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AAA Life Insurance Review: What You Need to Know

Life insurance is an integral component of most any overall financial plan. This is because life insurance coverage can help to ensure that those you love and care about will be secure financially in case the unthinkable occurs.

The proceeds from a life insurance policy can be used for a wide variety of needs. These can include paying off large debts such as a mortgage, as well as for replacing the income of a breadwinner or other income earner so that living expenses of the survivors can still be paid.

Before you purchase a life insurance policy, though, it is essential to have a good understanding of the type of protection that you need, as well as the amount of coverage that is required for locking in your loved ones’ financial security.

It is also important that you review the life insurance company that is offering the coverage in terms of its financial stability, as well as its reputation for paying out its policyholders’ claims. In doing so, you can be more assured that the insurance carrier will be there when it is needed. One company that has a very good reputation in the industry, as well as a long and stable history, is AAA.

About AAA Life Insurance Company

AAA Life Insurance Company has been in the business of offering protection products for many years. In 1969, AAA Life Insurance Company became a part of AAA – and in turn, began offering competitive life insurance products, as well as retirement annuities.

This insurer is headquartered in Livonia, Michigan, and today the company has more than 1.2 million customer and policyholders who depend upon AAA for protecting their loved ones and for ensuring that their financial security is in place.

Due to its strong financial stability and its highly positive outlook for the future, AAA has received high insurer ratings, including an A- (Excellent) from A.M. Best, which is the fourth highest possible rating out of a possible 16 total.

In addition to offering financial protection and assurance to its customers, AAA is also very passionate about giving back to the communities in which it serves. Over the past decade, the company has made a commitment to supporting a variety of different organizations, including the:

  • American Heart Association
  • Alzheimer’s Association
  • American Red Cross
  • American Diabetes Association
  • American Cancer Society
  • Covenant House
  • Motor City Blight Busters
  • Gleaner’s Food Bank
  • Forgotten Harvest

In addition to offering its support to these institutions, AAA has also made combined contributions of more than $700,000 to the United Way.

Types of Life Insurance Policies Offered Through AAA

AAA Life Insurance Company offers a variety of life insurance coverage options. These include term, whole life, and universal life insurance protection. With term life insurance, the insured is covered by death benefit protection, without any cash value or savings build up.

Because of this, term life insurance is often referred to as the most basic of life insurance options. With that in mind, these policies can typically provide affordable life insurance coverage – especially if the insured is young and in good health at the time of policy application.

Term life insurance policies offer coverage for a certain period – or “term.” These can include one year, ten years, 20 years, or even for 30 years. With level term protection, the death benefit and the premium will typically remain the same throughout the entire length of the policy.

There are also some permanent life insurance policy options that are offered by AAA. These include whole life and universal life insurance. With permanent life insurance, there is both death benefit protection and a cash-value component of the policy. Typically, the death benefit coverage will remain in force, provided that the premium is paid.

The cash that is in the cash value portion of the policy is allowed to grow and compound on a tax-deferred basis. This means that there are no taxes due on the gain unless or until these funds are withdrawn. In addition, these funds can be borrowed or withdrawn for any reason that the policy holder sees fit.

Whole life insurance is the most basic form of permanent life insurance coverage. Both the death benefit and the premium amount are typically guaranteed to remain fixed with a whole life insurance plan

Universal life insurance is also a type of permanent life insurance. This type of policy is considered to be more flexible than whole life, though, because the policy holder may choose – within certain parameters – how much of the premium will go towards the policy’s death benefit, and how much will go into the cash value. The timing of the premium payments may also be altered with a universal life insurance policy.

Perhaps you’re searching for ratings from other companies such as the Allstate life insurance rating. If so, we can help you with this and much more.

A Closer Look at AAA Life Insurance Policies

AAA offers many different options with each of the policy types that it offers. These include the following:

Term Life Insurance from AAA

There are two primary types of term life insurance that are offered through AAA Life Insurance Company. There is the Traditional Term Life Insurance option and the Express Term Life Insurance plan.

With the Traditional Term Life Insurance option, an insured can choose from a wide array of time periods, which include 10, 15, 20, 25, and 30 years. During the period that is selected, the policy holder’s payment will remain level.

The Traditional Term Life Insurance plan also offers the ability to convert the policy over to a permanent form of life insurance protection. The insured may also be able to have access to the death benefit funds if he or she qualifies, based on a terminal illness diagnosis.

If an individual chooses to go with the Traditional option, their death benefit coverage can range from $100,000 to $5 million (or even more, depending on the individual situation). The Traditional Term plan is the most affordable of the AAA Life Insurance plans. An applicant will need to take a medical examination as a part of the underwriting process.

This plan offers additional riders that can be used for better “customizing” the coverage to fit specific needs. These riders include the following:

  • Return of Premium Rider – With the return of premium rider, an insured can receive 100 percent of his or her premiums back if they have reached the end of their term policy’s coverage length. (This rider will require that an additional amount of premium is paid).
  • Children’s Term Rider – The children’s term rider allows an insured to add up to $20,000 in life insurance protection for each qualifying child.
  • Disability Waiver of Premium Rider – The disability waiver of premium rider can ensure that the policy’s premiums will be waived in the event of the insured’s qualifying disability.

The Traditional Term life insurance policy may be good option for those who are interested in keeping their premium payments low, and who are also seeking a large amount of life insurance protection.

With the Express Term Life Insurance plan that is offered by AAA, an insured can also choose from term lengths of 10, 15, 20, 25, or 30 years. Here, too, the premium payments are guaranteed to remain level for the life of the policy.

This term life insurance plan is available to those who are between the ages of 18 and 75 – and most people who apply for this coverage can have their plan in-force almost immediately. In fact, in many instances, coverage will go into effect on the same day of application.

When applying for the Express Term option, an applicant will need to answer some medical related questions, however, there is no medical examination that is required. The Express plan offers death benefit coverage that ranges from a low of $25,000 and a high of $250,000.

The Express Term Life Insurance policy that is offered by AAA Life Insurance Company could be a good option for those who want to obtain a policy very quickly, and for those who seek a simpler way of getting their life insurance coverage (such as without the need to undergo a medical examination or a phone interview).

Whole Life Insurance From AAA

Whole life insurance is designed to provide insurance protection for the insured’s entire lifetime. With this type of coverage, the premium is locked in and is guaranteed never to increase – even as the insured gets older.

The cash value in a whole life plan has a guaranteed rate of interest – so it grows each and every year, regardless of what is occurring in the stock market, or even in the economy overall. This protection of cash value can also provide peace of mind for the policyholder, along with the knowledge that there is a cash cushion available if one is needed.

AAA Life Insurance Company offers simple whole life insurance, as well as a guaranteed issue whole life insurance policy option. With the simple whole life insurance, the insured will maintain guaranteed level premiums for the lifetime of the plan, while at the same time building up a stable cash value.

Coverage with this plan can range from $5,000 up to $25,000. And, the insured may be able to access these funds during his or her lifetime if they are diagnosed with a qualifying terminal illness. There is no medical exam needed in order to qualify for this policy.

The simple whole life insurance policy can be a good life insurance policy option for those who want to obtain permanent life insurance coverage without the need to take a medical exam, and for those who want coverage with premium that are locked in for the entire duration of the policy.

This plan can also be further “customized” by adding various riders such as the children’s term rider the disability waiver of premium rider, the accidental death benefit rider, and/or a travel accident rider that provides an additional amount of coverage if the insured dies as the result of a travel related accident.

With the Guaranteed Issue whole life plan, applicants can obtain permanent life insurance coverage without the need to take a medical exam or even to answer any health-related questions.

Universal Life Insurance From AAA

Universal life insurance is also a form of permanent life insurance protection. However, it is more flexible than a whole life policy. AAA offers two universal life insurance policy options. These include the LifeTime Universal Life policy and the Accumulator Universal Life policy. Both of these provide death benefit coverage and cash value build up.

Other Insurance Products Provided By AAA

In addition to life insurance coverage, AAA Life Insurance Company also offers a variety of travel accident products, as well as retirement annuities. Because accidents can – and often do – happen at any time, AAA Life Insurance Company offers a Member Loyalty Accident Insurance plan.

The company also offers both immediate and deferred retirement annuities, which can help retirees to ensure that they will have an income in the future that will last for the remainder of their lifetimes – regardless of how long that may be.

With a deferred annuity, individuals and/or couples can deposit money over time and receive tax-deferred growth of their funds. This means that the gain that occurs on the funds that are in the annuity’s account will not be taxed until the time of withdrawal – which in turn can allow for exponential growth.

The deferred annuities that are offered through AAA provide a guaranteed rate of interest on the principal, as well as safety from the constant ups and downs of the market. This can provide peace of mind in knowing that hard earned savings will still be there in the future.

With an immediate annuity, money can be deposited or rolled over (such as from an IRA or 401k plan). The annuity will then pay out an ongoing stream of retirement income that can never be outlived. If there are two people on the annuity plan, then the annuity will pay out income throughout the entirety of both people’s lives.

Where to Find the Best Premium Quotes on AAA Life Insurance Coverage

When seeking quotes for AAA – or any other company’s – life insurance coverage, it can be best to work with an independent insurance agency. We are such an agency, and we can provide you with the information about coverage and quotes so that you can make a well-informed purchase decision. If you are ready to begin, just simply take a moment to fill out the quote form on this page.

We can also be reached via phone, toll-free, by calling 877-235-9299. By contacting us directly, we can answer any of the additional questions or concerns that you may have. So, contact us today – we’re here to help.

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Liran Hirschkorn

Liran Hirschkorn is the founder of Chooseterm.com. His mission is to help individuals across the country in finding the best rates on life insurance as well as helping individuals with high risk life insurance.

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