USAA Life Insurance Review

USAA Term Life Insurance Review

By James Tobin, CFP®

Last Updated on

 

Critical Takeaways

  • A.M. Best Rating :  AA+
  • Good Pricing For Healthy Risks
  • Accelerated Underwriting for Active Military 
  • Limited to Military and Family
USAA Life Insurance Review

Life Insurance Help Desk Rating

USAA Life Insurance Carrier Specifics

Policy Options

Term, Universal Life, Whole Life

Term Lengths

10,15,20,25,30

Riders

Available

Ratings

A+ - A.M. Best

States

All States

Pricing

Ultra Competitive

Customer Service

Issue Age

18-85

Min. Coverage

$100K

No Exam Options

yesNo

Expert Review Of USAA Life Insurance 

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Reviewed by

Jim Tobin, CFP®

Why you can trust this review

At the Life Insurance Help Desk, we value our editorial independence. We keep our reviews factually focused so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews. 

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USAA Life Insurance Carrier Specifics

Policy Options

Term, Universal Life, Whole Life

Term Lengths

10,15,20,25,30

Riders

Available

Ratings

A+ - A.M. Best

States

All States

Pricing

Ultra Competitive

Customer Service

Issue Age

18-85

Min. Coverage

$100K

No Exam Options

Limited

Expert Review Of  USAA Life Insurance 

Jim Tobin promo

Reviewed by

Jim Tobin, CFP®

Why you can have confidence in this resource

At the Life Insurance Help Desk, we value our editorial independence. We keep our reviews factually focused so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews. 

Assuming you watch television or listen to the radio, you have probably seen or heard the commercials for USAA insurance. While the advertising generally focuses on home and auto insurance, this review will focus on term life insurance. Keep reading and see if USAA  is one of the top carriers for your needs. 

USAA Life Insurance Company History

Founded in 1922 in San Antonio, Texas the USAA or United Service Automobile Association  began operations as a "club" of military officers who pooled resources to insure the vehicles of members. 

The military heritage has been a focus of marketing efforts for USAA. In fact, USAA is among the only carriers with no "wartime exclusion" for active duty servicemen. 

Since its humble beginnings, the group has expanded its reach in the financial services market. USAA is a Fortune 500 staple and currently has over 59 billion dollars under management.  

USAA Life Insurance Company Financial Ratings (they pay Their bills)

USAA has received stellar ratings for financial stability. This indicates that the company is in strong position to meet its obligations going forward.  

A.M. Best Company: USAA life insurance rating given by A.M. Best was an A++ (Superior). This is the highest possible out of 16 total ratings.

Moody's Investors Service: USAA life insurance rating given by Moody's was an Aa1 (Excellent). This is the second highest out of 21 total ratings.

Standard & Poor's: USAA life insurance rating given by Standard & Poor's was an AA+ (Very Strong). This is the second highest out of 21 possible total ratings

USAA Term Life Insurance    

USAA offers traditional term life insurance with a twist. The policies offered are 10,15,20,25, and 30 year terms like many of the best life insurance companies.   

The twist is that USAA caters to military families. In most cases, only military, former military, and immediate family members are eligible for consideration.

Being that the company caters to military members, it has become a "go to" carrier for soldiers actively deployed or facing deployment.

USSA streamlines the underwriting process for military members facing deployment, often waiving standard medical exams.

This attentiveness to military personnel and families along with competitive pricing has made USAA  a household name.

Other USAA Products

In addition to its flagship term life insurance product, USAA also offers Universal life insurance and whole life insurance. Although these products can be found with better pricing in the open marketplace, they are worth noting.

Additionally, USAA is a virtual financial services supermarket. Among the offerings are annuities, long term care insurance ,mortgages,tax assistance and more (see below);

  • Property and Casualty Insurance
  • Homeowners Insurance
  • Rental Insurance
  • Supplemental Health Insurance
  • Auto Loans
  • Auto Insurance
  • Car Buying Service
  • Bank Accounts
  • Credit Cards
  • Travel Insurance & Travel Discounts
  • USAA Term Life Insurance Rates and Quotes

    When you look at pro's and con's of USAA it is important to know that they only market life insurance  directly and not through independent agents. This is not great for consumers who should be able to do like  company comparisons conveniently.

    Whereas you can use the quote tool on this page to get quotes from most of the leading carriers, you will have to go to the USAA website to get a USAA quote for life insurance. 

    Are USAA Term Life Insurance Rates Competitive?

    USAA routinely advertises $14.90/moth for a healthy 30 year old male seeking $150,000 of 20 year coverage. 

    Let's take a look at the open market and compare.

    AAA Term Life Insurance
    USAA term rate comparison

    So as you can see, the rates are a little better on the open market.  USAA remains competitive at higher coverage amounts and  is not limited by underwriting that is troubled by deployment. 

    Cases Where USAA Is Not A Great Choice

    While USAA term life insurance is super competitive with all the major carriers for healthy people, the fact remains that different carriers have differing appetites for specific health risks. 

    Is USAA competitive on all of them?  No- In fact no carrier is competitive for all situations. 

    If you have an existing health condition, you are best off speaking with an independent agent to find out which carrier will give you the best chance to get approved with a great offer.  You can then compare that with USAA if you wish. 

    While USAA appears to be a great company, it is hard to recommend  without being able to access underwriting guidelines. 

    That being said, if you are in the military, healthy and/or facing deployment, USAA is an excellent choice.  

    USAA Life Insurance Exclusions

    Like all carriers, USAA has a  2 year suicide clause that is standard on life insurance policies in the United States. 

    This is noteworthy because the "war exclusion" that is part of most life insurance policies is not part of the USAA policy. This is part of what makes USAA life insurance so attractive to military families.

    USAA Customer Service

    USAA is known for spectacular customer service. They receive 5 stars from JD Power & Associate

    USAA Contact Info 

    Address:9800 Fredericksburg Rd.
    San Antonio, TX 78288

    Phone:(800) 531-8722

    Web:https://www.usaa.com

    The USAA Life Insurance Review Final Verdict

    Is USAA term life insurance right for you? Maybe, it really all depends on your situation.

    If you have existing health concerns, you will be better off shopping around on the open marketplace where it is more  convenient to make apples to apple comparisons. 

    Moreover, having the use of an independent expert who can send your application to a carrier that is likely to view you in the best possible light has value that USAA does not offer.

    However, if you are very healthy or facing deployment, USAA term life insurance may be the best bet available to you.

    Thank you for choosing the Life Insurance Help Desk to shop for life insurance.

    Bonus: The most common mistakes people make buying life insurance and how to avoid them

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