A simple and honest review of AAA Term Insurance.
Today we review one of the most popular names in the world of insurance - AAA. Triple A as it is most often known, is famous for their auto service club and auto / home insurance program. However they are less well known for their term life insurance. In general the company is very customer friendly and sometimes offers discounts to certain policies therefore making it a potential good deal. Here are some considerations you will want to evaluate.
Who is AAA?
AAA is the American Automobile Association which is a group of Motor Clubs located in the United States. The association was founded in 1902 in Chicago. The group is affiliated with Auto Home and Life Insurance sales in most US States. AAA is composed of numerous entities including CSAA. The exact structure is not easy to understand.
AAA Contact Information:
AAA Life Insurance Company is headquarters in Livonia Michigan.
Their address is 17900 N. Laurel Park Drive Livonia, MI 48152-3985.
Their phone number is 800-624-1662.
AAA Fax Number is 734-805-6254.
Their NAIC number is 71854.
The Benefits of AAA Term Insurance:
AAA is a household name that markets fairly heavily across the country. They offer Term, Whole Life, and Universal Life policies. There policies are generally competitive in the market place, especially for a captive insurance carrier. AAA life insurance also has a few different underwriting options: Fully Underwritten and Express Underwritten. Typically express policies do not require a paramedical visit.
Since AAA is a household name their product reach is wide and far offering services to my knowledge in each of the fifty states. They also have the ability to purchase products direct on their website.
AAA insurance has earned awards, for example by being named "Multi-Line Insurance Brand of the Year" in April of 2018. ""AAA is honored to be recognized as the highest ranked multi-line insurance brand by American consumers," said AAA President and CEO Marshall L. Doney."
Another positive from AAA is that they are so ubiquitous on the American landscape. In other words they are all over the place. For many this means that they may be their best bet for easy to find life insurance.
The Drawbacks of AAA Term Insurance:
As with all life insurance companies there are negatives to working with AAA. The main issue is their AM Best rating, which was listed as A- in 2017. An A minus may not sound low but it ranks below A++, A+, and an A. This makes it the fourth highest rating that an insurer could receive. For this reason alone AAA life insurance is perhaps not the best choice. In August of 2018 the Financial Strength Rating was upgraded to A.
A second issue with AAA life insurance is that them being a home - auto insurance carrier they do not have as much of a focus on life insurance. In my experience carriers that merely represent one aspect of insurance often are better at it. The differences between home and life is significant.
Third is that most people do not qualify for Preferred Plus pricing with most life insurers. Why they don't qualify comes down to their health, risk profile, driving record, etc - and the best way to shop for insurance for most people is with an agent that deals with lots of insurers. The disadvantage here is that AAA is a captive insurance agency model whereby the agents only work for AAA. With the agents only working for AAA, than they are not able to shop your situation around with multiple carriers.
The last word of caution about AAA Term is that in totality they may not be able to offer you the lowest term life insurance rates based on many of the things we have reviewed. Shopping for term insurance should be simple, unfortunately it is often not. If you partake in any dangerous activies such as Scuba Diving or Rock Climbing, or travel internationally, or have a health issue such as Asthma or Sleep Apnea, or if you have a more dangerous job, such a trucker, or take a medication such as Zoloft, AAA may or my not be the best rate you can get. The issue is that since they are captive you might never know.
Term and Whole:
The best thing about AAA Term Insurance frankly speaking may be that it is term insurance. This site, whole vs term has extolled the virtues of term insurance for most americans.
Although Participating whole life insurance is appealing the numbers rarely add up for most.
Choosing term insurance is generally a smart play for most consumers.
AAA Term, is it competitive?
AAA Term Life Insurance may be competitive depending on your situation. Then again it may not be. In general the best way to apply to do some research about your medical and health conditions and compare these numbers with numbers from an independent broker who may be able to beat those AAA numbers.
What Exactly is Captive Insurance?
In the insurance sales model - Captives or Captive agents refer to agents working with only one company or group of companies. Brokers or Independent Agents are able to work with lots of different insurers, they are the free agents, so to speak. In general both captive agents and independent agents each have things going for them. Captives tend to know their product better but unable to accept as many risks. Independent being that they sell so many different companies can accept more but might not know a given insurer's product as well.
This term is not be confused with a corporate insurance structure known as Captives, which are entirely separate and different
How do Compare a AAA Term Insurance Quote with One From You?
To start off use the life insurance rater to the left. Second, to get an actual real quote, call us. Its not really possible to get accurate quotes if you take any medicines or have any other health or lifestyle considerations.
***WholeVsTerm is not appointed with, nor sells or services AAA Life Insurance Policies.***
Thanks for Reading our post about AAA Term
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