AAA Universal Life Insurance Review

Thang Truong
Thang Truong
Updated on:

AAA offers two types of universal life insurance policies, LifeTime Universal Life and Accumulator Universal life. Both of these are permanent life insurance policies, meaning they last the rest of your life. If you’re a AAA member you may be able to get a discount, but you don’t have to be a member to apply. 

AAA LifeTime Universal Life

This is basically a Guaranteed Universal life (or GUL) policy. It offers level premiums for the life of the policy and it accumulates a little bit of cash value, but not a lot. It was designed to provide an inheritance for your heirs when you die, not accumulate cash value. Learn more how guaranteed universal life insurance works

Coverage amounts start at $100,000 and go up to $5 million.

To apply for a LifeTime Universal Life policy, you must meet with an insurance agent. The policy is fully underwritten, so that means you’ll also be having a medical exam. On the other hand, if you’re in terrific health and don’t smoke, you may get a good rate. 

An accelerated death benefit is included in the policy at no charge. If you are diagnosed with a terminal illness and are given less than a year to live, you can receive up to a 50% of the death benefit.

Optional riders include:

As far as rates go, the AAA website gives an example quote of $75.91 a month. This would be for a 35-year old female in excellent health, non-smoker. The policy amount is $100,000. 

[elementor-template id=”2957″]

>>MORE: The Best 5 Insurance Companies for Guaranteed Universal Life Insurance (or GUL)

AAA Accumulator Universal Life Insurance

This is an indexed universal life insurance product, the Accumulator is designed to build cash value. It’s designed to supplement your retirement income and the cash value grows at a faster rate than it does with LifeTime Universal. It also gives you flexibility in how you pay your premiums. The minimum interest rate is 3%, which means this is the least you can earn. Learn more to understand why indexed universal life insurance policy is a great option for retirement savings.

This policy is also underwritten and you will have to answer health questions and possibly get a medical exam. AAA says the decision period is one to six weeks. To buy the Accumulator Universal life, you must meet with an agent. You won’t be able to get a quote, but AAA says that their 35-year old super preferred female (non-smoking) can get $100,000 worth of coverage for only $75.77 a month. 

[elementor-template id=”2781″]

There some flexibility in how you pay the premiums. You can pay a smaller amount (as long as the policy is funded), use the cash value to pay the premiums, or pay a larger amount so that you can accumulate more growth. 

There are some riders you can add:

  • Child term 
  • Waiver of monthly deductions if you become disabled
  • Accidental death
  • Guaranteed purchase option (you can increase the death benefit at a later date)
  • Additional insured
  • Terminal illness

You can access the cash value through withdrawals or you can take loans against it. 

If you have this policy and you die, your spouse will receive free AAA membership for the rest of their lives. 

An interesting caveat is that AAA life insurance is not actually owned by AAA. 

>>MORE: The Best 6 Insurance Companies for Indexed Universal Life Insurance (or IUL)

Last Thoughts

If you’re in the market for universal life insurance coverage and don’t mind answering some medical questions, AAA universal life insurance may work for you. It’s especially attractive if you’re looking for high amounts of coverage, or if you’re already a member of AAA. But be sure to shop around in case you can find a better rate. 

>>MORE: The Best Life Insurance CompaniesWe stack rank 40+ reputable life insurance companies based on 5 categories: products they offer; financial strength; customer satisfaction; consumer complaint; and digital experience

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

6 Best Indexed Universal Life Insurance (IUL) for 2023

Are you looking for a way to set aside some extra money for your senior years, and maybe a little extra for loved ones to inherit? Most people opt for indexed universal life insurance because it offers the greatest cash value growth tied to the performance of S&P 500 index with the least risk thanks […]

Best Self-Directed Roth IRA Companies for 2023

A self-directed Roth IRA is much like a regular Roth IRA, but offers more flexibility as far as what you can invest in. Whereas a regular Roth will only let you invest in stocks, bonds, mutual funds, ETFs, and real-estate investment trusts, a self-directed Roth lets you invest in a greater variety of investment options.  […]

The 5 Best Hybrid Long-Term Care Insurance Companies for 2023

If you’ve decided to plan for every eventuality, you’d be smart to include a plan to cover long-term care. Someone turning 65 this year has an almost 70% chance of needing some type of long-term care, and about 13% of those will need it for five years or more. Long-term care is expensive and can […]

The 3 Best Traditional Long-Term Care Insurance Companies for 2023

Long term care is something that no one likes to think about, but unfortunately, many people will eventually need. Health care costs are skyrocketing, and a lengthy stay at a long-term care facility can easily bankrupt most people’s nest eggs. Long-term care insurance is one way to protect both yourself and your retirement savings. Out […]

The Best Long-Term Care Insurance Companies in California for 2023

California residents who are keen to protect themselves and their families against the worst events in life may be considering long-term care insurance. However, you might not know much about LTC insurance or how it is handled in California. Let’s take a look: What is Long-Term Care Insurance? Long-term care insurance helps pay for long-term […]

The Best Long-Term Care Insurance Companies in Arizona for 2023

Arizona is a great place to retire. It’s warm, there’s no snow to shovel, and Arizona improves the quality of life for anyone with allergies or asthma. When you pack your bags and retire to Arizona, you’re probably not thinking about long-term care. But the sad reality is that 47% of men and 58% of […]

The Best Long-Term Care Insurance Companies in Florida for 2023

There’s a lot of good reasons to retire in Florida. The weather is warm, the beaches are beautiful, and there are lots of other retirees to socialize with. Also, Florida has no state income taxes, no inheritance taxes, and no estate taxes. When you pack up your things and move to Florida, you’re probably not […]

Private Placement Life Insurance: Everything You Need to Know

If you haven’t heard of private placement life insurance, you probably don’t qualify to buy it. Private placement life insurance is typically for investors with millions in liquid cash that they need to invest for tax reasons.  What is Private Placement Life Insurance? Who Qualifies for Private Placement Life Insurance? Benefits of Private Placement Life […]

Nationwide IUL – A Strong Product With Great Features and Excellent Ratings

The Nationwide IUL product can help you either supplement your retirement income or ensure your beneficiaries future by leaving them a nice tax-free death benefit. Obviously, you have many options when it comes to IUL policies, so you want to know how does Nationwide’s policy stack up against the competition? Let’s take a look. Pros […]

Transamerica IUL – A Solid Product but High Consumer Complaint Score & Law Suits

Consumers looking to supplement their retirement income often settle on an indexed life insurance policy. These policies build cash value based on market performance and allow your heirs to enjoy a tax-free death benefit. Let’s take a look at Transamerica’s indexed universal life insurance policy and see what makes it stand apart from other such […]