AAA Life Insurance Reviews 2020

Last modified: November 20, 2020
  • Claims 9
  • Buying 7
  • Transparency 8.5
  • Coverage Variety 7
  • Value For Money 7.5
  • OVERALL RATING 7.8
  • Financial Strength A (AM Best)
  • BBB Rating A+
  • Coverages 4/5
  • Discounts 4/5
  • Flexibility No policy customization
  • Support Email, Phone, Online, Agent
  • User Ratings ConsumerAffairs 2.8
  • Availability All states, except New York
  • Pricing Expensive

About the Company

AAA Life Insurance Company is among the popular insurance companies in the U.S. While the company isn’t directly owned by American Automobile Association (AAA), it is still owned by large entities making up the AAA. This life insurance company has more than $400 million in written premiums, over $1.3 million of active policies, and claims made are more than $2.9 billion. 

AAA Life Insurance offers 4 kinds of life insurance and provides specific features and discounts for AAA members only. 

The company has the following contact details:

  • AAA Life Insurance phone number:  (888) 422-7020 
  • AAA Life Insurance address: 17900 N Laurel Park Dr, Livonia, MI 48152, United States.

If you are wondering if this insurance company is right for you, go through AAA Life Insurance reviews to help you make your decision. 

Let’s get started. 

How We Reviewed 

The AAA Life Insurance reviews are based on several factors to evaluate all aspects of the company. 

We examined the company’s website for available policies and features, as well as the amount of useful information provided for the clients. The website is responsive and includes all the relevant resources needed for existing and prospective clients. 

We also based this review on the financial strength, as well as the ratings and customer reviews found on different websites.  

Moreover, the discounts and coverages were also analyzed. We also determined how discounts impacted the overall cost of the policy. 

These major factors, along with others, were evaluated to determine the overall AAA Life Insurance rating to help you decide whether this insurance company is the right choice for you. 

Where Is It Available?

This insurance company covers all U.S. states, except New York. The policy options and discounts might vary from state to state. The AAA Life Insurance office is in Livonia, Michigan. 

Life Insurance Coverage Options

AAA Life Insurance has several insurance coverage options, a fast application process, and no medical examination requirements. The coverage options include:

AAA Term Life Insurance

There are 3  types of term life insurance offered by AAA:

  • Traditional Term Life
  • ExpressTerm Life
  • Return of Premium Life Insurance 

The monthly premium stays level throughout the period and only increases annually after the period ends.

AAA Permanent Life Insurance

The company offers both universal life and whole life policies for individuals looking for lifelong coverage. It includes all the features listed in other insurance types. 

Whole Life Insurance

There are 2 types of whole life insurance offered by AAA:

  • Whole Life Insurance 
  • Guaranteed Issue Whole Life

Universal Life Insurance

The 2 universal life products offered by AAA are:

  • LifeTime Universal Life
  • Accumulator Universal Life

It is best to get in touch with the agent to determine which policy option is best suited for your budget and needs. 

Available Riders 

The following are the riders available for these policies, they may vary depending on the coverage you get:

  • Disability waiver of premium rider
  • Child term rider
  • Accelerated death benefit
  • Return of premium
  • Accidental death
  • Travel accident insurance 
  • Graded benefit whole insurance 
  • Lifetime membership benefit
  • Guaranteed increase option
  • Yearly renewable term life

AAA Life Insurance Pricing 

AAA Life Insurance price is higher than its competitors for term life insurance. The rates depend on numerous factors, like location, health, gender, and age. Unless you are in excellent health, you will end up paying higher monthly premiums. 

Below is a table with values for the average life insurance cost for a non-smoker with good health, for $250,000 coverage on a 20-year term policy for men and women at different age range as follows:

Age Male Female
25 $20.68 $17.38
35 $22.88  $20.24
45 $46.86 $39.38
55 $108    $77
65 $343.86 $226

AAA Life Insurance Discounts

This insurance provider doesn’t offer many discounts on life insurance but has a number of discounts for auto and home insurance. The only offer available for life insurance is the AAA membership discount:

  • 10% Discount on Premium Payments – AAA members can get this discount on their monthly payment
  • Bundle Discount – AAA members may get further discounts when they get multiple policy from AAA insurance, like auto or home insurance
  • 60% Annual Discount – AAA members and their spouses can get this discount on Guaranteed Issue Whole Life Insurance 

Generally, all life insurance companies offer good discounts for policyholders with a healthy lifestyle. 

Customer Satisfaction and Financial Strength Review

AAA Life Insurance has lower than the expected number of complaints to the state regulators for the company of its size. This company hasn’t been rated by S&P. AAA Life Insurance BBB rating is A+, which means that the company has “excellent ability” of handling claims.    

AAA Life Insurance rating from AM Best is an A, which means that the company has a good rating for customer satisfaction. It received rather bad ratings on Trustpilot and ConsumerAffairs, scoring 2.8 stars and 2.2 stars respectively. 

Platform Rating
BBB A+
ConsumerAffairs 2.8
Trustpilot 2.2

Customer Support 

The AAA Life Insurance customer service has an average rating. 

The website of the company includes all the relevant resources the customers might need. There are downloadable PDF brochures with clearly stated rider information, issue ages, and coverage ranges. There is a detailed FAQ section where you can find answers to all the commonly asked questions. 

To get more information or purchase a policy, you can get in touch with customer support. Fill in the form on the website. There you will find an agent near you through the agent locator. 

AAA Life Insurance customer service phone number is (888) 422-7020, where you can get in touch with a representative to get a free quote, get your questions answered, or file a claim. 

You can also email them. The website doesn’t offer live chat support. 

The customer support is quick, friendly, and informative. There is no transferring between departments or waiting for hours to get help.     

Ease of Buying and Claims Handling 

The application for AAA insurance policy is easy and can be done within a few minutes. The application turnaround time is between one and six weeks for the majority of policies, but it also depends on various factors, including whether or not a medical exam is required.    

AAA Life Insurance delivers the policy via mail or electronically. You can change the address by mail, over the phone, or online. 

All other types of changes, like policy cancellation, requests for a name change, beneficiary changes, must be done in writing or by sending the PDF forms via mail. All the relevant forms are available on the website. 

There are various payment methods you can use to pay the life insurance bills to AAA. These include:

  • Credit Cards: Visa, MasterCard, Discover, American Express. 
  • Phone: Use a check or credit card to make the payment over the phone. 
  • Autopay: Setting up automatic payments through phone or online. 

The company offers a grace period of 31 days from the due date of the bill, but it varies depending on the coverage type. 

The only digital tools offered by AAA are an online quote tool and a coverage calculator. If you want to file a claim with AAA Life Insurance, you can send them an email, fax, or mail. Include the following details:

  • Police report or coroner’s report (if required)
  • Obituary (if available)
  • Certified death certificate
  • Policy number 
  • Name, phone, and address

Unfortunately, you can’t file a claim online or via phone. An agent will get in touch with you to explain the next steps. AAA Life Insurance claims process time varies depending on each case. 

Comparison With Competitors 

To give you a better idea of the home insurance provider you should choose, we compared AAA Life Insurance with two of the major life insurance companies in the market. Let’s have a look:

AAA Life Insurance vs Costco 

Costco has a rather limited selection of insurance options. It only offers Member Advantage Life UL policy, which is a universal life insurance coverage that includes term life features. This policy gives you an option between a 10- or 20-year term policy. The death benefit and premiums of this policy stay fixed all through the level period. 

Costco only has one policy option and two term options. AAA has more options available for the customers. The rates for smokers are also higher with Costco. 

AAA Life Insurance vs Prudential     

Prudential is among the top life insurers for underwriting former smokers and clients with complicated medical history. It has higher customer satisfaction ratings than AAA Life Insurance. The policyholders can also file any claim online, a feature not available with AAA. 

On the other hand, premiums with Prudential are higher for individuals with good health. AAA life insurance reviews show that the company also has a slow application turnaround time. 

Pros & Cons

The Pros

  • Offers no-exam options for both term and whole life insurance policies
  • AAA members can receive discounts on certain policies
  • Easy online payment options available

The Cons

  • Doesn’t offer a life insurance policy over $25,000 coverage
  • Customer support isn’t up to the mark
  • High monthly premiums

Final Verdict

AAA Life Insurance meets the expectations when it comes to claims settlement, trustworthiness, and financial stability. It provides an outstanding term life coverage that can be an ideal choice for healthy, young individuals who are willing to go through a medical examination when needed. 

AAA Life Insurance is best suited for AAA members as they can get discounts and better options. You can cancel your AAA policy anytime you want. If you are an AAA member and looking for a life insurer with good coverage options and customer service, then go with this one. 

FAQs

Is AAA Life Insurance legitimate?

AAA is a legitimate insurance provider. The company has a strong financial stability rating. It offers a range of universal, whole, and term life insurance policies. You don’t have to be a member of AAA to purchase a policy. 

Does AAA offer term life insurance?

AAA offers term insurance coverage from $100,000 to $5 million. It requires a medical examination to qualify. 

What is AAA Direct Term Life Insurance?

AAA Direct Term Life Insurance is a coverage type that spans from a 10- to 30-year period, in which the annual or monthly premium stays the same. Find out more about it in the AAA Term Life Insurance reviews.