AAA is No. 14 in our Best Life Insurance Companies ranking of 2025, earning 4.15 out of 5 possible stars.
Kara McGinley has over 6 years of experience writing, editing, and reporting on insurance and the insurance industry. She's been a licensed property and casualty expert in New York since 2021. Kara has been featured in several national publications, including USA TODAY, MSN, LifeHacker, Kiplinger, PropertyCasualty360, Policygenius, Rental Housing Journal, and WRAL.
Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant.
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AAA came in 14th place in our Best Life Insurance Companies ranking for 2025, scoring 4.15 out of 5 possible stars. Customers we surveyed ranked it highly for satisfaction with policy offerings and billing processes. Around 96% of surveyed customers consider AAA to be a trustworthy company.
When policyholders file complaints against insurance companies to state regulators, the National Association of Insurance Commissioners (NAIC) logs those complaints. AAA had more complaints with the NAIC than other companies that made our ranking. It earned a financial stability rating of A (Excellent) from AM Best.Below is our review of the full company and its line of life insurance products. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.
AM Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.
Around 80% of surveyed customers said they’d recommend AAA, which is about average. Among the companies that made our ranking, Guardian scored the highest in this category.
AAA charges an average of $385 per year for a term life insurance policy, slightly more expensive than the nationwide average of $377. This rate is based on a 20-year term policy for a 35-year-old non-smoker with a $500,000 death benefit.
For ease of service – a metric that looks at how easy it is for customers to access services – 83% of AAA customers gave it a high mark.
Consumers typically want a company to offer a broad range of policies so that they can find the one that fits their needs. In the survey, 85% of AAA customers said they were satisfied with AAA’s policy offerings.
Of the 16 companies that made our best analysis, Guardian scored the highest in this category
Most AAA customers consider the company trustworthy, with 96% giving it high marks. Northwestern Mutual led in this category with a score of 100%
In our survey, around 93% of AAA customers said they plan to renew their policy with the insurer. Lincoln Financial, Mutual of Omaha, Northwestern Mutual, and Prudential led this category with scores of 100%.
Note: AAA life insurance is available in every state except New York. Coverage and product availability can vary by location.
AAA Insurance became a part of the American Automobile Association family in 1969. It offers both life insurance products and annuities and is headquartered in Livonia, Michigan.
Sources:
J.D. Power. “Individual Life Insurance Study.” Accessed March 2025.
Insure.com in the fall of 2024 surveyed more than 1,750 insurance consumers (973 people with life insurance). The survey was conducted by online market research company Slice MR.
Respondents were asked to name their life insurer and then grade it in the following categories:
The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.
We then asked respondents to provide a yes or no response to indicate their agreement with the following statements:
The percentage of respondents who said yes is presented in the results.
The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.
They then collected AM Best data, which measure financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC codes of each underwriting company for each carrier and calculated a weighted average complaint index, weighted by the annual written premium. The associated NAIC complaint index score was used in the calculations.They also collected insurance rate data from Compulife.
With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For life insurers, we took the following and gave each a weight.
Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.