USAA Life Insurance Review

USAA is one of renowned company in United State. They offer different financial and banking services along with different insurance services.
In this article USAA’s life insurance policy and features are provided.

Level Term or Term Life Insurance

Although USAA is for US Military, general US citizen can get few services from them. Level Term is one of them. Most of the people are eligible for term life insurance.


Usually the length of coverage is up to 30 years. You may purchase this plan for your children.

The minimum premium will be $14.15 monthly. This premium may vary according to your risk classes. For example, if you are a tobacco user or a chain smoker or have health issues they will charge you higher. The monthly premium amount remains the same. Your death benefit is $250,000 (10 years).


Severe injury benefit is not available in this plan. You may purchase a benefit to pay premiums if you become disabled. If you survive, there is no cash benefit at the end of the term. In this plan your beneficiary will get free financial advices from USAA.

Military Term

This unique policy of USAA is only for US Military and their respective family members. So if you are a part of US Military then you can take this policy.


Like Level Term this policy also has a maximum term of 30 years. The monthly minimum Premium is 14.15 dollar. Again it will vary depending on your health condition, habit and lifestyle. The periodic premium will remain same over the term period. Your death benefit is $250,000 (10 years).


You can get this plan for your children. You will have no cash value after the term period. Your beneficiary will get the free financial advice. You will get $25,000 Severe Injury Benefit. You may purchase a benefit to pay premiums if you become disabled

Universal Life Insurance

USAA provides UL (Universal Life) Insurance to some specific people.
You can cover your life time protection with this plan. You can be able to purchase this plan for your kids.
Your minimum monthly premium is $70.74. This monthly premium can be flexible.

Your death benefit is  $100,000. Premium may vary according to your risk class. You will have a certain cash value at the end of the term period.


You may purchase a benefit to pay premiums if you become disabled. Severe injury benefit plan is not available. Your beneficiary will be able to get the free financial advice.

Whole Life Insurance

Only a few selected people are eligible for this plan. It will cover your life time insurance.


The minimum monthly payment is $84.57 per month and the death benefit is $100,000. This monthly premium is not fixed or variable. The amount of premium may vary depending on your risk class.


You may purchase a benefit to pay premiums if you become disabled. Your beneficiary will get free financial advice. Severe injury benefit is not allowed. There is a certain cash value after the term period. You are able to have this plan for your children.

Combination Plan

This is also a unique plan of USAA. This plan is not available for every one. Only those who a balanced coverage can apply for this policy. Policy duration can be flexible may be for life time or for a specific period of time.


The minimum monthly premium is $98.72 per month, can be flexible. The premium may vary regarding to your risk assessment. The death benefit is $250,000 (10 Years).

You may purchase a benefit to pay premiums if you become disabled. Free financial advice is available for your beneficiary. There will be a certain cash value after the term period. $25,000 severe injury benefit is available in this plan. You can also purchase it for your loving kids.

Related Article :

Different types and features of Life Insurance.

Type of Insurance.

USAA Company Review.

USAA Company Review

If you are a respective American citizen seeking for a viable insurance shelter that provides best insurance coverage & financially sound then you have to take a tour through the page.

USAA:

You probably hard about USAA, a reliable insurance company with strong financial backup. USAA stands for United Services Automobile Association. It is a well diversified financial institution that provides not only insurance services but also offers banking, and other investing facilities to people and family members that serve, or used to serve, in the United States military. That means currently it sells its services to the military members and its respective family members and has a little service for others.

History of USAA:

USAA was previously known as United States Army Automobile Association. The organization was formed in 1922. Some army officers had inspirational and entrepreneurial role to insure each other when they faced difficulties to insure their auto-insurance. As a military member they were considered as very risky to provide insurance coverage. Thus USAA was formed by some military officer to insure them. Since then it has prolonged to offer insurance services and banking to past and present members of the military members and their immediate families. In 1924, the name was changed to United Services Automobile Association and the members of other military services became qualified for membership.

BUSINESS POLICY of USAA:

The company runs its business through direct marketing and most of its marketing is conducted over the Internet or telephone using employees instead of agents from the very beginning of its operation. Till 1960 USAA was depended on mail service after 1960 it started toll free phone calling to provide its service and around 1999 it established their very own website and started providing services over the internet.

Current Financial Condition of USAA:

Towards the end of 2012 USAA got little more than 9.4 million members around the country. Recently FDIC provides that currently USAA has $45 billion in deposits and has more than 6.4 million accounts.
USAA is not a public company so it is not bound to abide by the rules of SEC of the country but its financial statement is audited by Ernst & Young as well as the major financial rating agencies of the country.

A. M. Best Company: A++ (Superior)

Standard and Poor's: AA+

Moody's Investor Service: Aaa (Exceptional)

Service Quality & Productline:

Currently USAA provides a wide area of financial and banking services including insurance.

Insurance: USAA provides different types of personal property and casualty (P & C) insurance, homeowner insurance, automobile insurance, renters insurance, whole life insurance, term life insurance, annuities and personal property insurance.
Life insurance policies of USAA are not completely unique, but different from most others as they do not include a war-exclusion clause.

Banking; USAA provides its banking services through FDIC. These banking services of USAA are accessible through person, , by phone, by mail service or through the help of internet. USAA Federal Savings Bank provides banking facilities with the mobile applications on the iPhone, smart phone with Android platform based operating system and windows based phone. Easy deposit facilities are also available for the members of USAA.
USAA also offers ATM.

Financial services:
USAA serves its members a brokerage facilities and a family of no-load mutual funds.
USAA also provides to purchase as well as hold mutual funds established by other companies, free financial advice to members, as well as services which require agreement to pay a given fixed rate for such financial planning services.

Service Quality of USSA:

USAA is a highly regulated and well diversified organization. It provides the maximum service quality and its customer are also very satisfied to its service.
USAA is also rewarded for so many times for its service quality since 2002 and it is also remaining the top position in its respective field. USAA also maintaining a consecutive position in Fortune 500(Top Companies Around the World). According to F500 United Services Automobile Association (USAA)
Is in 132nd place and has a revenue of $17,557.6 million and a profit of $3,020.1 million.
In 2010 it remain 45th place in Fortune Magazine. USAA has also been recognized for many years as one of the 50 best corporations for career advancement for Latinas in the US.

Headquarters

San Antonio, Texas
United States
Number of locations
19 financial centers

Recommendation:

If you are eligible to take the service of USAA then for sure you got to take it now without looking anywhere else. Many customers from USAA and others insurance companies provided their best choice as USAA.

If you are a customer of USAA or other insurance organization feel free to comment below so that we can discover and expose more about the services of different organization.

Top Life Insurance Companies in United State

Well Life Insurance not a xyz term right? A lot of decisions have to take accurately and carefully when you are intended to take any. Decision regarding how much you are going to have for your plan, what amount it will be, for how many years it will be, what type of life insurance it is going to be either it is a Term Insurance or a Permanent Life Insurance and so on… Looks daunting?

Well seems to be but here you will find all the pros and corns about insurance solution.

Take a moment and think wisely, when you are looking for a life insurance you are not probably thinking for one or two years, off course not. You may think off ten or fifteen or twenty or even more, right?

So for 10 or more long years you have to carry on the premium for your insurance right? You may pay a handsome amount of premium periodically and in return you will get the service or assurance for your life.


So before anything else as everyone does, you also need to analyze the companies that provide similar services. Surely, all companies are not same some charges higher and some charges lower, some provides quality services some are not. So the bottom line is that you have to have some knowledge & information about the companies that provides different types of life insurance.

What you need to know about a company

• Service quality of the company.
• Customer Satisfaction level of the company.
• Financial strength of that company.
• Potentiality of that company.
• Claim payment ratio of the company and finally
• Credit Rating

Here are some Companies listed that are the best what they do with their services.

Note: These companies are the giant in USA. They all provide the best to their respective customer. Some are cheap and affordable, some are highly qualitative so nothing to take away from each other. The companies are listed below that you must visit at least once and query their features before taking any kind of life insurance.

• MetLife
• AFLAC
• Prudential Insurance Company of America
• New York Life Insurance
• Lincoln National
• North Western Mutual
• State Farm
• Minnesota
• Allstate
• Transamerica

Note: The activity and their rankings may vary from time to time. So nothing to worry with that ranking. You may choose any of the above as your insurer that provides the best for your need.

Different Types and Features of Life insurance

As we defined life insurance earlier, now time to explore different life insurance policy and its features as well.As a whole we have three types of life insurance to consider:

1. Term Life Insurance
2. Permanent life Insurance
3. Endowment Life Insurance.

This Permanent Life Insurance is further subcategorized into three distinctive types

1. Universal Life Insurance.
2. Variable Universal Life Insurance.
3. Whole Life Insurance.

1.  Term Life Insurance

It is the most general form of life insurance. Here you pay a constant premium over the period of time and in return you get a financial protection for your life. If insured person dies within the period only then he or she will get the death benefit otherwise or if the insured person doesn’t die the insured person will not get anything from the insurer. The periodic payment as premium is low compared to other type of life insurance. So if you have little income and also someone dependable on you then you can take term life insurance.

• Premium is fixed and low compare to other life insurance.
• Death benefits only applicable if and only the death occur.
• After the term period the insured person gets nothing.
  

This Term Life Insurance may be Renewable or decreasing as well. In case of renewable term life insurance the premium is initially low and at later period it increases over time. Decreasing Term Life Insurance, in this case the value of life decreases over the years and gradually it will be zero. For example, in 10 years Life Insurance for the first year the value is 10, 00,000 dollar for the 2nd year 9, 00,000 for the 3rd year 8, 00,000 and gradually it is zero. Note in this type of insurance the premium is constant over time.

2. Permanent life Insurance

Permanent Life Insurance continues forever through the insured person’s life. Permanent life insurance remains active until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except fraudulent application, and any such cancellation must occur within a period of time (usually two years) defined by law. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.
Different types of permanent Life Insurance are follows

1. Universal Life Insurance.
2. 
   Variable Universal Life Insurance.
3. Whole Life Insurance.

Universal Life Insurance

Universal Life Insurance is more flexible life insurance. “Flexible” it is in regards of premium, maturity and death benefits. In this policy the policy holder provides a flexible premium that includes a fee for death insurance plus an extra amount as a savings for future investment. This extra amount will earn an interest and will be repaid to the policy holder at maturity.

• The saving and interest earning from UL (Universal Life) Insurance is Tax exempted.
• The policy holder can change the value of death benefits.
• The Policy holder can change the amount of premium.
• The policy holder can take loan against the insured amount.
• If the loan becomes due then the savings portion must be used to recover the loan.

Variable Universal Life Insurance

The Variable Life insurance is like Universal Life Insurance the only difference is that the policy holder can choose exactly where he or she will invest his or her savings amount to earn. In this case he or she can invest that savings portion in any risky financial assets such stocks and debenture. Note if he or she gains from the investment then he or she lucky enough to take that all money but if he/she loses the money then h/s has to include or maintain higher premium to even continue the policy. So if you are a financial expert or you have someone for you that understands the pros and corns of investment then you should be profitable with this type of policy.

Whole Life Insurance

Whole Life Insurance ¬ (WL) continues end ever till the death of the insured person’s with a label premium. Part of its premium is for death benefit and part of its premium is for savings purpose. The savings will earn a constant interest over the time period. The policy holder can access that money through policy loan and it is tax exempted. If the insured person fails to pay the lone then the savings amount will be used to recover that due loan. The loan is accessible before the death of the policy holder.
• It is guaranteed death benefit insurance as it continues until death of the insured person.
• The premium is higher then term insurance.
• Policy holder can take loan and it is tax free.

The interest earnings are tax free.

The premium is fixed and can not be changed over times.

Usually, this type of insurance is better if you have a constant income over times and also you want to be a risk free person.

3.  Endowment Life Insurance:

It’s little bit similar to whole life insurance but the only difference is that the premium is paid off within a specific period say for example 5years, 10years, or may be 15years. In WL the premium continues forever or until death but in Endowment plan the premium is paid off in shorter period of time and hence the premium is also larger. In this type of plan you will get insurance coverage for your life and you will also get a lump sum amount at the end of the policy term. This endowment plan is preferred when you have a certain income and savings as well. Consider the following features

• You have to pay a periodic premium; it will include a fee for your term life insurance and a savings portion which will earn a small and safe interest.
• You will get the savings portion at the end of policy term period along with interest. This interest rate is usually less than the market rate. If inflation rate is higher over the period you may not like this plan because it does not considers inflation and it is risk free so the interest.
• It is a tax deductable income.
• Its main advantage is that you don’t need to consider any medical report for granting the insurance before you are 51 and less than 101,000 dollar insured amount.
Note: The feature will vary from company to company but the basic notion will remain same.

Types of insurance

We all do heard of different types of insurance such as Car insurance, Home insurance, Education insurance, Agriculture insurance, Business insurance and many more.
But basically, in the World “insurance” there are two major type of insurance

1.  Life insurance
2.  General Insurance.

Life Insurance

 Most of us know that term “life insurance”. But what most of us don’t know that how to determine and use life insurance. Well here you can find it with real examples. For now at a glance what exactly life insurance is, Life insurance is a contract (not an Indemnity) between insurer and insured to pay a certain sum of money due to the death of the insured person. The sum of money goes to the Beneficiary person or party that the insured person specifies during the contract but in general it is the family members.

 

 

Essential part of a Life Insurance

1. Premium.
2. Death Benefit.
3. Term or Period of time.
4. Beneficiary.

Why Life Insurance

Very often, Life insurance is intended to have financial security or backup for the family members in case of dependency on any wage earner. If you have someone extremely financially dependent on you then you got no choice but to accept a life insurance plan as early as possible.
Take a look on different types of life insurance plans that suit you most with real example.

General Insurance

General insurance is a contract of indemnity that means risk sharing between two or more parties on some specific ground. For example, Car insurance, Home insurance, flood insurance, Business insurance and so on we look around. We will discus some popular and most important type of general insurance later.

Indemnity Contract

Well loosely speaking indemnity is a contract of risk sharing. Broadly speaking in indemnity contract one party agrees to compensate other party for his damages or loss. This loss or damage must be measured by money that is financial loss. This compensation may be partial or in such way that appears the loser never lost anything. It means that the indemnitor will put you back or cover your loss in such way that you were exactly before the event or damage.

The party who indemnifies or compensates the damage is called indemnitor and the party who takes the compensation for the loss is known as indemnitee.

Here in our area of discussion all type of insurance is subject to an indemnity except life insurance. Life insurance is not a contract of indemnity.

Why life insurance is not a contract of indemnity?

Life insurance is not a contract of indemnity because the life may be yours or ours cannot be measured in terms of money. Indemnity applies only to financial loss. Anyone’s death or loss of life is not financially measured a lot of financial, emotional and social facts are here. So life insurance is not an indemnity contract. But we often see or heard about 1 million dollar of life insurance. So does it mean that his or her life’s value is 1 million dollar? Well absolutely not.
Insurer only helps financially nothing else. They provide financial compensation in such a sense that life (person) could or could have maintained the family or a person financially, so that life is no longer and no financial maintenances so here comes the insurer as rescue.

 There are some forms of compensation in indemnity:

• Cash payment.
  
• Repair.
  
• Replacement.
  
• Reinstatement.
  

Who can get into an insurance contract?

Obviously Insurance is a contract. So when you get into an insurance plan you get into a contract. Actually, Insurance is a contract of “Indemnity” (Learn more). 

So getting an insurance plan you need to have a minimum eligibility to form a contract.

Minimum Eligibility to Form a Contract:

• You have to be a major one a minor person cannot form a legal contract and so the insurance contract.
• Mentally distress person cannot form any contract.
• A bankrupt or insolvent person gets hindrance to form or carry on insurance contract.

In general the above are the precondition to form any certain contract. But there are certain exceptions as well.
A minor or a mentally distress person cannot directly form any insurance contract but can get insurance coverage if someone eligible acted on behalf of them. For example, father takes an insurance plan for his daughter

Safe Insurance

Throw away your fear of losing and let’s move on. Do you know with few dollars you can get rid of losing many a dollars? Yes this process is known as insurance where you pay a small amount of periodic or instant payment and you get a safety jacket that protects you.

Protection from what?

Protection from financial loss. You may have hard this line “Money is the second God of the world.” So no one wants to lose it, right? But an ordinary mistake or accident can take away your second God from you. Is it desirable?   Not at all. So be safe being insured and never give any chance for financial destruction.