AAA Life Insurance Review

Pros Explained

• Offers a return-of-premium term rider: AAA is one of the only life insurance companies we reviewed that offers a return-of-premium rider for its term life policy. This rider allows you to recoup the premiums paid if you outlive the term.
• Sells no-medical-exam coverage online: You can purchase AAA’s guaranteed-issue whole life insurance policy online without taking a medical exam or answering health questions. There is also a term life policy that doesn’t require a medical exam for eligible applicants.
• Discounts for AAA members: AAA members are eligible for discounts on their life insurance premiums. For example, AAA members can save 10% on an annual term life insurance policy premium.

Cons Explained

• Fewer riders than some competitors: Compared to other life insurance companies in our study, AAA has fewer life insurance riders. Additionally, AAA’s life insurance policies don’t include free riders, such as accelerated death benefits.
• Poor NAIC complaint index: AAA receives many more complaints than expected for its size, according to the National Association of Insurance Commissioners (NAIC).
• Expensive term life premiums: Based on the sample quotes we got from the life insurance companies in our study, we found that AAA has some of the most expensive premiums for term life insurance across all age groups.

Financial Stability

AAA Life Insurance Company has an A (Excellent) rating from AM Best, a credit rating agency that grades insurance companies on their ability to meet their financial obligations. An A grade means AAA is financially stable and has an excellent ability to meet policyholder requirements and pay claims.

AAA’s AM Best grade is on par with many other insurers we reviewed. However, some of the best life insurance companies, such as Nationwide and MassMutual, have higher ratings.

Customer Complaints and Satisfaction

The NAIC Complaint Index tracks the number of complaints state regulators receive about insurance companies. An index of 1.00 means the company’s number of complaints is proportional to its size. An index above 1.00 means the insurer receives more complaints than expected, and an index below 1.00 indicates fewer complaints than expected.

AAA’s three-year average NAIC complaint index is 1.698, which means it has many more complaints than expected for its size. AAA doesn’t have the highest complaint index in our study, but many top life insurance companies, such as Nationwide and Ameritas, received far fewer complaints than expected.

Types of Life Insurance Offered by AAA

Term Life Insurance

Term life insurance provides coverage for a specific number of years, called the term. If you die during the term, your beneficiaries receive the death benefit. The coverage ends when your term ends. Typically, term life insurance is more affordable than permanent life insurance.

AAA has two term life insurance options:

• ExpressTerm Life: The ExpressTerm Life policy is available in term lengths of 10, 15, 20, or 30 years, with coverage limits between $25,000 and $500,000. You can get a quote and apply online. Eligible applicants can skip a medical exam and get coverage in as little as 10 minutes.
• Traditional Term Life: The Traditional Term Life policy has the same term options as the ExpressTerm Life policy but has higher coverage limits, ranging from $50,000 to $5 million or more. You can get a quote online, but you’ll need to undergo a medical exam and purchase a policy through an agent. This policy also has an optional return-of-premium rider, so you can get your money back if you outlive the term.

Current AAA members can get a 10% discount on their premiums for both of AAA's term life insurance policies. 

Whole Life Insurance

Whole life insurance is a permanent policy that provides lifetime protection. Your beneficiaries receive the death benefit whenever you die. Whole life insurance also builds cash value, which can be borrowed or withdrawn while you’re still living.

These are the whole life insurance policies available from AAA:

• Whole Life: AAA’s traditional whole life insurance policy is fully underwritten, which means you must complete a medical exam to get approved if you want more than $30,000 in coverage. The policy is available to people between the ages of 18 and 85, and the death benefit options range from $5,000 to $75,000. You must contact an agent to get a quote or purchase a policy.
• Guaranteed Issue Whole Life: This is a true no-medical-exam policy for people between the ages of 45 and 85. You can get a quote and purchase coverage online without taking a medical exam or answering health questions. You are guaranteed coverage regardless of your health. However, the maximum death benefit is $25,000, which may not be enough coverage for everyone.

AAA members can qualify for savings on both of the company’s whole life policies. For the traditional whole life policy, members can get a 10% discount on the annual rate. For the guaranteed issue policy, members and their spouses can save $60 per year.

Universal Life Insurance

Universal life (UL) insurance is a permanent policy that has a death benefit and cash value. You may have the option to use the cash value to adjust your premiums and death benefit as your needs change over time.

The two UL policies that AAA sells include:

• Lifetime Universal Life: The Lifetime Universal Life policy can only be purchased through an agent, and you may be required to take a medical exam. You can select a coverage limit between $100,000 and $5 million or higher. The premiums are guaranteed to remain the same over the life of the policy.
• Accumulator Universal Life: AAA’s Accumulator Universal Life policy has flexible premiums that can be adjusted if you have enough cash value. It has the same coverage limits as the Lifetime Universal Life policy. 

AAA’s UL policies don’t have automatic member discounts. However, AAA members who purchase one of the company’s UL policies may be eligible for additional discounts on a AAA home or auto insurance policy. 

Does AAA Require a Life Insurance Medical Exam?

AAA sells two no-medical-exam life insurance policies. 

The ExpressTerm Life policy uses accelerated underwriting, which means eligibility is determined based on the information you provide on the application, such as your age and medical history. Depending on your responses, you may be able to skip a medical exam, but some applicants will need one to get approved.

The Guaranteed Issue Whole Life policy requires no health questions or a medical exam. Everyone between the ages of 45 and 85 will be approved, even if they have pre-existing conditions or a complicated medical history.

Available Riders From AAA

Life insurance riders are optional policies that provide more protection in specific situations. Here are the riders that AAA offers.

• Child term rider: This rider allows you to purchase a certain amount of life insurance coverage for each of your eligible children.
• Waiver of premium rider: If you become totally disabled, you can stop paying your premiums while keeping your policy in force.
• Accidental death benefit rider: If your death is caused by a qualifying accident, this rider will provide an additional death benefit of up to $150,000 for your beneficiaries. 
• Terminal illness rider: With a terminal illness rider, you can withdraw money from your death benefit while you’re still living if you get diagnosed with a terminal illness and have less than a year to live.
• Return-of-premium rider: With this rider, you can get back the money you paid in premiums if you outlive the policy term. It’s only available with Traditional Term Life Insurance.
• Travel accident rider: This rider provides an additional death benefit to your beneficiaries if you die in a qualifying travel-related accident.
• Guaranteed purchase option rider: The guaranteed purchase option rider enables you to purchase more life insurance coverage in the future without undergoing another medical exam. 

How Much Does AAA Life Insurance Cost?

AAA has some of the most expensive term life insurance premiums among the life insurance companies we reviewed. However, AAA members can earn discounts, which could reduce the annual premium.

Below are AAA’s average term life insurance premiums for males and females in several age groups.

How Much Does AAA Life Insurance Cost for Older Adults?

For older adults, AAA’s premiums are more expensive than our study average. For a 15-year term life policy for a 65-year-old woman, only two other companies in our study had higher premiums than AAA. For 65-year-old males, however, there were seven companies with more expensive rates, including some of the top life insurance companies, such as Nationwide.

Here are AAA’s average premiums for 65-year-old females and males with a 15-year term life insurance policy.

How Does AAA Compare to Other Life Insurance Companies?

How to Buy Life Insurance From AAA

Some AAA life insurance policies can be purchased online without the help of an agent. AAA offers online quotes and online sales for its no-medical-exam policies. For fully underwritten policies, you must contact an agent to get a quote and apply. You can use the contact information below to inquire about purchasing a new policy.

Customer Service

In addition to phone and email support, AAA also offers live chat for policy-related questions and general assistance. Agents are available via live chat Monday through Friday from 8 a.m. to 8 p.m. Eastern time and on Saturday from 11 a.m. to 3 p.m. Eastern time.

The Bottom Line

AAA can be a great life insurance company for existing AAA members. With a AAA membership, you can get a discount on your life insurance premium or another AAA insurance policy. It’s also a good option if you want return-of-premium term life insurance. However, AAA receives many more complaints than expected, so it may not have the best customer satisfaction. Additionally, it has some of the most expensive term life policies among the companies we reviewed.

Frequently Asked Questions (FAQs)

Is AAA Good at Paying Out Claims?

AAA has an A rating from AM Best, indicating that it’s financially stable and able to meet policyholder obligations, which includes paying claims.

Does AAA’s Life Insurance Build Cash Value?

AAA’s permanent life insurance policies build cash value. If you purchase whole life insurance, final expense insurance, or universal life insurance, your policy will generate cash value. Once your cash value reaches a certain balance, you can withdraw the money or borrow it while you’re still living. 

Is AAA Life Insurance Expensive?

AAA life insurance is expensive, based on the sample quotes we collected from 45 life insurance companies. AAA’s term life insurance premiums are among the most expensive in our study. However, AAA members may be able to lower their premiums with special discounts. 

How We Review Life Insurance Companies

To compile our list of the best life insurance companies, Investopedia first conducted preliminary research on dozens of life insurance companies and determined that 45 met our minimum standard for financial strength, customer satisfaction, and online transparency. For each of these, we then gathered a total of 70 evaluation criteria, resulting in 3,150 data points altogether. Data was collected between May 20 and July 3, 2024, and sourced from company webpages, media representatives, third-party rating agencies (AM Best, NAIC, and J.D. Power), and customer service calls.

We combined subject matter expertise, consumer survey and company survey data, and industry research to create a quantitative model that scores each company based on six major categories:

• Application and Online Service Features: 15%
• Policy Types: 22%
• Policy Features and Riders: 35%
• Financial Stability: 6%
• Customer Satisfaction: 10%
• Cost: 12%

For more information, read our full methodology explanation.