AAA Life Insurance Review

March 18, 2021
Jonathan Fritz
B.A. Risk Management
Life Insurance Agent

Most car owners are familiar with the American Automobile Association (AAA), more commonly referred to as, "Triple-A." But what most people do not know is AAA also has an insurance division and offers a wide array of life insurance policies and annuities. Below is a rundown of AAA Life Insurance Company's product range including the pros and cons of choosing AAA as a life insurance provider.

Our Take

We would be reluctant to place AAA in the list of our top life insurance companies since they have only been offering life insurance since 1969. This has nothing to do with their financial stability or ability to pay claims, but rather the abundance of more competitive, similarly designed life insurance policies on the market.

History and Background

AAA Life Insurance Company established in the life insurance business in 1969 and is headquartered in Livonia, Michigan. It lies under the umbrella of the AAA brand, one of the most well-known and reputable organizations in the country today.

One of the most interesting anecdotes about AAA is in 1925, the organization hired a young up-and-comer named Harry Truman to work as a sales representative. The young man would go on to become a decorated military man and the 33rd president of the United States.

Today, AAA Life Insurance Company has a large base of customers who are spread all over the country (except New York due to licensing requirements) and has over 1.3 million life insurance policies(1).

Getting the best rate

AAA Life Insurance Financial Rating

AAA Life Insurance Company has an A rating (Excellent) from AM Best (2). It is the third highest out of the 16 ratings offered by the agency. It is a sign of the company's financial strength and ability to honor commitments to policyholders and investors.

Compare AAA to Other Companies

  • AM Best
  • Better Business Bureau
  • J.D. Power
  • Moody's
  • FitchRatings
  • Standard & Poor's
  • Comdex
  • AM Best
  • Better Business Bureau
  • J.D. Power
  • Moody's
  • FitchRatings
  • Standard & Poor's
  • Comdex

Life Insurance Products Offered by AAA Life Insurance Company

AAA Term Life Insurance

AAA offers two term life products – Traditional Term Life and ExpressTerm Life.

Traditional Term Life

  • It offers five term lengths to choose from: 10, 15, 20, 25, or 30 years.
  • The amount of coverage available ranges from $500,000 to $5 million or more.
  • It is available for people between the ages of 18 and 75.
  • The premium is locked in for the entirety of the policy term.
  • The policy can be converted into a whole life or universal life policy at the end of the initial term period.
  • The policy can also be renewed annually at the end of the initial term period. The premium usually increases with every renewal.
  • This coverage can only be bought through an agent.
  • The underwriting decision takes anywhere from one to six weeks.
  • Return of premium rider is available.
  • Product brochure here

ExpressTerm Life

  • This policy offers four term lengths to choose from: 10, 15, 20, or 30 years.
  • The amount of coverage available ranges from $25,000 to $500,000.
  • It is available for people between the ages of 18 and 75.
  • Some applicants may require a medical exam.
  • Applicants can apply for the policy, get approved, and buy coverage online in as little as 10 minutes.
  • The premium is locked in for the entirety of the policy's term.
  • The policy can be renewed annually at the end of the policy's term. The premium increases with every renewal.
  • Product brochure here

AAA Permanent Life Insurance

AAA Life Insurance Company offers whole life as well as universal life policies for people who require lifelong coverage. The key features of these policies are listed below.

Whole Life Insurance

AAA offers two whole life products: Whole Life and Guaranteed Issue Whole Life.

Whole Life

  • A medical exam may be required for some applicants.
  • The coverage decision takes about one to six weeks.
  • The age limit is between 18 and 85 years.
  • The coverage amount ranges from $5,000 to $75,000.
  • Coverage lasts for a lifetime if the premiums are paid.
  • Premiums stay the same until the policyholder is 100. Payments are no longer required at age 100.
  • The policy builds cash value.
  • The policy provides access to 50 percent of death benefit amount in case of a terminal illness diagnosis.

Guaranteed Issue Whole Life

  • This policy features guaranteed approval—no lab tests, no exams, no phone interviews, and no health questions.
  • The death benefit can be anywhere from $5,000 to $25,000.
  • Coverage is available for people between the ages of 45 and 85 years.
  • This coverage features a level-premium plan, which means premiums stay the same for the life of the policy.
  • The policy is available online, over the phone, or by mail.

Universal Life Insurance

AAA offers two universal life products: LifeTime Universal Life and Accumulator Universal Life.

LifeTime Universal Life

  • This policy offers lifetime protection.
  • The coverage amount starts at $100,000 and can be as high as $5 million or more.
  • Coverage is available for ages 18 to 85 years.
  • The premium is determined by the company at the time of issuance of the policy and stays level throughout the coverage period.
  • The policy builds cash value.
  • Access to the policy's cash value is available through withdrawals and loans.

Accumulator Universal Life

  • This policy offers lifetime protection.
  • Coverage is available for 15 days to 85 years.
  • The coverage amount ranges from $100,000 to $5 million or higher.
  • This policy builds cash value and has higher growth potential and accumulates cash value at a much faster rate than traditional universal life policies.
  • This policy features customizable premium payments meaning policyholders may pay as much or as little as they prefer if the insurer's minimum required premium limit is met.
  • Optional riders include child term, accidental death, disability waiver of premium, and guaranteed purchase option.
  • An underwriting decision typically takes from one to six weeks.
  • Product brochure here

Below is a look at the upsides and downsides of choosing AAA Life Insurance Company as an insurance provider.

Advantages of AAA Life Insurance

Financial Stability and Reliability

AAA Life Insurance Company is among the better life insurance companies that have managed to receive an A rating or above from AM Best. It means the company is in an excellent position to meet its ongoing financial obligations and honor its commitments to its investors and policyholders.

It is backed by the AAA family, which is one of the most reliable and established brands in the country today.

The company also has a very good track record when it comes to settling life insurance claims. A survey conducted by LIMRA in 2015 showed a vast majority of policyholders were happy with AAA's claims practices(3). It was the highest-ranked company in terms of customer satisfaction for claims practices.

Excellent Term Life Products

The company offers a traditional term life policy and a no-exam term life policy, both of which are excellent in their own right.

The traditional term life plan allows a large amount of coverage (anywhere from $100,000 to $5 million+) at very reasonable rates. For example, a 35-year-old female in good health can buy a 10-year, $100,000-term life plan for $8 a month.

The express term life plan, on the other hand, is a no exam policy which allows for the quick purchase of life insurance coverage. The application process, health questions response, and approval are done within 10 minutes.

There are no physicals, lab tests, or phone interviews. The coverage period starts as soon as the first payment is processed.

Studies show 47 percent of shoppers are more likely to buy life insurance that uses a simplified underwriting approach.

Therefore, digital insurance companies like Haven Life, Ethos, Ladder, and Bestow, which allow a consumer to buy a policy online in a matter of few minutes, are becoming more and more popular, particularly among young, net-savvy customers.

As a result, many traditional life insurance companies like AAA have also started offering term and whole life policies that do not require a medical exam and can be purchased online.


AAA's term life plans have a level-premium period, after which they can be converted into a whole life or universal life plan. There is no need for the insured to reapply for a policy, and there are no lab tests or medical exams involved.

Policyholders may simply inform the insurer they would like to convert their existing term life plan into the permanent life plan of their choice.

The new policy will be classified as the same risk class as originally determined by the company at the time of the original term life policy issuance, regardless of any changes in health conditions. policyholders need not prove their insurability.(4)

AAA Membership Not Needed

Policyholders do not have to be a AAA member to buy life insurance coverage from AAA Life Insurance Company. Furthermore, there are no restrictions on the amount of coverage they can buy. Any amount of coverage is available if the insured can get approved for it.

Disadvantages of AAA Life Insurance

Low Coverage Amount for Whole Life Policy

AAA offers a whole life policy with a coverage amount of up to $75,000. It is enough to pay for final expenses and to pay off any minor debts that might remain outstanding.

For a whole life policy that can provide lifelong protection and cover long-term financial needs, other insurance companies offer the option to purchase larger amounts of coverage.

It makes little sense to cap the coverage amounts at $75,000 since the company also offers a guaranteed issue whole life policy which is tailor-made for people who are looking to buy a plan that can cover their final expenses.

Low Coverage Amount for Express Term` Policy

The company's ExpressTerm Life policy provides the option to buy coverage within 10 minutes online from the comfort of home. The coverage amount, however, is capped at $250,000.This is slightly disappointing because digital insurers like Haven Life, Ladder, and Ethos allow for the online purchase of substantially higher amounts of coverage ($1 million and above) through the same simplified online application process.

Lengthy Decision Time

Except for the ExpressTerm policy and the guaranteed issue whole life policy, all the other policies require applicants to apply through an agent and answer a set of questions. A medical exam might be needed in some cases.

Applicants must wait anywhere from one to six weeks for coverage to begin. The long approval time is something many people, especially young people who prefer an instant, online product, might find unappealing.

Final Thoughts on AAA Life Insurance Company

AAA Life Insurance Company meets our expectations in terms of financial stability, trustworthiness, and claim settlement record. The company offers an excellent traditional term life policy, which can be a good choice for anyone young, healthy, and willing to undergo an exam if needed. It is our recommendation to compare life insurance quotes from reputable companies and choose the policy that meets your needs and fits your budget.

For those individuals who do not like medical exams or the long waiting period, the ExpressTerm policy is available, if the amount of coverage needed does not exceed $500,000.

If an online term life policy with a large death benefit is desired, digital insurance companies like Haven Life, Ethos, Ladder, and Bestow offer these types of policies.

For those individuals looking for lifelong protection, the Accumulator Universal Life plan might be a good choice. It provides ample coverage, has high growth potential, and the premiums are flexible.

When a traditional whole life policy or an indexed or variable universal life policy is desired, there are several other, better options available. These are presented in our list of best whole life and mutual life insurance companies.


  1. About AAA - Available from:
  2. AAA Life Insurance Company AM Best Rating - Available from:
  3. Why AAA - Available from:
  4. 3 Reasons to Convert Your Life Insurance - Available from: