Life Insurance for Military Members and Veterans
The U.S. Department of Veterans Affairs provides life insurance to active duty military personnel through Servicemembers Group Life Insurance (SGLI). However, this coverage expires upon leaving active duty, necessitating supplemental coverage from civilian providers for many service members.
Many insurance companies are hesitant to cover military personnel due to service-related risks. CNBC Select has identified top life insurance providers for active duty military and veterans, evaluating them based on cost, coverage options, customer service, and other criteria.
Best Life Insurance Providers for Military
-
AAFMAA Life Insurance: Offers term, whole, and guaranteed acceptance life insurance policies to active duty military, reserves, National Guard, veterans, and eligible family members. Their BeyondBasic supplemental policy can be stacked on SGLI for additional coverage. 
-
Mutual of Omaha: Provides term, whole, indexed universal life, and universal life policies. Their final expense policies are available up to age 85 without a medical exam, making them suitable for seniors. 
-
USAA Life Insurance: Offers flexible term life plans and whole life policies with coverage up to $10 million. USAA expedites the approval process for deployed service members and allows coverage adjustments upon return. 
-
Guardian Life Insurance: Provides whole life insurance that builds cash value and includes various optional endorsements. Guardian allows conversion of SGLI, FSGLI, or VGLI into civilian policies without a medical exam. 
-
Navy Mutual Life Insurance: Offers term and whole life policies with accelerated death benefit riders at no extra charge. Their policies have high maximum age limits and include dividend-paying whole life insurance. 
Key Considerations for Military Life Insurance
- SGLI and VGLI: Active duty personnel are automatically issued SGLI, which can be converted to VGLI after discharge. VGLI is a term life policy with coverage up to $500,000.
- Private Insurance: Service members can purchase additional life insurance from private providers. Companies like AAFMAA, USAA, and Navy Mutual cater specifically to military members.
- Conversion Options: Some insurers allow converting military life insurance policies to civilian policies without a medical exam.
- Health Considerations: Veterans with health issues may find VGLI more affordable than private insurance, although shopping early can yield better rates.
Recommendations
- Active duty service members should consider AAFMAA for comprehensive coverage options.
- Seniors may find Mutual of Omaha’s final expense policies beneficial.
- USAA is recommended for term life insurance needs.
- Guardian is ideal for whole life insurance that builds cash value.
- Navy Mutual offers valuable living benefits with their life insurance policies.
By understanding the available options and considering individual needs, military members and veterans can secure appropriate life insurance coverage.
