AAA Life Insurance - Shady Business Going On

My husband and I opened life insurance for both of us when we had our first child 23 years ago. We have paid into it monthly since. My policy was set up as a Term Life so if I didn’t pass away after many years, I would get money back. I paid $100. every month and my husbands (no return unless he passed away) was $79.00 a month.

We have been very responsible in paying but there have been months where we are super financially tight and I pay it before the second months due date. This past July I was having that kind of month (I had been out of a job for 4 months). Long story short - I went online to pay my insurance and there was a banner on the website saying they were having technical difficulties but were working on the issues. It did not explain anything about making payments online. I was paying for two months and went in, made the payment and it did not give me any indication that it went through. I logged into my bank and there was no sign of it. I thought it didn’t go through so I did it again. The website just sort of stopped versus providing confirmation about the payment. I walked away thinking I would try again the next day.

The next day I see that both payments were debited from my checking account. I paid twice. I called Customer Service for AAA. They could see there was two payments and said I would get the refund back in two days for one of the payments. (Which I was counting on because I still had to pay my husbands that was due in 4 days.) The payment did not come. I called AAA again and this customer service person said they could NOT see that I had paid twice and they would not be providing a credit unless I proved that two payments were deducted. I had to get a copy of my bank statement.

I then called my bank. I asked them- “Do you see they have two payments on this day?” My bank said “Absolutely yes.” I explained they would not return my second payment unless I showed proof. My bank said “We can take care of that for you.” They did-within 24 hours my account showed a “reverse” from AAA Life Insurance. I figured it was done. Unbeknownst to me, two days later, AAA also credited my account even though I did not show proof they required and was told emphatically that I would not be seeing a credit until I showed proof. Literally the left hand doesn’t know what the right hand is doing. Now it looked like I never made a payment because of their website that wasn’t working to take payments and because they credited my account when they said they would not. I did not know that my life insurance account was in jeopardy-and you can say "How would you not know that you had $xxx.xx deposited into your account? I didn’t notice anything different because literally money is constantly moving in/out of my account. I did not see two payments (I thought it was the same payment!) and one could argue thats on me for not being more aware. It was an oversight for sure. I wasn’t expecting a second credit. I receiving nothing in the mail or by phone that they were closing my account after all these years. I didn’t have the ability to fix it because I thought all was fine.

A few weeks later I received a check and a letter that my account was closed due to non-payment. I wrote a letter explaining the situation because after two phone calls to AAA and they were stating inaccurate information which showed they did not have access to seeing what I know happened, I wrote a letter. I got a message saying it would take 7-10 days for a response. 18 days later and I never got a response. I called again and another customer service agent was again saying inaccurate information. They see it as I never paid. They do not see that I paid twice. They do not see that they credited my account. They do not see my bank reversing a charge. I wrote this detailed letter for naught. I have no way to reach anyone that will work with me. I am losing out on 12 more years of paying into my term life insurance to have a nice chunk of investment. I received a very small amount of what I paid into for the past 20+ years.

I am writing this because I want to know if anyone else has dealt with AAA life insurance and the lack of transparency, contact and absolute terrible service. I’ve been a member via car, life, home insurance etc. for 40+ years. This is not what AAA had been for many years. It’s so disappointing and I have lost a lot of money.

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I’ve experienced similar frustrations with customer service in the insurance world. It’s tough when systems don’t align, and communication falls apart. You’re not alone in feeling let down after years of loyalty.

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I’m sorry you’re going through this. I’ve been with AAA for 24 years as a roadside assistance customer, and their call center service has really declined in recent years.

At this point, it might not be worth your time and energy to go through standard customer service channels. I suggest checking your personal and professional networks to see if anyone you know works for AAA and can help you find a solution. If not, consider reaching out to your state’s insurance commission and filing a formal complaint.

Also, are you sure you have a term policy? Term policies have a fixed price for a set period, with no return of premium or cash accumulation. There’s usually no payout with a term policy unless you pass away. You might want to check if you have a whole life or universal life policy. In any case, I wish you luck getting your policy reinstated.

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Have ROP on a term is common

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I can relate to your experience with insurance companies. I’ve been going through with same issues, like confusing payments and poor customer service. It’s frustrating when they don’t manage things properly.

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I can relate to your experience with AAA Life. I’ve had my own share of issues with insurance companies, especially when it comes to payments and customer service.

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I’m dealing with a similar issue with my mom’s life insurance policy, which isn’t with AAA. My mom has been paying into this policy since 2015. However, some fraud on her bank account led to the bank suspending it, causing her life insurance payment to bounce. As a result, her policy was suspended for non-payment. Back in 2015, my mom was in good health, but now she has been diagnosed with Parkinson’s. Like you, I wrote a letter explaining the situation and that it was a misunderstanding. After a few weeks, we received a response from the insurance company saying they can’t cover my mom because of her condition.

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