USAA Term Life Insurance
Term life insurance is a life insurance policy that provides level rates over a specific period of time. USAA offers term life insurance for periods of one to 30 years. Your premiums are guaranteed to remain level for the duration of the term. If you pass away while the coverage is in effect, your beneficiary can make a claim for the death benefit, which they can use for any purpose.
USAA sells two term life insurance policies.
Level Term V
USAA’s Term Level V policy is available for applicants between ages 18 and 70, with $100,000 to $10 million in coverage. A medical exam may be required, unless you are an active duty service member and are deploying. In addition, you can convert this policy to permanent coverage after one year without taking another medical exam.
If you’re an active duty or reserve duty service member, the Level Term V policy provides extra benefits, like coverage during times of war, severe injury benefits and expedited coverage approval during deployment.
Essential Term
USAA’s Essential Term policy is a simplified issue life insurance policy that requires no medical exam and only a short list of application questions. Essential term is annual renewable term life insurance designed for young adults. You must be between ages 21 and 35 to apply. The policy has $100,000 in coverage and can remain in force until you turn 39 if you renew every year. A medical exam isn’t required for the Essential Term policy, which can be beneficial for people who want coverage quickly. However, you don’t have the option to convert this policy to a permanent policy.
| USAA Level Term V | USAA Essential Term | |
|---|---|---|
Best for | Those who want higher coverage amounts and the option to convert to a permanent policy. | Those who are young and healthy and seeking coverage that is renewable yearly through age 39. |
Death benefit | $100,000 to $10 million | $100,000 |
Term options | 10 to 30 years | Renewable every year until you reach age 39 |
How to apply | Online | Online |
Available for applicants | Ages 18 to 70 | Ages 21 to 35 |
Option to convert to a permanent policy | Yes | No |
USAA Whole Life Insurance
Whole life insurance is a type of permanent life insurance that can provide lifetime protection. It has fixed premiums, a guaranteed death benefit (as long as the premiums are paid) and cash value.
With each premium payment, a portion of the money goes toward cash value, which grows based on a fixed interest rate. You have the option to withdraw or borrow your cash value while you are living, but your death benefit will be reduced by the amount you take out (unless you pay back a policy loan).
USAA offers two types of whole life insurance:
Simplified Whole Life
USAA’s simplified whole life policy is available for applicants between the ages of 15 days and 85 years old. The coverage limits range from $25,000 to $10 million, with coverage lasting until age 121. Depending on your age and health, you may be required to take a medical exam to get approved.
Guaranteed Whole Life
USAA’s guaranteed whole life insurance policy is underwritten by Mutual of Omaha. This policy does not require a medical exam, and everyone who applies gets approved. The guaranteed whole life policy is available for applicants between the ages of 45 and 85 years old (or 50 to 75 years old in New York) and provides coverage from $2,000 to $25,000. This policy is not available in Montana.
| USAA Simplified Whole Life | USAA Guaranteed Whole Life | |
|---|---|---|
Best for | Those who want guaranteed lifetime coverage. | Those who want a small amount of lifetime coverage with no medical exam. |
Death benefit | $25,000 to $10 million | $2,000 to $25,000 |
How to apply | Online or by phone | Online or by phone |
Available for applicants | Ages 15 days to 85 years | Ages 45 to 85 |
USAA Universal Life Insurance
Universal life insurance, or UL, is a permanent life insurance policy that builds cash value. UL policies have a flexible death benefit and adjustable premiums. You can access the cash value via a withdrawal or policy loan.
USAA’s UL policy is underwritten by John Hancock. This policy is available for applicants ages of 20 to 90, with coverage lasting until at least age 121. Coverage amounts start at $50,000. USAA’s UL policy requires a medical exam to qualify and is not available in New York.
