AAA Life life insurance review: High rates, even with member discounts
AAA offers no-med policy options for term life and whole life, but its rates are higher than average.
Logan SachonLogan SachonSenior Managing Editor, Life Insurance & ResearchLogan Sachon is a former senior managing editor of life insurance and research at Policygenius. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.
Adam MorganAdam MorganEditorial DirectorAdam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others. As a journalist, his work has appeared in Esquire, Scientific American, The Guardian, Los Angeles Times, and elsewhere.
Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
AM Best rating
AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
The bottom line
AAA Life Insurance Company, which is affiliated with the American Automobile Association, sells term, whole, and universal life insurance policies direct to consumers. While anyone can apply, its rates are higher than average, even with the 10% member discount it offers AAA members on some policies.
Note: AAA Life products are not available through the Policygenius marketplace.
No-medical-exam term and whole policies available
AAA members receive premium discounts
Low coverage limits for some policies
Basic coverages offered
Term life insurance: AAA Life has two term life insurance products. ExpressTerm is a no-medical-exam policy available for people age 20 to 75, for coverage amounts of $25,000 to $500,000, and for terms of 10, 15, 20, or 30 years. Traditional Term is a fully underwritten term life policy available for people age 18 to 75, and for coverage from $50,000 to $5 million or more.
Universal life insurance: AAA Life has two universal life policies. Lifetime Universal is available to people age 18 to 85 for coverage amounts from $100,000 to over $5 million. Accumulator Universal is available to people 15 days to 80 years old for coverage amounts of $100,000 to over $5 million.
Additional coverages offered
Accelerated death benefit rider: Included for no additional cost, the ADB rider provides up to 50% of the death benefit if you’re diagnosed with a terminal illness.
Child rider: Available for an additional cost, the child rider provides coverage for the insured’s children.
Waiver of premium rider: For an additional cost, the waiver of premium rider waives premiums during a period of disability.
Return of premium rider: For an additional cost, the return of premium rider refunds paid premiums, minus fees, once the policy expires.
Our price rating scale looks at life insurance rates for a sample 20-year term policy with $1 million in coverage for a 35-year-old female non-smoker with a Standard Plus (or Standard if no Standard Plus is available) risk classification (the risk rating an insurance company gives you to determines your rates). The quotes we pulled from AAA Life puts it in the third most expensive category of our rating system.
Our customer experience scale uses data from the National Association of Insurance Commissioners (NAIC) complaint index. AAA Life has a score of at 1.32, which means it receives more complaints than expected for a company of its size. (The expected number would be 1.0.)
Our transparency rating scale measures how easily shoppers and policyholders can find information about an insurer on its website. AAA Life gets points for having clear contact information, a support hub, and easy-to-access information about its insurance products, but loses points for not having its rates clearly posted outside of its quoting tool, nor having a chat function on the site.
Our financial strength rating is a weighted combination of three industry-leading metrics to measure a company’s financial health: A.M. Best, Standard & Poor’s, and Moody’s. AAA Life has an A rating from A.M. Best, but is not rated by Standard & Poor’s or Moody’s.
A closer look at AAA Life
Who is AAA Life best for?
People who need a small amount of coverage quickly may find what they need with AAA Life, especially if they are AAA members and can take advantage of the discount. But even then, most people will find their best rates elsewhere.
What makes AAA Life unique?
AAA Life’s relationship with AAA makes it unique as a life insurance company. AAA membership is not required to apply for or purchase a life insurance policy from AAA Life, though AAA members do save 10% on some policies, and get fees waived on others. The discount offered to AAA members on some life insurance policies is very rare in the industry. (Generally one can only get a life insurance discount by paying premiums annually versus monthly.) However, as noted above, even after a 10% discount, AAA Life's rates are higher than average.
Who should consider a different life insurance company?
Most people will find their best life insurance rates with a company other than AAA Life, especially older people and people with complicated health histories.
AAA Life life insurance rates
AAA Life does not publish its term life insurance rates.
AAA Life’s history, reputation, and social responsibility
AAA Life Insurance Company was founded in 1969 as a subsidiary of the American Automobile Association (AAA) family of companies. It is headquartered in Livonia, Michigan, and its sales and service center is in Omaha, Nebraska. 
AAA Life is owned by several of the organizations that make up AAA. The company prides itself on community involvement, including supporting Relay for Life and United Way in both Michigan and Nebraska. 
AAA Life in the news
In September 2022, A.M. Best affirmed its A rating for AAA Life Insurance Company. (InsuranceNewsNet)
In March 2022, AAA celebrated 120 years since its founding. (AAA)
Yes, AAA Life has an A rating from A.M. Best, which scores companies for their financial stability.
What is direct term life insurance AAA?
Direct term life insurance refers to term life insurance that is sold direct to consumer (DTC) versus through an intermediary like an insurance broker. AAA Life sells its life insurance products directly to consumers.
How do I contact AAA Life?
To contact AAA Life, including the claims support team, call 888-422-7020 or visit the AAA Life website.
Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.
Logan Sachon is a former senior managing editor of life insurance and research at Policygenius. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.
Adam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others. As a journalist, his work has appeared in Esquire, Scientific American, The Guardian, Los Angeles Times, and elsewhere.