Life insurance is an important component of almost all financial plans. That’s because when you have life insurance, you can be much better assured that your loved ones and survivors will be able to go financially in case of the unexpected.
The proceeds from a life insurance policy can be used for many different things, including the payoff of final expenses or other large debts, as well as ongoing living expenses so that loved ones won’t have to drastically change their lives.
When purchasing a life insurance policy, it is important to review several factors before moving forward. Certainly, narrowing down the right type and the amount of life insurance that you are applying for is essential. This is because you don’t want loved ones to be underinsured.
However, it is also essential to review the insurance company through which you are purchasing the coverage.
That is because the insurance carrier should ideally be strong and stable financially, and it should also have a good reputation for paying out its policyholder claims. One insurance carrier that has an excellent track record in the industry is AAA.
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The History of AAA Life Insurance Company
AAA Insurance Company has been in the business of helping its customers since 1902. The company began as The Automobile Club of St. Louis. The company grew very quickly over the next several years.
And, after opening regional offices throughout the state of Missouri, the firm changed its name to the Automobile Club of Missouri (ACMO).
Still, in its early stage, the company hired a young Harry S. Truman, who sold many memberships prior to setting out to pursue his military and political career. AAA introduced many new ideas into the auto insurance world, including roadside service.
Over the next several decades, the company continued to grow and expand, absorbing many smaller auto clubs throughout the state and throughout the country. In 1969, AAA Life Insurance Company became a part of AAA. This company offers both life and annuity products.
Today, AAA Insurance is a large and thriving insurer that offers a wide variety of insurance coverage and other financial products to its customers.
AAA Life Insurance Company Review
AAA Life Insurance Company is headquartered in Livonia, Michigan. Currently, the company has approximately 1.2 million policies in force.
Not only does AAA Life Insurance Company help its customers to save and protect their financial assets, but the company is also very involved in community efforts.
For example, over the past decade, AAA has supported various entities by raising money and/or serving in other manners.
Just some of these organizations include:
- American Heart Association
- Alzheimer’s Association
- American Red Cross
- American Diabetes Association
- American Cancer Society
The company also has an excellent reputation for providing outstanding customer service to its policyholders. The company provides information, including life insurance quotes, via the Internet, telephone, and/or through in-person visits with an agent.
Company Ratings and BBB Grade
AAA Life Insurance is considered to be financially strong and stable, and because of that, it is highly rated in the industry. The company has a rating of A- (Excellent) by A.M. Best, which is the fourth highest rating out of a possible 16.
The company is not an accredited member of the Better Business Bureau (BBB), nor has it been provided with a letter grade between A+ and F. However, over the past three years, AAA Life Insurance Company has closed a total of 18 complaints through the BBB.
Of these 18 total complaints, eight had to do with problems with the company’s product and/or service, another five were regarding advertising/sales issues, and yet another five were in regard to billing and/or collection issues.
Life Insurance Products Offered By AAA
AAA Life Insurance Company offers several options for life insurance coverage. These include both term and permanent policies. The proceeds from these policies can be used by loved ones and survivors for any need that they see fit.
Term Life Insurance Coverage
With term life insurance coverage, the policy offers pure death benefit protection only, with no cash value or savings build-up in the policy. These policies are purchased for a set period, or “term.” There are several term life insurance options that are offered via AAA.
Term with Return of Premium
The term with return of premium policy is offered for periods of 15, 20, 25, or 30 years. Insured individuals can be covered for between $100,000 and over $1 million. With these plans, the insured is covered throughout the life of the policy.
And, if he or she survives that time period, then the premiums paid into the policy will be returned. (There is an additional amount of premium that is charged for the return of the premium option).
Traditional Term Life Insurance
With the traditional term life insurance product, coverage of up to $5 million (or more) is available, with a minimum death benefit of $100,000. Coverage terms can be chosen from 10 years, 15 years, 20 years, 25 years, or 30 years.
The premium payments are guaranteed to remain level throughout the life of the policy. Also, an insured may have the option to convert this term insurance into a permanent form of life insurance coverage.
Express Term Life Insurance
Express term life insurance from AAA Life Insurance Company may be purchased via the Internet. These policies offer coverage of between $25,000 and $250,000 and the term lengths that can be chosen from are 10, 15, 20, 25, or 30 years.
Those who are between the ages of 18 and 75 are eligible to apply.
Permanent Life Insurance Coverage
AAA Life Insurance Company also offers permanent life insurance coverage. With permanent insurance, the insured has both death benefit protection as well as a cash value component within the policy that can allow savings to build up. These savings can grow tax-deferred.
There are both whole life and universal life insurance policy options that are available through AAA. Whole life insurance offers long-term insurance coverage with fixed premiums for life.
The whole life insurance plans that are offered via AAA include:
Simple Whole Life Insurance
The simple whole life insurance policy is easy to obtain. Coverage may be purchased between $5,000 and $25,000. There is no medical exam required to qualify for this plan.
Rather, there are only just a few health questions to answer. An insured may also be able to obtain funds early if he or she is diagnosed with a terminal illness.
Guaranteed Issue Graded Benefit Whole Life Insurance
For those who are between ages 45 and 85, the guaranteed issue plan may be a good fit. This policy offers coverage without any medical exam or health questions. It also offers guaranteed premiums.
Universal Life Insurance Coverage
Universal life insurance is also a permanent form of coverage, except that it offers more flexibility than whole life concerning premium payment, as well as where the premium dollars go.
AAA offers two universal life insurance policies. These include the Accumulator Universal Life and the LifeTime Universal Life policy.
Other Insurance and Financial Products
In addition to life insurance coverage, AAA Life Insurance Company also offers other products as well. These include annuities (both immediate and deferred), and accident insurance coverage.
Annuities can help individuals to both save for retirement in a tax-advantaged way, as well as to provide an income in retirement – and this income can last for the remainder of the annuity holder’s life, regardless of how long that may be.
With an immediate annuity, an individual deposits a lump sum. This can either be cash from a savings or investment account, or it can be through a “rollover” from an IRA account or a retirement plan such as a 401(k) account.
The income stream from the immediate annuity will then begin right away, or within a very short time period.
A deferred annuity provides the ability to build up savings over time. Here, the funds that are within the annuity are allowed to grow on a tax-deferred basis – which can allow the money inside of the annuity to grow and compound exponentially over time.
Then, at a point in the future, the income stream will begin. In many ways, an annuity is like a personal pension plan.
Accident insurance is also available through AAA Life Insurance Company. Because accidents can – and often do – occur unexpectedly, this coverage can help to provide financial support to an individual who is involved in an accident, or that person’s loved ones.
There are some key benefits that are offered through the AAA Life Insurance Company’s accident insurance coverage.
These include the following:
- Hospitalization: Accidents can be an expensive situation – and sometimes, the hospitalization that is received may or may not be covered via a regular health insurance policy.
With the AAA plan, an insured individual can be covered for up to $375 per day for a covered non-travel related accident, and for up to $1,500 per day for travel-related accidents. These benefits can be paid for up to 365 days per occurrence.
- Recuperation: Sometimes, even when a person is released from the hospital, they may or may not be ready to go back to work. The bills, however, for everyday living expenses will continue to come in.
The recuperation benefit on the AAA accident plan can offer another $1,500 per day in benefits that will help with recuperating from a travel-related accident, or up to $375 per day on a covered non-travel related accident. These benefits can be paid for up to 365 days.
- Emergency Room and Urgent Care: The cost of emergency room care can also be quite high – and there may be some benefits that are not covered via a regular health insurance policy.
With the AAA accident policy, an annual benefit of $1,500 can be paid for ER and urgent care that is received for a travel-related accident, and up to $375 per year can be paid for a non-travel related event.
- Accidental Loss of Life: Unfortunately, some accidents will result in the loss of life. If this occurs, a benefit of $500,000 can be paid for the loss of an insured’s life when he or she has been traveling on a regularly scheduled airline flight.
A benefit of $250,000 can be paid for accidents that result in the loss of life when the insured is either riding in or driving a private car, truck, motorcycle, self-propelled motor home, or bicycle.
This benefit can also be paid if the insured had been traveling as a fare-paying customer on public transportation such as a train, bus, airplane, or taxi.
In addition, $250,000 can be paid out in benefits if the insured was struck by a motor vehicle as a pedestrian, and a benefit of $62,500 can be paid for death that is due to a non-travel related covered accident.
AAA members who are at least age 18 or older are eligible to apply for the Member Loyalty Accident Insurance plan. There is no medical exam required to qualify for this coverage.
How to Get the Best Life Insurance Premium Quotes
When seeking life insurance quotes, it is best to work with an independent company that has access to multiple insurance carriers. That way, you will be more easily able to compare what is available to you.
If you are ready to move forward with getting life insurance quotes, we can help. We work with many top life insurance carriers, so can assist you with your needs.
Term Life Insurance smoker applicants can find help and information here as well. Just simply take a few moments to fill out the form on this page to begin.
The Bottom Line – AAA Life Insurance Company Review
Life insurance plays a crucial role in safeguarding financial plans, and offering security to loved ones in times of unexpected adversity.
Advanced Home Warranty has a diverse range of policies to cater to individual needs, but it’s vital to choose the right type and coverage amount to prevent underinsurance. AAA Life Insurance, with its long-standing history and strong financial stability, stands as a reliable option.
The company’s involvement in charitable efforts and commitment to excellent customer service adds to its appeal. While some complaints have been noted, its A- rating by A.M. Best suggests financial strength. Overall, life insurance remains a cornerstone of sound financial planning.
How We Review Insurance Companies
Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability.
Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.
We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.
Each company is then rated based on multiple criteria, resulting in a star rating from one to five.
AAA Life Insurance Company Review
Product Name: AAA Life Insurance Company
Product Description: AAA Life Insurance Company offers a variety of life insurance options, including term life and permanent life policies. These policies provide financial security and peace of mind to policyholders and their loved ones, ensuring that in the event of the unexpected, financial needs are met.
Summary of AAA Life Insurance Company
AAA Life Insurance Company is a well-established provider of life insurance solutions, offering a range of coverage options to meet diverse needs. Their portfolio includes both term life and permanent life insurance policies.
Term life insurance policies, such as the “Term with Return of Premium” option, provide coverage for a specified period, with the added benefit of premium returns if the insured outlives the policy. Traditional term life policies offer coverage terms ranging from 10 to 30 years, with guaranteed level premiums. There’s also the convenient Express Term Life option for those seeking coverage online.
Cost and Fees
- Diverse Coverage Options
- Strong Financial Stability
- Community Involvement
- Not BBB Accredited
- Some Customer Complaints
- Coverage Limitations