AAA Life Insurance Review (2024)

Known for roadside assistance and travel discounts, the American Automobile Association (AAA) also sells a wide range of life insurance products through the AAA Life Insurance Company.

However, you do not need to be a club member to purchase a policy. How much does life insurance cost through AAA? A healthy 30-year-old can expect to pay about $16.40 per month for a term policy.

Keep reading to discover if this company is a good option for you.

Below, we look at actual AAA life insurance rates, explore the different insurance products offered, and dive into the company’s customer service reviews and financial strength ratings.

AAA life insurance quotes may not be available where you live, but by entering your ZIP code into our free quote tool above, you’ll immediately receive rates from the top life insurance providers near you.

What are the AAA life insurance rates?

A healthy 30-year-old will have an average monthly rate of $16.40 to buy AAA life insurance.

However, your premium will vary depending on your medical record, occupation, age, and gender.

The table below compares the average monthly rates paid by people of different ages and genders for a 20-year AAA term life insurance policy with a $250,000 death benefit.

AAA Average Monthly Term Life Insurance Rates by Age and Gender

As you can see, young, healthy individuals will have no problem securing an affordable AAA life insurance policy.

Why is insurance so expensive for some people? It could be because of a rocky medical history, a pre-existing condition, or even old age.

While you do not need to be a card-carrying member of AAA to apply for life insurance, members receive a 10 percent discount on their monthly premium.

To seek out a quote, visit AAA.com and navigate to the life insurance page. There, you can also create your AAA life insurance login and profile.

Customers can use the phone, mobile app, and website to manage their policy details.

You can also pay your premium, submit and track claims, and more through the various member portals.

What insurance products does AAA offer?

AAA sells term, whole, and universal life insurance. According to the Insurance Information Institute (III), what form of life insurance you end up getting will depend on a variety of factors, including your age and how long you think you want the coverage.

The company also sells accident insurance and annuities.

The term life insurance options available include ExpressTerm, a 10-, 15-, 20-, or 30-year policy with coverage ranging from $25,000 to $500,000. You must be between 18 and 75 to qualify for coverage.

This policy can cover you in as little as 10 minutes; a medical exam is only required based on your answers to a questionnaire.

The Traditional Term policies feature higher coverage options ranging from $100,000 to $5,000,000. Optional riders include a child term, a disability waiver of premium, and a return on your premiums.

Unlike the Express Term application, which can be handled entirely online for those in good health, you must talk with an agent before purchasing a Traditional Term policy.

There are also two whole life insurance policies: basic Whole Life and a Guaranteed Issue Whole Life option.

The traditional Whole Life policy provides coverage between $5,000 to $75,000. You must be between 18 and 85 years old to qualify.

Optional riders include a child term, a disability waiver of premium, and accidental death and travel accident add-ons. (For more information, read our full article Accidental Death and Dismemberment Insurance: What It Is and How It Works).

The Guaranteed Issue Whole Life policy is a no-medical exam final-expense policy with a graded death benefit. It is available to folks between the ages of 45 and 85, and the death benefit only goes up to $25,000.

If you pass away from a non-accidental death within the first two years of your policy, your beneficiaries receive all premiums paid, plus 30 percent.

The two universal life insurance options available are LifeTime Universal and Accumulator Universal. Both policies are permanent and start at $100,000 worth of coverage.

LifeTime Universal is best for those only intending to leave an inheritance to someone. Accumulator Universal is better for people who plan to use their life insurance cash value while still alive.

Like the name implies, the accident insurance, called Member Loyalty Accident, is only available to AAA members.

The annuity products include EliteGuarantee Deferred Annuity, Platinum Bonus Annuity, and Guaranteed Income Annuity. You must apply with an agent for all three products.

Effortless Claims Handling With AAA Life Insurance

Ease of Filing a Claim

AAA Life Insurance offers multiple convenient methods for filing claims, including online submissions, phone assistance, and mobile apps. Policyholders can choose the option that suits them best, ensuring a hassle-free experience.

Average Claim Processing Time

AAA Life Insurance is committed to efficient claim processing. While specific processing times can vary based on individual cases, the company strives to handle claims promptly, providing timely responses to policyholders.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback on AAA Life Insurance’s claim resolutions and payouts has been positive. The company’s dedication to addressing claims efficiently and fairly has garnered satisfaction among policyholders. Reviews indicate a high level of customer contentment with the claim resolution process.

Exploring Digital and Technological Features of AAA Life Insurance

Mobile App Features and Functionality

AAA Life Insurance offers a user-friendly mobile app equipped with various features. Policyholders can manage their accounts, view policy details, pay premiums, and even file claims through the app. The intuitive interface ensures a seamless experience for users.

Online Account Management Capabilities

AAA Life Insurance provides robust online account management capabilities. Policyholders can access their accounts via the official website, enabling them to update personal information, review policy documents, and track premiums. The online portal offers a secure and convenient way to manage policies.

Digital Tools and Resources

AAA Life Insurance offers a range of digital tools and resources to enhance customer experience. These include informative resources on the website, such as articles and guides, providing valuable insights into insurance-related topics. Additionally, interactive tools help customers calculate insurance needs and explore policy options, empowering them to make informed decisions.

What are the AAA ratings and reviews?

It’s essential to look into the financial strength of a life insurance company before you purchase a policy.

You want to trust that whatever provider you use will be able to pay out your death benefit, even in the event of an economic downturn.

Fortunately, AAA received an A (Excellent) financial score from A.M. Best in August of 2020. You can trust that this company is financially solid.

It would be best if you also looked into customer reviews for any company you’re considering. Pay attention to issues with billing, claims centers, or agents and other customer representatives.

As recorded by the National Association of Insurance Commissioners (NAIC), AAA’s complaint index is 0.91. A score of one is perfectly average.

That number means the provider received an average number of customer complaints for a company of its size. Overall, AAA’s customers appear to be well-taken care of and satisfied.

What is the history of AAA Life Insurance Company?

The American Automobile Association was founded in 1902 to address a lack of appropriate roads for motor vehicles.

Mostly known for roadside assistance packages and travel discounts, the AAA Life Insurance Company didn’t join the family until 1969.

However, the company has been offering life insurance and annuity products to both club members and non-members ever since.

While it may not be one of the top 10 life insurance companies in the United States, today, the provider boasts over 1.3 million active policies.

AAA Life Insurance Company: The Bottom Line

If you’re in good health and are looking for a basic term life insurance policy, add AAA Life Insurance Company to your list of providers to compare.

The company offers a wide variety of term policies with competitive rates. Some term and whole policies are even available without a medical examination.

Another great benefit? Members receive an additional 10 percent off on the life insurance policies.

However, if you want traditional whole life insurance, your options are limited with this provider. The company doesn’t sell whole life insurance with coverage exceeding $25,000.

By taking the time to research companies and compare quotes online, you’ll secure the most affordable life insurance rates from the right provider for you.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

AAA Life Insurance Company may not be active where you live, but you can still compare quotes from the top providers available in your area by entering your ZIP code into our free quote tool below.