher than competitors, and they do not offer dividends on whole life policies.

USAA's whole life insurance coverage features

The Simplified Whole Life policy is available for applicants between 15 days and 85 years old, with coverage limits ranging from $25,000 to $10 million. The Guaranteed Whole Life policy, meanwhile, is available for applicants between 45 and 85 years old (or 50 to 75 in New York) and provides coverage from $2,000 to $25,000. This policy is underwritten by Mutual of Omaha and does not require a medical exam.

USAA's whole life insurance policies offer flexible payment options. You can choose to make payments for 20 years, until you turn 65, or for the full duration of the policy. Additionally, you can increase your coverage after certain life events, up to a total of six times, with a free Life Event Option rider.

The company also offers a Military Severe Injury Benefit Rider, which provides a payout of $25,000 for medical expenses if you are injured during military duties. This includes injuries such as loss of limb function, paralysis, severe burns, and more.

USAA's whole life insurance policies provide lifetime protection, fixed premiums, and a guaranteed death benefit as long as the premiums are paid. The policies also accumulate cash value, which you can borrow against or withdraw from. However, any withdrawals or loans against the cash value will reduce the death benefit unless you pay back the amount withdrawn.

USAA's universal life insurance coverage features

USAA's universal life insurance policy is available to people up to the age of 90 and has a minimum coverage of $50,000. The policy is issued by John Hancock and offers flexible payment options and a guaranteed interest rate of 1%. There is also an indexed universal life insurance option, which ties the cash value growth to a market index like the S&P 500.

USAA's universal life insurance policy is not available in New York.

The universal life insurance policy is permanent coverage, which means it lasts your entire life as long as you keep paying the premiums. The policy also has a cash value component that may earn interest. You can borrow against the cash value portion or withdraw from it, but any funds withdrawn are subtracted from the death benefit if you die before paying them back.

USAA offers flexible payment options for its universal life insurance policy. You can pay level premiums your whole life, until you turn 65, or pay off your policy in 20 years.

USAA's universal life insurance policy also comes with riders, which allow you to customise your coverage. The available riders include:

• Child term rider: This allows you to add a limited amount of term life insurance for your children to cover funeral or burial expenses if they die before adulthood.
• Waiver of premium: This suspends your premium payments if you become disabled due to a covered accident or illness.
• Military severe injury benefit: This pays out $25,000 if the service member is injured while performing eligible military duties.
• Accelerated death benefit: This pays out part of the death benefit early if you are diagnosed with a terminal illness.
• Accidental death benefit: This increases the death benefit if your death is accidental.

USAA's life insurance riders

USAA offers several 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: The child 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 permanent coverage without a medical exam.
• 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, etc.
• 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.
• Terminal Illness Rider: This rider allows you to withdraw money from your death benefit while you are still alive if you are diagnosed with a terminal illness. You can collect up to 50% of your policy's death benefit or up to $250,000, whichever is less.
• Waiver of Premium Rider: The waiver of premium 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's life insurance rates

USAA offers a range of life insurance policies, including term, whole, and universal coverage. Their term life insurance policies are available for 10, 15, 20, 25, or 30 years, with coverage ranging from $100,000 to $10 million. The monthly rate for a 20-year, $500,000 term life insurance policy for a non-smoking woman in excellent health is around $15, or $175 annually. For a man with the same health profile, the rate is approximately $24 per month or $290 annually.

USAA's whole life insurance policies provide coverage up to $10 million and are available for applicants between the ages of 15 days and 85 years. The guaranteed whole life insurance policy, underwritten by Mutual of Omaha, offers coverage from $2,000 to $25,000 for applicants between the ages of 45 and 85 (50 to 75 in New York). This policy is not available in Montana.

The universal life insurance policy, underwritten by John Hancock, is available for applicants aged 20 to 90, with coverage starting at $50,000. This policy is not offered in New York.

USAA also offers a final expense insurance policy, also known as burial or funeral insurance, with a maximum benefit of $25,000. This policy is issued by Mutual of Omaha and does not require a medical exam or health questionnaire. It is available for individuals between the ages of 45 and 85 (50 to 75 in New York) in all states except Montana.

It is important to note that USAA's life insurance rates may vary based on factors such as age, sex, and location. The provided rates are only samples, and individuals should contact USAA directly for personalized quotes.

Frequently asked questions