August 2016 – Introducing USAA

Annuity Monitor is pleased to introduce USAA to its coverage group. Founded in 1922 by 25 Army officers to insure each other’s vehicles, USAA has grown into a full service financial institution that offers banking, credit cards, insurance and other investment products in addition to annuities. Currently, USAA sells three different annuity products: two deferred fixed annuities and a SPIA. Traditionally, USAA offers membership to active, enlisted, retired and honorably separated U.S. military members, cadets, midshipmen and their family members. However, annuity products are open to any prospective client, irrespective of military affiliation. According to the firm’s 2015 Report to Members, USAA currently boasts approximately 11.4 million members and a net worth of $27.8 billion.

Prospects can gain a full picture of the firm’s annuity capabilities and their own financial needs from the public and private sites, throughout both of which prospects benefit from seamless navigation. USAA offers a few annuity-specific tools, including an Is an Annuity Right for You? quiz on the public site and an immediate annuity income calculator on the private site. Once clients log in, the comprehensive client portal provides a tailored and highly customizable experience, bolstered by account integration and a suite of financial tools. USAA particularly stands out for its online application process and mobile app capabilities. The straightforward online application even includes a suitability quiz to further guide applicants. Given the firm’s model of selling directly to its members, Annuity Monitor coverage going forward will include the firm’s public and private sites. USAA does not sell through financial advisors, joining Fidelity, TIAA and Vanguard as one of four firms in the Annuity Monitor coverage group that lacks a separate advisor site. Therefore, our ongoing monitoring and analysis of USAA will not include advisor resources.