AAA Life Insurance Company requires no medical exam for some of its term and whole life insurance products. But unless you’re in excellent health, you're going to pay a lot more than the competition due to higher-than-average premiums.
Tim Torres is a former reviews editor at Policygenius, where he specialized in life insurance, homeowners insurance, auto insurance, and more. His work has also appeared in PC Mag, Tom's Guide, Tech Times, and elsewhere.
AAA Life Insurance Company provides a range of term, whole, and universal life insurance products, some of which don’t require a medical exam. If you need to pay for burial funds or find coverage quickly give AAA a shot. Just know you’re going to pay a lot more than you should for it.
The focus of this review is AAA’s Traditional Term life policy.
Policy Details
Availability of such options as term length and no-med-exam availability.
7.4
Price
Average monthly premium cost for a predetermined applicant profile and common health conditions.
1.0
Financial Confidence
Consumer confidence based on scores from major financial rating institutions.
9.0
Third-Party Ratings
Satisfaction from consumer sentiment institutions and complaints to state insurance boards.
7.0
Customer Experience
Ease of use, convenience, online tools, and availability.
Variety of term, whole, and universal products. AAA offers multiple fully underwritten and simplified term life, whole life, and universal life insurance products for customers to consider. Most of them can be customized with a decent range of riders and different features as well.
No medical exam for some policies. AAA’s Guaranteed Issue whole life policy doesn't require a medical exam, so if you’ve had trouble applying for life insurance in the past or have pre-existing medical conditions then this product may be a worthwhile option.
AAA members can receive discounts. If you're a member of AAA already, then you can save on the monthly premiums for your life insurance, depending on the policy.
The Bad
Very expensive premiums. Monthly premiums for AAA’s term life insurance products are much higher than the industry average. However, they do remain level, or fixed, for the duration of the term so they won’t change unless you renew your policy.
Whole life caps at $75,000. Some of AAA’s whole life policies don’t require medical exams, but the payouts are less than similar products. For that reason, you should only consider AAA’s whole life insurance if you don’t qualify for term life.
Some policy changes can’t be done online. If you want to change your beneficiary, name, or other information you’ll have to print out a PDF form and mail or fax it over to AAA, which isn’t very convenient.
The Breakdown
Policy Details
Availability of such options as term length and no-med-exam availability.
7.4
AAA has several term, whole, and universal products available. They offer accident and annuity policies as well (not covered in this review).
Term life insurance
AAA offers Traditional and ExpressTerm term life insurance products. The Traditional policy comes with the option to add a Return of Premium rider, which refunds all your premiums if you outlive the term.
Meanwhile, the ExpressTerm policy is a no-med product you can apply for online.
Monthly premiums for all of AAA’s term life products are guaranteed to stay level until the term period ends. Premiums increase each year after that.
Traditional Term
The Traditional policy touts term lengths of 10 to 30 years, with coverage up to $5 million depending on your age, gender, location, and health status.
Policy Feature
Traditional Term
Eligible ages
18 to 75
Term lengths
10-, 15-, 20-, or 30-year terms
Coverage minimum
$50,000
Coverage maximum
$5 million
A medical exam is required, and while you can get an online quote you will need to call a AAA agent to complete your application. Coverage ends at age 95.
Temporary coverage
AAA offers one to six weeks with coverage while you wait for the Traditional Term life policy to be approved.
Available riders
The Traditional Term policy is the only term product from AAA that includes optional riders.
Accelerated death benefit. This guarantees up to 50% of the death benefit (up to $250,000) if you're diagnosed with a terminal illness. This is included with the plan.
Child term rider. Parents can add this to cover any current or future children for an extra premium. It will provide a small death benefit in case of the death of a child.
Disability waiver of premium. If you become permanently or temporarily disabled, then this will waive your premiums so your policy won’t expire.
Return of premium. Add this and you can get your money back if the policy expires and you’re still alive.
Policy conversion
Both Traditional and ExpressTerm policyholders can convert their term policy to a permanent one up to the end of the initial term period or until the policy anniversary after their 65th birthday, whichever comes first.
ExpressTerm
You can apply for AAA’s ExpressTerm policy in 10 minutes online by answering a few health-related questions, although a medical screening may still be required. You can select term lengths of 10, 15, 20, or 30 years, with coverage between $25,000 and $500,000. People aged 18 to 75 years are eligible.
There are no riders available for ExpressTerm except for an accelerated death benefit, which guarantees up to 50% the payout (up to $250,000) if you're diagnosed with a terminal illness.
Permanent life insurance
AAA offers four main permanent life products: Whole Life, Simple Whole Life, Guaranteed Issue Whole Life, Lifetime Universal, and Accumulator Universal. They each have different features and riders.
Whole Life Details
This policy has a coverage range of $5,000 to $75,000, and it has a cash value component that builds over time. Premiums stay fixed unless the policyholder turns 100, then payments are waived. Applicants aged 18 to 85 years old will have to answer health-related questions and will likely undergo a medical exam.
Temporary coverage
AAA offers one to six weeks with coverage while you wait for the Whole Life policy to be approved.
Available riders
Accelerated death benefit. This guarantees up to 50 percent of the insured’s death benefit (up to $250,000) if the insured is diagnosed with a terminal illness. This is included with the plan.
Accidental death. This rider provides extra death benefits if the policyholder dies due to an accident. The payout amount will vary.
Child term rider. Parents can add this to cover any current or future children for an extra premium. It will provide a small death benefit in case of the death of a child.
Disability waiver of premium. If you become permanently or temporarily disabled, then this will waive your premiums so your policy won’t expire.
Return of premium. Add this and you can get your money back if the policy expires and you’re still alive.
Travel accident. This pays extra benefits in case the policyholder dies or is seriously injured in an accident while traveling.
Simple Whole Life Details
This product, meant to cover final expenses, has a coverage range of $5,000 to $25,000. There is a cash value component that builds over time. People aged 15 days to 80 years old are eligible and they will have to answer health questions. AAA members may qualify for auto and home discounts.
There is no medical exam required.
Available riders
Accelerated death benefit. This guarantees up to 50 percent of the insured’s death benefit (up to $250,000) if the insured is diagnosed with a terminal illness. This is included with the plan.
Accidental death. This rider provides extra death benefits if the policyholder dies due to an accident. The payout amount will vary.
Child term rider. Parents can add this to cover any current or future children for an extra premium. It will provide a small death benefit in case of the death of a child.
Disability waiver of premium. If you become permanently or temporarily disabled, then this will waive your premiums so your policy won’t expire.
Return of premium. Add this and you can get your money back if the policy expires and you’re still alive.
Travel accident. This pays extra benefits in case the policyholder dies or is seriously injured in an accident while traveling.
Temporary coverage
AAA offers five to seven days of coverage while customers wait for Simple Whole Life approval.
Guaranteed Issue Whole Life Details
This is a guaranteed acceptance product, which is typically for seniors who can’t get qualified for traditional life insurance. Also meant to cover burial expenses, this policy has a coverage range of $5,000 to $25,000. Rates stay fixed until the insured turns 100, then premiums are waived.
There’s also a cash value component that builds over time. People aged 45 days to 85 years old are eligible, though they have to apply by phone or mail. AAA members may qualify for auto and home discounts.
There are no health questions and there is no medical exam required.
Available riders
Graded benefit. If the policyholder dies in the first two years, beneficiaries will get the level monthly premiums paid back, plus an additional 30 percent. If death happens after two years, then the total death benefit is paid.
Lifetime membership benefit. The insured’s surviving spouse gets a free lifetime AAA membership, with dues paid by AAA.
Travel accident. A rider that doubles the death benefit if the policyholder dies due to a covered accident.
LifeTime Universal Life Insurance Details
This is a universal life insurance policy, so it’s possible to adjust your death benefit and monthly premiums whenever you want during the policy based on your financial situation. It also has a cash value component you can use towards your premiums.
The coverage can range from $100,000 to over $5 million. Anyone between 15 days and 80 years old can apply through an agent, though they’ll have to answer health-related questions and may have to go through a medical exam. AAA members may qualify for auto and home discounts.
Available riders
Accelerated death benefit. This guarantees up to 50 percent of the insured’s death benefit (up to $250,000) if the insured is diagnosed with a terminal illness. This is included with the plan.
Accidental death. This rider provides extra death benefits if the policyholder dies due to an accident. The payout amount will vary.
Child term rider. Parents can add this to cover any current or future children for an extra premium. It will provide a small death benefit in case of the death of a child.
Disability waiver of premium. If you become permanently or temporarily disabled, then this will waive your premiums so your policy won’t expire.
Guaranteed increase option. This lets the policyholder increase the coverage amount without having to go through a medical exam.
Return of premium. Add this and you can get your money back if the policy expires and you’re still alive.
Travel accident. This pays extra benefits in case the policyholder dies or is seriously injured in an accident while traveling.
Yearly renewable term life. This is an additional death benefit you can add to the policy, but the premium increases each year as insurance risk grows with age.
Temporary coverage
AAA offers one to six weeks of coverage while waiting for Lifetime Universal approval.
Accumulator Universal life Insurance Details
Similar to the above policy, except you can customize your monthly premiums and death benefit based on your budget and goals. Once again, it’s possible to adjust your death benefit and monthly premiums based on your financial situation. There’s also a cash value component you can use to pay your premiums or supplement retirement funds.
The coverage ranges from $100,000 to over $5 million. Anyone between 15 days and 80 years old can apply through an agent. They’ll have to answer health-related questions and may have to go through a health screening. AAA members may qualify for auto and home discounts.
Available riders
Accelerated death benefit. This guarantees up to 50 percent of the insured’s death benefit (up to $250,000) if the insured is diagnosed with a terminal illness. This is included with the plan.
Accidental death. This rider provides extra death benefits if the policyholder dies due to an accident. The payout amount will vary.
Child term rider. Parents can add this to cover any current or future children for an extra premium. It will provide a small death benefit in case of the death of a child.
Disability waiver of premium. If you become permanently or temporarily disabled, then this will waive your premiums so your policy won’t expire.
Guaranteed increase option. This lets the policyholder increase the coverage amount without having to go through a medical exam.
Return of premium. Add this and you can get your money back if the policy expires and you’re still alive.
Travel accident. This pays extra benefits in case the policyholder dies or is seriously injured in an accident while traveling.
Yearly renewable term life. This is an additional death benefit you can add to the policy, but the premium increases each year as insurance risk grows with age.
Temporary coverage
AAA offers one to six weeks of coverage before Accumulator Universal approval.
Price
Average monthly premium cost for a predetermined applicant profile and common health conditions.
1.0
Using AAA’s online quote tool, we gathered sample quotes for the Traditional Term policy. Our profile is a non-smoking male in “good” health applying for a 20-year term with $500,000 of coverage. AAA lets applicants choose Excellent, Good, or Fair health, which changes the quote result.
Here’s the breakdown:
AGE
AAA AVERAGE
INDUSTRY AVERAGE
20s
$36.52
$27.03
30s
$40.04
$30.44
40s
$87.12
$61.05
50s
$219.56
$152.23
60s
$692.12
$493.98
Rates current as of January 2022, according to Policygenius data.
AAA prices are much, much, much higher than the industry average. If you’re younger and in “excellent” health you’ll pay a lower monthly rate, but for most people AAA is a very expensive option for term life insurance.
Members of AAA can save up to 10% on their premiums, and there may be additional discounts, but they'll need to ask an agent for details.
Financial Confidence
Consumer confidence based on scores from major financial rating institutions.
9.0
Originally founded in 1902, AAA provides home, auto, and life insurance to customers nationwide. Thar's a long time to be around, but how do you know a company will last long into the future? To see if AAA can pay the face amount, or death benefit, at the end of a policy’s term it’s important to look at the company’s financials.
Here’s the breakdown from industry experts that can provide that kind of information.:
A.M. Best: A
Moody’s: n/a
Standard & Poor’s: n/a
Oh. Not much available, is there? Nope, AAA is not rated by the financial analysis firms Moody’s or Standard & Poor’s.
A.M. Best, the credit rating firm that specializes in the insurance industry, gives AAA an A (effective October 22, 2021). That means AAA has an “excellent” ability to meet the financial obligations of its customers.
Third-Party Ratings
Satisfaction from consumer sentiment institutions and complaints to state insurance boards.
7.0
While there aren’t a lot of ratings from the industry experts, customers have stepped in to rate AAA. They seem mostly satisfied, with some exceptions.
Consumer Affairs: 4 / 5
Consumers Advocate: 4.5 / 5
NAIC complaint index: 1.65
Consumers Advocate, which focuses on a company’s reputation, policies, and stability, gives AAA a 4.5 out of five. That’s pretty good.
Consumer Affairs lets customers directly review and rate companies. Their scores come out to 4 out of 5. Some commenters complain of sudden price hikes to premiums and poor customer service.
The National Association of Insurance Commissioners (NAIC), which tracks complaints submitted to state insurance departments, rates AAA a 1.65 on their complaint index. A score of 1 represents the baseline average, and a zero means there weren’t enough customer complaints to count. AAA has a slightly above-average amount of complaints.
Ease of use, convenience, online tools, and availability.
6.8
AAA’s website has all the information you could want for all your life insurance needs. You’ll find PDF brochures with coverage ranges, issue ages, and rider information clearly laid out.
The customer service phone line is similarly helpful with polite, professional representatives in our experience. All our questions were answered swiftly, with no waiting or transferring between multiple departments.
There is no live online chat available on the website, but you can email or call customer service.
Application process
For the Traditional Term policy, you can start your application online but you’ll need to call an agent to finish it.
The ExpressTerm policy application can be completed online, but you may be required to undergo a physical medical exam.
All permanent life insurance policies will require a phone call with an agent. Some policies, like the Guaranteed Issue whole life, don’t require a medical exam.
Turnaround time
You’ll have to wait one to six weeks for most policies, but it depends on whether a medical exam is required or not, as well as other factors.
Policy delivery
AAA Life will deliver the policy electronically and via mail.
More information
State availability
AAA Life is available in every state (including Alaska and Hawaii) except for New York.
Change method
Address changes can be done online or over the phone or by mail. All other changes, including beneficiary changes, name change requests, and policy cancellations, need to be made in writing or by mailing in PDF forms that are available on AAA’s website.
Payment methods
There are multiple ways to pay your AAA life insurance bills.
Autopay: Set up automatic payments either online or by phone.
Phone: Use a credit card or check to pay over the phone.
Credit cards accepted: American Express, Discover, MasterCard, Visa.
There’s a grace period of at least 31 days from the bill’s due date, though it varies by policy.
Digital tools
There’s not much in the way of digital tools from AAA beyond the coverage calculator and online quote tool.
Claims documentation
To file a benefits claim, the beneficiary must email, fax, or snail mail the following information to AAA :
Name, phone, address
Policy number
Certified death certificate
Obituary (if available)
Coroner’s and police report (if applicable)
Frequently Asked Questions
Does AAA offer online quotes?
Yes, AAA’s website has a fairly handy quote tool for term life policies. Enter your zip code, gender, date of birth, and email address, then select whether you want a personalized quote for the Traditional Term or Express Term product.
What’s the difference between AAA’s Traditional Term and ExpressTerm?
Both products are term life policies. The Traditional Term policy has coverage up to $5 million and is fully underwritten, so you will have to undergo a medical exam. The ExpressTerm policy has only up to $500,000 in coverage, but you may have the chance of skipping the medical exam.
Wait, I can skip the medical exam with AAA?
That depends. For most policies with AAA, you will not be able to skip scheduling and undergoing a physical exam with a doctor. If you apply for ExpressTerm and answer the health questionnaire favorably, then you may be able to bypass the exam. This won’t be the case for most people.
How can I skip the medical exam with AAA entirely?
If you want to skip the exam entirely, you’ll want to look into AAA’s Simple Whole Life or Guaranteed Issue Whole Life policies. Keep in mind, however, that those policies provide low coverage amounts and should be considered for final expenses only.
Tim Torres is a former reviews editor at Policygenius, where he specialized in life insurance, homeowners insurance, auto insurance, and more. His work has also appeared in PC Mag, Tom's Guide, Tech Times, and elsewhere.
