AAA Life Insurance Review 2022

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AAA Life Insurance
NerdWallet rating 

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

Policies offered: Term, permanent & no-exam.

Financial strength: Strong.

Complaints: More than expected.

Buy online? Yes.

In our life insurance reviews, our editorial team considers both 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 A.M. 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


NerdWallet rating 

AAA Life Insurance Company earned 3.5 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 pros and cons



Large term life coverage amounts are available with a medical exam.

Low coverage amounts on whole life, making it function more as a final expense policy.

Potential discounts for AAA members.

AAA life insurance policies

AAA term life insurance

AAA’s traditional term life insurance requires answering medical questions and agreeing to a possible exam in order to qualify. Coverage amounts range from $50,000 to more than $5 million depending on your age. To potentially get life insurance with no medical exam, AAA offers ExpressTerm, which requires answering health questions (although an exam may be needed in certain instances). Its coverage options range from $25,000 to $500,000. ExpressTerm policies can be purchased online.

Both traditional and ExpressTerm offer 10-, 15-, 20- and 30-year coverage periods. AAA members save 10% on premiums and may be able to get discounts on their home or auto insurance by bundling with traditional term life.

AAA permanent life insurance

Whole life insurance: AAA offers guaranteed issue life insurance with coverage up to $25,000. 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 on guaranteed issue whole life.

AAA also offers traditional whole life insurance with coverage up to $75,000. You may need a medical exam to qualify if you want $30,000 or more of coverage. AAA membership will get you 10% off the base rate.

Universal life insurance: Coverage amounts range from $100,000 to more than $5 million. AAA offers two flavors of universal life insurance: LifeTime and Accumulator. Both are permanent policies that last your entire life and build cash value. 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 life insurance

AAA Life Insurance Company also sells accident insurance and annuities. Its accident coverage policy is available to AAA members only, and the benefit level 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 insurance products include:

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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 2018-2020. 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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