USBA Life Insurance Reviews: A Comprehensive Guide for Veterans and Their Families

USBA Life Insurance Reviews
USBA Life Insurance Reviews | photo courtesy | Federal post

 

If you’re a veteran or have a family member who served, finding affordable life insurance is likely on your priority list. You may have heard that USBA is a nonprofit option specifically for the military community.

But is it a good fit? Here’s a quick breakdown to help you decide.

As a group provider for active and retired military, USBA has over 100 years of experience.

Their eligibility is broad, covering service members, veterans, families, and even federal employees. A variety of plans are available term, whole, or accidental policies.

Rates are generally competitive thanks to bulk purchasing power.

Where USBA shines though is customer focus. Claims are processed rapidly to ease stress during difficult times.

Round-the-clock support is available via multiple methods if questions arise. High satisfaction ratings show the personal touch is felt.

While a full, side-by-side comparison of other insurers is beyond this scope, USBA warrants consideration if you fall under their membership umbrella.

The specialized military focus and community commitment give peace of mind. An online quote takes seconds to gauge fit.

For those proud to support an organization supporting those who served, USBA is worth a look.

Table of Profile of USBA Life Insurance

Feature Description
Company Name Uniformed Services Benefit Association (USBA)
Founded 1959
Headquarters Overland Park, Kansas
Website www.usba.com
Phone Number 1-800-368-7021
Email webmaster@usba.com
Products  Group term life insurance
 Group whole life insurance
 Group accidental death and dismemberment insurance
 Group children’s coverage rider
Eligibility  Active duty, retired and honorably separated members of the U.S. Armed Forces and their spouses
 National Guard and Reserve members and their spouses
 Federal civilian employees and their spouses
 Children of USBA members
Underwriter New York Life Insurance Company
AM Best Rating A++ (Superior)

 

USBA Life Insurance Pros and Cons

The insurance, like any life insurance company, presents both advantages and disadvantages.

The following highlights the pros and cons of USBA life insurance, gathered from diverse sources such as USBA’s website, customer reviews, and independent ratings.

Pros:

  1. Nonprofit Structure: As a not-for-profit association, USBA operates for the benefit of its members rather than shareholders. This unique structure enables competitive rates and flexible plans designed to meet the specific needs of military families.
  2. Diverse Insurance Products: USBA offers an array of group life insurance products, including term life, whole life, and accidental death and dismemberment insurance. Additionally, a children’s coverage rider can be added to any plan for a nominal monthly fee.
  3. No Medical Exam Requirement: For most plans, USBA doesn’t mandate a medical exam, simplifying and expediting the application process, provided applicants meet eligibility criteria and answer a few health questions.
  4. Comprehensive Coverage: USBA lacks exclusions for war, terrorism, aviation, or hazardous duty. This means members are covered regardless of their service location or travel, and irrespective of encountered risks.

Cons:

  1. Non-Guaranteed Renewable Plans: USBA’s group life insurance plans are not guaranteed renewable, allowing changes in terms, rates, or benefits at any time for all members in the same group, potentially impacting affordability and availability.
  2. Non-Portable Plans: Members cannot transfer their coverage if they leave the group, limiting options and flexibility for those considering a switch to a different life insurance company or policy.
  3. Age Limits: USBA’s group life insurance plans impose age limits that vary based on the plan and coverage amount. This may affect the suitability and accessibility of coverage, especially for older members.
  4. Limited Coverage Amounts: USBA’s group life insurance plans come with capped coverage amounts, which vary by plan and member status. This limitation may impact the adequacy of coverage for members with substantial financial obligations or dependents.

Is USBA a Good Company?

Following our thorough research and analysis, it is evident that USBA stands as a commendable company offering quality and affordable group life insurance for veterans and their families.

The key observations include:

  • Financial Strength: USBA demonstrates solid financial strength, ensuring stability and reliability in its offerings.
  • Customer Satisfaction: High levels of customer satisfaction indicate a positive experience among members.
  • Loyal Membership Base: USBA enjoys a loyal membership base, showcasing trust and satisfaction with its services.
  • Alignment with Military Values: The company’s mission and vision align closely with the values and needs of the military community.

While acknowledging that USBA may not be the perfect fit for everyone, it is undoubtedly a reputable and reliable option deserving of consideration and respect.

How Does USBA Insurance Company Work?

USBA Insurance operates through a collaboration with New York Life Insurance Company, a globally recognized life insurance provider.

In this partnership:

  • Underwriting and Risk Management: New York Life assumes the risk and responsibility for claims payments by underwriting group life insurance plans.
  • Administration and Service Provision: USBA serves as the administrator and service provider, ensuring effective communication and support for its members.
  • Premium Collection and Remittance: USBA members remit monthly premiums to USBA, which are then forwarded to New York Life.
  • Member Benefits and Services: USBA enriches the member experience through offerings like newsletters, discounts, educational resources, and advocacy services.
  • Risk Pooling for Enhanced Benefits: Through pooling the risks and premiums of its members, USBA delivers more advantageous rates and superior benefits compared to individual life insurance policies.

What does the USBA Insurance Company cover?

This is the key coverage of the USBA insurance company:

  • Death Coverage: Provides coverage for the death of members from any cause, excluding suicide within the initial two years of coverage.
  • No Exclusions for Specific Risks: War, terrorism, aviation, or hazardous duty exclusions do not apply. Members are covered regardless of their location or the risks encountered during service or travel.
  • Accidental Death and Dismemberment (AD&D) Option: An optional addition to the plan offering AD&D coverage. Provides coverage for accidental death and dismemberment for members choosing this option.
  • Living Benefits Limitations: Excludes living benefits like disability, critical illness, or long-term care. Members are encouraged to explore supplementary coverage through other insurance products or savings to address these needs.

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USBA Life Insurance Regulatory Compliance

USBA life insurance operates under the regulation of state insurance departments in the states where it functions.

Committed to adherence, USBA complies with all relevant laws and regulations governing its products and services.

This includes aspects such as licensing, solvency, disclosure, consumer protection, and market conduct.

In addition to state regulations, USBA life insurance aligns with federal laws, including the Servicemembers Civil Relief Act, the Uniformed Services Employment and Reemployment Rights Act, and the Military Lending Act.

To ensure compliance, USBA undergoes periodic audits and examinations conducted by state and federal authorities, as well as its underwriter, New York Life.

USBA Life Insurance upholds the highest standards of ethical and professional conduct in interactions with its members, partners, and regulatory bodies, reflecting its commitment to transparency and regulatory compliance.

Customer Reviews and Testimonials of USBA Life Insurance

USBA Life Insurance has garnered commendations from its members, who expressed satisfaction with its service, rates, and benefits.

Here are some testimonials highlighting the positive experiences of USBA members:

“Years ago, my husband and I, both on active duty in the Army, chose USBA for its great value. We’ve felt thoroughly satisfied and secure, knowing that a simple call to USBA would take care of everything if needed.”

“USBA stands out as a superior professional organization, a rare find in today’s landscape. As a not-for-profit, it offers a great product that is essential to me.”

“USBA has consistently been informative and courteous. There’s a unique bond between military personnel and USBA, and they consistently go above and beyond.”

“Dealing with the emotional and financial aftermath is incredibly challenging. USBA’s quick response and fund disbursement are deeply appreciated, making the settlement of family financial obligations less stressful.”

“Being a USBA member for over 20 years, I’ve always been pleased with their service. Recently, filing a claim for my wife’s death was surprisingly fast and easy. I received the check within a week. I highly recommend USBA to anyone seeking life insurance.”

USBA Life Insurance and AM Best and Financial Details Reviews

Aspect New York Life Insurance Company USBA Life Insurance
Underwriter New York Life Insurance Company, a global leader in life insurance Operates as a not-for-profit association owned by its members
Financial Rating A++ (Superior) from AM Best, the highest possible rating Strong financial position with a focus on value and service
Rating Agency AM Best, an independent agency evaluating financial strength
Evaluation Factors Balance sheet strength, operating performance, business profile, and enterprise risk management
Ownership Structure A publicly traded company with shareholders Not-for-profit, member-owned, and governed association
Board of Directors N/A Composed of retired and active-duty military officers
Professional Staff N/A Dedicated to serving members with integrity and excellence
Foundation Year N/A Founded in 1959 by military officers
Membership Size N/A Over 200,000 members and their families
Claims Paid N/A Over $3 billion paid in claims to beneficiaries
Community Support N/A Mission to support and advocate for the military community
Charitable Contributions N/A Over $2 million was donated to various military charities and causes

USBA Life Insurance Claims Processing and Customer Service

USBA Life Insurance is renowned for its swift and hassle-free claim processing and customer service. Members can submit claims through online, phone, mail, or fax channels, with a guaranteed response within 24 hours.

A noteworthy feature is the 60-day free look period, which allows policy cancellation with a full premium refund within the initial 60 days of coverage.

USBA’s customer service team comprises friendly and knowledgeable representatives available via phone, email, or online chat, operating from Monday to Friday, 8:00 a.m. to 4:30 p.m. Central Time.

The website serves as a valuable resource hub, offering details on policies, rates, benefits, forms, newsletters, discounts, and educational materials.

USBA Life Insurance has garnered positive reviews from members who commend its service, rates, and benefits.

Testimonials express satisfaction with the quick and straightforward claims process, as exemplified by members receiving checks within a week of submitting paperwork.

The strong bond perceived between military personnel and USBA is noted, emphasizing the company’s consistent commitment to going above and beyond for its members.

FAQs

Who is eligible for USBA life insurance?

USBA life insurance is available to active-duty and retired military service members, as well as National Guard and Reserve members.

It also extends coverage to the spouses of those in the armed forces. Additionally, federal civilian employees and their spouses can get USBA policies.

Children of members are eligible, too. Former members have the option to get insured again through USBA after leaving.

What are the types of USBA life insurance plans?

USBA offers a nice selection of options to suit different needs. There are term plans, which protect for a set period. Whole-life plans give lifetime coverage and a savings component.

Accidental death and dismemberment insurance adds extra protection for unintentional injuries.

A rider is also available to cover children. Another perk is that term policies can convert to permanent coverage later on.

How much does USBA life insurance cost?

Rates depend on age, health status, coverage amount, and type of plan. But in general, USBA is competitively priced thanks to its nonprofit structure and group purchasing power.

What’s more, rates stay locked in so they won’t change due to life circumstances. Members can get free quotes online to see affordable options.

How do I apply for USBA life insurance?

The application process aims to be quick and simple. Most plans don’t require a medical exam. Information is collected online, by phone, mail, or fax.

Initial approval can take just days. USBA strives to make signing up straightforward and stress-free.

How do I contact USBA life insurance?

There are several convenient contact methods. Give them a call at 1-800-368-7021 for assistance.

The email is webmaster@usba.com. Live chat is also available right on the USBA website for quick questions.

Hope this helps provide a better idea of USBA insurance eligibility and next steps! Let me know if any other questions come up.

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