USAA Life Insurance Review (2024)
USAA Life Insurance Company is an excellent company with an A.M. Best rating of A++. USAA Life provides term, whole, and universal life insurance. Compared to its competitors, USAA Life insurance rates are just as affordable as other companies. However, USAA Life insurance policies are only available to veterans and their immediate families.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
UPDATED: Dec 17, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Dec 17, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- USAA Insurance is one of the best companies in the United States.
- Only veterans and their immediate families can buy USAA life insurance policies.
- Your USAA life insurance rates can be as low as $9 per month.
- Bundle your USAA car or homeowners policy to save money.
- Create a USAA account to manage your life insurance policy online.
The USAA Life Insurance Company is connected to USAA Insurance Company. However, you can only buy USAA term life insurance and permanent life insurance policies if you’re a veteran or in the immediate family of a veteran.
USAA is one of the largest insurers in the country that offers policies to active military members, veterans and their families. The company’s life insurance policies are available to everyone and most of them are offered nationwide. However, universal life insurance is not available in New York and its guaranteed issue policy is not available in Montana.
Younger USAA policyholders can find affordable USAA life insurance quotes fairly easily, but senior policyholders will pay more. But why is insurance so expensive for older people?
Our USAA life insurance guide explains how much USAA life insurance costs, its third-party ratings, how to cancel USAA insurance, and much more. These essentials will give you a better understanding of USAA and more confidence if you decide to shop with the Texas-based company.
Why stop at USAA Life Insurance Company? Enter your ZIP code in the free comparison tool above to compare multiple companies in your local area.
What does USAA Life Insurance Company offer?
USAA provides two types of life insurance: term and permanent life insurance coverage. Most policies require a health questionnaire and medical exam before approval.
You can buy USAA term life insurance policies for up to 30 years. Meanwhile, permanent life insurance policies like whole life insurance and universal life insurance will last your entire life.
Depending on the state, you may get additional benefits such as: coverage while in war, a $25,000 coverage if you suffer a severe injury while on active duty, guaranteed coverage after leaving the military, the option to transfer to a permanent policy, etc.
What about riders? USAA offers life insurance riders so you can customize your USAA life insurance policy to your needs. Here’s a list of available riders.
- Child Rider
- Waiver of Premium
- Military Severe Injury Benefit
- Military Future Insurability Rider
- Life Event Option
Before you add a rider, go through each insurance option with your agent or a USAA customer service representative. You can reach USAA customer service at 1-800-531-8722.
Customer support is open Monday through Friday from 7:30 a.m. to 10:00 p.m. CT, and Saturdays from 8:00 a.m. to 5:00 p.m. CT. However, the COVID-19 pandemic may adjust staffing hours. Give them a call anyway if you have any questions.
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Do you save money on USAA insurance when you bundle?
USAA also offers car and homeowners insurance policy. If you happen to have a USAA auto insurance policy, ask your agent about bundling your life insurance with your car insurance.
Homeowners insurance appears to be an ideal candidate when bundling with whole life insurance.
Why? Whole life insurance accumulates a cash value over time. Also, you’ll have an option to borrow money against your death benefits. This could supplement any upgrades or renovations to your home.
How much are USAA life insurance rates?
USAA is known for its cost-efficient rates across the insurance industry. But how does it compare to the competition? While USAA provides term life and permanent life insurance policies, we could only capture term life quotes.
However, we can still show you how USAA compares to life insurance industry leaders.
Check out the USAA vs. MassMutual insurance rate comparison below to see which company provides cheaper rates for males who are non-smokers and carry a $100,000 death benefit under a 10-year term life insurance policy.
USAA vs. MassMutual Term Life Insurance Rates for Non-Smoking Males by Age and Death Benefit
| Policyholder's Age | Monthly USAA Term Life Insurance Rates with $100K Coverage and 10-Year Term | Monthly MassMutual Term Life Insurance Rates with $100K Coverage and 10-Year Term |
|---|---|---|
| 25 | $9.49 | $9.23 |
| 30 | $9.49 | $9.23 |
| 35 | $10.15 | $9.31 |
| 40 | $11.32 | $10.53 |
| 45 | $14.24 | $12.97 |
| 50 | $18.57 | $16.97 |
| 55 | $25.15 | $24.10 |
| 60 | $31.07 | $35.50 |
MassMutual life insurance is slightly cheaper than USAA life insurance. However, USAA is less expensive for seniors.
Does the USAA Life Insurance Company have good third-party ratings?
USAA doesn’t have many customer complaints, and it has outstanding customer satisfaction scores. How so? Rating agencies across the United States grade insurance companies on financial performance, customer satisfaction, and investment risk.
So where does USAA stand? Let’s look at a list of its most recent ratings and analyze them.
- National Association of Insurance Commissioners (NAIC) Complaint Index – 0.11 (Ration lower than average)
- J.D. Power Customer Satisfaction – Not included in Life Insurance Study
- A.M. Best – A++ (Superior); aaa (Credit Rating)
The NAIC Complaint Index shows the ratio of insurance complaints received at an insurance company. The 0.11 ratio means USAA had more satisfied customers than complaints.
J.D. Power conducts a study each year to see how consumers respond to their insurance providers. Although USAA had fewer than average insurance complaints, it wasn’t included in the J.D. Power life insurance study in 2020.
However, Cision reported that USAA did participate and received the highest overall score.
Despite the back and forth between J.D. Power and USAA ratings, USAA maintains a stable financial outlook and low long-term credit risk.
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How do you cancel your USAA life insurance policy?
USAA has a 10-day period where you can cancel without fees or other penalties. So how do you cancel?
- Step 1 – Call your USAA agent or customer service and let them know you want to cancel your policy. You can also cancel your policy online by accessing your account with your USAA login.
- Step 2 – Pick a date for cancellation, but policyholders who cancel within the 10-day free look period can cancel immediately.
- Step 3 – If you’re past the ten days, you may have to pay a fee.
It may be more difficult to cancel with USAA since the COVID-19 pandemic has slowed down business. Always leave a message when you contact agents by phone – better yet, send an email if you can.
USAA Life Insurance Recap: What are the pros and cons?
Let’s go over some of the highlights and drawbacks of USAA life insurance. We’ve compiled some advantages and disadvantages of the company. Check them out below.
Comparing USAA Life Insurance Pros & Cons
| USAA Life Pros | USAA Life Cons |
|---|---|
| Affordable life insurance rates | Not available in New York |
| Some life insurance policies come with free perks | Only available to military veterans and their immediate families |
| You can add coverage after significant life events |
USAA isn’t the first company to exclude one state. However, it’s one of the few companies that limit business to veterans only.
USAA Life Insurance Effortless Claims Process
Ease of Filing a Claim
USAA Life Insurance offers multiple convenient ways to file a claim. Policyholders can submit claims online through the company’s official website, over the phone by calling their customer service hotline, or by using the USAA mobile app.
This flexibility ensures that customers can choose the method that suits them best, whether they prefer a digital approach or a more traditional phone call.
Average Claim Processing Time
One of the crucial factors to consider when evaluating an insurance company is the speed at which they process claims. USAA Life Insurance is known for its efficient claims processing.
On average, the company strives to settle claims promptly, helping beneficiaries receive their payouts in a timely manner. The specific processing time may vary depending on the complexity of the claim and the required documentation.
Customer Feedback on Claim Resolutions and Payouts
Customer feedback is invaluable when assessing the reliability of an insurance company. USAA Life Insurance has garnered positive reviews for its claim resolutions and payout processes.
Customers have expressed satisfaction with the company’s responsiveness and the ease of navigating the claims process. These positive experiences contribute to USAA’s reputation for customer-centric service.
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Unveiling Cutting-Edge Digital and Technological Features by USAA Life Insurance
Mobile App Features and Functionality
USAA’s mobile app offers a range of features and functionalities designed to enhance the customer experience. Policyholders can easily access their accounts, review policy details, make premium payments, and even file claims directly through the app. The user-friendly interface and convenient tools make managing life insurance policies on the go a seamless experience.
Online Account Management Capabilities
USAA provides robust online account management capabilities through its website. Policyholders can log in to their accounts to view policy information, update personal details, set up automatic payments, and track their policy’s performance. The online platform offers a comprehensive overview of policy-related activities, empowering customers to stay informed and in control.
Digital Tools and Resources
USAA offers a suite of digital tools and resources to help policyholders make informed decisions about their life insurance coverage. These resources may include calculators for estimating insurance needs, educational articles, and informative videos. These digital assets aim to assist customers in understanding their policies better and planning for their financial futures.
USAA Life Insurance: What’s the bottom line?
If you’re in the military service or closely related (immediate military family only) to someone in the U.S. Armed Forces, USAA insurance would be perfect for you. USAA has cost-efficient life insurance and presents opportunities to add more to your policy.
The company is slightly more expensive than its competitors, but USAA has an excellent customer service reputation with a financial outlook that makes it a valuable player in the insurance industry.
Now that you’ve seen what USAA Life Insurance Company has to offer, use our free online quote tool to get quotes from other top companies in your area.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.