AAA Life Insurance Review: Wide Variety of No-Exam Policies, Plus Great Member Discounts

AAA Life Insurance Review: Wide Variety of No-Exam Policies, Plus Great Member Discounts

A wide variety of policy options and benefits makes AAA a good consideration, for both term and permanent policies.

Good for

  • Offers no-exam options for both term and whole life insurance policies
  • AAA members that can receive a discount on certain policies
  • Easy online payment options

Bad for

  • No whole life insurance policies over $25,000 in coverage
  • Issues with post-purchase customer service

Editor's Rating

4.0/5.0

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AAA offers a good variety of term, whole and universal life insurance policies, and you don't need to be a member in order to purchase. And the company offers a no-exam alternatives for its term and whole life insurance policies as well—though you'll be limited to a much smaller amount of coverage with somewhat higher rates. One of the few elements missing from AAA's portfolio of life insurance policies is traditional whole life insurance, so you would need to look to other insurers for policies over $25,000 in size. And though the company receives strong financial strength ratings and few complaints, reviews of its post-purchase customer service are mixed.

AAA Term Life Insurance

AAA offers both a traditional term life insurance policy as well its Express Term policy. Express Term is a simplified issue, or no medical exam, term life insurance policy. In addition to not requiring an exam to apply, the key differences between the policies are that Express Term only offers up to $250,000 in coverage, but you apply directly online and can receive an approval decision in less than an hour. AAA's traditional term life insurance policy can only be purchased through an agent, and it takes weeks to be approved, but you can purchase a significantly larger amount of coverage and rates are typically lower per dollar of coverage.

In addition, only AAA's traditional term life insurance can be purchased with a return of premium rider. If you add this rider, the price of your insurance policy is higher, but if you outlive the policy term, your premiums paid are returned to you. And, if you choose to cancel your policy partway through the term, you'd receive a portion of premiums paid in return. However, this rider is only available for those younger than the age of 65 who are purchasing policies with at least $100,000 in coverage for a term of 15 or more years. Plus, no other riders can be added to a return of premium policy.

Both of AAA's term policies can be purchased if you're not a member, though the $60 annual fee is waived for members who purchase Express Term. And if you die during the term of the policy, your spouse will receive a lifetime AAA membership for free. Since AAA also offers permanent life insurance policies, all term policies can also be converted to permanent coverage without demonstrating proof of insurability, either at age 65 or the end of the initial term.

Traditional TermExpress Term
Term Lengths10, 15, 20, 25 or 30 years10, 15, 20, 25 or 30 years
Coverage Amount$50,000+$25,000-$250,000
Age Availability18-75 years old (coverage ends at 95)18-75 years old (coverage ends at 95)
Application ProcessApply through agent; health questions and medical exam required; up to six weeks to processApply online; health questions over the phone, no exam; approval can be same-day
Available Riders
  • Child Term (up to $20,000 per child)
  • Disability Waiver of Premium
  • Travel Accident (up to $250,000 additional payout if you die in a travel accident)
  • Terminal Illness (access up to 50% of your death benefit or $500,000 while still alive if less than one year to live)
  • Return of Premium (not available for 10-year term)
  • Child Term (up to $20,000 per child)
  • Disability Waiver of Premium
  • Travel Accident (up to $250,000 additional payout if you die in a travel accident)
  • Accidental Death (up to $200,000 additional payout if you die in an accident)
  • Terminal Illness (access up to 50% of your death benefit or $125,000 while still alive if less than one year to live)

AAA Whole Life Insurance

Triple A only offers simplified issue and guaranteed issue whole life insurance policies, neither of which requires a medical exam, and both of these have a maximum coverage amount of $25,000. Therefore, AAA is a good option if you want permanent life insurance in order to cover final expenses and would have trouble qualifying for traditional coverage, such as if you're a senior or have pre-existing medical conditions. But its whole life insurance coverage is likely not sufficient to provide income replacement, give your heirs and inheritance, or cover a large expense for your family, such as college for your children.

Simplified Issue Whole LifeGuaranteed Whole Life
Maximum Coverage$25,000$25,000
UnderwritingHealth questions, no examNo health questions or exam, acceptance guaranteed
Age Availability0-80 years old45-85 years old
AAA MembershipNot required for coverage; policyholders can get discount on other AAA insurance productsNot required for coverage; members will have $60 annual policy fee waived

AAA Simplified Issue Whole Life Insurance

AAA's simplified issue whole life insurance policy is fairly standard—premiums are level until age 100, after which they're not required, and the policy builds cash value at a guaranteed rate over time. So long as you continue to pay premiums, the policy will remain in force, so your beneficiaries will receive a death benefit no matter what age you die.

A no-exam whole life insurance policy from AAA can also be customized with riders, depending on your coverage needs:

  • Terminal Illness: If you're diagnosed with an illness and expected to have less than 12 months to live, you could receive up to 50% of your policy's death benefit while still alive. This rider is included at no cost and can be valuable, as the money can be used to pay hospital expenses incurred due to your illness.
  • Child Term: You can cover each of your children with up to $5,000 of life insurance.
  • Disability Waiver of Premium: If you become disabled, premiums are waived while coverage remains in place.
  • Travel Accident: This rider increases the death benefit paid to your beneficiaries if you die while traveling or due to a traffic accident.
  • Accidental Death: If you die due to an accident, your beneficiary would receive a larger death benefit. The payout can be increased by up to $25,000, but this additional amount would not be paid if you died due to a nonaccident, such as an illness.

Simplified issue whole life insurance rates are higher than those you'd pay for fully underwritten coverage, and we wouldn't recommend AAA's policy unless you're concerned about passing a medical exam or need coverage quickly. Though AAA does ask some health questions, an approval decision is typically made within a week, whereas you may need to wait over a month to get approved for whole life insurance with another insurer.

AAA Guaranteed Issue Whole Life Insurance

For seniors and those with pre-existing conditions, AAA also offers final expense insurance, which is a guaranteed-issue whole life insurance policy. Since there are no health-related questions and you don't have to complete an exam, all applicants between ages 45 and 85 are accepted. However, coverage is limited for the first two years that the policy is in force. If you die due to a nonaccident during the first two years of coverage, your beneficiaries would only receive the sum of premiums paid plus 30% interest.

In addition, rates for guaranteed-issue whole life insurance are typically even higher for the same amount of coverage than those for simplified issue policies. We'd only recommend AAA's final expense insurance if you need coverage but are unable to qualify for another type of policy.

However, AAA's guaranteed whole life insurance does offer two unique benefits to your family. After your policy has been in place at least two years, you and your spouse receive a free lifetime AAA membership. And, if you add the Travel Accident Endorsement, your beneficiaries would receive twice as large a payout if you die while traveling.

AAA Universal Life Insurance

AAA offers two universal life insurance policies: LifeTime and Accumulator. The LifeTime policy is similar to a guaranteed universal life insurance policy—premiums are guaranteed to remain level over time, and it has lower rates for coverage since it's not designed to accumulate cash value. Instead, AAA's LifeTime universal life insurance is a great consideration if you want permanent coverage in order to leave an inheritance or money for your family to support themselves after you die.

On the other hand, AAA's Accumulator universal life policy has higher rates, greater opportunity to grow your policy's cash value and more flexibility in how you pay premiums. If you intend to use your life insurance cash value while still alive, or prefer being able to adjust your premiums to fit your financial situation, the Accumulator policy will fit your needs better. But we still recommend comparing rates and terms against those of other companies, as cash value life insurance is quite expensive and it can be costly to change insurers later.

LifeTime UniversalAccumulator Universal
Minimum Coverage$25,000$25,000
Age Availability0-85 years old0-80 years old
Application ProcessFull underwriting; apply through agent; up to six weeks to processFull underwriting; apply through agent; up to six weeks to process
PremiumsCan remain level until age 100, after which not requiredCan be adjusted based upon your cash value and preferences
Available Riders
  • Child Term (up to $20,000 of coverage per child)
  • Disability Waiver of Premium
  • Accidental Death (up to $150,000 added to payout if you die in an accident)
  • Terminal Illness (access up to 50% of your death benefit or $500,000 while still alive if less than one year to live)
  • Child Term (up to $20,000 of coverage per child)
  • Disability Waiver of Premium
  • Accidental Death (up to $150,000 added to payout if you die in an accident)
  • Additional Insured (coverage for spouse)
  • Guaranteed Purchase Option (increased coverage at later date without proof of insurability)
  • Primary Insured (additional term coverage on yourself)
  • Terminal Illness (access up to 50% of your death benefit or $500,000 while still alive if less than one year to live)
Other BenefitsPolicyholders can qualify for a discount on other AAA insurance policies.Spouse receives free AAA membership for life after your death. Policyholders can qualify for a discount on other AAA insurance policies.

AAA Accident Insurance

AAA offers multiple accident insurance policies, such as its Classic Car Accident Insurance Plan and Member Loyalty Accident Insurance, which are quite similar to each other in coverage. The policies provide a daily benefit to help cover hospitalization, emergency room visits and recuperation if you're injured in an accident. So, for instance, if you fall off a ledge and stay five days in the hospital, you would receive a payment up to a certain limit for each day spent there, up to 365 days per accident. AAA accident insurance policies also offer a death benefit if you die due to an accident.

Accident insurance coverage is guaranteed issue for AAA members 18 and older, meaning you won't be denied and coverage begins as soon as payment is process, but membership is required in order to qualify. And the amount of coverage you qualify for is determined based upon your years of AAA membership. For example, if you've been a member at least six years, you could qualify for $40,000 of Classic Care accidental death insurance coverage. But you'd only qualify for up to $20,000 of accidental death coverage as a first year member. Coverage is purchased on an annual basis, so you would need to opt in to renew your policy each year.

AAA Life Insurance Customer Reviews & Ratings

AAA Life Insurance Company has a strong financial strength rating, receiving an A, or Excellent, rating from A.M. Best. In addition, the company's NAIC Complaint Ratio, which indicates the number of negative reviews it receives in proportion to its size, is quite good—AAA's complaint ratio was just 0.15 as compared to the national median of 1.00.

However, the company's customer service and claims process have received negative reviews, typically from customers that have had troubles with AAA's billing or beneficiaries that ran into delays when making a claim. Your experience may vary depending on the agents you work with, but we recommend keeping careful records of premium payments and any contacts with the company if you decide to cancel your policy. You should also make sure to provide your beneficiaries with all life insurance policy details, as well as information on how to contact and file a claim with AAA, in order to reduce potential problems after your death.

AAA Life Insurance Payments

Payments for AAA life insurance can be made via check, credit card or transfer from a checking or savings account. You can either make payments one-off, online, through mail, or over the phone, or set up monthly recurring payments by logging to AAA's payment center. In addition to paying your bill, you can also change some AAA policy information online, such as your current address, and access additional forms related to updating your coverage.

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