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Published: Oct 09, 2023 14 min read

USAA is a well-known provider of financial products for members of the U.S. military, U.S. veterans and their families. However, a common misconception about the company is that you must belong to one of those groups in order to use its services. Along with banking and retirement planning, USAA provides a few types of life insurance plans that may suit the needs of these groups as well as others.

Read on for our full USAA life insurance review to learn about its policy options, pricing, accessibility, customer satisfaction and military benefits.

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Death benefit from $100,000 to $2 million

  • Traditional Insurance Carrier (expect to speak with agent)
  • Offers a suite of life insurance products from reliable carriers
  • Term Coverage: Customizable increments from 10 to 30 years
  • Death benefit from $100,000 to $2 million
  • Policies Offered: Term, Universal, Guaranteed Issue Whole

Offers no medical exams policies

  • No medical exams for policies under $2 Million. Just answer a few health questions online.
  • A policy of up to $2 million in coverage starts around $32/month
  • Get a quote in seconds with no obligation. Apply in minutes (most instantly approved)
  • No need to talk to an agent unless you want to
  • Rated “Excellent" by customers on Trustpilot
  • Limited-time offer for new policyholders- access to estate planning tools at no extra cost ($449 value)

Instant coverage available for ages 20 to 60

  • 100% online process from start to finish for coverage up to $3M.
  • Instant coverage available for ages 20 to 60 if approved
  • Policies available with 10- to 30-year terms
  • Save money on premiums over time with Ladder’s flexible coverage feature
  • No policy fees, 30-day money-back guarantee, cancel anytime
  • Licensed and experienced customer service reps available to answer questions

Good life insurance for veterans and military service members

USAA provides a few different basic life insurance policies. Its level term life insurance is among the best life insurance plans available, but also rated highly among the best life insurance for veterans and members of the military. It includes added benefits such as expediting your coverage if you’re deployed, providing coverage during wartime, paying $25,000 for certain severe injuries and replacing income from servicemembers’ group life insurance (SGLI) if you separate from the military.

USAA life insurance pros and cons

Pros
  • Additional benefits for members of the military and their families
  • Coverage for your children
  • Coverage available up to $10 million
Cons
  • Few types of coverage available
  • Limited options for no-exam coverage

Pros explained

Additional benefits for members of the military and their families

USAA’s level term life insurance policies include additional benefits for members of the military and their families, including the following:

  • Expedited coverage before deployment: To ensure coverage before you are deployed, your application is moved ahead of others.
  • Coverage during wartime: You’ll still be covered if you die during war or an act of terrorism, which is something other insurers might not pay out life insurance policies for.
  • Severe injury benefit: You’ll receive $25,000 if you’re severely injured in the line of duty.
  • Guaranteed SGLI replacement: Coverage will replace some or all of your SGLI if you’re separated from the military or retire.

Coverage for your children

If you purchase any of USAA’s permanent life insurance policies, you can get $25,000 in coverage for each of your children for less than $8 per month. When your children get older, they can convert the coverage to permanent life insurance policies, making it some of the best family life insurance.

Coverage available up to $10 million

Each USAA life insurance policy has varying limitations on the death benefit. For example, some of the company’s policies only offer up to $25,000, while others have a minimum death benefit of $50,000. However, USAA’s simplified whole life and level term plans offer death benefits up to $10 million. The wide range of death benefits makes it easy to customize your coverage and buy a policy with the exact amount of coverage you need.

Cons explained

Few types of coverage available

USAA offers both term life insurance and permanent life insurance. However, it only offers a few variations of each, limiting your ability to customize a policy with additional benefits or investment options. USAA term life insurance is only available in two different policies, and one of them has strict limits that only allow you to apply if you’re between the ages of 21 and 35. Its permanent life insurance is available in three different variations, but each has limitations based on age or location.

Therefore, USAA may not be the best life insurance company if you want a wide variety of coverage types and add-on benefits.

Limited options for no-medical-exam coverage

USAA only offers two life insurance products that don’t require medical exams. This may make it difficult to get coverage if you have pre-existing health conditions and are considered a high-risk applicant. Many companies offer policies that don’t require a medical exam to give people with pre-existing conditions a better chance of obtaining coverage. It also makes the application process easier. Unfortunately, USAA’s no-exam life insurance policies are fairly limited.

Its essential term life insurance coverage terminates at age 39, while its guaranteed whole life insurance only covers up to $25,000. Additionally, its simplified whole life insurance requires a medical exam, which is the opposite of most other simplified life insurance policies.

USAA life insurance plans

USAA offers five different life insurance plans, including two term life plans and three permanent life plans. The following section explores each.

Term life insurance

USAA’s term life insurance is available in two different policies: level term and essential term. The level term policy is a typical term life insurance policy, with terms ranging from 10 to 30 years and death benefits between $100,000 and $10 million. To qualify, you must be between the ages of 18 and 70. Health questions and a life insurance medical exam are also required.

USAA’s essential term policy doesn’t have set terms. Instead, the life insurance coverage lasts from the time you purchase the policy until you reach age 39. Death benefits are fixed at $100,000. You must be between 21 and 35 years old to qualify for this coverage. The application includes health questions, but you don’t need to get a medical exam. Unfortunately, the essential term policy doesn’t include added benefits for military personnel.

Permanent life insurance

USAA’s permanent life insurance policies include: simplified whole life, universal life and guaranteed whole life. Details of those three policies are provided in the following section.

Its simplified whole life insurance provides coverage ranging between $25,000 and $10 million. You can purchase a policy for anyone between the ages of 15 days and 85 years old, with coverage terminating at age 121. The policy requires you to answer health questions and get a medical exam, which differs from most other simplified life insurance policies that typically don’t require a medical exam.

USAA’s universal life insurance is underwritten by John Hancock Life Insurance Company. It offers a minimum coverage amount of $50,000. To obtain a policy, you must be between 20 and 90 years old, answer health questions and get a medical exam. Coverage may extend past age 121, but this will depend on underwriting. This policy isn’t available in New York.

USAA’s guaranteed whole life insurance is underwritten by United of Omaha Life Insurance Company. It’s available to applicants between the ages of 45 and 85 (or 50 and 75 in New York), and coverage lasts until age 120. Death benefits start at $2,000 (or $5,000 in Washington) and go up to $25,000. Because it’s a guaranteed issue policy, you don’t need to answer health questions or take a medical exam. This policy isn’t available in Montana.

USAA life insurance pricing

USAA life insurance rates vary substantially depending on your age, overall health, location, coverage options and other factors. However, the insurer publishes some information about pricing on its website to help you decide which policy is right for you. The company’s website also offers multiple ways to receive a quote for one of USAA’s life insurance policies.

USAA’s level term life insurance starts around $12 per month for a 35-year-old low-risk male purchasing $100,000 in coverage for a 10-year term. With level term life insurance, rates are fixed, so you don’t have to worry about costs increasing over the lifetime of the policy. Essential term life insurance starts around $5 per month for a 21-year-old female, but rates for this policy increase with each annual renewal.

USAA’s website doesn’t list prices for its permanent policies. However, the company does provide a basic comparison of the three options. According to USAA, its universal life plan is the most affordable, while its guaranteed whole life plan is the most expensive.

USAA life insurance financial stability

The USAA Life Insurance Company has an A++ rating from AM Best, which means that the company has superior financial stability. Its parent company, United Services Automobile Association, also has an A++ rating. Based on these ratings, policyholders can feel confident about USAA’s life insurance coverage remaining intact and the company’s ability to make payouts under the terms of its policies.

USAA life insurance accessibility

Availability

USAA life insurance is available throughout the U.S. Despite common misconceptions about eligibility, you don’t need a military connection to qualify for one of its life insurance policies. However, the company offers perks for veterans, members of the military and their families. The only exceptions are that its universal life policy isn’t available in New York, and its guaranteed whole life policy isn’t available in Montana.

USAA life insurance eligibility also depends on your health. Some policies don’t require a medical exam, which makes it easier to secure coverage if you have pre-existing health conditions. Age may also limit the availability of some policies. For example, the company’s no-exam policies have stricter age requirements than USAA’s traditional policies.

Contact information

The USAA Life Insurance Company’s phone number is (800) 531-LIFE (5433). USAA’s life insurance customer service is available Monday through Friday from 7:30 a.m. to 8 p.m. CST. If you’re calling to inquire about claims after a loved one’s death, you can call (800) 292-8294 Monday through Friday from 7:30 a.m. to 6 p.m. CST. The USAA Life Insurance Company’s mailing address is 9800 Fredericksburg Road, San Antonio, Texas, 78288.

User experience

USAA makes it easy to get life insurance quotes and for your beneficiaries to file claims after you die. You can access quotes and estimates online by filling out some simple forms. Each policy comes with access to USAA’s Survivor Relations team. Before a loss, team members can help you with estate planning, terminal illness management and funeral cost protection. During or after a loss, that team can help organize legal and financial business.

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USAA life insurance customer satisfaction

USAA Life Insurance Company has an NAIC complaint index score of 0.06, which is extremely low compared to the national average of 1.00. This indicates that the company gets significantly fewer complaints than other insurance companies of a similar size.

USAA isn’t accredited by the Better Business Bureau (BBB) and doesn’t have a BBB rating. On the BBB website, USAA has a 1.14 out of 5-star rating based on customer reviews. Many of the negative reviews on the BBB website cite issues with claims processing. Some customers had a hard time getting in touch with customer service, while others complained that the claims process was difficult and time-consuming.

USAA life insurance reviews from other review sites are more favorable with only a few negative reviews in the mix. Most customers are happy with the level of customer service and how easy it was to sign up for coverage. Others state they’re satisfied with the premium rates of their policies.

USAA life insurance FAQs

Is USAA life insurance good?

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This largely depends on the individual. USAA offers some basic types of coverage, including term life insurance, whole life insurance and universal life insurance. There are a couple of options for people with pre-existing health conditions. However, other insurers may have more choices for customizing a life insurance policy with add-ons and investment options. USAA life insurance ratings are good compared to many life insurance companies. It has an exceptionally low NAIC complaint index score, which means it gets few complaints, and its AM Best financial rating indicates a financially stable company.

Does USAA life insurance test for drugs?

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Life insurance medical exams require you to give a blood and urine sample. These samples may be tested for drugs, especially prescription drugs, nicotine and other chemicals that might indicate the use of tobacco products. Some prescription drugs, as well as illegal drugs, might indicate to the insurance company that you are a higher-risk applicant than those who don't use drugs.

Is USAA life insurance legit?

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USAA is a legitimate company that's been in business since the 1920s and has built a strong reputation along the way by helping provide benefits to members of the military and their families. USAA's life insurance policies are underwritten by the USAA Life Insurance Company, John Hancock and United of Omaha Life Insurance Company.

How we evaluated USAA life insurance

We used the following factors to evaluate USAA life insurance:

  • Types of life insurance coverage: We used USAA’s website to research its life insurance products and provide details about each of its policies.
  • Pricing: We provided information about USAA’s rates and how the prices of its policies compare to each other.
  • Financial stability: We referred to AM Best to learn about USAA’s financial well-being and ensure the company can provide stable financial products.
  • Accessibility: We evaluated who qualifies for USAA life insurance and scrutinized each of its policies’ eligibility requirements. We also looked for USAA’s contact details.
  • Customer satisfaction: We analyzed the NAIC complaint index, as well as reviews from the BBB and other customer review sites to learn about USAA customers’ experiences.

Summary of Money’s USAA life insurance review

USAA provides term life insurance and three different permanent life insurance policies. Each has its own eligibility requirements. While two of the policies allow you to qualify without a medical exam, USAA lacks some of the add-ons that other companies provide for policy customization. However, USAA’s level term life insurance policy includes additional benefits for veterans, current military members and their families. While you don’t need a military connection to qualify, the added benefits can be helpful in times of need.

Online customer reviews for USAA’s life insurance are mixed, but the company has an extremely low NAIC complaint index score. Overall, it may be a good company if you’re a veteran, member of the military or if you want simple coverage types. Before deciding on a policy, learn more about life insurance for beginners and understand all of the options that are available to you.

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