AAA Life Insurance Review 2023

Andrew Marder
By Andrew Marder 

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insurance-product-card-logo

AAA

3.0

NerdWallet rating 
Bottom line: AAA sells its life insurance policies to members and non-members alike, but discounts are available only to members.
COMPARE QUOTES

on Policygenius

Financial strength rating

Strong

Online purchase

Yes

NAIC complaints

More than expected

Policies offered

Term, permanent & no-exam
insurance-product-card-logo
COMPARE QUOTES

on Policygenius

AAA

3.0

NerdWallet rating 
Bottom line: AAA sells its life insurance policies to members and non-members alike, but discounts are available only to members.

Financial strength rating

Strong

Online purchase

Yes

NAIC complaints

More than expected

Policies offered

Term, permanent & no-exam

In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:

Policies offered. There are many types of life insurance on the market, and they fall into three key categories:

  • Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.

  • Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.

  • No-exam life insurance issues coverage without the need for a medical exam.

Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:

  • Exceptional: A+, A++.

  • Strong: A-, A.

  • Moderate: B, B+.

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.

Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.

AAA Life Insurance Company was founded in 1969 by AAA, the group of motor clubs best known for emergency roadside assistance and travel services. The company offers term, whole and universal life insurance. You don’t have to be an AAA member to buy life insurance from the company, but there are some discounts for members.

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners, and here’s how we make money.

AAA life insurance

3.0

NerdWallet rating 

AAA Life Insurance Company earned 3 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

AAA life insurance policies

Term life insurance. AAA offers two types of term life insurance, both of which are available in 10-, 15-, 20- and 30-year terms. Members save 10% on premiums.

  • Traditional term life insurance. You’ll need to answer health questions and agree to a possible life insurance medical exam to qualify for this policy. Coverage amounts range from $50,000 to more than $5 million depending on your age, and you can add a return of premium rider. AAA members may be able to get discounts on their home or auto insurance by bundling with traditional term life.

  • Instant life insurance. ExpressTerm offers life insurance with no medical exam in most cases. You can choose $25,000 to $500,000 in coverage and apply for and buy this policy online after answering questions about your health. Coverage goes into effect right away if you’re approved.

Whole life insurance. These whole life insurance policies provide lifelong coverage and build cash value over time.

  • Traditional whole life insurance. You’ll need to work with an agent to apply for this policy. Coverage ranges from $5,000 to $75,000, though you may need to take a medical exam if you want $30,000 or more. An AAA membership will get you 10% off the base rate.

  • Guaranteed issue life insurance. AAA offers $5,000 to $25,000 of guaranteed issue life insurance, which doesn’t require a questionnaire or medical exam. Applicants ages 45 to 85 can qualify automatically, but if the insured dies during the first two years, AAA won’t pay out the full policy amount, unless the death is accidental. AAA members and their spouses are eligible for a $60 annual discount.

Universal life insurance. Coverage amounts range from $100,000 to more than $5 million. AAA offers two types of universal life insurance: LifeTime and Accumulator. The Accumulator product is geared toward people who may want to use the cash value later to supplement retirement or cover other expenses, such as their children’s college education. The LifeTime product features more guarantees, like fixed premiums.

AAA customer complaints and satisfaction

Over three years, AAA Life Insurance Company has drawn more than the expected number of complaints to state regulators than expected for a company of its size, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.

More about AAA

AAA Life Insurance Company also sells accident insurance to AAA members only, and the amount of coverage you can get depends on how long you’ve been a member. The policy covers injuries and death caused by accidents such as falling off a roof. It doesn’t cover accidents caused by extreme sports, acts of war or self-inflicted injuries like suicide or drunk driving.

AAA offers three annuity options, two with $3,000 minimum deposits and one requiring $10,000 upfront. If you’re considering an annuity, you should talk to a fee-only financial advisor to find the right option for your retirement needs.

Other AAA products include:

How to contact AAA

AAA’s life insurance department can be reached by:

  • Phone: Call 888-422-7020 on weekdays from 8 a.m. to 8 p.m. ET, and Saturdays from 11 a.m. to 3 p.m. ET.

  • Email: For general questions, send a message to [email protected].

  • Live chat: Launch the live chat feature from any page on AAA’s site.

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Life insurance buying guide

Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.

When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.

Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.

For more guidance, see our life insurance buying guide.

Life insurance ratings methodology

NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.

These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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