USAA Life Insurance Review 2024 – See More Details

USAA Life Insurance Review 2024 -We found USAA’s term life insurance coverage features to be robust, especially if you’re a military member. Unlike other USAA insurance products like car insurance, you don’t have to have a military affiliation to buy USAA life insurance.


Types of Life Insurance Sold by USAA

USAA Term Life Insurance

Term life insurance is a life insurance policy that provides level rates over a specific time. USAA offers term life insurance for periods of one to 30 years. Your premiums are guaranteed to remain level for the term. If you pass away while the coverage is in effect, your beneficiary can claim the death benefit, which they can use for any purpose.

USAA sells two-term life insurance policies.

Level Term V

USAA’s Term Level V policy is available for applicants between ages 18 and 70, with $100,000 to $10 million in coverage. A medical exam may be required unless you are an active duty service member and are deploying. In addition, you can convert this policy to permanent coverage after one year without taking another medical exam.

If you’re active duty or reserve duty service member, the Level Term V policy provides extra benefits, like coverage during times of war, severe injury benefits, and expedited coverage approval during deployment.

Essential Term

USAA’s Essential Term policy is a simplified issue life insurance policy that requires no medical exam and only a short list of application questions. An essential term is annual renewable term life insurance designed for young adults. You must be between the ages of 21 and 35 to apply.

The policy has $100,000 in coverage and can remain in force until you turn 39 if you renew every year. A medical exam isn’t required for the Essential Term policy, which can be beneficial for people who want coverage quickly. However, you don’t have the option to convert this policy to a permanent policy.

USAA Whole Life Insurance

Whole life insurance is a type of permanent life insurance that can provide lifetime protection. It has fixed premiums, a guaranteed death benefit (as long as the premiums are paid), and cash value.

With each premium payment, a portion of the money goes toward cash value, which grows based on a fixed interest rate. You have the option to withdraw or borrow your cash value while you are living, but your death benefit will be reduced by the amount you take out (unless you pay back a policy loan).

USAA offers two types of whole-life insurance:

Simplified Whole Life

USAA’s simplified whole-life policy is available for applicants between the ages of 15 days and 85 years old. The coverage limits range from $25,000 to $10 million, with coverage lasting until age 121. Depending on your age and health, you may be required to take a medical exam to get approved.

Guaranteed Whole Life

USAA’s guaranteed whole life insurance policy is underwritten by Mutual of Omaha. This policy does not require a medical exam, and everyone who applies gets approved. The guaranteed whole-life policy is available for applicants between the ages of 45 and 85 years old (or 50 to 75 years old in New York) and provides coverage from $2,000 to $25,000. This policy is not available in Montana.

How Much Does USAA Life Insurance Cost?

A 20-year, $250,000 term life insurance policy from USAA costs around $15 per month, or $175 annually for a female in good health. A 20-year, $500,000 term life policy for the same buyer costs $24 per month, or $290 annually.

USAA’s Life Insurance Riders

USAA offers several life insurance riders, which are optional endorsements that allow you to customize your life insurance policy. Riders can fill gaps in your coverage if there are exclusions and provide coverage for specific circumstances you might face. Keep in mind that not all of USAA’s riders are available on every policy and some riders are not sold in every state.

  • Accidental Death Benefit Rider: If you pass away and your death is caused by a qualifying accident, the accidental death benefit rider will provide a second death benefit, on top of your base policy’s death benefit.
  • Child Rider: The child rider will provide a limited amount of term life insurance coverage for your young children. The policy expires when the child reaches adulthood.
  • Military Severe Injury Benefit Rider: This rider will provide a payout of $25,000 for medical expenses if you are injured during military duties. Qualifying injuries include loss of limb function, paralysis, severe burns, and others.
  • Military Future Insurability Rider: With this rider, you have the option to increase your life insurance coverage when you separate from the military, without taking another medical exam.
  • Term Life Event Option Rider: The term life event option rider allows you to purchase additional life insurance coverage in the future after a major life event. You can buy $100,000 in coverage or up to the face value of your base policy, whichever is less.
  • Terminal Illness Rider: With a terminal illness rider, you’re allowed to withdraw money from your death benefit while you are living if you get diagnosed with a terminal illness. You can collect a maximum of 50% of your policy’s death benefit, or up to $250,000, whichever is less.
  • Waiver of Premium Rider: The waiver of premium rider will temporarily waive your life insurance premiums if you are disabled and can’t work. Your coverage will remain in force while you use this rider.

How Do I Buy Life Insurance from USAA?

To purchase a USAA life insurance policy, call the company’s toll-free phone number, 800-531-8722. You can also get a quote online and apply for certain policies through USAA’s website.

How to File a Life Insurance Claim with USAA

To file a life insurance claim with USAA, you must first report the death on its website if you’re a USAA member. Or call the Survivor Relations Team at 800-292-8294 if you’re not a member. USAA will send a claims packet to complete and send back either online or by mail.

USAA Customer Satisfaction

USAA’s complaint ratio for individual life insurance is very good at 0.24, indicating above-average customer satisfaction. The National Association of Insurance Commissioners’ complaint ratio reflects a company’s number of complaints relative to its size of business. A number below 1.00 indicates that USAA receives fewer complaints than the industry average.

USAA Company History

USAA was founded in 1922 and is headquartered in San Antonio, Texas. The company was created by 25 Army officers who wanted to insure one another’s vehicles. Over the years, USAA has expanded into additional areas of insurance and financial products.

In 2009, all men and women in every branch of the Armed Forces, veterans, and their immediate family members became eligible for USAA insurance coverage. However, you do not need to be a military member or veteran to buy USAA life insurance.


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