If you’re like most people, you’ve heard of AAA Life Insurance Company is among the best life insurance companies in the U.S. this year.
AAA is also a highly rated company, with an A- with A.M. Best and over 1,000,000 life insurance policies. Still, are they the right choice for you when it comes to term life policies?
We work with over 30 different life insurance companies, and we know that what works for some might not work for others. So, AAA might be a great choice for your friend, but it may not be for you. You can start comparing rates at any time using our online quote form, but keep reading for more information about AAA and their term life insurance policies.
You have started out in the right direction! Doing research on many different companies can always open your eyes to the pros and cons of each. Check out our other reviews for your reference such as our Allstate life insurance review and our GEICO Review before you make your decision.
There are hundreds and hundreds of companies on the market, each is different. Not only will this article look at AAA life insurance, but we will also detail some of the options for saving money.
What is AAA Term Life Insurance?
Term life policies provide you with life insurance protection for a specific time, with premiums usually locked in for that time, not increasing until after it is over (if you choose to continue with your life insurance coverage, that is). With AAA, you can obtain a 10 year term life insurance policy, up to a 30-year term policy and be between $100,000 and over $10,000,000 in coverage.
The good thing about AAA term life insurance is that it can be converted to permanent life insurance, provided you do this before 80 percent of your term is up, or before you turn 65. Your rates will go up after you do this, and they will continue to go up every year, but this is a way to get permanent coverage if you need it. Additionally, with AAA you can get half your payout before you die, provided you have been diagnosed with a life expectancy of less than 12 months.
We recommend term insurance for most people. It’s the cheapest and most effective option for coverage.
How Do AAA Rates Stack Up?
Insurance rates differ from person to person and depend on a wide variety of factors like age, gender, health conditions, tobacco use, whether you choose a policy that requires a medical exam or does not require a medical exam, etc. So, it is near impossible to predict exactly what rates AAA will offer you for a term life insurance policy.
To get the lowest insurance rates with AAA (or any insurance company), there are several ways that you can save money on your policy rates. As we mentioned, your age and your health are both going to play a part in measuring your monthly premiums for your coverage. There is nothing you can do about your age, but you can improve your health to save money.
After you complete the initial paperwork with the insurance company, they are going to require that you complete a medical exam with a nurse or paramedic or maybe no medical exam is needed. They will have the person come to your house, and the exam will consist of a questionnaire, taking basic vital signs, measuring blood pressure, weight, and cholesterol, they will also take a blood and urine sample.
It’s time to get in shape and shed those extra pounds you’ve been carrying around. Being overweight or obese drastically increases your chances of having severe health complications later in life, which means that you’re riskier. Risk equals higher premiums.
We also mentioned that tobacco usage is going to help determine how much you pay for insurance, but in fact, it’s one of the biggest factors that is used to calculate your premium rates. If you’re a smoker looking for life insurance, be prepared to get higher rates than you might have anticipated. Whatever number you’re thinking, you can probably double it.
Another factor that is going to determine how much you pay, is the size of the policy that you purchase. Obviously, the larger the policy, the more expensive the monthly payments are going to be, which is why it’s vital that you know exactly how much coverage that you need. We can even help if you are needing a one million dollar life insurance policy.
The Bottom Line
AAA is well known and has a good overall reputation. However, when it comes to term life insurance it may not be the best choice for you. After all, AAA does not always provide the lowest rates for term life policies. It is always best to compare rates and coverage options between companies before you make any decisions. We have included dozens of company reviews, such as our Globe Life Insurance Review, check it out before making your life insurance purchase decision!
Just because they don’t tend to have the lower rates, does not mean that you should automatically disqualify them from your life insurance search. As we mentioned, they have several different advantages to their policies that are not offered by every insurance company like Colonial Penn. Every person has different preferences when it comes to their insurance needs, and AAA could fit yours.
If you passed away, they would be left with thousands and thousands of dollars of debt. That could make an emotionally stressful situation a financial strain on your family.
Working with our agents can save you hours of time searching and thousands of dollars on your insurance premiums.
Through the years, we’ve had the pleasure of working with some of the best insurance companies. If you work with us, you’re going to get 30 different quotes in a matter of minutes.
We can guide you through the life insurance search to keep you away from expensive plans and bring you to the cheapest option.
Want to learn more about AAA or need help deciding if it’s best for you? Give us a call at 888-552-6159.