
What is universal life insurance?
Universal life insurance is a type of permanent life insurance, meaning it can last up to an advanced age like 95, 100, or 110, depending on the policy. It differs from term life insurance, which ends after a term of 10, 20, or 30 years. Universal life insurance is flexible coverage that may gain value over time, and helps provide financial security for your loved ones after you’re gone.
Like other types of permanent coverage, most universal life policies have a cash value component that grows over time. So you can withdraw money from your policy’s accumulated cash value or borrow against it.
Universal life insurance—also called adjustable life insurance—may be well-suited for people who want flexibility. These policies may provide the ability to adjust both your premium payments and your death benefit, within certain limits.
How Universal Life Insurance Works
With universal life insurance, you pay premiums for lifelong coverage. Part of your monthly premiums (or annual premium, depending on your payment schedule) goes toward your policy’s death benefit amount. When you pass, your named beneficiaries receive a payout.
The rest of your premium goes toward your policy’s cash value component. So while you’re living, you can withdraw money or take out a policy loan as long as sufficient premiums are paid.
AAA has two products for you to choose from:
AAA LifeTime Universal Life
Ideal for those who seek stronger coverage guarantees and are less focused on cash value growth, AAA LifeTime Universal Life offers:
- Lifetime coverage
- Lifetime coverage protection guarantee
- Level death benefit
- Tax-deferred cash value with a minimum guaranteed interest rate of 3%
AAA Accumulator Universal Life
Ideal for those who want stronger cash value growth potential, AAA Accumulator Universal Life offers:
- Lifetime coverage
- 10-year minimum, no-lapse premium guarantee
- Choice of level or increasing death benefit
- Tax-deferred cash value with a minimum guaranteed interest rate of 3%
Benefits of Universal Life Insurance

Universal life insurance offers:
- Cash value: Most universal life policies include a cash value component, so you can withdraw funds or take out policy loans while you’re living. (Note: There may be possible tax consequences.)
- Flexible premiums: If your cash flow is inconsistent, you can adjust your premiums. If you pay more than your set premium, any excess funds get directed into your cash value. And if your policy has enough cash value to cover insurance costs, you may be able to skip premium payments.
- Flexible death benefit: Should your financial goals change, you may be able to increase your death benefit amount, depending on the policy. Keep in mind that you might need to answer questions about your health or undergo a medical exam.
AAA Universal Life Insurance Quote
Whether you already know which policy you want or are still exploring, AAA makes it easy to get a quote or get in touch if you have questions.
Why Choose AAA?

AAA LifeTime Universal Life policies offer premiums that won’t increase, while AAA Accumulator Universal Life helps you build cash value to access in an emergency.
Both include:
- Great rates and features, with competitive premiums and customizable options to meet your needs
- Excellent customer service from knowledgeable life insurance agents
- Efficient claims process for your loved ones
- AAA Member savings—up to 5% on AAA Auto Insurance policies