One company that has a good reputation for paying its policyholder claims throughout the years is USAA Life Insurance Company. We put together this USAA life insurance review to help you get a grasp of why this is such a great company.
History of USAA Life Insurance Company
USAA Life Insurance Company has been in the business of providing protection products to its customers since back in 1922. That is when 25 Army officers in San Antonio, Texas, got together and decided to insure each other’s automobiles. Two years later, the company adopted its motto, “Service to the Services.” This is because USAA is affiliated with and promotes its products to the members of the U.S. armed services.
Throughout the years, the company continued to grow – even during the Great Depression, after which it came out ahead with a net profit of $144,000 in 1929. It also soon doubled its employee numbers to nearly 100 individuals. By 1936, USAA had a net profit of over $640,000 before dividends.
Over time, USAA has expanded and added numerous alliances with armed services areas and other sponsors. It has also become an honored company to work for and has received numerous awards from entities such as Fortune and Working Mother magazines.
Today, USAA is a large and diversified financial group of companies, which includes several components:
- Property and Casualty Insurance
- Life Insurance and Annuities
- Investment Products
- Investment Advice and Services
- Shopping and Discounts
Those who are members of USAA have many different advantages of membership. These can include the following:
- Free ATMs nationwide
- Competitive variable credit card rates
- Auto loans with competitive rates
- Competitive mortgage rates
- Special APRs during deployment
- Renters insurance coverage
- Vehicle storage discounts
- Supplemental health insurance coverage
- Travel insurance
- Home security and monitoring discounts
- Car rental savings
- FedEx shipping discounts
- FTD discounts
- USAA car buying service
- Savings on car insurance
- Personal property coverage
- Free financial and investment advice
- Travel discounts on flights, hotels, cruises, and resorts
- Home improvement discounts
- Utility marketplace (home services such as electricity, cable, phone service, etc.)
- Turbo Tax Assistance
USAA Life Insurance Company Review
USAA has won numerous awards over time for its outstanding service and policyholder claims payment. In both 2014 and 2015, the company was ranked 122nd in revenue, 53rd in assets, and 49th in net worth according to the Fortune 500 rankings. It has also been voted by U.S. Veterans Magazine as the “Best of the Best” Top Veteran-Friendly Company in 2012 and 2014.
Currently, USAA has a total of approximately 11.2 million members and nearly 28,000 total employees who serve them. The company is considered to be the 5th largest auto insurer, as well as the 5th largest home insurer. It is also the 8th largest credit card provider and the 27th largest bank.
The net worth of USAA has continued to grow over the years. As of the third quarter 2015, USAA has approximately $28.2 billion in assets. Due to its financial strength and policyholder claims payment reputation, the firm’s customer satisfaction ranking is quite strong and positive.
USAA Life Insurance Companies have therefore received very high ratings from the insurer rating agencies. These include the following:
- M. Best Company – A++ (Superior, the highest of 16 possible ratings)
- Moody’s Investor Services – Aa1 (Excellent, the second highest out of 21 possible ratings)
- Standard & Poor’s – AA+ (Very Strong, second highest out of 21 possible ratings)
USAA has also received a grade of A+ from the Better Business Bureau (BBB). This is on a grade scale of A+ to F. Over the past three years; USAA has closed 1,117 complaints with the BBB, of which 435 have been closed within the past 12 months. Of these 1,117 complaints, 813 had to do with the company products and / or services, 184 had to do with the company’s billing and / or collection issues, 60 had to do with the company’s advertising and / or sales, 33 pertained to delivery issues, and 27 pertained to guarantee / warranty issues.
Life Insurance Products Offered Through USAA Life Insurance Company
USAA offers a myriad of different products to its members – including life insurance protection. The company provides a variety of coverage options so that members can choose the best type of policy that fit their needs. These life insurance coverage options include the following:
Level Term Life Insurance Coverage
With term life insurance, members can purchase life insurance death benefit protection only, without any savings or cash value build up. Because of this pure death benefit coverage, the premiums will typically be lower and more affordable – especially if the applicant is younger and in good health at the time of application.
The level term option provides coverage lengths for up to 30 years. There is also an available policy option for children. During the term of coverage, the premium amount will remain the same. This term life insurance option also provides the ability to covert over to a permanent life insurance policy without the need to prove insurability through a medical examination. Also, the beneficiaries of the policyholder are allowed to receive free financial advice.
Military Term Insurance Coverage
The military term life insurance option also offers coverage lengths of up to 30 years, with premium amounts that will remain the same throughout the life of the policy. This plan also offers a $25,000 severe injury benefit as well.
With the military term policy, the application will be expedited in order to ensure that the applicant is covered before he or she is deployed. In addition, in the event of the individual’s death by war, they will still be covered (unlike many other regular life insurance policies).
With this particular plan, the Military Future Insurability Benefit will provide the option to help replace the term policy with the purchase of an additional policy after the insured’s military service has ended. This can be accomplished, regardless of the insured’s health condition. This policy also comes with free financial advice for the policy holder’s beneficiaries.
Universal Life Insurance Coverage
Universal life insurance is a form of permanent life insurance coverage. This means that the insured will be covered with death benefit protection. There will also be a cash-value component of the policy whereby cash will build up on a tax-deferred basis. The funds that grow within the cash value component will not be taxed unless or until the policyholder withdraws them. This can allow the cash to grow and compound exponentially over time.
A universal life plan can also be flexible in that the policyholder can choose – within certain limits – when the policy’s premium is paid. They can also decide how much of the premium to put towards the policy’s death benefit and how much of it to put towards the cash value.
The universal life plan offered via USAA is designed to last for the policy holder’s entire lifetime. Cash cal be accessed via policy withdrawals or loans. Higher interest rates can be earned as the cash value grows. For example, if the cash value totals $20,000, the first $10,000 will earn one amount of interest, and the second $10,000 will earn a higher amount. Free financial advice is also available for the policy holder’s beneficiaries.
Whole Life Insurance Coverage
Whole life is also a permanent form of insurance. With this type of insurance, there is both a death benefit and a cash value component – and the cash value is allowed to grow on a tax-deferred basis. With whole life, both the premium and the death benefit are guaranteed. The insurance company is not allowed to cancel this coverage for any reason – other than non-payment of premium – regardless of the insured’s increasing age or declining health.
The whole life insurance policy that is offered via USAA Life Insurance Company allows the policyholder to purchase additional permanent insurance protection at certain ages, or after various life events, such as having a baby or getting married – without the requirement of taking a medical examination. As with the other types of life insurance policies that are offered by USAA, free financial advice is offered for the policy holder’s beneficiaries.
USAA also offers annuities for those who are saving for retirement and who are seeking a retirement income. These financial vehicles can provide some benefits, including tax-deferred growth of funds while inside the annuity. Fixed annuities are also not subject to the ups and downs of the stock market volatility.
A deferred annuity will allow its holder to save money for retirement over a long period. The owner of a deferred annuity can make one lump sum deposit, or they can make deposits over time for many years. An immediate annuity can be funded with one single lump sum of cash from savings, or even from funds from a retirement plan.
When it is time to convert an annuity’s funds over to an income stream, the annuity holder can have income that will last for the remainder of his or her lifetime – regardless of how long that may be. They can also choose another individual, such as a spouse or significant other, who can also receive income for his or her lifetime, too.
How to Get the Best Premium Quotes on Coverage Offered Through USAA
If you are seeking the best premium quotes on coverage that is offered through USAA – or on coverage that is offered through any insurance company – it is typically best to work with a company or an agency that has access to more than just one life insurance carrier. That way, you will be able to more directly compare the policies, the benefits, and the premium quotes of multiple carriers, and from there you can determine which one will be the best for you and your specific needs.
When you are ready to move forward, we can help. We work with many of the top life insurance carriers in the marketplace today, and we can assist you with obtaining all of the pertinent details that you require for making an informed purchase decision. If you are ready to begin, all you need to do is use the quote form on the side of this page.
Should you find that you still have any questions regarding USAA Life Insurance Company – or even if you just have a question about life insurance in general – our experts are happy to assist you. We can be reached directly via phone – toll-free – by dialing 888-229-7522.
We know that the purchase of life insurance can at times seem to be a bit overwhelming. There are many different policies to choose from – and you want to ensure that you are going with the right company for you. So, don’t leave your loved ones’ financial future to chance. Choose the company and the coverage that will be there for the long term. We can help you in determining the amount, the type, and the company that is right for you and your needs – as well as for your peace of mind. So, contact us today – we’re here to help.