USAA Life Insurance Review

In this article...
  • Check out this USAA life insurance review to learn about its products. Inform your buying decision with the pros and cons of life insurance through USAA.

USAA Life Insurance Company helps current and former members of the U.S. military and their families protect their loved ones through life insurance. By exploring the types of insurance it provides and weighing the pros and cons of buying through the company, you can determine if its products are right for you.

About USAA Life Insurance Company

In 1922, 25 officers in the U.S. Army in San Antonio, Texas, decided to enter a partnership to insure each other's automobiles. When other service members heard about their agreement, they asked to join. By 1931, the company they formed had 30,000 members. Enrollment continued and expanded over time. Today, the company has more than 12 million members and has a net worth of over $31 billion. Over the last 10 years, USAA has become widely known due to television commercials and sponsorship of the NFL's annual Military Appreciation Day.

USAA Life Insurance is committed to helping veterans and current service members make informed financial decisions. The company partners with military-affiliated groups across the country to hold seminars and workshops. Many of the company's top executives previously served in the military or are children of veterans.

What Life Insurance Products Does USAA Life Insurance Offer?

USAA Life Insurance offers both term and permanent life insurance policies. In addition, it sells various types of vehicle, property, long-term care, health, pet, travel, special event and personal cyber insurance policies. Through its affiliated credit union, it provides traditional banking products, such as checking and savings accounts, credit cards, loans and mortgages. Its investment and retirement planning products and services include brokerage and training, mutual funds, 529 education plans, IRAs and annuities.

Term Life Insurance Through USAA Life Insurance

For eligible former and current U.S. military service members and their families located throughout the United States, USAA Life Insurance has just one term option, Level Term V. Some key features of the policy include:

  • Low monthly premiums starting at $12 per month
  • Fixed premiums that remain the same over the life of the policy
  • Available to people aged 18 to 70
  • Coverage amounts ranging from $100,000 to $10 million
  • Medical exam required except for service members about to deploy
  • Terms of 10, 15, 20, 25 and 30 years
  • Option to convert to permanent life with no medical exam after 1 year

Eligible individuals who live in Texas can also consider the Essential Term policy, which has the following features:

  • Low monthly premiums starting at $15 per month
  • 1-year term with optional renewal
  • Premium amounts increase with each renewal
  • Available to people aged 21 to 35
  • $100,000 coverage
  • Policy lasts until the insured turns 39
  • No medical exam
  • No conversion option

Permanent Life Insurance Through USAA Life Insurance

For those who want coverage that lasts throughout their lives and builds a cash value, USAA has three permanent policies available. Universal Life Accumulator is the company's universal life insurance option and has the following benefits:

  • Flexible payments
  • Ability to increase and decrease death benefit
  • Available for those aged 18 to 85
  • Coverage amounts ranging from $50,000 to $10 million
  • Medical exam required
  • Lowest cost permanent option

Individuals who prefer the stability of fixed premium payments may prefer the Simplified Whole Life policy. Its features include:

  • Fixed payments
  • Available for those aged 15 to 85
  • Coverage amounts ranging from $25,000 to $10 million
  • Medical exam required
  • More expensive than Universal Life Accumulator

In addition, USAA offers a Guaranteed Whole Life policy underwritten by Mutual of Omaha with the following features:

  • Fixed payments
  • Available for those aged 45 to 85
  • Coverage amounts ranging from $2,000 to $25,000
  • No medical exam required
  • Guaranteed issue with minimal underwriting
  • More expensive than Universal Life Accumulator and Simplified Whole Life

The Pros and Cons of USAA Life Insurance

When compared to other companies, USAA Life Insurance offers distinctive advantages to customers. Some of the pros of life insurance through USAA include:

  • High customer satisfaction rates. The National Association of Insurance Commissioners (NAIC) reports that the organization received fewer complaints about USAA Life than other life insurance companies of similar size in 2020.
  • Special benefits for active-duty service members. USAA guarantees that benefits will be paid out promptly if your death is related to war or acts of terrorism. Service members who suffer certain injuries due to acts of war or terrorism receive $25,000 through a free severe injury benefits rider on their policies. Applications submitted prior to deployment are expedited, and no medical exam is necessary to receive coverage.
  • Online applications. You can get a free quote for any of the company's life insurance products online and submit your application without having to talk to an agent.
  • High coverage amounts available. At $10 million, the maximum coverage for some of USAA's products exceeds what's available from other insurers.
  • Survivor Relations Team. When the insured passes away, members of this team reach out to family members to provide financial counseling and other resources.
  • Special term life options for minors. Those insured through USAA can buy up to $25,000 of life insurance for a child aged 18 or under for just $8 per month, and the policy can be converted to whole life after they turn 18.
  • Potential for discounts. In some cases, USAA offers discounts on life insurance to those who bank with it or are insured through another type of USAA policy, such as auto or homeowners.

For all the benefits that the company provides, there are some drawbacks to USAA Life Insurance. Cons include:

  • Limited availability. Not all USAA life insurance policies are available in every state. Only U.S. military service members, veterans, pre-commissioned officers and their children and spouses can be approved for coverage. Parents can take out policies on their children who are currently serving in the military.
  • Medical exams required. Unless you choose the high-cost guaranteed acceptance life insurance policy underwritten by another company, USAA will require you to undergo a medical exam.

USAA Life Insurance Reviews: What People Are Saying

Generally, USAA Life Insurance has received positive customer reviews online. Many reviewers describe the customer service in glowing terms. Active-duty military personnel mention how they could receive assistance easily while deployed, and veterans describe how customer service reps have taken the time to answer their questions by phone. Others remark on how easy it is to apply for coverage. Several reviews touch on how the assistance of the Survivor Relations Team made the difficult process of settling a loved one's financial affairs less stressful. On the downside, some reviews describe steep rate increases with the Essential Term policy. A few reviewers say they canceled their insurance because they found more affordable coverage elsewhere.

Is a USAA Life Insurance Policy Right for You?

A policy through USAA Life Insurance may be right for you if you are:

  • A current U.S. military service member and about to deploy
  • The parent of a U.S. military service member who wants to buy a policy for coverage while they're on active duty
  • A current or former service member who recently had a child and want coverage for yourself and them
  • Eligible for coverage due to military service and want the benefits of dedicated customer service
  • A current or former service member in relatively good health who wants to buy a large life insurance policy
  • Eligible for coverage and have another type of insurance, investment or banking account through USAA
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