In late 2022, my wife and I were finally able to lock in matching 20-year term life insurance policies at an affordable rate through Policygenius<\/a><\/strong>. For five years prior, I had been concerned that I wouldn\u2019t be able to get approved at a reasonable price\u2014all because of a mistake I made by visiting an overzealous sleep center.<\/p>\n Back in 2016, I was tired of paying $1,800 a month for a health insurance plan with UnitedHealthcare and never using it. I hadn\u2019t seen a doctor in years, so when a new sleep center opened up nearby, I figured I might as well get checked for snoring and put my insurance to use.<\/p>\n Of course, one visit turned into a full battery of tests, costing my insurance company about $3,800. At first, I felt good\u2014I was finally getting something for all those insurance premiums! But little did I know, that visit would come back to haunt me. The unfortunate consequence of going to the doctor was being flagged with a \u201csleep-related\u201d issue, such as sleep apnea, which made it much harder to qualify for affordable life insurance later.<\/p>\n When I tried to renew my 10-year term life policy through USAA in 2017 at age 40, they quoted me $450\/month<\/strong>\u2014up from the original $40\/month<\/strong>. A ridiculous 11X higher! No thanks. I’ll look elsewhere.<\/p>\n <\/p>\n My first real life insurance mistake was going to a doctor before renewing my policy. Had I kept a clean medical record\u2014aside from routine physicals\u2014my new policy would have cost closer to $120\/month now that I was 10 years older. Always lock down an affordable life insurance policy before seeing the doctor<\/a> for anything out of the usual.<\/p>\n But frankly, the first<\/em> mistake was only getting a 10-year term policy at age 36. I should have gone for a 30-year term at around age 30<\/a>. After 30, life tends to get much more complicated with housing and family. <\/p>\n Just a year later, I took out another $1+ million mortgage to buy a fixer-upper<\/a>. Three years later, my son was born. When you have children and debt, life insurance becomes a priority. A 30-year policy back then would\u2019ve cost me about $30\/month\u2014an absolute bargain in hindsight.<\/p>\n At least I managed to course-correct by securing a new 20-year, $750,000 term policy through Policygenius for $110\/month in 2023. They matched us with SBLI, a carrier willing to underwrite both me and my wife, even with my prior sleep center visit.<\/p>\n But then I made another<\/em> mistake\u2014by far the worst one yet. It sickens me to write this, but as always on Financial Samurai, I share both the wins and the painful losses to try and help as many people as possible.<\/p>\n My wife recently asked me to send her our rental insurance policy from USAA because Wells Fargo, which holds our remaining rental property mortgage, needed proof of coverage. <\/p>\n When I logged into my USAA dashboard, something odd caught my eye:<\/p>\n \u201cLevel Term Series V Policy \u2013 $1,000,000 for 10 years.\u201d<\/strong><\/p>\n It looked like my old term life policy, so I clicked in. And then\u2014WHAM.<\/p>\n The number that jumped out? $885.79\/month.<\/strong><\/p>\n What the hell? What was this doing here? Was this an advertisement or what? <\/p>\n Nobody in their right mind would pay nearly $900 a month for just a $1 million term policy\u2014unless they were terminally ill and had no other options. I certainly wouldn\u2019t.<\/p>\n But dread began creeping in. What if I had been paying this all along?<\/em><\/p>\n I quickly logged into my Citi bank account, where USAA autopays are debited, to investigate.<\/p>\n Here’s what I discovered when I logged into my bank and searched for USAA. And let me tell you, it wasn’t good.<\/p>\n To my horror, I had<\/em> been paying over $800\/month to USAA for at least 18 months straight. That\u2019s as far back as my bank\u2019s custom search would let me go.<\/p>\n My stomach sank. How could I be so careless?<\/strong><\/p>\n Back in late 2022, I thought I told USAA I wasn\u2019t willing<\/em> to renew my 10-year term life policy when they quoted me ~$450\/month\u2014a drastic jump from my original $40\/month rate.<\/p>\n So why, without my consent, did they charge me even more<\/em>?<\/p>\n Since my original 10-year term policy with USAA expired in January 2023, I’ve paid over $20,000<\/strong> in premiums to USAA despite thinking my policy had ended! <\/p>\n My whole point of getting a new 20-year, $750,000 term-life insurance policy through PolicyGenius<\/a><\/strong> in 2022 was so that I wouldn’t have to pay the new $450\/month rate USAA quoted me back in 2017. Oh my. <\/p>\n I\u2019ve asked myself this question more than a dozen times. Here are five reasons:<\/p>\n Despite all this, I take responsibility. No one forced me to set up auto-debit. I should\u2019ve been more diligent about reviewing my finances regularly. <\/p>\n Since 2020, I\u2019ve had multiple conversations with my insurance provider about property, auto, and life coverage. Not once did a representative flag my life insurance policy or ask, \u201cWhoa\u2014are you sure you want to pay over $700 a month for this? Let\u2019s see if there\u2019s a more affordable option that fits your situation.<\/em>\u201d<\/p>\n Instead, I received periodic nudges\u2014emails and calls\u2014urging me to increase my property insurance coverage. That meant coordinating with a property assessor, letting them in, and ultimately paying more when the policy renewed.<\/p>\n Don\u2019t be lulled into thinking your insurance company is actively looking out for your best financial interests. Their job is to protect you from risk, yes, but they\u2019re also a business. Once you set up auto-debit, they can quietly raise premiums, and you might not even notice. At the end of the day, they have a fiduciary duty\u2014not to you\u2014but to their shareholders.<\/p>\n Some of you might have empathy and wonder if jacking up a customer’s life insurance rate by 18 times or more is legal. Sadly, the answer seems to be yes.<\/p>\n If your original policy has a \u201cguaranteed renewal\u201d clause, and you don\u2019t explicitly cancel, the insurance company can continue the coverage as an annually renewable term (ART) policy<\/strong>.<\/p>\n This means:<\/p>\n Most people don\u2019t realize this clause even exists. It\u2019s often buried deep in the fine print. Therefore, another step for all of us is to thoroughly read the contract and ask questions about things you don’t understand. Don’t just trust your insurance carrier to do the right thing. <\/p>\n So technically, USAA didn\u2019t break the law\u2014but they sure didn\u2019t do me any favors. The representative told me they have clients who pay these huge premiums because they simply can’t get coverage elsewhere. <\/p>\n Many policyholders fall into this trap. They assume the policy just ends\u2014or that premiums stay flat. Insurers bank on that assumption to make maximum profits. <\/p>\n Not one to lie down and get trampled on back and forth by a 7-ton elephant, I decided to contest the charges. I thought I clearly told USAA in 2017-2019 I would not<\/em> renew the policy at their quoted rate of $450\/month. So I most certainly wouldn\u2019t have agreed to $720\/month in January 2023 and the most recent $886\/month charges.<\/p>\n Here’s what I did<\/p>\n Explained:<\/p>\n I used firm but respectful language, such as:<\/p>\n \u201cI would never have agreed to continue coverage at this rate. I feel misled and would like a refund for all premiums charged after my level term expired.\u201d<\/p>\n<\/blockquote>\n If USAA doesn\u2019t do anything, I have the option to file complaints with:<\/p>\n These agencies track complaints and put pressure on companies to resolve issues. <\/p>\n I understand I received coverage during the time I was paying premiums. Had I purchased a new 20-year term policy starting at age 45, I would\u2019ve expected to pay around $150\/month, or $1,800\/year. I also recognize that if I had died during this period, USAA likely would have paid out the $1 million death benefit to my wife. Thankfully, I\u2019m still alive\u2014so here we are.<\/p>\n That said, I\u2019m not asking for a full refund of the $20,000+ I paid. Instead, I believe a $16,000 refund is a fair compromise ($20,000 I paid minus the $4,000 I would have been willing to pay for two plus years). <\/p>\n No healthy 45-year-old male in 2023 would knowingly agree to pay $886\/month for a $1 million term life policy. That\u2019s not just overpriced\u2014it\u2019s highway robbery. I feel like USAA mugged me for my wallet and then slashed my tires on the way out.<\/p>\n When I first called USAA to explain what had happened, the life insurance representative I spoke with was dismissive. She said there would be no refund and that the best she could do was cancel the policy. She claimed USAA had sent a notification about the renewal\u2014one I never saw\u2014and added that some members continue paying the exorbitant rate for whatever reason, which in her view justified the lack of follow-up.<\/p>\n After the call, I sat in silence for about 20 minutes, feeling defeated. Then I decided to call back\u2014this time to request proof of where the notification had been sent. Because really, is a notification valid if the client never sees it or confirms their intent? I don\u2019t think so. A default setting that quietly charges a customer 18X more without explicit confirmation feels predatory.<\/p>\n The second representative I reached was much more empathetic. She said she wouldn\u2019t have paid that premium either. She explained that the notification had been sent to my online message center. Sure enough, when I scrolled back to November 2022, I finally found it.<\/p>\n Maybe an email alert had been sent to let me know there was a new message in my inbox\u2014but if so, I missed it. Thankfully, this rep took my concerns seriously. She said she\u2019d escalate the issue to her manager and the \u201cMember Advocacy Team.\u201d Hallelujah.<\/p>\n She assured me the advocacy team would do a thorough review, including listening to our recorded calls and examining the full account history.<\/p>\n The representative from the Member Advocacy Team came back with an offer: a credit of two months’ premiums totaling $1,771.58. It was a good first step, but still felt far short. I had hoped for a more reasonable compromise\u2014something closer to a $16,000 credit.<\/p>\n Then the tone shifted. She noted that after reviewing call logs dating back to 2022, she didn\u2019t hear me explicitly say I didn\u2019t want to renew the policy. Instead, she claimed I was simply inquiring about my options<\/em>. To me, that should\u2019ve strengthened my case<\/strong>\u2014why would I be asking about options if I intended to keep paying an exorbitant premium? But she disagreed.<\/p>\n So I encouraged her to dig deeper into their call logs, further back in time, to see if there was any record of me clearly expressing my unwillingness to pay a fortune for life insurance. She agreed and asked me to email any supporting information I could find in the meantime.<\/p>\n I searched my archives and found two articles I had written that clearly documented my struggle to find an affordable life insurance policy before my 10-year term was set to lapse. I sent both to USAA, complete with publication dates, to reinforce my position.<\/p>\n 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. I could only hope they help USAA reevaluate their position.<\/p>\n Unfortunately, USAA came back from further investigation and said the $1,771.58 credit was the best they could do. They were shutting the case. Ugh.<\/p>\n What\u2019s most disappointing is that, after 23 years as a loyal USAA member, I truly believed the company would do right by me. I\u2019ve consistently paid my premiums on time and have been a responsible, engaged customer.<\/p>\n Most people don\u2019t fully understand the intricate details of life insurance policies, renewals, and their fine print. I did my best to stay informed, yet I still feel like I was misled and ultimately taken advantage of. Communication is not effective if the other side doesn’t receive or acknowledge.<\/p>\n Without a more equitable resolution, it’s hard for me to continue placing my trust in USAA. <\/p>\n If there\u2019s any silver lining, it\u2019s this: by sharing my story, I hope to prevent at least one person from falling into the same trap. Don\u2019t assume your term life insurance policy ends when the term is up\u2014it often doesn\u2019t. Unless you actively cancel it, it may auto-renew, and the premiums can skyrocket.<\/p>\n All this time, I thought I was being a responsible father and husband\u2014saving money and protecting my family in case I were to pass. In reality, I was a careless fool who failed to double-check his expenses.<\/p>\n As a result, I actually put my family in a more compromised position due to our reduced monthly cash flow. I had bought a house<\/a> in 2023, which drained my liquidity and increased my stress for at least six months.<\/p>\n The first year after a home purchase is the most financially vulnerable time<\/a> and I sure could have used that extra ~$800\/month in life insurance premiums I didn’t realize I was paying.<\/p>\n Going forward, I\u2019m returning to my \u201cbroke mindset<\/a>\u201d\u2014keeping my checking account lean, like a college student on minimum wage. Having extra cash flow felt nice, but for me, it bred complacency and laziness. That ends now.<\/p>\n As punishment for my carelessness, I\u2019m committing to a strict no-spend challenge<\/a> until I make up for the $14,228.42 in excessive life insurance premiums I paid ($20,000 total minus the $1,771.58 refund and the $4,000 I would\u2019ve paid for 26 months of coverage). Alternatively, I\u2019ll side hustle or make new investments to recoup the $14,228.42 in overcharges.<\/p>\n I\u2019ve already spent hours fighting my case and writing this post, and I hope it helps you make better life insurance decisions. Now it\u2019s time to move forward in the way only I know how.<\/p>\n Readers, have you ever gone through something similar with a life insurance policy\u2014or any other product or service? Have you ever discovered you were paying for something you didn\u2019t realize, thanks to auto-debiting or just plain oversight? If so, please share your story so I don\u2019t feel like the only one who got duped by carelessness. Misery loves company\u2014and maybe we can all learn a little from each other\u2019s mistakes.<\/em><\/p>\n If you have debt and dependents, getting life insurance is one of the most responsible financial moves you can make. I recommend checking out Policygenius<\/a><\/strong>, an insurance marketplace I\u2019ve trusted for over 10 years. Simply enter your coverage needs, and Policygenius will match you with top-rated carriers offering competitive rates.<\/p>\nMy First Two Life Insurance Mistakes<\/h2>\n
The Worst Life Insurance Mistake Possible<\/h2>\n
![\"USAA](\"https:\/\/i2.wp.com\/financialsamurai.com\/wp-content\/uploads\/2025\/04\/USAA-expensive-life-insurance-policy-MISTAKE.png\")
<\/figure>\nUnnoticed Payment For Two Years <\/h2>\n
![\"A](\"https:\/\/i2.wp.com\/financialsamurai.com\/wp-content\/uploads\/2025\/04\/USAA-life-insurance-payment-out-of-Citi.png\")
<\/figure>\nHow Could I Have Missed Overpaying for So Long?<\/strong><\/h2>\n
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Don\u2019t Expect Your Insurance Carrier to Voluntarily Save You Money<\/strong><\/h2>\n
Is It Legal for Life Insurance to Automatically Renew Like This?<\/h2>\n
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What I Did to Try And Get A Refund<\/h2>\n
1. Called USAA Immediately<\/h3>\n
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2. Escalate if Necessary Or Desired<\/h3>\n
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My Life Insurance Premium Refund Request<\/strong><\/h2>\n
How USAA Initially Responded<\/strong><\/h2>\n
The Feedback From USAA After Their Investigation<\/strong><\/h2>\n
Evidence I Wasn\u2019t Willing To Pay the Higher Premium<\/strong><\/h2>\n
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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.<\/li>\n
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\u2014doubling coverage for a year\u2014while preparing to transition off the USAA plan.<\/li>\n<\/ol>\nHard to Trust USAA With Our Insurance Needs Anymore<\/strong><\/h2>\n
The One Silver Lining From This Careless Debacle<\/strong><\/h2>\n
Tips to Save Money on Life Insurance Premiums<\/strong><\/h2>\n
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Life Insurance Policy Recommendation<\/h2>\n