Choosing the right life insurance policy can sometimes be difficult. This is because in doing so, you will want to be sure that you are obtaining the proper amount of coverage, as well as the best type of protection for your specific needs. You can learn more about purchasing coverage by reading our post on life insurance types for dummies!
The proceeds that are received from life insurance coverage can be used by the beneficiary (or the beneficiaries) for just about any need that he or she sees fit. Frequently, some or all of these proceeds will be used for paying off large debt obligations – such as a home mortgage – and/or for paying ongoing living expenses. Life insurance proceeds are also often used for the payment of the insured’s funeral and other final expenses. Having life insurance can provide you and those you love and care about with financial peace of mind just in case the unexpected is to occur.
When you are shopping for life insurance coverage, there are several key variables that are essential to keep in mind. In this case, in addition to the right type and amount of protection, you should also review the insurance carrier that you are buying the policy through.
This is so that you can be more assured that the underlying carrier is strong and stable from a financial standpoint, and that the company has a good, positive reputation for paying out its policyholder claims. One insurer that meets these parameters is USAA Life Insurance Company.
About USAA Insurance Company
USAA Life Insurance Company has been in the business of offering insurance products for nearly a century. Since 1922, USAA has helped individuals and families to grow and protect wealth. USAA Life Insurance company was founded later, in 1963, and today it is considered to be one of the most respected life insurers in the industry.
Unlike many other insurance carriers, for many years, the products and services that were provided through USAA Life Insurance Company were only available to specific individuals who are members (as well as the eligible family members of these individual(s). Today, however, the company offers its products and services to the general public as well.
The primary customers of USAA life insurance company include those who are currently serving in the United States military – which includes those who are in the Air Force, Army, Coast Guard, Marines, Navy, National Guard, and Reserves.
The company also serves those who are former military members, such as those who have either retired or separated from the U.S. military service with an honorable discharge. In addition, cadets and midshipmen who are currently at U.S. service academies, in advanced ROTC, or on ROTC scholarship – plus officer candidates who are within 24 months of commissioning – are also eligible members of USAA.
Likewise, the company services family members – including widows, widowers, and un-remarried former spouses of USAA members who had USAA auto or property insurance while they were married. In addition, the company offers its products and services to those whose parents have or had USAA auto and/or property insurance coverage.
Throughout the years, the net worth of USAA has continued to grow. For instance, as of year-end 2015, the company was reportedly worth nearly $28 billion. USAA is ranked as a top company in Fortune’s “World’s Most Admired Companies” list, and it has a reputation for being a financially strong entity.
At the end of 2015, USAA had more than 11 million members and had more than 47 million products sold. During just 2015 alone, USAA returned more than $1.7 billion to its members and customers.
The company has stellar business rankings, such as:
- Fifth largest personal auto insurer
- Fifth largest home owners insurer
- Ninth largest credit card issuer
- 28th largest bank deposit provider
- 24th largest life insurer
- 51st largest mutual fund manager
USAA is a strong and stable company financially, and because of that, the company has been provided with high ratings from the insurer rating agencies. These include the following:
- A++ (Superior) from A.M. Best Company. (This is the highest possible rating out of 16 total ratings from A.M. Best).
- Aa1 (Excellent) from Moody’s Investor Service. (This is the second highest rating out of 21 total ratings from Moody’s).
- AA+ (Very Strong) from Standard & Poor’s. (This is the second highest out of 21 possible ratings that are given by S&P).
Life Insurance Policies Offered Through USAA
There is a variety of life insurance policies that are offered through USAA. These include both term and permanent. With a term life insurance policy, there is death benefit only protection, and there is no cash value, or savings build up.
A term life insurance policy will, as its name suggests, cover an insured for a set number of years, or term. These terms can typically be as short as just one year, and as long as 30 or more years. Frequently, a term insurance policy can be converted over into a permanent form of coverage.
A permanent life insurance policy offers both death benefit coverage, as well as a cash value component. The cash value is allowed to grow tax-deferred, which means that there is no tax due on the growth of these funds until (or unless) they are withdrawn. These funds can be borrowed or withdrawn for any reason by the policy holder. And, while a policy loan is not required to be repaid if the insured dies while there is an unpaid balance, this amount – plus interest – will be deducted from the amount of the policy’s death benefit that is paid out to the beneficiary.
There is no specific time limit on a permanent life insurance policy. Therefore, the coverage can oftentimes remain in force for the life of the insured – provided that the premium continues to be paid.
There are several different types of permanent life insurance coverage. These include the following:
- Whole Life Insurance – With a whole life insurance policy, the death benefit is guaranteed, as is the amount of the premium. This is the case, regardless of whether the insured contracts an adverse health condition in the future. The cash value on a whole life insurance policy will grow at a set interest rate that is guaranteed by the insurance carrier. Typically, whole life insurance coverage will have a higher premium than a comparable term life insurance policy – all other factors being equal.
- Universal Life Insurance – Universal life insurance also has a death benefit and a cash value. However, this type of permanent life insurance is considered to be more flexible than a whole life plan. One reason for this is because the policy holder can choose how much of the premium will go into the death benefit, and how much will go into the cash-value component of the policy (within certain guidelines).
A Closer Look at Term Life Insurance Coverage Through USAA Life Insurance Company
USAA offers several different term life insurance policy options to choose from. These include the regular term life insurance policy and a term life insurance policy that is designed specifically for members of the military. USAA offers term insurance with coverage lengths of 10 years, 15 years, 20 years, 25 years, and for 30 years. During this time, the coverage will remain level, and the premium payments will also remain the same. This policy with USAA Life Insurance Company can be purchased with premiums that are as low as $14.51 per month.
The term plan that is designed for members of the military offers exclusive benefits such as an accelerated review to help protect the insured’s family members before he or she is deployed, as well as provides coverage during war. It also provides military severe injury coverage. The severe injury benefit covers up to $25,000 if the insured suffers certain injuries in the line of duty.
When a member of the military returns to civilian life, he or she can obtain increased life insurance coverage with no medical exam required – regardless of their health at the time. Depending on an individual’s age and health condition at the time of coverage application, he or she may be able to obtain a military specific term life insurance policy through USAA Life for less than $15 per month.
For those who are seeking both value and lifetime life insurance protection, there is the option of getting combination coverage through USAA Life Insurance Company. In this case, an insured can combine a certain amount of permanent coverage with a level term life insurance policy for a set number of years. In doing so, both short term financial obligations may be covered (such as the payoff of a mortgage), as well as longer term needs that the individual would have for the remainder of their lifetime (such as the payment of funeral and other final expenses, and the possibility of estate taxes).
Other Products Provided by USAA
In addition to term life insurance protection, USAA also offers the following products and services to its members:
- Permanent life insurance coverage (including both whole life and universal life insurance coverage options)
- Survivorship life insurance coverage
- Guaranteed income annuities
- Guaranteed savings annuities
- Medicare Supplement insurance coverage
- Major Medical insurance coverage
- Medicare Advantage coverage
- Medicare Prescription Drug Plans
- Long-Term Care insurance coverage
- Dental insurance coverage
- Vision insurance coverage
- Renters insurance
- Auto insurance
- Home owners insurance
- Valuable personal property insurance
- Flood insurance
- Motorcycle insurance
- RV insurance
- Boat insurance
- Small business insurance
- Retirement annuities
- Checking and savings accounts
- Credit cards
- Auto loans
- Extended vehicle protection
- Certificates of Deposit (CDs)
- Home mortgages – including VA loans and loans to refinance
- Personal Loans
- Motorcycle, RV, and boat loans
- Credit monitoring and ID protection
- College products
- Investments – including mutual funds, IRAs, stocks, stock options, ETFs (exchange traded funds), 529 college savings plans, managed money, fixed income, trust services, wealth management, and overall financial planning
- Shopping discounts
Where to Get the Best Premium Quotes on USAA Term Life Insurance Coverage
If you are searching for the best premium quotes on USAA term life insurance coverage – or on any life insurance product – it is typically recommended that you work with an independent life insurance agency or brokerage. In doing so, you will be better able to compare, side by side, the features, benefits, and premium costs of such policies – and from there, you can determine which one is the best for you and your specific needs.
When you are ready to compare life insurance coverage and costs, we can help. We are an independent life insurance broker, and we work with many of the top rated life insurance carriers in the marketplace today. We can provide you with all of the essential details that you will require for making a well-informed life insurance buying decision. We can do so for you quickly, easily, and conveniently – all from your computer – and without the need for you to meet in person with an insurance representative. If you are ready to move forward with the process, then just simply fill out the quote form on this page.
If you find that you still have any additional questions or concerns, then please feel free to reach out to us directly via phone. Our experts can be reached, toll-free, by calling 877-235-9299.
We understand that the purchase of life insurance can seem somewhat confusing. There are many different items to be aware of – and you want to be sure that you are moving in the right direction concerning the coverage and the benefit amount. But this process can be so much easier when you are working with an ally on your side. So, contact us today – we’re here to help.