USAA life insurance: Dec 2020 review

What types of life insurance coverage does USAA offer?

While many providers shy away from insuring members of the military, USAA focuses on life insurance policies designed for members of the military and their families

Whether you’re looking for temporary coverage while deployed or extra help for retirement, a strong lineup of term, whole and universal life insurance policies should suit your needs.

Term life insurance

Among the most affordable options USAA offers, term life insurance provides a fixed amount of coverage over a specified term of 10, 15, 20, 25 or 30 years.

Starting at an advertised $14.51 a month for a 20-year best-class policy, payments and coverage remain consistent over your term. And you can opt for additional coverage while deployed and a guaranteed Servicemembers’ Group Life Insurance (SGLI) replacement after you leave service.

  • Term Life. Coverage during war and increased coverage for major life events, convertible to a permanent policy.
  • Term Life for Military. Increased coverage for major life events, severe injury benefits and guaranteed SGLI replacement.

Whole life insurance

USAA’s whole life insurance is its most simple type of insurance, offering lifetime coverage to protect your family when you’re no longer able to provide for them. Coverage and costs start at $84.57 a month for a 20-year best-class policy, remaining the same over the life of your policy that’s active as long as you continue paying your premiums.

Flexible payment options allow you to choose paying premiums for 20 years, until you’re age 65 or for the life of the policy. This option is more expensive than term life, but your policy’s cash value grows over time, potentially providing a bigger payout to beneficiaries.

Universal life insurance

The most versatile option, universal life insurance provides adjustable options to incorporate the policy into your overall financial plan. Costs are similar to whole life insurance, starting at $73.89 a month for a 20-year best-class policy. But you can adjust premium amounts and payment schedules to fit your goals.

Like with whole life insurance, your cash value grows over time. But the growth potential is influenced by your allocation of premiums. You’re provided more control of your money with the option of borrowing from your policy’s cash value, if you need it.

Does USAA offer burial insurance?

No — but your beneficiaries can use the payout from any policy to cover your funeral and burial costs, as well as any other end-of-life expenses. USAA says it often pays out claims for permanent policies within 48 hours, which may alleviate the financial burden on your loved ones.

What riders can I add to my life insurance policy?

USAA’s comprehensive life insurance policies are designed specifically for members of the military, typically providing coverage beyond what other insurers offer.

But because no policy can fit your exact needs, you might want to tailor your coverage with any number of riders available to USAA members:

  • Accelerated death benefit rider. Provides an early payout if you’re diagnosed with a terminal illness.
  • Accidental death benefit rider. Provides an additional payout if you die as the result of an accident.
  • Child rider and spouse rider. Insures your loved ones on your policy to avoid separate plans
  • Guaranteed insurability rider. Provides the option to increase coverage by $100,000 without additional underwriting after a marriage, birth, home purchase and other life events.
  • Military severe injury benefit. Provides a $25,000 payout if you’re severely injured on duty.
  • Term insurance rider. Allows you to add additional insurance to your permanent policy for a specified amount of time.
  • Waiver-of-premium rider. Waives premiums if you’re disabled and unable to work.

Talk with a USAA life insurance rep to learn more about other riders that can cover what life throws your way.

How do I get a low rate?

It’s tough to estimate life insurance rates, what with the variables that go into underwriting. In short, the best way to get the lowest life insurance rates is to live the healthiest lifestyle you’re able to.

General health and lifestyle guidelines for premium rates include:

  • No or limited tobacco use within the past two to three years.
  • No deaths in the family from cancer or heart disease.
  • No alcohol or substance abuse in the past five years.
  • Overall cholesterol level below 240 with a 6.0 HDL ratio.
  • Blood pressure level of 140/90 or better.
  • A driving record free of DWIs, DUIs, suspensions and other convictions in past five years.

Compare life insurance rates

Compare quotes for life insurance policies starting at $15/month.
What policies can I compare?

Life insurance companies like USAA

Name Product
Prudential

18 – 75 years old

$100,000

$10,000,000

10, 15, 20, 30 years

Yes

Customize your term life insurance with a long list of life and disability riders. Get a free quote on Policygenius.

Transamerica

18 – 75 years old

$25,000

$10,000,000

10, 15, 20, 25, 30 years

Depends on policy

Purchase a policy worth anywhere from $25,000 to $10 million, with the option to skip the medical exam. Get a free quote on Policygenius.

MassMutual

18 – 80 years old

$2,000

$10,000,000

10, 15, 20, 25, 30 years

Depends on policy

Purchase term life insurance up to age 80 with Finder’s #1 ranked company. Get a free quote from this A+ rated insurer on Policygenius.

AIG

20 – 85 years old

$5,000

$2,000,000

10, 15, 20, 25, 30, 35 years

Yes

Buy term life insurance all the way up to age 85, and choose a policy that lasts up to an incredible 35 years. Get a free quote on Policygenius.

John Hancock

18 – 65 years old

$25,000

$1,000,000

10, 15, 20 years

Depends on policy

Score a low rate on term life insurance with discounts and rewards for your healthy habits. Get a free quote on Policygenius.

Guardian

18 – 75 years old

$250,000

$5,000,000

10, 15, 20, 30 years

Depends on policy

Buy a policy with a generous death benefit and one of the longest lists of unique riders. Get a free quote from this top brand on Policygenius.

Lincoln Financial Group

18 – 80 years old

$100,000

$1,000,000

10, 15, 20, 30 years

Depends on policy

Dress up your term life coverage with a wide range of riders and buy a policy up to age 80. Get a free quote on Policygenius.

Pacific Life

18 – 65 years old

$50,000

$1,000,000

10, 15, 20, 25, 30 years

Depends on policy

Buy term life insurance in $50,000 increments to perfectly fit your needs and budget. Get a free quote on Policygenius.

Brighthouse

18 – 75 years old

$1,000,000

N/A

1, 5, 10, 20, 30 years

Yes

Protect your family with up to $1 million in term life insurance with optional long-term care coverage. Get a free quote on Policygenius.

Principal

20 – 65 years old

$200,000

$5,000,000

10, 15, 20, 30 years

Yes

Apply for term life insurance online and get quotes and approval in 48 hours. Get a free quote from this top company on Policygenius.

Mutual of Omaha

18 – 68 years old

$2,000

$500,000+

10, 15, 20, 30 years

Depends on policy

Buy as little as $2,000 or as much as $5 million in life insurance even if you’ve been denied for your risky hobbies. Get a free quote on Policygenius.

SBLI

18 – 60 years old

$100,000

$20,000,000

10, 15, 20, 25, 30 years

Not required for policies under $500,000

Apply for a policy worth up to $20 million, and skip the medical exam for policies under $500,000. Get a free quote on Policygenius.

Protective Life

18 – 65 years old

$100,000

$10,000,000

10, 15, 20, 25, 30, 35, 40 years

Yes

Secure your family’s financial future with a term life insurance policy lasting up to an amazing 40 years. Get a free quote on Policygenius.

Legal & General

20 – 75 years old

$100,000

$10,000,000

10, 15, 20, 25, 30, 35, 40 years

Yes

Score competitive rates on term life insurance up to rarely seen 40-year terms. Get a free quote from this lenient company on Policygenius.

USAA reviews and complaints

As of this writing, USAA earns a 3.8 out of 5 from the Better Business Bureau (BBB), which weighs reviews against its own internal rating system that also considers longevity and business practices, among other elements.Of the 300 customer reviews on the BBB’s site are more than 270 negative reviews that cite troubles with account security, communication and payments. Keep in mind that reviews cover all products USAA offers, not only life insurance.

Positive reviews focus on solid customer support and competitive rates. And despite the negative reviews on its site, the BBB gives USAA a glowing A+ rating overall.

How does USAA protect my data?

USAA collects your personal data in order to provide you assistance and offer you products and services that match your needs.
Your information is not sold to third parties and is safeguarded with rigorous security procedures and world-class virus and intrusion detection software.

How do I sign up?

From USAA’s life insurance homepage, click Get A Quote.

  1. You’ll then be asked to provide your date of birth, gender, the state in which you reside and your military status, if any.
  2. Next, answer a few health-related questions and click Submit.
  3. You’ll then be presented with an initial quote. You can adjust your coverage amount and term for an updated quote. If you’re happy with the quote, click Continue. Or you can save the quote to come back to at a later time.
  4. If you’re already a member of USAA, log in to continue the application process. If not, you’ll need to join before proceeding.

I’ve signed up. What happens next?

A USAA representative will contact you about your approval status. If approved, register your new policy online so you can manage your policy and take advantage of features such as autopay.
Originally founded by a group of U.S. Army officers to help military members get car insurance coverage, USAA is best known for its commitment to protecting its members and their families.

Its products are designed to suit the financial situations of active and former military members driven by unique underwriting niches and tailored coverage.

In addition to life insurance USAA offers a wide selection of financial products that include:

  • Annuities
  • Health insurance
  • Auto insurance
  • Bank accounts
  • Credit cards
  • Mutual funds
  • Retirement planning
  • Mortgages

How do I file a life insurance claim with USAA?

USAA’s policies give you access to an online system through which you can manage your account, file a claim and more.

Start the process of filing a life insurance claim with USAA by logging in to your account. You’ll need information that includes:

  • The USAA policy number
  • Social Security numbers for the decedent and beneficiaries
  • Official life event certificates to confirm marriages, births and divorce, if applicable
  • Military discharge and VA claim numbers, if applicable
  • Signatures for all parties

You’ll also need to submit a copy of the death certificate from your funeral director or county health department soon after filing your claim.

Frequently asked questions

  • No. Beyond active and former military members, eligible spouses, children, widowers and other family members are open to join this highly rated provider dedicated to supporting those who serve.

  • Yes. At the end of your term, you can typically continue to pay increasing premiums or convert your policy to a permanent plan. Speak with an agent to determine the type of policy that best meets your needs and budget.

  • Yes. Unlike other top-name providers, USAA’s policies do not include war-exclusion clauses. This provider is committed to paying even on claims caused by war.

  • Yes. USAA’s robust online platform allows you to view and change policy details, start the claims process, update beneficiaries and fully manage other account info.

Life insurance ratings

— Excellent

— Good

— Average

— Subpar

— Poor

Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.

Learn more about our methodology here.

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