United Services Automobile Association, more commonly referred to as USAA Federal Savings Bank, began as an insurer for military members and their families.

USAA’s life insurance policies continue after the insured person leaves the military. USAA life insurance is an especially great choice for military servicemembers.

USAA offers term, military term, whole, and universal life insurance. USAA’s military term policy includes a $25,000 severe injury benefit.

USAA also has strong financial ratings, which indicates its financial strength and means it is reliable when it comes to paying claims.

It was founded in 1920 by a handful of servicemen who found it difficult to get life insurance coverage from insurance companies due to the "high risk" ratings that their professions gave them.

Over the years, USAA has gained a reputation of providing quality financial and banking services to military service members. The company currently has over eight million members and is worth more than $19 billion, making it one of the largest insurers in the United States.

In addition to life insurance, USAA has financial services, banking, credit card offers, car insurance, homeowner's insurance, renter's insurance, and more of its members. Members even can find health insurance through USAA. USAA emphasizes insurance coverage of all types for members of the military and their families. Many of their life insurance policies also include provisions for children of the policyholders.

Read USAA Life Insurance Reviews

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The Good

  • High Ratings
  • Life Insurance Policies Available
  • High-Risk Coverage
  • Flexible Terms
  • Easy-to-Use Website

High Ratings

USAA holds a financial rating of A++ from A.M. Best, Aa1 from Moody's Investor Service, and AA+ from Standard and Poor's. These high ratings indicate that USAA is financially stable and able to meet its financial obligations. 

Customer reviews on Best Company also rate USAA highly. USAA has received a 4.8/5 star-rating from reviewers. This high rating further demonstrates the level of service and quality USAA offers its clients.

Life Insurance Policies Available

USAA offers four kinds of life insurance to its members:

  • Term Life Insurance
  • Military Term Life Insurance
  • Whole Life Insurance
  • Universal Life Insurance

USAA’s term policies last as long as 30 years without changes to monthly life insurance premiums. With these plans, USAA also offers a free financial plan for beneficiaries and the ability to add life insurance coverage for children.

The Military Term life insurance policy includes an additional $25,000 severe injury benefit for policyholders.

This coverage of bodily injury provides additional value to military families because medical costs are high, especially for severe injuries.

Whether you need a term life policy while deployed or for one of your family members, USAA offers valuable options.

If you're looking for a permanent policy, you can purchase USAA whole life insurance or universal life insurance.

USAA’s Whole Life Insurance and Universal Life insurance policies last a lifetime and accrue additional cash value. As with the term policies, USAA also offers a free financial plan for beneficiaries with its permanent life insurance plans.

The monthly premiums for USAA’s Whole Life Insurance plans remains consistent throughout the policy. Members with a Whole Life Insurance plan can also purchase coverage for their children under this plan.

The payments for USAA’s Universal Life Insurance plans can be flexible and change over the course of the policy.

As you evaluate your life insurance options, remember that the policy only remains active as long as you make the premium payments. Be clear with your insurance agent, and make sure that you find coverage that will meet your needs and fit your budget nicely.

With most policies, you'll have to have a medical exam as part of the underwriting process. Underwriting determines the risk associated with insuring an individual for an insurance company and determines the life insurance rates you qualify for. Unless you're applying for a guaranteed acceptance policy, you'll need to follow through with a medical exam when you apply for coverage regardless of the life insurance company.

High Risk Coverage

USAA covers all military personnel, including active duty, and their families. In addition to providing a death benefit, USAA also provides insurance coverage for acts of war and includes payouts of up to $25,000 for war time injuries. A term insurance policy from USAA is an excellent option for military members. Its plans cover high risk military personnel better than almost any other on the market.

Flexible Terms

USAA's Universal and Whole Life insurance policies do have the option of a flexible insurance premium if your circumstances change. They also accrue cash value which is guaranteed to have a minimum interest rate based on the state you live in (Texas being the example cited at 1 percent).

Easy-to-Use Website

USAA's website is easy to navigate and includes customized life insurance quotes online. The quick insurance quote information helps potential clients understand the costs and benefits of a USAA life policy.

Contact information is also listed in the top, right hand corner of each page as well as additional prompts to search for a local agent as you browse.

USAA's customer service is also excellent. Its agents are helpful in answering questions and processing claims for USAA members and potential customers.

Its online and automated payment options make it easy to stay current on payments as well.

The Bad

  • Higher Premiums
  • Limited Availability

Higher Premiums

Age, medical condition, and occupation affect life insurance rates. Because USAA insures people in a high risk population, it affects the cost of its insurance premium. On average, USAA life insurance rates are 15-20 percent higher than other companies.  Keep in mind that premiums for permanent life insurance policies also tend to be significantly higher than those for term policies.

While people may pay more for a USAA life insurance policy, it's important to note that it's difficult to find private life insurance for military members. When you consider the value USAA adds to its policies, like including a severe injury benefit, the quality of its products and services is high.

Limited Availability

USAA has a specific customer base. To qualify for USAA membership, become a life insurance policyholder, and purchase any of its other products, you must active-duty military, retired or honorably discharged military, or be related to a military service member. If you are not in the military or have no direct family connection with the military, USAA life insurance may not be an option for you.

The Bottom Line

USAA is unique among life insurance carriers because of its emphasis on serving military members. It has a high financial strength rating and has become known as an excellent bank. Unlike many life insurance carriers, USAA is an insurance carrier for military personnel and has been for nearly a century.

USAA has a nice selection of life insurance policies with term life insurance and permanent life insurance options. Despite being a little more expensive, it is a great option for those with military-specific needs. If you are not connected with the military, you may not be eligible for USAA's life insurance products.

USAA offers more flexibility and has insurance options tailored to meet military service member needs, which makes it a great choice for military families, service members, and veterans.

View Best Life Insurance Companies

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User Reviews

Star Rating

4.9
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36 Reviews

Review Breakdown

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Sentiment Criteria

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Peter Caesar

May 1st, 2020 Charlotte, NC DETAILS arrow_drop_down
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Best offer on life insurance hands down. The process was very easy, but extremely thorough.

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April Jones

March 27th, 2020 Tremonton, UT DETAILS arrow_drop_down
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USAA has been able to give us the best price on term life insurance! And we were even able to get a rider on the kids. And their customer service is amazing!

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Lizabeth Augustine

March 5th, 2020 Holmdel, NJ DETAILS arrow_drop_down
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Been a member for many years. Always perfect customer service. Feel like it is a relationship truly. Valuable company.

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Dwhoush

March 2nd, 2020 Slidell, LA DETAILS arrow_drop_down
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I love my USAA products. It is priced extremely well and it’s easy to sign up for. It’s nice knowing if anything happens to me, my wife is covered.

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JamieD

February 21st, 2020 Saratoga Springs, UT DETAILS arrow_drop_down
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Just like every other insurance policy we have with USAA this was very simple to apply for, and simple to manage. I trust USAA and live working with them

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Justin Riggs

February 14th, 2020 Salt Lake City, UT DETAILS arrow_drop_down
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Simply the best! Others can’t compete with their level of customer care. Great options for everyone!

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Roche

February 11th, 2020 American Fork, UT DETAILS arrow_drop_down
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I am extremely pleased to be a member of USAA, they take great care of their members and have a vast amount of products to serve their customers. I would highly recommend them.

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Dillbrow

February 10th, 2020 Aberdeen, ID DETAILS arrow_drop_down
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I have auto, home, and banking with USAA and am completely pleased with all of their services and employees.

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Jesse Rice

January 30th, 2020 Long Beach, MS DETAILS arrow_drop_down
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My family is USAA everything and when it came to doing our life insurance we shopped around and got the best coverage for me and my wife so are kids will never have to worry. Thanks USAA

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SkylarPickens

January 15th, 2020 Houston, TX

I trust them with my life!! Literally. The best and at such a reasonable price! I love them

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Lesa Stewart

October 14th, 2019 Saint George, UT DETAILS arrow_drop_down
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We started with USAA in Texas. They have the best customer service for our family’s needs. Thanks

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Anonymous

October 10th, 2019 DETAILS arrow_drop_down
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I have a small life insurance for my son. It’s a just in case I’m hoping never to have to use it and it could be used later by him to extend the service for himself or even borrow against it.

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Zac Marx

October 8th, 2019 Brighton, CO DETAILS arrow_drop_down
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Our family loves USAA! Everyone has it, including extended family. The costs are unheard of compared to other companies and provides us with great coverage for a great price!

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Kenz

September 17th, 2019 Buena Vista, VA DETAILS arrow_drop_down
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When we needed to adjust policies they spent a lot of time on the phone helping us find the right policy for our situation.

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Brittany Bray

May 31st, 2019 Springville, UT DETAILS arrow_drop_down
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I have USAA for my insurance on everything! They are so great to work with and very affordable !

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Denna Collier

February 6th, 2019 Lehi, UT

I wish as a child of a veteran that I could use this insurance, but since my father never signed up. I'm denied enrollment

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SPENCER C HARVEY

February 1st, 2019 Eagle Mountain, UT DETAILS arrow_drop_down
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Life insurance is easy to rate mathematically by bang for buck. So it's really good and better than anything else we could find

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Cori Jacobsen Ollerton

December 10th, 2018 Alpine, UT DETAILS arrow_drop_down
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I wish I could give USAA 10 stars! They are amazing. Customer service is great. Easy to communicate with and helpful in answering questions. I have been a customer for over 20 years. Banking staff is educated and very helpful.

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Abbey

November 19th, 2018 Gilbert, AZ

they are a really good company. They have excellent customer service. They are a solid company!!

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Maddy Bohn

November 16th, 2018 Gilbert, AZ

Never had any problems with it. Very reliable and fast service. When I call for help people are very helpful.

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ben

November 5th, 2018 Iowa City, IA DETAILS arrow_drop_down
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One of the few insurance companies that will insure soldiers. Rates are probably a little higher as a result. Great company and awsome service.

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Randal hyde

November 1st, 2018 Springfield, MO DETAILS arrow_drop_down
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With a family, life insurance is something that is very important to me. I like the coverage and amount that USAA provides and the price is very fair. I would recommend them to friends.

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Shari Evers

September 18th, 2018 Lehi, UT

Setting up a life insurance policy with USAA was super easy. I put it off for so long expecting they would give me the run around. I really wish I would have gotten it taken care of a lot sooner!

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Mark Evers

September 17th, 2018 Lehi, UT

My wife has a life insurance policy through USAA! They offer great products. I hope I never have to worry about getting this paid out!

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Kimberley Hirt

July 27th, 2018 Buena Vista, VA

I love this company. I can always count on them to have the best rates and customer service. I would highly recommend them.

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Trista Siren

June 28th, 2018 Gilbert, AZ

Great company, great insurance, and the best rates!

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Nats fan!

February 5th, 2018 Clemmons, NC DETAILS arrow_drop_down
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Excellent company, reliable, fair, and professional

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Joe

February 5th, 2018 La Vernia, TX DETAILS arrow_drop_down
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Cost is better than others also we do all our banking there to.

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M Anderson

February 5th, 2018 Knox City, MO DETAILS arrow_drop_down
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Dependable - recent rate increases have me wondering about value

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Quincy

February 5th, 2018 Lake Forest, CA DETAILS arrow_drop_down
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All around excellent. Friendly staff and prompt service.

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Nicole Davis

February 5th, 2018 Hermiston, OR DETAILS arrow_drop_down
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Have been with USAA for 15 years never had a problem issue that wasn't resolved fairly.

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Stanley Hilton

February 5th, 2018 DETAILS arrow_drop_down
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Easy to communicate with. Great customer service.

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Richard Ayres

February 5th, 2018 Conway, AR DETAILS arrow_drop_down
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From banking to insurance USAA allways provides exceptional service in every respect!

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Royce SSimmonds

January 30th, 2018 DETAILS arrow_drop_down
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Great Company - I have two policies but found recently that one was a Universal Life policy which I did not know...bad on me I guess

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Colvin Doughty

January 30th, 2018 DETAILS arrow_drop_down
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Rates, service, and all issues have been handled very well in all my need with them.

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HAROLD MORGAN

January 30th, 2018 DETAILS arrow_drop_down
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Excellent customer service, very respectful, very easy to work with.

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