Replacing Employer Sponsored Life Insurance with AAA Insurance

See Our Review

By James Tobin, CFP®

Critical Takeaways

  • Simplified Issue "No Exam" product Available.
  •  Well Known Brand Due To Association With AAA Automobile Club
  • Not Easily Shopped Against Others Due To Proprietary Quoting Tools

Workers Bequest Rating

AAA Life Insurance Carrier  Specifics

Policy Options

Term, Universal Life, Whole Life

Term Lengths





A   -A.M. Best


NY Unavailable



Customer Service

Issue Age


Min. Coverage

$100K -Term, $25K-WL,UL

No Exam Options


Expert Review Of AAA Life Insurance Company

Jim Tobin promo

Reviewed by

Jim Tobin, CFP®

Why you can trust this review

At Workers Bequest, we value our editorial independence. We keep our reviews strictly factual so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews. 

AAA Life Insurance Company History

The American Automobile Association (AAA or triple A) was founded in 1902. However, its life insurance division, spawned as a complementary product to the auto insurance product, F

it was introduced in 1969.

Between term insurance, universal life policies and small whole life policies designed for funeral expenses, AAA  has a million policyholders in the United States.

So, while still primarily known for its roadside assistance and  travel services, its life insurance products are worth a look,

This AAA life insurance review will concentrate primarily  on AAA term. If you'd like to see more about universal life or AAA whole life just follow the links.   

We believe that after reading this article, you're going to gain some insight on what insurance plan is more beneficial to you, especially when switching from an Employer- Sponsored plan. AAA term life insurance rates among the best term carriers available. Please note that opinions shared here are exclusively those of Jim Tobin and The Workers Bequest.

AAA Life Insurance Ratings

The financial strength of AAA  life insurance company is rated A (excellent) by A.M. Best. The other major ratings agencies have not rated AAA life insurance. 

In addition to financial stability, AAA is also rated A+ by the Better Business Bureau (BBB). While there are certainly complaints, like with all big companies, AAA has been quick to respond to any public complaints. The NAIC or National Association of Insurance Commissioners  lists the complain ratio as .15, well below the 1% average.

AAA Term Life Insurance

The AAA life insurance company offers traditional term  policy as well an  Express Term product. The Express Term product is a simplified issue policy. This is to say that there is  no medical exam required to obtain this policy.

Express Term  policies have coverage limits or caps at $500,000.  These policies are more expensive than fully underwritten policies but in addition to not having to take an exam, you will likely receive an underwriting answer in  only a few minutes.

The simplified issue policy can be applied for on the computer while a fully underwritten policy requires an agent.

Lastly, there is a AAA Members Only Group Term Life Insurance product. This is the weakest of the AAA term life  offerings. The product is marketed to AAA members and is simplified issue "banded premium" term.

The "catch" with this product is that it goes up in price every 5 years and expires at age 80.  When compared to other term products on the market it is expensive.

 Additionally it it is only sold in coverage amounts of 50K,100k, 250k and 300K. The Workers Bequest strongly advises to stay away from this product. 

What is AAA Direct Term Life?

Term direct is the marketing label used for AAA  Express Term. The reason this term is used is that the product can be purchased directly from Triple A  life insurance  via your computer. 

While this appears a convenient option, it puts convenience before making an informed decision. The use of an independent agent has no cost associated with it.

The truth is that the rates are the same with or without an agent and the company simply makes a larger profit. The downside of this for the consumer is that with an independent agent you will be able to shop 50+ A rated carriers. 

Being that different carriers have differing appetites for certain health risks, it is important to have an agent who has access to all the major carriers. The value of a good agent is knowing which carriers are likely to view your situation in the best possible light.

As an example, if you are being treated for anxiety or high blood pressure, you would rather send your application to a carrier that is more tolerant of those conditions than one known for catering to DUI or bad driving histories.

AAA Life Insurance Quotes and Details

AAA  life insurance quotes are not readily available in a published form. However quote estimates can be obtained at  However, the estimates are of limited value due to the wide ranges. 

As an example, I put my own information into the AAA  term life insurance quote tool   (20 yr.,300K, Term Express product) and got a monthly range estimate between 68/mo. and 347/mo. 

The traditional term life insurance product comes in terms of 10,15,20,25 1nd 30 years. The available coverage amounts are a minimum of $100,000 and a maximum of $5,000,000. The application is taken by an AAA agent and underwriting can be reasonably expected to take several weeks.

The Express product  comes in terms of 10,15,20 and 30 years The available  coverage amounts range from $25000 to $500000

AAA  Life Insurance Riders

The triple A life insurance company has several policy riders including, child, disability and accidental death. . However, it's worth noting they cannot always be used together.  

Return of Premium Rider

Traditional term life life insurance can be purchased with a return of premium rider. If you choose this rider, the monthly cost of the  policy will be higher, but if you live until the policy expires, your premiums are returned to you. Additionally, should you  cancel the policy mid-  term, you'd receive a portion of premiums back.  

While initially costly, this rider can be used as a "forced savings". Note that this  rider is only available at age of 65  or younger for applicants purchasing policies with at least $100,000 in coverage for a term of 15 or more years. Additionally, no other riders are available whit return of premium policies.

Disability Waiver of Premiums

This provision would allow you to stop paying premiums (without losing your policy) if you were to become disabled.

Accidental Death

If you die in an accident covered by the policy, this provides an additional payment of up to $150,000 to your beneficiary.

Guaranteed Purchase Option

If you need it, this gives you the ability to increase your coverage at some time in the future, without having to prove your insurability.

Travel Accident

If you die or are seriously injured in a covered travel accident while driving or riding as a passenger, this provides an additional benefit to your beneficiary.

AAA Term Life Conversion Options

Life insurance "conversion" refers to the ability of the policy holder to convert term insurance to permanent insurance with no evidence of insurability.

In short, you don't have to prove your healthy or for that matter, be healthy. Convertibility can be a great tool if your health declines considerably and new term insurance would be either unattainable or unaffordable. 

Unfortunately, the specific rules around AAA term convertibility  are not publicly transparent as they are with most major carriers. The lack of clarity around conversion rules is a factor in our negative view of life insurance options offered by AAA.

AAA  Life Insurance exclusions

The only exclusions  that do not arise from underwriting are related to suicide within a two year period from the policy being put in force. 

That said, it is rare, but possible, to have an exclusion arise out of underwriting.  These exclusions usually center around dangerous activities.

We are not currently aware of any non suicide exclusion policy at AAA.

AAA Life Insurance Customer Service

Independent consumer review websites have  received mostly favorable comments on  AAA and  only six complaints from the National Association of Insurance Commissioners were received in  in 2019.

AAA Life Insurance Payment Options

AAA life insurance can be paid for by either telephone , online or traditional  "snail mail". Revolving automatic payments can be set up through AAA e-services. Payment can be from a checking account or a credit card Accepted cards are Visa, MasterCard, American Express, and Discover. Money orders are not accepted as payment.

Grace periods vary from product to product but are never less than 31 days.

AAA Life Insurance Payout on Death Claims

AAA claims that most payouts take place within a few weeks. The limited number of complaints to the NAIC would seem to substantiate that claim. There do seem to be complaints about payouts on consumer affairs sites, but these complaints are generally not centered around term policies.

  Because it's stressful enough when someone you cared about passes, AAA passes along the following tips

  1. Locate the life insurance policy. 
  2. Contact the insurance company. 
  3. Choose how you would like to receive the payment. 
  4. Await payment.

AAA Membership 

Being an AAA member is not a requirement to purchase either traditional term life insurance or Term Express. The express policy will waive a $60 policy fee if you are a member.

The simplified issue group term policy does require membership. However, as discussed earlier, this is not a product worthy of your consideration. There are far too many better options that are transparent and much better priced. Stay away!

That said, when I had an old Saab convertible I loved, my AAA  membership was worth its weight in gold. 

AAA Life Insurance Review- The Verdict 

While I am a happy  AAA member {the auto membership, and have used it!), I can not recommend their life insurance policies.  It's not that the policies are horrible (with the exception of the AAA members direct express group insurance), it's just that they are not transparent and easily compared with market leaders. 

It is usually telling when a carrier chooses not  be readily compared with the competition. Moreover, you are almost always better off when you can comparison shop with several options available to you.  For these reasons, we recommend using an experienced independent agency like the Workers Bequest.     

Next Steps

We are glad about the efforts you've made on checking out for a better upgrade for your Employer Sponsored Life Insurance Plan and finally decided on Workers Bequest. We are committed to a totally transparent process (we'll even share our computer screen with you if you'd like), and making the application process as painless as possible.

Simply give us a call or send us email so we can get you started. If you have any questions, We'd also like to hear them as well.


The Time to get covered is now!...

See Just How Easy Buying Life Insurance Can Be....

Compare Accurate Life Insurance Rates In Just Seconds.