AAA Life Insurance Company, affiliated with the American Automobile Association, offers term, whole, and universal life insurance policies. While anyone can apply, AAA members can access special discounts to get lower premiums. AAA offers a good variety of policy options and benefits, including no-medical-exam coverage. However, its rates are higher than average, and it has received more customer complaints than expected for its size.
Characteristics | Values |
---|---|
Company Name | AAA Life Insurance Company |
Founded | 1969 |
Parent Company | American Automobile Association (AAA) |
Headquarters | Livonia, Michigan |
Sales and Service Center | Omaha, Nebraska |
Available Policies | Term, Whole, Universal, Final Expense |
Medical Exam Required? | Depends on the policy |
Application Process | Online or through an agent |
Discounts | AAA members receive discounts on some policies |
Customer Service Reviews | Mixed |
NAIC Complaint Index | Higher than expected |
What You'll Learn
AAA's high volume of consumer complaints
AAA Life Insurance Company offers term, whole, and universal life insurance policies. The company was founded in 1969 by AAA, the group of motor clubs best known for emergency roadside assistance and travel services. While AAA's member discounts and no-exam life insurance policies may be appealing, the company has received a high volume of consumer complaints, which is a notable drawback.
Over a three-year period, AAA received a higher-than-expected number of complaints relative to its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners. This analysis highlights a potential weak point in AAA's customer service and claims handling.
A review of customer complaints reveals issues with unexpected rate increases, delayed or denied claims, billing problems, and difficulty cancelling policies. Some customers have expressed frustration with the lengthy and complicated claims process, which has added to their grief during difficult times. These negative experiences stand in contrast to positive reviews highlighting helpful and knowledgeable customer service staff.
While AAA's life insurance policies may be appealing due to member discounts and no-exam options, prospective customers should carefully consider the company's track record of consumer complaints before making a decision. The high volume of complaints suggests potential challenges with the quality of service, which is an important factor when choosing a life insurance provider.
Life Insurance: Protecting Your Family's Future
You may want to see also
AAA's whole life insurance coverage
AAA Whole Life Insurance Coverage
AAA, or Triple-A, is known primarily for its automotive services, but it also offers a range of insurance products, including life insurance. Their whole life insurance policies provide permanent coverage for the entirety of the policyholder's life, as long as premiums are paid, and offer a number of benefits and features that make them a good option for some individuals.
AAA's whole life insurance policies build cash value over time, which can be borrowed against or withdrawn, providing financial flexibility. The premiums remain level for life, meaning they do not increase with age, and the death benefit is guaranteed, providing peace of mind and financial security for loved ones. Additionally, AAA offers a range of riders (optional add-ons) that allow policyholders to customize their coverage to meet their specific needs. These riders include accelerated death benefits, which provide early access to a portion of the death benefit if the insured is diagnosed with a qualifying illness, and long-term care riders, which can help cover the costs of long-term care services if they are needed.
While AAA's whole life insurance policies offer many advantages, there are also some potential drawbacks to consider. The premiums for whole life insurance tend to be higher than those for term life insurance, and the cash value accumulation may not be as strong as that of other permanent life insurance options, such as universal life insurance. Additionally, while AAA's customer service and claims processing are generally well-regarded, it is always important to carefully review the terms and conditions of any insurance policy to ensure it meets your specific needs and expectations.
In summary, AAA's whole life insurance coverage can be a good option for those seeking permanent life insurance with guaranteed death benefits and level premiums. The ability to borrow against the policy's cash value provides financial flexibility, and the optional riders allow for customization to meet individual needs. However, as with any insurance product, it is important to weigh the pros and cons carefully and to consider your own financial situation and goals when deciding if AAA's whole life insurance is the right choice for you.
Life Insurance: A Farm Expense?
You may want to see also
AAA's term life insurance coverage
AAA offers two types of term life insurance: Traditional Term Life Insurance and ExpressTerm Life Insurance. Both are available in 10-, 15-, 20- and 30-year terms, with members saving 10% on premiums.
Traditional Term Life Insurance
To qualify for this policy, you must answer health questions and agree to a possible life insurance medical exam. Coverage amounts range from $50,000 to $3.5 million, depending on your age, and you can customise your coverage with waiver of premium, child term or return of premium riders. AAA members may be able to get discounts on their home or auto insurance by bundling with traditional term life.
ExpressTerm Life Insurance
This policy offers life insurance with no medical exam in most cases. You can choose $25,000 to $500,000 in coverage and apply for and buy this policy online after answering questions about your health. Coverage goes into effect right away if you’re approved.
Whole Life Insurance
AAA offers two types of whole life insurance: Traditional Whole Life Insurance and Guaranteed Issue Whole Life Insurance. The former provides coverage ranging from $5,000 to $75,000, though you may need to take a medical exam if you want $30,000 or more. The latter offers $3,000 to $25,000 of guaranteed issue life insurance, which doesn’t require a questionnaire or medical exam. Applicants aged 45 to 85 can qualify automatically, but if the insured dies of natural causes during the first two years, AAA won’t pay out the full policy amount.
Universal Life Insurance
AAA offers two types of universal life insurance: LifeTime and Accumulator. The Accumulator product is geared towards people who may want to use the cash value later to supplement retirement or cover other expenses, such as their children’s college education. The LifeTime product features more guarantees, like fixed premiums.
IRAs and Life Insurance: What's Included in an Estate?
You may want to see also
AAA's universal life insurance coverage
AAA Life Insurance Company offers two types of universal life insurance: LifeTime and Accumulator. Both policies can last a lifetime and offer flexible features and the ability to build cash value over time.
LifeTime Universal Life Insurance
LifeTime Universal Life Insurance offers guaranteed level premiums that won't change even if interest rates do. The policy also includes built-in additional benefits for covered accidental death and provides highly customizable insurance riders. This policy is a good option if you want to leave an inheritance or money for your family to support themselves after you die.
Accumulator Universal Life Insurance
The Accumulator Universal Life Insurance policy has higher rates and greater ability to grow your policy's cash value. It also offers more flexibility in how you pay premiums. This policy is a good option if you intend to use your life insurance cash value while still alive or prefer to be able to adjust your premiums to fit your financial situation.
Pros and Cons of AAA Universal Life Insurance Coverage
AAA's universal life insurance policies offer permanent coverage and the flexibility to adjust your coverage as your needs change. You can also borrow money against your policy's cash value or cancel your policy and withdraw the cash value. Additionally, AAA members can save up to 5% on their AAA Auto Insurance policy when purchasing a universal life insurance policy. However, it's important to note that AAA has received mixed reviews for its customer service and claims process, with some customers reporting difficulties with billing and delays in making claims.
Beneficiary Rights: Witness Signatures and Life Insurance Claims
You may want to see also
AAA's accident insurance coverage
AAA's accident insurance provides four-way protection with cash benefits paid for hospital stays, recuperation, emergency room visits, and loss of life. For example, AAA members who have been members for five years or more are eligible for the Premier benefits level, which includes cash benefits of $375 to $1,500 per day for a maximum of 365 days per occurrence from the first day of hospitalization due to a covered accident. There is also a benefit of $375 to $1,500 per day to aid in recuperation, which is equal to the number of days of covered hospitalization. In addition, there is an annual benefit of $375 to $1,500 for emergency room and urgent care visits.
If a member loses their life in a covered accident, their spouse will receive a free AAA membership for life. If the member has enrolled their whole family and their spouse loses their life in a covered accident, the member will receive a free AAA membership for life. The cash benefit amount is paid directly to the beneficiary, and members can collect benefits for more than one accident over their lifetime.
The cost of AAA's accident insurance is affordable, with the top-tier Premier benefit level for members aged 18-69 starting at only $17 per month, and family coverage available for an additional $4 per month.
In addition to accident insurance, AAA also offers a wide range of life insurance policies, including term, whole, and universal life insurance. These policies are available to both members and non-members, with discounts available for members.
Self-Employed Life Insurance: Am I Eligible?
You may want to see also
Frequently asked questions
AAA Life Insurance offers a variety of policies, including term, whole, and universal life insurance. The company provides no-medical-exam coverage and discounts for AAA members. However, the coverage amount for whole life insurance is low, and the company has received more complaints than expected for its size.
AAA Life Insurance has some of the most expensive term life insurance premiums among the companies reviewed. Their rates are higher than average, even with the 10% member discount.
Customer reviews for AAA Life Insurance are mixed. While some customers praise the company's service, others have complained about issues with billing, claims processing, and unexpected rate increases.