USAA Life Insurance Review


USAA LIFE Insurance

  • Overall performance was rated 4.5 stars in NerdWallet’s analysis.
  • Some policies are not available in New York and Montana.
  • A company of its size is less likely to make life insurance claims to the state regulators than one might expect.

USAA products are specifically designed for veterans, active military personnel, and their families. However, the company offers life insurance policies to all. Most whole and term life policies are available across the country. Universal life insurance is not offered by the company in New York. The guaranteed issue policy is not available for Montana residents.

USAA Life Insurance earned 4.5 stars for overall performance. Our editorial team determines NerdWallet’s ratings. The scoring formula considers data from the National Association of Insurance Commissioners as well as financial strength ratings.

USAA Life Insurance Policies

USAA offers term and whole-life policies. Before approval of most policies, you will need to complete a medical exam and complete a health questionnaire.

Term life insurance

Term life insurancePolicies are available for terms of 10, 15, 20, 25, 25 or 30 year. You may be eligible for additional benefits depending on your state.

  • It is rare that policies include coverage for wartime, and this is why many policies do not cover it.
  • A $25,000 payment for severe injuries sustained while on active duty. This includes paralysis, vision loss, or severe burns.
  • After leaving the military, you are guaranteed coverage
  • You have the option to increase your coverage by $100,000 if you get married, have a child or purchase a home between 18 and 35.
  • You have the option to convert to permanent insurance.
  • If you are discharged from the military, you can convert your servicemembers’ group life insurance (SGLI), to a USAA policy for term life.
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Permanent life insurance

Simplified whole life insurancePolicies are available with coverage limits of up to $1,000,000 You can choose to pay for up to 20 years or the entire policy’s duration. With a free rider for life events, you can increase your coverage up to six times after certain life events.

Universal life insuranceFlexible payment options are available and there is a guaranteed interest rate at 2%. New York does not offer universal life insurance.

Guaranteed Issue life insuranceAll applicants between 45 and 85 (50-75 for New York) are eligible to apply for policies in all 50 states, except Montana. These policies are issued through Mutual of Omaha. They do not require any medical examination or health questionnaire in order to be eligible for coverage. The face amounts can range from $2,000 up to $25,000. These policies, also known as final expenses insurance, can be used to help pay for funeral or burial costs.

USAA may offer additional riders depending on where you live.

  • You can add all your children to your child protection plan. You may be able to give your children the option of converting it to their own policies once they are older.
  • Waiver of Premium Benefit, which allows you to waive your premium if you are disabled.
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USAA customer complaints

According to NerdWallet analysis of data provided by the National Association of Insurance Commissioners, USAA received fewer complaints than it expected over three years for life insurance.

Learn more about USAA’s life insurance

You can request a quote, apply for life insurance and pay your bills from the USAA website or Android and iPhone mobile apps. USAA has a survivors team that assists the families of USAA members who have died, and can also help with survivor benefits.

Guide to buying life insurance

Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Make sure that you are getting the coverage you need from the insurance companies you are considering.

Compare rates to ensure that they are comparable in terms of coverage and time. You should also ensure that the policy’s medical requirements are in line with your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you’re comparing aligns with that.

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The price of a product may not be the most important factor in your purchase decision. Take a look at the number and quality of complaints received by each company.