AAA Life Insurance Review

Offering multiple insurance options you can purchase online or through an agent

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AAA Life Insurance

AAA Life Insurance

overall rating

With AAA Life, you can get whole life, term, universal, and guaranteed life insurance policies as well as accident insurance. Unlike many companies that require medical exams for all coverage options, AAA Life allows some applicants to purchase up to $500,000 in term life insurance online without undergoing a medical exam, so you can get coverage right away. And, it has guaranteed issue policies that you can lock in, regardless of your health history.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
  • Get up to $500,000 in term coverage without a medical exam

  • You can get quotes and purchase guaranteed issue and term life policies online

  • Up to $5 million in term life coverage available

  • Guaranteed issue policies only available to certain age groups

  • Whole life coverage capped at $75,000

Key Takeaways
  • AAA Life is headquartered in Livonia, Michigan.
  • As of 2021, the company has over 1.5 million active life insurance policies.
  • AAA Life offers permanent whole life insurance, term life insurance, universal life, guaranteed life insurance, and accident insurance policies.
  • You can purchase some policies online, or you can meet with an agent in-person.
Company Overview

AAA Life Insurance Company is separate from the American Automobile Association (AAA). It’s owned by several of the largest entities in the AAA organization and became part of AAA in 1969. 

AAA Life offers term, whole life, universal, guaranteed issue, and accident insurance policies. It also sells annuities for those looking to supplement their retirement income. 

The company is headquartered in Livonia, Michigan, and licensed to operate in all states except for New York. Currently, the company has over 1.5 million active insurance policies nationwide.

  • Year Founded 1969
  • Kinds of Plans Guaranteed issue, whole, universal, term, accident
  • Number of Plans 7
  • Payment Plan Options Monthly, quarterly, semi-annually, annually
  • Customer Service Phone, online, agent
  • Phone 888-422-7020
  • Official Website

Pros Explained

  • Get up to $500,000 in term coverage without a medical exam: With AAA Life’s ExpressTerm Life policy, you can qualify for up to $500,000 in term life coverage without a medical exam; most insurance companies require all applicants to undergo a medical exam for that much coverage. You can purchase a policy online in as little as 10 minutes. 
  • You can get quotes and purchase guaranteed issue and term life policies online: With guaranteed issue and some term life policies, you can get quotes and purchase your policies through the website without ever talking to an agent. 
  • Up to $5 million in term life coverage available: AAA Life offers large coverage amounts. With its Traditional Term Life plan, you can opt for up to $5 million in coverage, providing a substantial benefit to your family. 

Cons Explained

  • Guaranteed issue policies only available to certain age groups: Guaranteed issue policies are a form of whole life insurance only available to people between the ages of 45 and 85. If you’re outside of that range, you’ll need to get a traditional whole life, term life, or universal life policy and undergo a medical exam. 
  • Whole life coverage capped at $75,000: Permanent whole life coverage is capped at $75,000, far lower than you can get with other insurance companies. 

Available Plans

AAA Life has multiple life insurance options, including term, whole, universal, and accident insurance policies. Insurance plans range from basic and affordable policies that are designed to cover only your final expenses to more robust term or universal life policies that will leave your families a more lasting legacy. Whatever your life insurance goals are, AAA Life has seven different options to meet your needs: 


With term coverage, you pick the length of your policy’s term and your coverage amount. AAA Life has two term options: 

  • ExpressTerm: With ExpressTerm, you can apply and purchase a policy online in as little as 10 minutes. Some applicants can qualify for up to $500,000 in coverage without a medical exam. 
  • Traditional Term Life: Traditional Term Life policies are available in 10- to 30-year terms, and you can get up to $5 million in coverage. While you can get a quote online, you must work with an agent to finish the process, and a medical exam is required. 


Whole life coverage is permanent life insurance that builds cash value over time. AAA Life has three whole life policies: 

  • Whole Life: Whole life policies have guaranteed premiums and level benefit amounts. With whole life, you can get up to $75,000 in coverage. 
  • Guaranteed Issue: Guaranteed issue policies are only for people between the ages of 45 and 85. There is no medical exam or health questions, and you can get up to $25,000 to pay for final expenses. 
  • Simplified Issue: A whole life product that has a death benefit ranging from $5,000 to $25,000.


With universal life insurance, you combine a death benefit with the ability to build cash value over time. There are two universal policies: 

  • LifeTime Universal Life: This version of universal life insurance has guaranteed level premiums that won’t change even if interest rates fluctuate. Coverage starts at $100,000. 
  • Accumulator Universal Life: Accumulator universal life insurance accumulates cash value that you can use to supplement your retirement fund if needed. Benefits start at $100,000. 


Accident insurance is an exclusive benefit offered by AAA Life and is typically a supplement to another life insurance policy. It provides a cash benefit for hospital stays, recuperation, emergency room visits, and loss of life resulting from accidents. Coverage begins immediately and does not require a medical exam or medical questions to qualify. 

Available Riders

To customize and adjust your insurance plan, many insurance companies offer riders or endorsements. An insurance rider is a provision to your insurance policy that adds to or changes your insurance coverage. You can use a rider to increase the limits of coverage, add covered persons, or provide benefits in certain circumstances. 

AAA Life has the following rider options:

Accidental Death

Add the accidental death rider to your whole life policy and your beneficiary can receive up to $150,000 in additional benefits if you pass away from a covered accidental death, such as a traffic or work accident. 

Child Term

Available on whole life policies, you can use the child term rider to provide up to $5,000 of life insurance coverage per eligible child. 

Disability Waiver of Premium

If you add the disability waiver of premium rider to your whole life insurance policy, AAA Life will cover your life insurance premiums if you become totally disabled. 

Return of Premium

On term life insurance policies, you can add a return of premium rider to your policy. With this option, you can receive up to 100% of your premiums back at the end of the term period if the coverage is never used. 

Travel Accident

If you add the travel accident rider to your whole life policy, your beneficiary will receive an additional benefit if you pass away in a covered accident or while traveling as a passenger.  You must have the accidental death benefit rider to utilize this rider.

Customer Service

AAA Life is available at 888-422-7020 if you have any questions about its life insurance plans, billing policies, or coverage options. Customer service is available Monday through Friday from 8:00 a.m. until 8:00 p.m. ET, and on Saturdays from 11:00 a.m. until 3:00 p.m. ET. 

AAA Life also has local insurance agents you can talk to face-to-face about your insurance needs. You can use the agent locator to find an agent near you. 

AAA Life also has a live chat option. If you have general questions, you can submit a secure message or email For questions about filing a claim, email

Complaint Index

The National Association of Insurance Commissioners (NAIC) keeps track of insurance complaint ratios, meaning the number of complaints insurers receive relative to their size and market share. 

The NAIC considers a complaint ratio of 1.0 to be the industry average. If a company has a complaint ratio of 1.0, they have more than the typical number of complaints for their market share. If their complaint ratio is lower than 1.0, they have less than the typical number of complaints for their size. 

In 2020, AAA Life’s complaint ratio was 0.93, better than the industry average. 


AAA Life has had better-than-average complaint ratios for the past three years.

Third-Party Ratings

AAA Life is not included in J.D. Power’s 2020 Life Insurance Study. However, AAA Life does have an A (Excellent) rating from AM Best, the credit rating agency focused on the insurance industry. A strong rating from AM Best indicates that an insurance company is able to fulfill its policy and contractual obligations. 

Cancellation Policy

You can cancel your AAA Life policy at any time without paying surrender fees or charges, but you won’t get refunds of any premiums paid. To cancel your policy, you must submit a written request by mail or fax. Cancellation requests should include the policy or certificate numbers, a signature from the policy or certificate holder, and the date the cancellation request was signed. 

If you signed up for automatic payments, you can call Member Services and request that the automatic payment be stopped. Requests to end automatic payments must be made at least three days before the payment is scheduled to be withdrawn. 


AAA Life’s pricing is average, but if you’re willing to shop around and look at other companies, you’re likely to find more competitive rates. 

According to the company, term life policies start at approximately $8 per month, but your premiums are dependent on several factors, including your age, gender, location, health, and health habits. 

Below are the quotes we got for Traditional Term Life for two 35-year-old individuals in excellent health with no history of smoking. Quotes are for 10-year policies:

Coverage Amount 35-Year-Old Female 35-Year-Old Male
$100,000 $9.24 $10.03
$150,000 $11.22 $12.41
$200,0000 $13.20 $14.78

Your monthly rate will increase by $3 for direct billing.

Like most life insurance companies, AAA Life requires you to select either male or female as your gender. While being nonbinary does not disqualify you from getting life insurance, many companies’ underwriting processes have not been updated yet to reflect broader awareness of gender issues, so you may find the application process outdated or restrictive. 


While AAA Life does offer some high-coverage plan options, it has only a few policies to choose from, and it may be more expensive than other insurance companies. Before committing to AAA Life or any insurance company, it’s wise to shop around and compare plans from multiple insurers to ensure you’re getting the best deal.

Another company to consider is Mutual of Omaha. Like AAA Life, Mutual of Omaha has seven different insurance plans. However, Mutual of Omaha has more flexibility, offering accelerated death benefits you can access in the case of terminal or chronic illnesses, and the ability to adjust your premium amounts. Plus, Mutual Omaha was ranked fifth out of 23 life insurance companies in J.D. Power’s 2020 Life Insurance Study, scoring better than most in pricing, product offerings, customer interactions, and communications. 

If you’re trying to decide between the two, Mutual of Omaha is likely the better option due to its customer service and pricing.

  AAA Life Mutual of Omaha
Market Share Not applicable Not applicable
Number of Plans 7 7
Dividends for 2020 Not applicable Not applicable
Wellness Program Discounts/Quit Smoking Incentives Not applicable Not applicable
Service Method Phone, web Phone, web, agent
AM Best Rating A (Excellent) A+ (Superior)
J.D. Power's Price Rank Fair Better than most
Complaints Trend 0.93 0.65

AAA Life offers life insurance policies with high benefit amounts, and even offers up to $500,000 in coverage without a medical exam. If you’re looking to get a policy quickly online, AAA Life can be a convenient option. 

However, that convenience can come at a premium cost. AAA Life’s policies may be more expensive than its competitors, and with its caps on whole life policies, you may want to look at other companies for your insurance needs.

How We Review Life Insurance Companies

Our reviews of life insurance companies are based on a quantitative approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. National Association of Insurance Commissioners. "Complaint Index." Accessed May 13, 2021. 

  2. J.D. Power. "Life Insurance and Annuity Providers Are More Customer-Centric but Gaps Remain, J.D. Power Finds." Accessed May 13, 2021. 

  3. AM Best. "AAA Life." Accessed May 13, 2021.