AAA Life Insurance | Company Review

AAA Life Insurance Company

Although most people in the U.S. are familiar with AAA Insurance because of their Motor Club, the company is in the life insurance business too.

Not as just a referrer like other companies, rather they are an actual life insurance company that deserves a look from consumers looking for financial protection.

Here, we’ll drill down and provide you with our AAA Life Insurance – Company review.

About AAA Life Insurance Company

AAA Life Insurance Company was established in 1969 as a subsidiary of AAA (the American Automobile Association). The company was established to offer life insurance and annuity products to AAA’s membership and the general public. With headquarters located in Livonia, Michigan, the company is currently servicing over 1,300,000 active insurance policies.

Membership in AAA (Triple A) is not required to purchase life insurance from AAA Life but being a member does provide some additional discounts. Unlike Costco life insurance, AAA life insurance company actually underwrites the policies.

Financial Ratings and Outlook for AAA  Life Insurance

AM Best logo

It’s import for consumers to check out the financial ratings of the company they intend to trust with their life insurance. Certainly, product and pricing are the most important aspects for most life insurance shoppers, but doing business with an insurance company on shaky ground could end in disaster.

We were able to determine that A.M. Best rating service awarded AAA Life Insurance Company with an A (Excellent) rating for 2018 which was an upgrade from A- in 2017. A.M. Best also reports that the company’s outlook is “stable” which signifies they will be able to meet their claims expectations and operating expenses going forward.

Although AAA Life Insurance Company is not an accredited member of the Better Business Bureau, they are given an A- rating. The BBB website indicates 27 complaints which is uneventful for a company servicing over 1,300,000 policyholders.  Most of the best life insurance companies available have more than 27 complaints.

Communicating with AAA Life Insurance Company

Like many other national life insurers, AAA has a customer portal on their company website which allows policyholders to use their AAA Life Insurance login to conduct a number of business services through their website.

The AAA Life Insurance website also offers a handful of useful resources right on their site that can guide prospective customers through the life insurance shopping process. Each tab moves the prospect one step closer to making a purchase decision:

  • Getting Started
  • Life Insurance 101
  • Calculate Your Needs
  • Why AAA Life?
  • Resources (links to articles about all life insurance topics)

Life Insurance Products offered by AAA Life Insurance

symetra life insurance

In an effort to provide solutions for all prospective customers, AAA Life Insurance offers a variety of insurance products:

AAA Term Life Insurance

Like most insurance carriers, AAA offers Convertible Term Life Insurance which is the most economical, but they take one additional step by offering their Express Term which requires no medical exam and can be purchased directly from the company as long as the applicant does not need more than $250,000 in insurance coverage.

The company’s traditional term life insurance is offered through an agent distribution system and is fully underwritten but much higher face amounts are available to applicants. Since this product is fully underwritten and a medical exam is required, applicants should expect the company to take 4 to 6 weeks to issue a policy.

AAA does not require applicants to be a member of Triple A but if you are a member your policy fee for the term insurance will be waived by the company (typically $60). Additionally, if you are a member of the auto club and pass away during the policy term, your spouse will receive an AAA auto club membership free for their lifetime.

Here is the breakdown of coverage for the AAA Life Insurance Traditional Term Policy and Express Term Policy:

 Traditional Term InsuranceExpress Term Insurancc
Term Period10, 15, 20, 25, and 30 years10, 15, 20, 25, and 30 years
Coverage Available$50,000 and up$25,000 up to $250,000
Eligible Ages18 to 75 years old (coverage stops at age 95)18 to 75 years old (coverage stops at age 95)
Application RequirementsPurchase through a licensed agent; application with health questions, medical exam, can take 6 weeks to processApplication is completed online with telephone interview follow-up; policy approval and issuance can be the same day
Optional Riders Available
  • Return of Premium (other than 10-year term)
  • Terminal Illness rider
  • Disability waiver of premium
  • Child Term coverage
  • Travel Accidental Death
  • Terminal Illness rider
  • Disability waiver of premium
  • Child Term Coverage
  • Travel Accidental Death
  • Accidental Death Benefit

AAA Whole Life Insurance

AAA Life Insurance offers two types of whole life insurance products that are great solutions for prospective customers or members looking for final expense insurance.

  1. Simplified Issue Whole Life – this is a no medical exam whole life policy that is underwritten using the applicant’s answers to the questions on the application and takes a very liberal underwriting view of the applicant. Since the policy’s death benefit is limited to $25,000, the AAA simplified issue whole life is a great solution for final expense insurance.
  2. Guaranteed Issue Whole Life – The AAA guaranteed issue whole life policy was designed for applicants who do not qualify for their simplified issue whole life because of multiple or severe health issues. No medical exam is required and there are no health questions on the application.

Here is the breakdown of the AAA Life Insurance simplified issue whole life and guaranteed issue whole life:

 Simplified Issue Whole LifeGuaranteed Issue Whole Life
Max Face Amount$25,000$25,000
UnderwritingApp with health questionsApp without health questions
Eligible Ages0 to 80-years old45 to 85-years old
AAA MembershipNot required but discount if a memberNot required but $60 annual fee waived for members

It’s important to point out that the simplified issue and guaranteed whole life policies have all of the same guarantees and benefits as traditional whole life insurance.

  • Guaranteed Coverage for a Lifetime – Since the insurance company cannot cancel your whole life policy for any reason other than non-payment, your coverage remains in force as long as you pay your periodic premiums.
  • Level Premiums for a Lifetime Once your simplified or guaranteed issue policy is in force, the insurance company cannot increase your premiums. Even if you develop a terminal illness and have to live in a nursing facility, your company cannot increase your payment.
  • Cash Value – Just like traditional whole life insurance, AAA’s simplified issue, and guaranteed issue insurance coverage builds cash value over time. You can easily access this cash through policy loans, withdrawals, or surrendering your policy for all of your cash value.
Your no medical exam whole life policy from AAA Life Insurance can be customized to meet your individual needs by adding insurance riders that can broaden your coverage and offer additional living benefits:
  • Accidental Death Benefit – this rider provides for the insurer to pay to pay an additional death benefit (up to $25,000) if your death is the result of an accident.
  • Travel Accident Rider – This optional rider increases the amount of your death benefit if your death is the result of an accident while traveling or because of a car accident.
  • Child Term Rider – The child term rider allows the named insured to add all of their qualified children to the policy with coverage up to $5,000.
  • Terminal Illness Rider – This rider provides for the insurance company to pay the insured up to 50% of the policy face amount if they are diagnosed with a terminal illness that will result in their death within 12 months. There are no restrictions on how this money can be used. When the insured passes away, the death benefit will be reduced by the amount of the payout to the insured.
life insurance policy genius


AAA Universal Life Insurance

AAA understands that many customers prefer to have permanent life insurance that is not only flexible but also offers a method to develop substantial cash value. Knowing this, AAA offers two types of Universal Life Insurance: LifeTime and Accumulator.

The LifeTime universal life policy is similar to GUL (guaranteed universal life) where although the coverage will last for a lifetime with premiums to remain level over time, the policy is not designed to build cash value like a traditional universal life policy.

The LifeTime policy is a great solution for applicants who prefer a lifetime insurance product with premiums lower than whole life insurance. Although this policy is also a good candidate for final expense insurance, it does not have the coverage restrictions that typical final expense policies contain.

Conversely, AAA’s Accumulator Universal Life Policy is similar to traditional universal life where the cash accumulation is most important and the policy has the flexibility needed to accommodate life events of the insured. The Accumulator UL policy is also a great solution for applicants who expect to use their cash value over time as a means of emergency or even planned income.

Here is the breakdown of the AAA Life Insurance LifeTime Universal Life policy and the Accumulator Universal Life policy:

 Accumulator Universal Life 
Minimum Face Amount$25,000$25,000
Eligible Issue Ages0 to 80-years old0 to 85-years old
Underwriting ProcessFully underwrittenFully underwritten
Periodic PremiumsFlexible premiums based on cash value availabilityCan remain level up to age 100
Optional Riders Available
  • Terminal Illness Rider
  • Additional term coverage for named insured
  • Accidental Death Benefit up to $150,000
  • Disability waiver
  • Child term coverage up to $20,000
  • Terminal Illness Rider
  • Accidental Death Benefit up to $150,000
  • Disability waiver
  • Child term coverage up to $20,000

Applicants should speak with an agent to get complete information and pricing for each available rider. Each type of policy has its own terms and conditions.

AAA Life Insurance Accident Insurance

man in wheelchair

The AAA Accident policy makes a great supplement to your life and health insurance coverage. As accident insurance, this policy will pay a benefit for death, hospitalization, and emergency and urgent care visits which are the direct result of an accident.

The coverage for the Accident policy is guaranteed to AAA members regardless of preexisting conditions and requires no medical underwriting or medical exams. The benefit you receive is based on the number of years you’ve been an AAA member. Interested members are urged to contact AAA direct for more information on the AAA Accident Plan.

AAA Life Insurance Company Annuities

The management at AAA Life Insurance understands that consumers who are looking for conservative investments want choices. As such, AAA offers three different types of annuity products:

EliteGuarantee Deferred Annuity

The EliteGuarantee Deferred Annuity is a deferred annuity that allows the applicant to lock in a guaranteed interest rate for three years. After the three-year lock-in period expires, the annuity will automatically renew and pay interest based on the current rates declared by the company. You can keep your renewed annuity or move your funds to an alternate plan. The minimum amount to fund the EliteGuarantee deferred annuity is only $3,000.

Platinum Bonus Annuity®

The Platinum Bonus Annuity is also a deferred annuity. This annuity offers a competitive fixed interest rate for the first year along with additional first-year bonus interest. After your initial payment is made, the contract owner can decide the amount of future contributions and create their own time schedule of payments. Contract owners can access up to 10% of the funds in their annuity once per year and if the contract owner dies, the funds in the annuity will be paid to his or her beneficiary.

Guaranteed Income Annuity

AAA’s Guaranteed Income Annuity is for applicants who want to invest one lump sum (like a 401k rollover) and then receive a guaranteed income, even for a lifetime. You decide (based on the annuity’s expected value) how much your payments are and how long you will receive them. There are important additional options like the Joint Lifetime Guarantee where you can arrange for your spouse to receive regular income payments after you’ve passed away.


As a highly-rated insurance company with multiple insurance and investment products, AAA Life Insurance should be one of the carriers that you check out before making a decision about your life insurance or investment products.

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