USAA, also known as The United Services Automobile Association, is a financial services group of companies that provides a variety of insurance products to consumers throughout the United States.
While the company has approximately 12 million members, here’s something to remember: it’s only available to people who currently serve or have served in the United States military, as well as their families.
If you qualify for USAA whole life insurance, you should definitely learn more about the coverage that is available to you. It may not be exactly what you are looking for (more on this to come), but it gives you a clear idea of what the company can do for somebody in your position.The Good
Easy to Purchase and Maintain
Not only is it easy to request a quote online, but USAA makes it just as simple to actually purchase coverage.
Adding to this is the fact that your payments never increase and your death benefit never expires or decreases in value. As long as you continue to make your payments in full and on time, your policy will remain active until your death.
Growth
There are many reasons to purchase whole life insurance, including the ability for your policy to build tax-deferred cash value year over year.
USAA whole life insurance provides guaranteed growth, meaning that you can access cash while you are living.
Ratings
A.M. Best Company(Financial Strength) A++(1)
Standard & Poor’s(Financial Strength) AA+(2)
Moody’s(Financial Strength) Aa1(2))
Weiss(Safety Rating) B+(4)
Comdex Ranking (Percentile in Rated Companies) 99
Financial Report
Assets & Liabilities
Total Admitted Assets – $757,664
Total Liabilities – $679,314
Separate Account – $0
Total Surplus & AVR -$83,874
Flexible Payment Options
USAA realizes that every consumer is in a unique financial position. This is why the company offers a variety of payment options.
These options are available to you:
- Premium Payments for the life of your policy
- Payments until you turn 65
- Limited payments for a period of 20 years
Whichever option you choose, it has no impact on the status of your policy. All you have to do is pay the required amount and your policy will remain active.
Run Quotes Online
You can get a quick price idea when you go online at: https://www.usaa.com/inet/pages/insurance_life_simplified_whole
Most companies will not let you run quotes online, so it’s good to see companies give control to the clients.
The Not So Good
Poor Cash Growth
Do you remember the section above when we discussed the guaranteed cash value growth? While this is a benefit, USAA lags behind the competition in terms of overall growth.
Its cash growth is poor when compared to others. Meaning that you won’t make nearly as much money over the life of your policy.
Non-Participating Policy
With a participating whole life insurance policy, you have the opportunity (although it’s not guaranteed) to earn a dividend.
USAA is a non-participating life insurance company, meaning that dividends never come into play. This means you are missing out on the chance to earn additional money.
Normal Price
Many people shop for whole life insurance based on price alone. USAA doesn’t do much to win consumers over in this regard, as its rates are similar to the competition.
USAA whole life is not the most expensive on the market. However, it’s definitely at the top end of the range.
Final Word
If you qualify for USAA whole life insurance, there is nothing wrong with learning more and requesting a quote.
However, before you make a purchase simply because you qualify, you need to compare the coverage and premium to at least three other companies.
The comparison process will open your eyes, allowing you to see that USAA falls short in terms of cash value growth, dividend opportunities, and cost.
There are definite benefits of buying from USAA, but in our opinion the drawbacks are too much to overlook.
If you want to check out some of the best whole life insurance for cash value see our article: Best Whole Life Companies for Cash Value
Other great reviews: SBLI Whole Life Review, Illinois Mutual Whole Life Review
