Tips Clear – Media Surfer News Tips Clear: Your Daily Dose of Expert Advice
Term Life Insurance
Term life insurance offers coverage for a finite duration, such as 30 years, and is typically more economical compared to permanent life insurance. USAA provides both Level V and Essential Duration policies (unavailable in Arizona, Florida, or New York):
- Level Term V: This policy offers coverage ranging from $100,000 to $1 million for terms between 10 to 30 years with a consistent premium, meaning the premium remains unchanged for the selected coverage duration. Eligibility is for individuals aged between 18 and 70, requiring a medical examination.
- Essential Term: This policy is available to individuals aged 21 to 35, providing a death benefit of $100,000. Coverage terminates on your 39th birthday if renewed annually. Unlike Level Term, the premium rate increases yearly, and no medical examination is required.
Opting for the Level V policy could be more cost-effective if you’re prepared for a longer application process. Essential Term suits short-term needs due to its escalating costs and renewal restrictions post age 39.
| USAA | Allianz | American Fidelity life insurance | |
|---|---|---|---|
| Types of coverage | Whole life, term life, universal life | Universal life index | Term life, final expenses, whole life |
| Dividends for 2020 | $42 million | Not applicable | Not applicable |
| Online application | Available | Unavailable | Available |
| AM Highest rating | A++ | A+ | A- |
| Prices for temporary policies | Excellent | N / A | Very well |
| NAIC Complaint Index | 0.22 | 0.31 | .002 |
Whole Life Insurance
Contrary to term policies, whole life insurance extends coverage for the insured’s entire life, provided premiums are paid as scheduled. This policy guarantees a death benefit and accrues tax-deferred cash value.
- Simplified Whole Life: Offers an option to complete premium payments within 20 years or by the time you reach 65, instead of lifelong payments.
- Mutual of Omaha’s Guaranteed Whole Life: Available through USAA membership but underwritten by Mutual of Omaha.
Universal Life Insurance
USAA doesn’t directly offer universal life insurance but provides access to John Hancock’s universal life policies. These policies offer flexible, permanent coverage with a cash value component that can endure a lifetime, given sufficient premium payments. Unlike whole life insurance, premium payments can be adjusted or omitted without immediate policy termination.
Riders Available
Guaranteed Insurability Riders
These riders allow increasing the death benefit without requalification, meaning no health questions or medical exams. USAA offers two options at no extra charge:
- Term Life Event Option Rider: Available on Level V Term policies, this rider permits increasing the death benefit upon significant life events like marriage, family expansion, or home purchase. It’s available to policyholders 35 or younger and expires after 10 years or upon turning 45, whichever occurs first.
- Life Event Option TowerA: Similar to the above, this rider comes with USAA Simplified Whole Life policies, allowing up to six increases in death benefit, maxing at $1 million. It expires at age 45.
Child Rider
Attachable to your policy, this rider offers up to $25,000 per child for all children at $7.99/month. Upon reaching adulthood, the rider can convert into lifelong coverage.
Premium Waiver
Available at an additional cost, this rider allows premium waivers in the event of disability.
ADB: Terminal Illness Rider
Provided at no extra cost, this rider allows accessing a portion of the death benefit upon terminal illness diagnosis for use during the policyholder’s lifetime.
Customer Service
USAA can be contacted via phone or mail. Primary phone support is available Monday through Friday, 7:30 a.m. to 8:00 p.m. CT.
- Phone Numbers:
- 210-531-USAA (8722)
- 800-531-USAA (8722)
- Address: 9800 Fredericksburg Rd, San Antonio, TX 78288
Price
Analyzing quotes for healthy individuals aged 25, 40, and 55 for $250,000 term policies over 30 years, USAA term policies are slightly above average in cost. However, the additional features like guaranteed insurability and injury benefits might justify the expense.
Is USAA Life Insurance Right for Me?
Military members may find USAA life insurance particularly beneficial due to perks like expedited issue for deployment, wartime coverage, and critical injury benefits. Non-military individuals might also appreciate the no-cost guaranteed insurability riders, a rarity among insurers.
For long-term or high-coverage no-medical life insurance, alternatives might be necessary. USAA does not offer universal, variable universal, or indexed universal life policies directly.
Rating Methodology
Our comprehensive rating methodology evaluates over 90 insurers based on financial stability, customer satisfaction, product variety, purchase experience, and cost. This involves analyzing over 5,000 data points and scoring each company across 55 metrics, culminating in an overall performance assessment.
