USAA Life Insurance Review
Most USAA insurance products are designed and reserved for active members of the military, veterans and their families.
This USAA life insurance review outlines the company’s background and the types of life insurance policies they sell. If you’re ready to compare insurance plans from companies available where you live, you can call to chat with a licensed insurance agent to compare policy costs, coverages and more.
About USAA Life Insurance
The United Services Automobile Association (USAA) was founded in 1922 and today extends to USAA Life Insurance Company and USAA Life Insurance Company of New York.
USAA sells a wide range of insurance products including vehicle, home and property, small business, health, life and more. Most USAA insurance products are designed with veterans and active-duty military members in mind and include military-related benefits and affordable rates.
Where Is USAA Life Insurance Sold?
Most USAA life insurance policies are available nationwide, but some universal life insurance and guaranteed issue policies may not be available in every state.
What Are USAA Life Insurance Eligibility and Exclusions?
Most USAA products are only available to USAA members, and you must have served in the military yourself or have a qualifying family member who did to gain membership.
What Kind of Life Insurance Does USAA Sell?
USAA sells term and whole life insurance, which are the two most basic types of policies and can be suitable for a wide range of people.
USAA Term Life Insurance
USAA term life insurance offers coverage for terms of 10, 15, 20, 25 or 30 years, which is more flexible than the industry standard of just 10-, 20- or 30-year terms. USAA also offers a wide range of death benefits from $100,000 up to $10 million.
USAA life insurance offers coverage if you were to die in war, which is a circumstance typically excluded from life insurance policies through most other companies. USAA also guarantees coverage after leaving the military, payments for injuries suffered while on active duty, the option to convert the policy to permanent coverage and more.
USAA also offers a term life insurance policy that does not require a medical exam for approval. The product is called Essential and is an annual renewable policy which means you have the option to renew every year, but the premiums will typically increase each time you do. This option is only available to those ages 21 to 35 with coverage lasting until the age of 39.
USAA Whole Life Insurance
USAA sells three different types of whole, or permanent, life insurance.
Simplified whole life insurance policies from USAA allow you to make payments for 20 years, until the age of 65 or for the entire duration of the policy and death benefits can be as high as $10 million. Coverage can be increased after certain life events and the policy comes with a free life event rider.
Universal life insurance from USAA includes flexible payment options like the simplified whole life plan while also featuring a guaranteed 2% interest rate.
Finally, USAA’s guaranteed issue life insurance policy do not require a medical exam or even a health questionnaire to qualify. These policies are often referred to as “final expense” life insurance as death benefits are capped at $25,000 and designed to help with funeral costs and other end-of-life care. USAA’s guaranteed issue policies are underwritten by Mutual of Omaha.
Does USAA Life Insurance Have Any Riders?
USAA offers a few optional riders to help further personalize your policy.
A child protection plan allows you to add all your children to your policy, and they may then convert it to permanent coverage when they’re older.
A waiver of premium rider allows you to waive your premiums if you become disabled and unable to work.
Certain life events like getting married, buying a home or having a baby can allow you to purchase additional coverage with no medical exam thanks to a life event rider.
There are also two riders specific to military service. The future insurability rider gives you the option of increasing your insurance upon separation from the military while a severe injury rider pays up to $25,000 if you suffer a covered injury while performing military duties.
Do You Need an Exam for USAA Life Insurance?
USAA offers one term life product and one whole life product that do not require medical exams for approval.
The company’s Essential term life insurance policy does not require a medical exam but may require you to complete a health questionnaire.
USAA’s guaranteed issue life insurance policy requires no medical exam and no health questionnaire.
Additionally, the life event rider allows you to purchase extra coverage with no medical exam needed.
How Is USAA Life Insurance Customer Service?
USAA’s customer service department receives far fewer calls than the industry average, according to the National Association of Insurance Commissioners (NAIC). USAA maintains an A+ rating with the Better Business Bureau along with a 4.1 out of 5 rating with Consumer Affairs.
USAA can be reached by phone or email and a virtual assistant helps you find information on the organization’s website.
USAA Life Insurance Phone Number
Current USAA members can call the USAA custom support number by dialing (800) 531-USAA (8722) or (210) 531-USAA (8722).
There is also a shortcut phone number available by dialing #8722.
What Are USAA’s Life Insurance Financial Ratings?
USAA maintains strong financial ratings from leading credit agencies:
- AM Best: A++ (Superior; the highest of 16 possible ratings)
- Moody’s: Aa1 (Excellent; the second highest of 21 possible ratings)
- S&P Global Ratings: AA+ (Very Strong; the second highest of 21 possible ratings)
Is USAA a Top-Rated Insurance Company?
USAA may not offer some of the more advanced life insurance products found with other companies, but there is plenty for shoppers to be attracted to.
USAA has strong financial ratings and proven customer satisfaction. While coverage is more basic and riders are few, rates are generally kept affordable and if you or a loved one is on active military duty, USAA offers some benefits that are unmatched by any other life insurance company.
You can call to chat with a licensed insurance agent today to learn what types of life insurance policies are available where you live and compare free quotes from several life insurance options.