For over 23 years, I trusted USAA to do the right thing. But after what happened with my life insurance policy, I can’t say that anymore. If you think your insurance provider has your back—especially when it comes to something as critical as life insurance—think again.
This is the story of how I mistakenly paid USAA over $20,000 in life insurance premiums after I thought my 10-year term policy had expired. I had already secured new coverage elsewhere, but USAA quietly kept billing me at a sky-high rate I never agreed to—without a single call, warning, or flag.
Let me walk you through how it happened so you can avoid getting trapped like I did. If you're thinking about getting life insurance, or any type of insurance from USAA, think carefully. If they can screw a 23-year member like me, they will certainly be able to screw a new member like you.
When it comes to life insurance, trust is everything. During your family's darkest time of need, it's important that your life insurance pays out the death benefit. Because once you're dead, you can no longer fight for your family!
Locking In New Coverage With A More Affordable Provider
In late 2022, my wife and I finally secured matching 20-year term life insurance policies through Policygenius at an affordable $110/month. We chose $750,000 in coverage and a 20-year term—a solid amount that gave us peace of mind. I was relieved.
For years, I had been worried I wouldn’t qualify due to a past visit to a sleep center, which flagged me for a “sleep-related” condition (despite no formal diagnosis of sleep apnea). Please avoid seeing the doctor before locking in an affordable life insurance policy.
That one visit in 2016 had already caused USAA to quote me an outrageous $450/month in 2017 when I inquired about extending my original 10-year, $1 million term policy. I was paying $40/month for a $1 million term life insurance policy I got in January 2013, so there was no way I was going to pay 11 times more just four years later.
I told them no thanks and moved on. Or so I thought. I would let my 10-year term policy expire in January 2023 because I was able to secure a new 20-year term life policy from 2022 to 2042 for the reasonable price of $110/month.
The Nightmare Begins: $885.79/Month In New Life Insurance Premiums?!
Fast forward to 2025. My wife asked for a copy of our rental property insurance policy from USAA as part of a mortgage requirement. When I logged into our account, I noticed something odd: a “Level Term Series V” policy still listed—with a premium of $885.79/month.
My jaw dropped.
Surely that couldn’t be my life insurance policy. I had declined their renewal offer years ago, and I was now covered elsewhere. No healthy 45-year-old man would pay $885.79 a month in life insurance premiums for only $1 million in coverage.
But just to be safe, I checked my bank records. To my horror, I discovered I had been auto-debited over $800/month by USAA for at least 18 months straight!
How Did I Miss This Egregious Life Insurance Overcharge By USAA?
I pride myself on being financially diligent, so this was an especially painful pill to swallow. Here’s how the overcharges slipped through:
- Bundled billing: I use USAA for multiple lines—property, auto, umbrella—so big payments didn’t raise red flags.
- Inconsistent billing cycles: Charges vary across policies—monthly, quarterly, annually—making it hard to track.
- Auto-debit blindness: Like many people, I trusted that once a policy was done, it was done. That was a huge mistake. By allowing them to auto-debit my checking account, they were able to siphon off over $20,000 from my in a 26-month period.
- No proactive alerts: USAA never emailed, called, or texted me a heads-up about the rate hike. Instead, they sent some notification several months prior to expiration in my online inbox, which I never opened or checked.
- Blind trust: After 23 years of loyalty, I didn’t expect to be gouged.
What USAA Did (Or Didn’t Do)
USAA quietly transitioned my expired level term policy into an “annually renewable term” (ART) policy—without me opting in or confirming. With ART, the premium jumps every year. It’s legal because of a “guaranteed renewability” clause buried in the fine print.
But legal doesn’t mean ethical. Very people understand what an ART policy is. There is a reason why there is a law for clients to CONFIRM and sometimes DOUBLE CONFIRM before opting into receiving text messages or automatically paying for things.
I had told USAA years ago I wasn’t interested in paying $450/month. Yet somehow, they decided to start charging me $720/month in 2023, $808/month in 2024, and $885/month in 2025—for the exact same $1 million coverage.
Not only did they ignore my desire NOT to pay 11X more a month in life insurance premiums, they decided to start charging me 18X more a month, then up to 22X more a month!
No underwriting. No new agreement. Just silent, auto-billed gouging.
I Fought Back And Made Hardly A Dent
When I called USAA to request a full refund, the first rep flatly denied it. She said they had “notified” me through their online message center, which I had never seen. After pressing, she offered to cancel the policy going forward—gee, thanks. Is a message effective if the recipient never receives or responds? Of course not!
On my second call, I finally spoke with someone empathetic. She escalated my case to the Member Advocacy Team, who promised a review. I submitted everything: my Policygenius confirmation, two blog posts I’d written explaining why I refused to renew USAA’s overpriced plan, and a detailed timeline.
Their response?
A token $1,771 refund—barely two months’ worth of premiums.
My Two Articles Proving I Wasn't Wiling To Pay The New Higher Premium
Here are the two articles I sent to USAA, complete with publication dates, to reinforce my position. 99.9% of clients don't record their thoughts and write 2,000+ articles on the subject. But I do because I've been blogging about personal finance since 2009 and want to help as many people as possible.
Yet, they still refused to refund me more than two months worth of overcharges.
- “Convert Term Life Into Permanent Life Insurance To Keep Your Rate Class” – Published June 5, 2020
This post outlines how, after my son was born in 2017, I contacted USAA to explore extending my policy. After undergoing a medical exam, I was shocked to find my premium jump from $40/month to $450/month due to sleep apnea. I declined the offer, stating it was far too expensive, and made it clear I would search for a more affordable option. - “How I Finally Got An Affordable Life Insurance Policy With No Medical Exam” – Published December 21, 2021
This article details how, after years of searching, I finally secured a 20-year, $750,000 term policy through SBLI for $110/month. I noted that I was willing to carry both policies temporarily—doubling coverage for a year—while preparing to transition off the USAA plan.
These publicly documented posts show my intent and efforts to avoid high-cost life insurance by USAA and prove I never agreed to such a steep renewal. Please have a read yourself.
No person on Earth would read these two articles and come away thinking I was agreeing to pay 11X – 22X higher life insurance premiums once my 10-year term life insurance policy expired!
What I Think Is Fair For USAA To Refund
I’m not asking for a full refund. I acknowledge I received coverage during that time. And I believe USAA would have paid out the death benefit to my wife if I had passed.
But I also know that no healthy 45-year-old male in 2023 would knowingly agree to pay nearly $900/month for a $1 million policy when equivalent coverage could be had for $100–$150/month.
A $16,000 refund out of $20,800 in overpayment feels reasonable. I was willing to pay around $1,800/year for adequate protection—what I now pay through Policygenius. The $20,800 USAA took feels like predatory billing—not fair business practice.
Ultimately, USAA refused my request after supposedly listening to my recorded phone calls on their end since 2020 when I was talking to several life insurance agents. They also refused my refund request despite me sending them two thorough articles that highlighted my intentions to find a new policy.
Lessons I Learned The Hard Way About Life Insurance
- Never assume a term policy ends automatically. If you don’t explicitly cancel, it may auto-renew—at a much higher cost.
- Don’t blindly trust your provider. USAA didn’t call, email, or flag anything for me, despite the massive premium jump.
- Always read the fine print. Look out for guaranteed renewability clauses and ART conversions.
- Audit your accounts monthly. Auto-debit can be dangerous. Set a reminder to review every recurring charge.
- Record your conversations and intentions. If you don’t say it clearly on a recorded line, it may not count.
Why I Can’t Trust USAA Anymore
I used to view USAA as one of the “good guys”—an insurer that put service and ethics above profit. After all, they cater to military families. My grandfather served in World War II and my father served in Vietnam. But now I see they’re just like any other financial institution: they profit from complexity, fine print, and passive customers.
No one from USAA thought to say, “Hey, this guy has been paying 18X more than he used to—maybe something’s wrong.” And even when I called to contest, they seemed more focused on covering themselves than doing right by a longtime customer.
As the saying goes, “The large print giveth, and the small print taketh away.”
I’ve lost trust in USAA. And unfortunately, I suspect many others are paying more than they should—simply because they’re not looking closely enough. This automatic continuation charge is a feature, not a bug. It is a feature that generates USAA and other life insurance companies far more earnings at the expense of their clients.
I can't trust USAA anymore because they charged me 18X more in life insurance premiums without my consent.
I can't trust USAA anymore because even after I showed them evidence of my desire not to renew, they still wouldn't refund me more than two months out of the 26 months I was getting overcharged.
Finally, I can't trust USAA anymore because despite being a member for over 23 years and paying around $100,000 in premiums to them during the process, they still disregarded my request.
Final Thought: Be Ruthless With Your Finances
If you have a family, don’t wait. Get life insurance now, while you’re still healthy and your rates are low. The best age to get life insurance is around 30, before life gets very complicated. And the best type of life insurance to get at age 30 is a 30-year term policy. It is affordable and it will cover you for the most important part of your life.
And once you do get life insurance, watch those accounts like a hawk. Because your insurance provider sure isn’t watching out for you.
I recommend using Policygenius to shop around—just like I did. They helped my wife and me find fair, transparent coverage after years of headaches.
Learn from my mistakes. Don’t be me. Be smarter. And be wary about using USAA for your life insurance carrier. I plan to raise my issue to The Consumer Financial Protection Bureau (CFPB). I hate being robbed, and I want my money back.
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