U.S.A.A. Life Insurance: Physical Exam Requirements Explained

USAA is a financial services company that provides insurance and banking products to members of the military, veterans and their families. It offers a range of life insurance policies, including term, whole and universal life insurance. While most of its insurance products are only available to members, its life insurance products are available to the general public.

USAA's life insurance policies do not include a war-exclusion clause, meaning they will pay benefits on a member's policy even if they are killed in war. The company also offers a $25,000 severe injury benefit to all active members who receive certain severe injuries while on duty.

USAA's term life insurance does not require a medical exam, but its whole life insurance policies do. The company's universal life insurance policy is not available in New York, and its guaranteed issue policy is not available in Montana.

USAA life insurance policy options

USAA offers term, whole, and universal life insurance policies. While the company primarily serves military members and their families, its life insurance products are available to the general public.

Term Life Insurance Options

USAA offers two types of term life insurance: Level Term V and Essential Term. Level Term V insurance is available until the age of 70, with coverage ranging from $100,000 to $10 million. This policy includes additional benefits for active-duty military personnel, such as coverage during wartime, a $25,000 payment for severe injuries, and guaranteed coverage after leaving the military. The Essential Term insurance policy, on the other hand, does not require a medical exam but is only available for those aged 21 to 35 and expires at 39, with a coverage cap of $100,000.

Whole Life Insurance Options

USAA offers two types of whole life insurance: Simplified Whole Life and Guaranteed Whole Life. Simplified Whole Life offers coverage from $25,000 to $10 million, with payments that remain the same throughout. This policy requires applicants to answer a health questionnaire and undergo a free medical exam. The Guaranteed Whole Life policy is available for individuals aged 45 to 85 (50 to 75 in New York) and does not require underwriting. This policy generally pays within 24 hours of death, and the payments and coverage remain the same.

Universal Life Insurance Option

USAA offers the Universal Life Accumulator policy, a form of permanent coverage that accumulates tax-deferred cash value that the policyholder can borrow against. This policy is available up to the age of 85 and is more flexible than term life insurance, allowing changes to the premium payment schedule and death benefit. Applicants for this policy must answer a health questionnaire and undergo a medical exam. This policy is not available in New York.

Riders

USAA offers various riders that allow policyholders to customize their coverage. These include the Life Events Option, which allows new policyholders aged 18 to 35 to add $100,000 in coverage without additional underwriting after major life events such as buying a home, getting married, or having a child. Other riders include Term Life Insurance for Children, Military Severe Injury Benefit, Term Life Event Option, and Military Future Insurability.

USAA life insurance rates

USAA offers term, whole, and universal life insurance policies. The cost of life insurance from USAA depends on a variety of factors, including age, sex, and location. The company offers two term life insurance policies: Term Level V and Essential Term. Term Level V is available for applicants aged 18 to 70, with coverage ranging from $100,000 to $10 million. Essential Term is a simplified issue policy with no medical exam required, offering coverage of $100,000 for those aged 21 to 35.

USAA's whole life insurance policies include Simplified Whole Life and Guaranteed Whole Life. Simplified Whole Life is available for applicants from 15 days to 85 years old, with coverage ranging from $25,000 to $10 million. Guaranteed Whole Life, underwritten by Mutual of Omaha, does not require a medical exam and provides coverage from $2,000 to $25,000 for applicants aged 45 to 85 (or 50 to 75 in New York). This policy is not available in Montana.

The universal life insurance policy offered by USAA 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.

A 20-year, $250,000 term life insurance policy for a female in good health costs around $175 per year, while a $500,000 policy for the same buyer is approximately $290 per year. USAA's term rates are generally higher than those of its top competitors.

USAA 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 a second death benefit on top of your base policy's death benefit.
• Child Rider: The child rider will provide a limited amount of term life insurance coverage for your young children. The policy expires when the child reaches adulthood.
• Military Severe Injury Benefit Rider: This rider will provide a payout of $25,000 for medical expenses if you are injured during military duties. Qualifying injuries include loss of limb function, paralysis, severe burns, and others.
• Military Future Insurability Rider: With this rider, you have the option to increase your life insurance coverage when you separate from the military without taking another medical exam.
• Term Life Event Option Rider: The term life event option 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 $100,000 in coverage or up to the face value of your base policy, whichever is less.
• Terminal Illness Rider: With this rider, you are allowed 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 will temporarily waive your life insurance premiums if you are totally disabled and cannot work. Your coverage will remain in force while you use this rider.

USAA life insurance customer complaints and satisfaction

USAA provides insurance and financial services to U.S. military members, veterans, and their families. Its term and other life insurance products are also available to the general public. The company has some of the highest customer satisfaction ratings in the insurance and financial services industry, with a 96% member retention rate.

USAA's level term life insurance is among the best life insurance plans available and is also highly rated among the best life insurance for veterans and members of the military. It includes added benefits such as expediting coverage if the policyholder is deployed, providing coverage during wartime, paying $25,000 for certain severe injuries, and replacing income from service members' group life insurance (SGLI) if the policyholder separates from the military.

USAA has an NAIC complaint index score of 0.06, which is extremely low compared to the national average of 1.00. This indicates that the company gets significantly fewer complaints than other insurance companies of a similar size.

However, USAA is not accredited by the Better Business Bureau (BBB) and doesn't have a BBB rating. On the BBB website, USAA has a rating of 1.14 out of 5 stars based on customer reviews. Many of the negative reviews on the BBB website cite issues with claims processing, with some customers having a hard time getting in touch with customer service, while others complain that the claims process was difficult and time-consuming.

Reviews of USAA life insurance from other sites are more favourable, with only a few negative reviews. Most customers are happy with the level of customer service and how easy it was to sign up for coverage. Others state that they are satisfied with the premium rates of their policies.

USAA's term life insurance rates are higher than most of the best term life insurance companies. It also does not pay dividends on its whole life insurance policies. For non-military members, there are probably better options.

USAA life insurance pros and cons

USAA provides insurance and financial services to US military members (including reserves), 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 wide array of coverage options for military personnel and their family members, including health, homeowners, auto, small business, pets, renters, condo, personal property, and umbrella insurance.
• USAA has a mobile app and phone support for policyholders.
• USAA has a "Survivor Relations Team" to help members cope with the death of a loved one and manage their accounts.
• USAA's term life insurance coverage features are robust, especially for military members.
• USAA has top-notch financial strength.
• USAA offers a free Military Severe Injury Benefit Rider that provides $25,000 in the event of certain injuries, such as dismemberment and loss of limb function, while performing military duties.
• USAA offers a Military Future Insurability Rider, which allows members to increase their life insurance coverage when they separate from the military without taking another medical exam.
• USAA has a high customer satisfaction rating and a customer retention rate of 96%.
• USAA has a reputation for providing excellent customer service and worldwide accessibility.

Cons

• USAA has relatively few policy options overall.
• Some USAA policies are not available in all states.
• USAA's term life insurance rates are higher than most of its competitors.
• USAA does not pay dividends on its whole life insurance policies.
• USAA has a maximum issue age of 70 for term life insurance, which is slightly lower than some competitors.
• USAA has few local branches, which can be inconvenient for those who prefer in-person banking.
• USAA insurance rates vary by location.
• USAA's savings account interest rates are not very competitive.

Frequently asked questions