Is USAA Good For Life Insurance?
Is USAA Good For Life Insurance? USAA is hailed by many experts in the industry, and by customers, as a solid option for life insurance. USAA is a powerhouse insurance company and poised among the leading life insurance companies in the United States today.
USAA’s products are designed specifically for active military members, veterans and their families, but the company’s life insurance policies are available to everyone. Most term and whole life policies are available nationwide. The company’s universal life is not available in New York, and its guaranteed issue policy is not available in Montana. With its offerings of potential free perks and wartime coverage, plus its strong financial standing and low number of complaints to insurance regulators, USAA is one of InsuranceDiaries’s top-rated life insurance companies.
Is USAA Good For Life Insurance?
USAA life insurance earned 5 stars out of 5 for overall performance. InsuranceDiaries’s ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings. Based on these ratings, USAA is among InsuranceDiaries’s Best Life Insurance Companies for 2021.
USAA life insurance policies
USAA offers both term and whole life policies. Most policies require a health questionnaire and medical exam before approval.
1: Term life insurance
Term life insurance policies are available for lengths of 10, 15, 20, 25 or 30 years. Depending on the state, you may receive additional benefits, including:
- Coverage while in war, which is often excluded from policies.
- A $25,000 payment if you suffer a severe injury while on active duty, including paralysis, loss of vision or severe burns.
- Guaranteed coverage after leaving the military.
- An option to add $100,000 in coverage if you have a baby, get married or buy a house between the ages of 18 and 35.
- The option to convert to a permanent policy.
- The option to convert your service members’ group life insurance (SGLI) to a USAA term life policy if you leave the military.
2: Permanent life insurance
Simplified whole life insurance policies are available for coverage limits up to $1 million. You have the option to make payments for 20 years, until age 65 or for the full duration of the policy. You can also increase coverage after certain life events, up to a total of six times, with a free life event option rider.
Universal life insurance policies come with flexible payment options and with a guaranteed interest rate of 2%. Universal life policies are not available in New York.
Guaranteed Issue life insurance policies are available to applicants 45 to 85 (50-75 in New York) in all states except Montana. These policies are issued by Mutual of Omaha and do not require a medical exam or health questionnaire to qualify for coverage. Face amounts range from $2,000 to $25,000. Often called final expenses life insurance, these small policies can help cover burial or funeral costs.
Depending on your state, USAA may offer additional riders, including:
- Child protection plan, which allows you to add all of your kids to your policy. Your children may have the option to convert it to their own policies when they’re older, regardless of their health.
- Waiver of premium benefit, which waives your premium should you become disabled.
USAA offers the following riders
Learn More: What Is a Life Insurance Rider? Life Insurance Riders Explained
1: Child Rider: If you have a term life policy, you can add a child rider to your plan and insure all of your children for as little as $4 per month. When your children are older, they have the option of converting their insurance into their own permanent policy.
2: Life Event Option: If you add the life event option rider to your term or whole life policy, you can qualify for additional insurance—without a medical exam—after specific life events, such as getting married, buying a home, or having a baby. Age restrictions and coverage amounts apply.
3: Military Future Insurability Rider: With the military future insurability rider, you have the option of increasing your insurance coverage upon separation from the military.
4: Military Severe Injury Benefit: The military severe injury benefit will give you $25,000 to help with expenses if you experience covered injuries while performing military duties.
5: Waiver of Premium: With whole life policies, you can add the waiver of premium rider to your plan. If you are disabled and unable to work, your insurance premiums will be waived.
USAA Customer Service
USAA sells its life insurance plans directly to customers. Once you join USAA, you can submit your application online.
You can reach customer service by calling 800-531-8722. Its customer support line is staffed Monday through Friday from 7:30 a.m. to 10:00 p.m. CT, and on Saturdays from 8:00 a.m. until 5:00 p.m. CT.
USAA also has a virtual assistant that can answer basic questions 24/7.
As a way to help consumers compare insurance companies, the National Association of Insurance Commissioners (NAIC) collects all complaints received about insurance companies. Each year, the NAIC releases companies’ complaint ratios, a number that reflects the number of complaints a company received relative to its share of the market.
The national complaint index is 1.0. If a company has a complaint ratio over 1.0, it received more complaints than is typical for its size. If the company has a ratio below 1.0, it received fewer complaints than is typical for its market share.
In 2019, USAA’s complaint ratio was 0.11, which is well below the national complaint index. The company received just 10 complaints throughout the year, which is much lower than expected for a company of its size.
Customer complaints for USAA
Over three years, USAA has drawn far fewer complaints to state regulators than expected for a company of its size for life insurance, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners.
More about USAA life insurance
You can get a quote and apply for a life insurance policy, plus pay your bill and manage your account from the USAA website and iPhone and Android mobile apps. USAA also has a survivors relations team that can assist families of deceased USAA members, including help with any survivor benefits.
USAA life insurance Pros and Cos
- You can get quotes for term, whole, and universal life policies online: Many life insurance companies require you to contact an agent to get a quote for most policies. But with USAA, you can get a quote for term, whole, and universal plans completely online, even if you aren’t a USAA member yet.
- Coverage amounts as high as $10 million available: If you’re looking for a substantial amount of coverage to ensure your family is protected, USAA has coverage amounts as high as $10 million available. Some other companies limit their coverage to $1 million or less, so the ability to get additional coverage is a significant benefit.
- Survivor Relations Team (SRT) access: When a USAA member passes away or experiences a death in the family, the USAA SRT helps their surviving loved ones cope afterward. The SRT is available for consultations about financial topics, policy details, and survivor benefits.
- You must be a USAA member to qualify for life insurance: Only USAA members are eligible for life insurance policies. Membership is limited to U.S. military service members, veterans, pre-commissioned officers, and their spouses and children.
- All policies require a medical exam: While many life insurance companies have some no-exam policies or will waive the medical exam under certain coverage amounts, USAA doesn’t have those options. Its underwriting process for all of its plans requires a health questionnaire and medical exam.
- No final expense policies available: Some people want a basic policy to cover only their final burial expenses. These plans tend to be very inexpensive and often can be purchased online without a medical exam. USAA doesn’t offer final expense policies; the lowest coverage amount it offers is $50,000. However, they can pay policies quickly to help cover final expenses.