Are you a AAA member? Maybe you just searched for “AAA exclusive group term life insurance reviews” and landed here—or perhaps you received one of the many AAA life insurance offers in the mail.
The most common offer we see is called AAA Group Term Life Insurance. It usually comes with a paper application and details about the term life coverage. Many AAA members get solicited for this type of policy on a monthly basis.
Just to be clear—we aren’t affiliated with AAA. We’re a licensed, independent life insurance agency, and this is our unbiased review of AAA’s group term life insurance based on the information we’ve gathered.
Why trust us? Being independent gives us a broad perspective on dozens of carriers and products. We have no obligation to any single company, which lets us objectively compare AAA’s offering against the top life insurance options in the industry.
Quickly see what trusted independent agents can offer you.
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AAA Life Insurance: Company Background
Known as the American Automobile Association, AAA was founded in 1902 so they are not a newcomer to the insurance business.
AAA is noted primarily for its roadside assistance program.
With a good reputation in place, AAA entered the life insurance business. Today, they have in excess of 1,000,000 life insurance policyholders.
AAA Life Insurance Financial Strength
In 2016, A.M. Best, a very respected financial ratings company issued a A- financial grade to AAA for its financial condition. No worries there. They can pay the bills quite easily.
AAA Term Life Insurance Overview
AAA offers a good number of different life insurance products.
Annuities are even included in their portfolio.
As you look at what AAA group term life insurance coverage is all about, do you have a concrete reason why you need this term life product?
Why are you considering this particular offering? Is this the right product for your needs?
Do you need temporary or permanent coverage…term life insurance or whole life insurance protection respectively?
Never buy life insurance based solely on price and/or the brand name. Reputable life insurance professionals know this is a big mistake many consumers make.
The key is, purchasing the right life insurance policy for your needs at a competitive price… sooner than later.
Why sooner than later?
Life insurance gets more expensive the longer you wait to purchase a policy. I
Do you have a defined period of time (in years) you need term coverage for?
If you are looking at protection for a mortgage or starting a family, term life insurance is usually a winner. With term insurance, you are renting insurance for a defined period when money is needed to protect the beneficiary(s) of the policy from financial harm and/or major change in lifestyle.
Now, some folks just put mailer solicitations like this one in the “circular filer” and are done with it.
It’s good your reading AAA life insurance reviews to find out more about the product before taking it seriously
We’re not going to pull any punches here… the best option is to discuss the matter directly with a good life insurance broker but we’ll get you up to speed here. As a seasoned independent life insurance agent/broker, I will highlight all the pluses and minuses so you can make your own decision whether th is a winner or loser.
AAA Exclusive Group Term Life: Key Details
If you’re exploring life insurance, including AAA Exclusive Group Term Life Insurance, here’s what you need to know before buying:
- Term life isn’t right for everyone. Many policies become expensive over time or don’t match your needs.
- Beware online “advice gurus.” True life insurance professionals evaluate your goals and recommend coverage based on your personal situation.
- Life insurance is not one-size-fits-all. Misinformation is everywhere; make sure your decisions are informed.
Compare Policies Before Buying
- Start with a level premium term life quote from multiple top carriers.
- Compare coverage amounts, rates, and policy lengths.
- Use this as a baseline to evaluate any AAA term life offer.
What Really Matters in Life Insurance
- Company size or name doesn’t guarantee quality.
- Price, convertibility, and claims-paying ability are far more important.
- Example: The author purchased a policy from a smaller carrier that fit his needs perfectly. Later, that carrier was acquired by Protective Life—still reliable and financially strong.
Why Choose Level Premium Term Life
- Fixed premium for the length of coverage.
- Benefits never decrease; cost never increases during the term.
- Our quick quote tool shows how affordable high-quality, level term coverage can be.
What You’ll Learn in This Review
- Benefits of AAA Exclusive Group Term Life Insurance.
- Limitations you need to know before buying.
- How it compares to other term life
Pros and Cons of AAA Group Term Life Insurance
Pros of AAA Term Life
- Easy to apply: AAA includes a simple application and even a postage-paid envelope—no hassle at all.
- No medical exam required: Simplified issue with just three health questions.
- Quick approvals: You can get coverage decisions fast.
- Lifetime AAA membership for spouse: If your surviving spouse is a AAA member, they receive standard AAA membership for life.
Cons: What You Should Know
While AAA makes the process easy, the product itself is low-tier compared to what top life insurance carriers offer:
- Premiums increase every 5 years: Unlike AAA, leading insurers lock in level premiums for 10, 20, or even 30 years. This can mean big overpaying over time.
- Coverage expires at age 80: Many seniors need protection beyond this age, but AAA coverage ends just when it’s often most critical. Top carriers provide guaranteed level premiums up to ages 90, 100, or even 121.
- Low death benefit options: AAA only offers $50,000, $100,000, $200,000, or $300,000. Most people end up underinsured, while top carriers can tailor the exact amount of coverage you actually need.
- Higher cost for what you get: A healthy 40-year-old male could get $100,000 of 10-year level term from a top insurer for $9/month, while AAA charges $18/month initially. Over time, this adds up to significant overpaying.
- Not designed for end-of-life expenses: Term insurance is not burial insurance. Many people regret buying similar products (like AARP/New York Life or Globe Life) because the true costs and limitations aren’t obvious.
- Term policies are not created equal: Just because it says “term life” doesn’t mean it provides real flexibility or long-term value.
Bottom line: AAA Group Term Life Insurance is convenient, but it lags behind top-tier term policies in coverage flexibility, price, and longevity. If you want real protection that meets your needs and budget, it pays to compare with licensed independent agents who work with multiple carriers.
You can ask yourself the following questions to see if this policy is a good fit for you or not.
Term life insurance policies are not all apples to apples. Compare this AAA policy to a premium life insurance policy from Banner Life Insurance Company for comparisons sake. Learn about guaranteed level term life insurance.
AAA Life Insurance Rates: What to Expect
Since most people already have the AAA Exclusive Group Term life insurance advertisment, I will not include those in the post.
As a business providing life insurance products and service to consumers, we do not like term insurance products that increase in cost every 5 years. Cost of policy ownership just keeps going up and up and up until the policy expires.
Ultimately, you end up paying considerably more money over that time. Level premium term life insurance is a much better answer for those people who want term life insurance.
One exception…
You need it for a very short period that is defined. Maybe 5 years or so.
Most of the people who we speak with and have owned any life insurance with rate increases are typically upset. They choose to replace it with level term life insurance or another form of permanent life insurance.
Who wants to be overcharged or have the wrong type of life insurance, right?
Have you used the instant quoting tool on this page to find our who the top term life insurance carriers and rates are? Whether you have read a few life insurance reviews of AAA group term life or not make sure you get an instant quote on the best level term life insurance policies with our tool on this page.
AAA Group Term Life Benefit Summary
Coverage Guarantees
- Guaranteed Renewable
With the stipulation that you pay the appropriate premium and the master group policy stays in force, you cannot be cancelled once you are insured. You cannot be singled out and cancelled regardless of your future health. Your rates cannot be altered due to your health either. This coverage can be kept till age 80 when it expires.
- Guaranteed Level Benefits
The death benefit you choose at application time will never decrease regardless of your health or age till it expires at age 80
- Guaranteed Spousal Eligibility
Your spouse is able to apply even if they are not a AAA member as long as they are between age 18-74. This includes a broad definition of spouse as registered domestic partner, civil union, domestic partnership etc. As long as state law recognizes the relationship as such.
- Guaranteed Payout For a Covered Claim
Your beneficiary(s) will get the death benefit selected during application. There is no waiting period or partial payments of the death benefit.
Two frequently overlooked benefits when purchasing life insurance coverage to consider…
Living Benefits
The AAA Group Term Life Insurance allows you to obtain partial benefits while you are still alive. This is made possible by the Accelerated Death Benefit built in the master policy that covers the insured if they are ever diagnosed with a terminal illness and have 12 months or less to live. You can obtain up to half of the death benefit to help out with your expenses.
Conversion Privilege
Anytime before you turn 65, you may desire to convert your AAA Exclusive Members Only Group Term Life Insurance into a whole life insurance policy from AAA. As long as you convert prior to age 65, this is also guaranteed regardless of your health.
Never buy any term life insurance policy that does not contain this option!
Big mistake. Life Happens and we all need options as term life policy owners.
Why Consider an Independent Life Insurance Agent vs AAA
- Work with an independent life insurance agent/broker—they aren’t loyal to any one insurance company. AAA is primarily known for auto insurance.
- Independent agencies focus solely on life insurance, not bundling auto or homeowners policies.
- You can save money. Independent agents shop the market to find the best rates with top life insurers for your personal needs.
- Reputable independents are hassle-free, no-pressure consultants who prioritize a positive experience.
- Fast online applications for quick approvals.
- Friendly, helpful guidance—including evaluating what type of life insurance you need before buying. Free advice and tips can help you get the best price.
- Many independent agencies handle hard-to-insure cases that AAA won’t touch, including high-risk situations.
- Life insurance isn’t one-size-fits-all. Factors like coverage term, face amount, and health conditions must be evaluated carefully.
- A good independent agent/broker saves time and hassle, shopping the market to pinpoint the right policy and insurer for you, tailored to your age and health.
Wrapping Up: AAA Group Term Life Insurance Review
AAA Group Term Life Insurance reviews are a starting point—but talking to an independent broker is worth your time if you want affordable, reliable coverage that actually meets your needs.
AAA has a solid reputation with over a million members and generally low complaints. Customer service appears good, which is a thumbs up. But a strong company doesn’t automatically make this product a good fit for most people.
Key points to know about AAA Group Term Life:
- It’s not a special product—many assume it’s a low-cost membership benefit. It’s not.
- Premiums increase every five years, even if your health improves.
- Coverage expires at age 80—exactly when many seniors need insurance the most.
- Limited face amounts ($50k–$300k) may leave you underinsured.
- The policy is more expensive than medically underwritten term coverage from top carriers.
Term life is not interchangeable with final expense or burial insurance. Policies like AAA’s can leave policyholders overpaying or underinsured.
Reminder – Ask yourself before purchasing:
- What type of life insurance do I really need?
- How long should the coverage last?
- How much coverage is necessary?
- Which company offers the best rates based on my health?
- What is the financial rating of the insurer (AM Best)?
From a practical, cost, and coverage perspective, AAA Group Term isn’t an ideal recommendation. Even good service can’t overcome structural policy limitations.
Independent agents provide:
- Guidance to find affordable, level term coverage with locked premiums.
- Access to multiple carriers for comparison.
- Expertise in difficult-to-insure cases.
If you want real value, use a reputable independent agent to find coverage that fits your health, budget, and goals. Top carriers often offer longer terms, better pricing, and more flexible options than AAA.
Even as a licensed independent agent, I still receive offers from multiple companies, including credit unions. I know the limitations of these mailers—most people would be better served talking to a professional first.
Bottom line: AAA is a respectable company with good service, but the product itself is overpriced and limited. You can find better coverage, better rates, and stronger service through an independent life insurance agent without leaving your home.
We hope this AAA Life Insurance review helps you make an informed decision. Feel free to comment below with your thoughts.
Frequently Asked Questions About This AAA Policy
Is AAA Group Term Life Insurance worth it?
AAA Group Term Life is a no-exam, increasing-premium term policy. While it may look affordable initially, premiums rise every 5 years, making it expensive over time compared to level-term policies that stay the same cost throughout the term.
The policy is designed with increasing premiums every 5 years. Early on, the rates may appear competitive, but by age 70–75, the cost can become significantly higher than a comparable level-term policy.
Can I buy a level-term policy instead?
Yes. A no-exam level-term policy often costs just a dollar or two more at the start but remains the same cost over 20, 25, or 30 years, making it much cheaper during long-term ownership.
Who is AAA Group Term Life best suited for?
This policy is suitable for those who want immediate coverage without a medical exam and understand that the cost will increase significantly over time.
Are there alternatives to AAA Group Term Life Insurance?
Yes. Companies like Banner, Mutual of Omaha, and SBLI offer no-exam level-term options, often at lower long-term costs than AAA Group’s increasing-premium design.
What should I consider before buying this policy?
Consider the long-term cost of ownership. While it looks affordable early on, the rising premiums will make a top level-term policy a better value over the full term.
Don’t overpay or select the wrong coverage—explore what trusted independent agents can offer.
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Special Risk Life is a veteran independent life insurance agency that specializes in guiding people with even the toughest health conditions thru the life insurance process. We are very passionate about helping people get the financial protection they want while delivering affordable coverage people can absolutely count on.