Is AAA Life Insurance Any Good?

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    Life insurance by AAA, also called the "auto club" by many, is primarily in the auto business and known for its' roadside assistance.  However, the also sell life insurance.  Financially they are rated an A- by AM Best, the fourth highest rating.  My experience with them is limited by the fact they use in-house agents to sell their product.
    Answered on May 18, 2014
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  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I'm assuming that you are talking about the offer for "up to $200,000 of term life insurance at members only group rates"? Any offers like this that you receive, or see advertised on television are offered by reputable companies, and are valid policies. Are they good for you, is the better question. In AAA's case, (and I just happen to have a copy of their ad here, I use it for teaching purposes) there are a couple of things to look at that this type of advertised policy does, that a typical life insurance policy wouldn't. First, the small print tells you that this policy ends when you turn 80. If you live to be 80 and a day, you have no coverage. If you look at the nicely colored chart with the ages and prices, you will see that every 5 years they increase, often pretty dramatically. The small print again tells us that your monthly rate increases to be whatever your age bracket becomes. So at age 64, you pay a price, at 65, it increases to the new price until you turn 70, when it increases again. It is good in that if you can get through the few health questions, you are "approved", unless of course the authorization that you okay in the small print turns up something in your health history that either denies your coverage, or increases your rate. Please understand that in no way am I disrespecting AAA or anyone else who advertises this kind of policy, because all of these things are clearly stated, and the assumption is that you the consumer can understand them, and by purchasing them, are accepting the terms of the policy, as legally stated.  I wholeheartedly advise that you find a local agent who can show you what you would pay over your lifetime for this policy, and give you a few other policies to compare it to. Please, whatever you do, do NOT fill out a bunch of different ones, hoping one will be approved! The exact opposite happens a great amount of the time. If you would like more details, please contact me, I will make time for you to discuss this privately. Thank you for asking!
    Answered on May 19, 2014
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  3. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Jim has pointed out some excellent features of AAA life insurance that you should know before buying AAA's coverage. I would like to add that it is also easy to be declined for their life insurance, and that being declined by them can keep you from getting other coverage for which you would otherwise qualify. I reiterate that it is up to you to read the fine print before mailing in your application. If you are unsure whether you qualify, or do not understand the conditions of this type of coverage, call one of us on this website and we will be happy to explain it to you. Thanks for asking.
    Answered on May 19, 2014
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