USAA Term Life Insurance Review
by Jim Tobin, CFP
Life Insurance Help Desk Rating
If you own a television or a radio, you are probably familiar with the USAA term life insurance ads that cater to military families.
This review will address company history, financial ratings, and the positives and negatives of USAA term life insurance.
Additionally it will address some specific situations where it may make more sense to go outside the USAA family of financial products.
The goal is to make sure that you get the policy that provides you the most value.
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.
Since it's humble beginnings, the group has expanded it's 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 Raitngs
- 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 it's 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);
USAA Term Life Insurance Rates and Quotes
USAA only markets it's products directly and not through brokers. This is a disadvantage for the consumer because it makes apples to apples comparisons less convenient.
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.
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 iterm life insurance s 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? Not likely.
If you have a specific condition, you are best off speaking with an independent agent to find out which carrier will give you the best chance to get approved at a great rate. You can then compare that with USAA if you wish.
While USAA appears to be a great company, it is hard to recommend with out 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
Aside from the 2 year suicide clause that is part of all life insurance policies in the United States, there is no notable exclusion.
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 Fredericksberg Rd.
San Antonio, TX 78288
The USAA life insurance review final Verdict
Is USAA term life insurance right for you?It really all depends on your situation.
If you have notable health impairment(s), you will be better suited by shopping around on the open market where it is 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.
The time to get covered is now!