Is USAA life insurance rates competitive?

Written by Life-Wealth-Win

Is USAA life insurance rates competitive? We always get that kind of question from family members of veterans and active-duty military personnel. USAA is one company that understands what it means to serve our country which is why many active and non-active military personnel tend to choose USAA insurance. 

Let’s see if USAA life insurance is the right choice for all military personnel and their families. It pays to know the facts before we choose which policy and which company is best for us.

Read on. This article will help you see if USAA life insurance rates fit your budget and if the company is right for all your life insurance needs.

THE HISTORY OF USAA LIFE INSURANCE COMPANY

United Services Automobile Association or USAA began its operation in 1922, in San Antonio Texas. USAA is founded by 25 US Army officers in order to self-insure each other because they could not get automotive insurance. Most insurance companies considered them a “high risk” group. Soon afterward, the company provides services to the members of the U.S. armed forces.

By 1936 around 60% of all eligible U.S. military officers were members of the USAA.

The company grew rapidly expanding outside the United States. By 1950s they started writing insurance policies in Europe. The company continued to expand to Southeast Asia in the 1960s.

Over the years, USAA Life Insurance Company has grown to become a well-respected Fortune 500 company. They now have more than 11 million members, and they are the 24th largest life insurance company in the nation based on the total in force coverage.

USAA doesn’t just provide a wide variety of insurance services to their members. They also offer financial services such as checking accounts, savings accounts, credit cards, and loans.

THE USAA LIFE INSURANCE COMPANY RATING

USAA Life Insurance Company is a secure and stable company. They had been earned a high rating from different insurer rating agencies.

These include the following:

  • M Best rating: A++ this is the highest possible out of 16 total ratings.
  • Standard and Poor’s rating: AA+ this is the highest out of 21 total ratings
  • Moody’s rating: Aa1 this is the highest out of 21 total ratings
  • Fitch rating: AAA
  • BBB Better Business Bureau rating A+
  • Comdex ranking: 99 (out of 100)

ADVANTAGES OF USAA

Financial strength is the greatest advantage of USAA. It is considered a stable and reliable company from a financial standpoint. The company has been provided with high ratings from different insurer rating agencies.

They are known for their award-winning customer service, timely payment of policyholder claims and making customers’ needs a priority.

All life insurance policies at USAA do not have the “war clause” that other life insurance companies carry.

If an active military dies as a result of combat duty, their family will still receive the benefits from the policy. They also pay a benefit of $25,000 for those who are severely injured but not killed in action. Policyholders can also increase their death benefit without the need for a life insurance medical exam.

USAA life insurance rates are competitive for people in excellent health.

USAA life insurance rates or premiums are cheaper compared with other insurance companies. They also have one of the highest customer service approval ratings.

USAA LIFE INSURANCE RATES AND PRODUCTS

USAA Life Insurance Company offers different life insurance products. Their members can choose the coverage that suits their needs, and members can change their coverage depending on their situation.

These life insurance coverage options include the following:

Level Term Life Insurance
USAA members can purchase level term life insurance for death benefit protection only, without any savings or cash value build up. The premiums are lower and more affordable (especially for younger applicants in good health at the time of application).

The coverage length is up to 30 years for level term option.

There’s also an available policy option for children. The premium amount remains the same during the term of coverage. This option can also be converted to a permanent life insurance policy without going through a medical examination.

Military Term Insurance Coverage
The coverage lengths are up to 30 years, and the amount of premium remains the same throughout the life of the policy. This plan also offers a $25,000 severe injury benefit to military personnel.

The application may be expedited to ensure that the applicants are covered before they are deployed. The insured will still be covered in the event of death by war.

The Military Future Insurability Benefit provides the option to replace the term policy with an additional policy when the insured’s military service has ended. They can be done regardless of the insured’s health condition.

Universal Life Insurance
Universal life is a form of permanent life insurance coverage. There is a death benefit protection with a cash-value component to this policy.

The cash buildup is tax-deferred. The funds grow within the cash value component it is tax-free until the policyholder withdraws them.

The cash value can increase and compound over time.

The universal life plan is also flexible. The policyholder can choose when the premium is paid. They can also decide the amount of premium to be put towards the death benefit and cash value. Cash can be accessed through policy withdrawals or loans and can earn higher interest rates as the cash value grows.

Whole Life Insurance
Whole Life is a permanent form of insurance with death benefit and cash value component. The cash value can grow on a tax-deferred basis. The premium and death benefit are guaranteed.

USAA cannot cancel this coverage unless there is a non-payment of premium. The coverage continues regardless of the insured’s age or declining health.

The policyholder can purchase additional permanent insurance at certain ages, or after various life events like getting married or having a baby without a medical examination. Free financial advice is offered for the policy holder’s beneficiaries.

USAA OTHER PRODUCTS AND SERVICES

In addition to life insurance coverage, USAA offers:

  • Auto Insurance
  • Renters Insurance
  • Homeowners Insurance
  • Rental Property Insurance
  • Valuable Personal Property
  • Home & Property Insurance
  • Flood Insurance
  • Annuities
  • Umbrella Insurance
  • Motorcycle, RV & Boat Insurance
  • Small Business Insurance
  • Additional Insurance Solution

DISADVANTAGES OF USAA

Membership is limited to the military and their family members. Although, USAA offered limited membership to civilians from 2009 to 2013.

USAA has strict underwriting guidelines; not all health conditions are recognized the same.

Applicants with pre-existing health conditions like diabetes and hypertension may find it difficult to get a policy with USAA.

They also have extended underwriting time periods usually 4-6 weeks. So, if someone needs coverage quickly either for divorce or business loans, USAA is likely not a good choice.

CONCLUSION

We hope we answered your question “is USAA life insurance rates competitive?” If you are seeking the best premium quotes on coverage that is offered through USAA – or any insurance company – it is typically best to work with an independent agency that has access to a different insurance carrier.

At Life Wealth Win, we work with clients across the nation to get the best life insurance rates possible. If you are in the military, we can help you get the best life insurance rates.

Should you find you have questions regarding USAA Life Insurance Company or if you just have questions about life insurance feel free to call us at (888) 435-4342. We are here to help, contact us today.

About Life-Wealth-Win
About Life-Wealth-Win

We work with individuals across the nation to secure the best life insurance rates.

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