Shopping for life insurance can feel like a chore, so finding out AAA sells term life insurance with no medical exam probably sounded like good news.
It can be. The application is quick and AAA members get a perk or two. But the rates aren’t the lowest out there, and the no exam coverage tops out lower than a lot of people need.
Here’s what you get, what it costs and where it falls short, so you can decide if it’s a fit.
How No Exam Term Life Works
The worst part of buying life insurance is usually the underwriting. Exams, medical records, phone interviews. It drags.
No exam simplified issue policies skip most of that. You can get covered fast, with no waiting period, at an affordable price.
The price gap between exam and no exam policies used to be huge. It’s shrunk a lot as the tech behind underwriting has gotten better, which is why more companies, AAA included, now sell these policies.
About AAA Life Insurance
You probably know who AAA is, but you might not know it sells life insurance too.
AAA Life Insurance Company became part of AAA in 1969, offering life insurance and annuities. It’s headquartered in Livonia, Michigan, and owned by several of the largest groups in the AAA organization.
What the Policy Offers
- Ages 18 through 75
- Coverage from $25,000 to $500,000
- 10, 15, 20 and 30 year terms
- Not available in New York
- Tobacco and non tobacco rates
- E-signature
- No waiting period
- Accelerated underwriting
One catch: the no exam route only goes up to $250,000. If you want more than that without an exam, you’ll need to look elsewhere.
Riders and Member Perks
You can add two riders, each for an extra cost:
- Accidental death: pays an additional amount if death is caused by an accident.
- Child term rider: up to $20,000 of term life coverage for your kids.
If you’re a AAA member, the annual policy fee is waived. That saves you $60 a year.
How Fast Is the Application?
Fast. We’ve seen clients go from application to approval in 10 to 15 minutes.
Just know that no exam doesn’t always mean no exam. AAA’s own disclaimer says “…but if more information is needed, a quick medical exam can be completed at a time and place that is convenient for you.”
So there’s a chance you’ll be asked for one.
What Does It Cost?
Price is where AAA falls behind. Here are sample monthly rates for men buying $250,000 of coverage:
| Age | Monthly rate for $250,000 |
|---|---|
| 21 | $33.22 |
| 25 | $33.22 |
| 30 | $34.54 |
| 35 | $35.86 |
| 40 | $49.28 |
| 44 | $59.84 |
Your own rate will depend on your age, your health and whether you use tobacco.
A couple of other gripes. When you get a quote, you can’t add the riders to see your final price. And the best rate is tied to being a AAA member, which I’m not a fan of.
Is AAA No Exam Term Life Worth It?
If you’re already a AAA member, you only need a smaller policy and you want a quick application, it’s worth getting a quote.
If you need more than $250,000 without an exam, or price is your top concern, compare a few no exam life insurance options before you decide.
Either way, don’t wait too long to get covered.