Purchasing life insurance can be one of the most important decisions that you can make. This is because life insurance proceeds can help to ensure that those you love and care about can go on in the case of the unexpected. Funds can be used for paying off debt, paying living expenses, and/or making sure that your financial promises are kept, even if you are no longer there.
When buying a life insurance policy, there are several key criteria to keep in mind. These can include the type and the amount of coverage that you are obtaining, as you want to ensure that there will be enough.
Table of Contents
USAA Company Information
Throughout the years, the company has expanded its offerings to more than just insurance coverage. Today, it provides membership options to those in the U.S. military who are able to participate in insurance products, as well as product and service discounts, investment products and advice, and other types of savings.
The company has also won many awards due to its top-notch customer service, as well as its timely payment of policyholder claims.
USAA is also known for being diverse in terms of its customers, as well as its employees. In order to maintain a diverse workforce and client base, the company collaborates with a number of diverse organizations, institutions, and sources in order to obtain talent, and it maintains Affirmative Action Programs.
According to the USAA website, in order to become a member of USAA, there are several criteria that must be met. These include the following individuals:
- Active, retired, and honorably separated officers and enlisted personnel of the United States military.
- Officer candidates in commissioning programs.
- Adult children of USAA members who have or had a USAA auto or property insurance policy.
- Widows, widowers, and former spouses of USAA members who have or had a USAA auto or property insurance policy while married.
USAA Financial Strength
USAA Life Insurance Company is considered to be a strong and stable company from a financial standpoint – and because of that, the insurer has been provided with high ratings from the insurer rating agencies. These include the following:
- A++ (Superior) from A.M. Best Company. This is the highest possible out of 16 total ratings.
- Aa1 (Excellent) from Moody’s Investors Service. This is the second-highest out of 21 total ratings.
- AA+ (Very Strong) from Standard & Poor’s. This is the second-highest out of 21 possible total ratings.
In addition, although USAA is not an accredited company through the Better Business Bureau (BBB), the company has been given a grade of A+ (on a total grade scale of A+ through F).
USAA Life Insurance Products
USAA Life Insurance Company offers a variety of different life insurance products to choose from. This can be a positive in that its members can opt for the coverage that suits their needs the best – and, members can change their coverage as their needs change over time.
The company offers a regular term life insurance option, as well as term life for the military. With term life insurance coverage, an insured will obtain death benefit coverage only, without cash value build-up. Because of this, term life insurance coverage is oftentimes quite affordable.
Term Insurance
Term insurance is sold for a set amount of time, such as 10 years or 20 years – and because of that, this type of life insurance is often considered to be good for covering “temporary” needs, such as the balance of a home mortgage.
A term life insurance policy can provide a good way to obtain a large amount of death benefit protection at an affordable price, such as someone needing a 1 million dollar life insurance policy. At USAA, regular term life insurance coverage may be obtained for as little as $14.15 per month, while term life for military coverage can be obtained for the same monthly price.
The company’s regular term life insurance product offers a level premium throughout the length of the term’s coverage, along with the option to also cover the insured’s children within the policy. In addition, the term insurance policy may be able to be converted over to a permanent form of life insurance coverage without the insured having to prove insurability.
There are additional features that those who are active military members may be able to obtain, such as:
- An expedited application.
- Up to $25,000 if a severe injury is suffered in the line of duty – at no additional premium cost.
- Replacement life insurance coverage if SGLI coverage is lost upon leaving the military.
- Coverage – even if death is the result of war.
Members of the military may also be able to obtain future insurability with no medical exam when they return to civilian life. This can allow an increase in benefit amount, without the need to undergo a medical exam.
Life Insurance
USAA Life Insurance Company also offers permanent life insurance coverage. This type of insurance provides death benefit protection, along with cash value build-up. There are several types of permanent life insurance coverage to choose from via USAA. These include:
- Whole Life Insurance: Whole life insurance offers a death benefit that is guaranteed, along with a cash value that grows based on a set interest rate that is declared by the insurance company. The premium that is paid into a whole life insurance policy will generally be locked in throughout the entire life of the policy. Therefore, the policyholder won’t have to worry about it increasing – even as they get older, and even if they contract an adverse health condition. The cash value in a whole life insurance policy grows tax-deferred. The whole life insurance options at USAA Life Insurance Company offer the ability to make premium payments for 20 years until the insured turns age 65 or for the lifetime of the policy.
- Universal Life Insurance – Universal life insurance also offers a permanent death benefit and cash value build-up. However, these policies are more flexible than whole life. This is because the policyholder is able to increase or decrease the amount of their coverage (within certain limitations), and they can also select how they want to pay their premium.
Other Products and Services from USAA
USAA is a large and diversified company – and it offers a wide array of products and services to its members. These members are primarily those who are in the U.S. Armed Services and their families.
In addition to life insurance coverage, USAA offers:
- Property and Casualty Insurance
- Investment products and advice
- Rental Insurance
In addition, for those who are members of USAA, there are a variety of other benefits offered as well. These include the following:
- Supplemental health insurance
- Free nationwide ATMs
- Savings on car rental
- FedEx Shipping discounts
- Home improvement discounts
- Utility marketplace
- Travel discounts such as flights, hotels, resorts, and cruises
- Car buying service
- FTD discounts
- Vehicle storage discounts
How Does USAA Compare?
How does USAA compare to other popular insurance companies? Check out this table where we compare USAA, AIG, and Haven Life.
| Company | Best For | J.D. Power Score | A.M. Best Rating |
|---|---|---|---|
| USAA |
Variety of policies | 874 |
A++ |
| AIG |
Claims Paid | 744 |
A |
| Haven Life |
Affordable term life insurance |
N/A | A++ |
For more information, you can check out the individual reviews of Haven Life and AIG.
History of USAA Life Insurance Company
USAA Life Insurance Company initially began its operation in 1922, in San Antonio, Texas. The company got its start when 25 U.S. Army officers insured each other’s vehicles. Soon afterward, the company came up with the motto of providing “Service to the Services,” meaning that the company promoted its insurance to members of the U.S. armed forces.
By 1936, roughly 60% of all eligible U.S. military officers were members of USAA. The company grew quite rapidly during the early 1940s – and by the end of the decade, it reported a net profit of more than $3.2 million, before dividends.
By the 1950s, USAA expanded outside of the United States and started to write insurance policies in Europe. Expanding the company’s growth, USAA ended this decade with a net profit that was in excess of $14.3 million.
In the 1960s, the company continued to expand, moving into Southeast Asia. The firm also added to its product line, including mutual funds and an investment management company. In the mid-1970s, the firm opened a new headquarters in San Antonio, Texas, that was located on 232 acres. Continuing to expand over time, USAA ended the 1980s with more than $16 billion in assets managed and owned, and nearly $59 billion by the end of the 1990s.
How to Find the Best Life Insurance From USAA
The best life insurance premium rates can typically be found by working with a company or an agency that has access to more than just one single life insurance carrier. If you are ready to see what type of plan you qualify for – and the best rate you can get – we can help.
We work with many of the top life insurers in the marketplace today, and we can assist you with obtaining the information that you need in order to make an informed purchase decision. In order to move forward, just fill out the quote form on this page.
Bottom Line
If you aren’t a USAA member, a veteran, or a qualifying family member, you may not qualify for life insurance with USAA. However, it should be noted that from 2009 to 2013 USAA did offer limited memberships to civilians and they may do so again in the future.
When shopping for the life insurance coverage that will cover your specific needs, it is typically best to work with a company or an agency that has access to more than just one life insurance carrier. Doing so will allow you to directly compare policies, benefits, premiums, and insurance carriers before moving forward with your decision.
If you are in the process of seeking life insurance, we can help. We work with many different life insurance carriers, and we can assist you with finding the one that will be right for you. When you are ready to proceed, just simply fill out the form on this page.
How We Review Insurance Companies:
Good Financial Cents systematically reviews U.S. insurance companies, emphasizing policy offerings, customer experiences, and overall reliability. Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.
We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation. Each company is then rated based on multiple criteria, resulting in a star rating from one to five.
For a deeper understanding of the criteria we use to rate insurance companies and our evaluation approach, please refer to our editorial guidelines and full disclaimer.
Product Name: USAA Product Description: USAA (United Services Automobile Association) is a financial services organization that primarily serves members of the U.S. military and their families. With products ranging from insurance to banking and investments, it prides itself on offering personalized services with a deep understanding of military life. Summary of USAA The United Services Automobile Association (USAA) has grown to be a prominent name in the financial sector, specifically catering to the U.S. military community. Beyond its comprehensive insurance services, USAA provides an array of financial products including banking, mortgages, auto loans, and investment management. With its military roots, the organization places significant emphasis on understanding and meeting the unique financial needs of service members, veterans, and their families, aiming for top-tier customer service and tailored product offerings. Pros Cons
USAA Review
Overall
