As military personnel, you might not feel the need to go through different life insurance policies and companies while you are on active duty. This is because as a part of the Army, Air Force, Navy, Coast Guard or Marines, you are eligible to receive coverage. This coverage extends to approximately $400,000 under the Service member’s Group Life Insurance (SGLI).
This insurance program provides the service members the satisfaction that they deserve in return for their valuable service to the country. However, once the service member leaves the military, they have only 120 days of insurance to protect the needs of their family in case of an unfortunate event.
The thought of shortlisting insurance providers might not cross your mind while serving the country, which is why it is natural to feel overwhelmed once your service period ends. Fortunately, many insurance providers have plans that they have designed for the ex-service members. You will find all the relevant information you need in this article regarding the life insurance options for veterans.
|Company||A.M. Best Rating||Customer Reviews|
|1. Life Quotes Inc.||A+||4.3|
|2. Veterans Group Life Insurance (VGLI)||A||3.9|
|3. Military Benefit Association||N/A||4.1|
|4. Uniformed Services Benefit Association (USBA)||A++||3.7|
|5. American Armed Forces Mutual Aid Association (AAFMAA)||N/A||4.4|
|6. Navy Mutual||A+||4.3|
|7. Armed Forces Benefit Association (AFBA)||A-||4.0|
|8. Veterans of Foreign Wars (VFW)||A+||3.8|
How We Determined the Best Life Insurance Companies for Veterans
Breaking Down the Best Life Insurance Companies for Veterans
After separating from the military, you have a number of life insurance companies to choose from. We chose to make a list of the top 8 life insurance companies for veterans. Above, the chart showed a bit about them at a glance, but now, let’s take a more in depth look at some of the coverage they provide, and why they are the best in the business.
The 8 Best Life Insurance Companies for Veterans Are:
1. Life Quotes Inc.
Geico is a popular name in the insurance industry. They partner with Life Quotes Inc. to provide life insurance policies that cater to the ex-military personnel as well. GEICO offers a discount of up to 15% for all veterans. There is a wide range of policies available to veterans from Life Quotes Inc. The pay plan method is extremely convenient.
3. Military Benefit Association
The Military Benefit Association serves active and ex-military members to provide them with the support they need. MBA has a membership program that includes life insurance. MBA is a high-quality insurance program with affordable rates for all the members. There are many options to choose from such as TRICARE Supplement Insurance, Level Term Life Insurance, Term 90 Plus Life Insurance, and many others.
5. American Armed Forces Mutual Aid Association (AAFMAA)
AAFMAA offers life insurance programs to active and ex-military service members. The AAFMAA family provides extensive products and policies that you can choose according to your family’s needs and requirements. The coverage of AAFMAA extends up to $1,000,000, and the customer support representatives are always ready to help you identify the right program for your needs.
7. Armed Forces Benefit Association (AFBA)
AFBA provides life insurance that extends after the duration of a military service member’s active duty duration as well. AFBA helps its members consider all the options and make the best decision depending on their needs. You can use the online calculator on their website to help you estimate your expenses.
Life Insurance Options For Veterans
There are many options available for veterans when it comes to life insurance. However, the one that is considered fit for your requirements will depend on your needs. The two most important and popular types of life insurance policies are Term and Whole.
Difference Between Whole Life and Term Life Insurance
Once you have understood the concept of the two life insurance coverage options, you should also look at how they differ from each other. There are three main differences between term life insurance and whole life insurance, including:
Other than the two basic insurance policy options, there are also options such as Variable and Universal Life Insurance that are available to veterans. Both these policies have an investment advantage that veterans can enjoy. However, Term Life Insurance and Whole Life Insurance are the most basic and effective policy programs available to veterans.
Which Type of Life Insurance is Best After the Military?
As an active duty service member, you receive life insurance coverage and do not have to consider other options. However, since the coverage ends once you conclude your service, it is better to find different life insurance options before the time comes. It is natural to feel overwhelmed by the numerous options available. However, it will become quite easy to select the right coverage if you know what each policy entails. There is no single life insurance policy fit for every veteran, since the needs and requirements of every individual may vary considerably.
Term life insurance is cheaper because a whole life insurance policy requires you to free up a significant amount from your savings, whereas in the case of term life policy, you will not need that big of an investment. You can, therefore, opt for term life insurance and use your savings to invest in a different plan. You will need to research and plan more to make sure that by the time your policy expires you have sufficient financial independence.
As a rule, term life insurance is suitable for veterans who are looking for financial security equivalent to their income and is enough to pay off their bills. Also, remember that you can convert your term life insurance into whole life insurance policy at any time.
On the other hand, whole life insurance is a viable option for veterans who want to leave a large amount of money for their heirs to pay off the estate taxes. Generally, a whole life insurance policy is helpful towards supporting one’s heirs. For veterans who have a dependent with special needs, this type of life insurance policy is the best option available.
How to Choose the Best Life Insurance for Veterans – Wrapping it Up
You will find many insurance agents trying to upsell and cross-sell. However, it is important to remember that they are getting a commission for this effort, which they will not reveal to you. It is in their interest to sell an expensive policy even if you don’t specifically need one.
Therefore, we recommend that you do some research and select a policy based on your unique preferences and requirements. There is no one-size-fits-all answer in such a situation so determining your needs beforehand will help you pick the perfect coverage.
No matter what type of life insurance policy you are interested in, it is always recommended that you speak with an insurance agent before applying and making a purchasing decision. Insurance agents can help you secure the best life insurance rates for veterans, clarify the differences between policies and providers, and generally provide a lot of valuable information to you during your entire search. The best part? It’s totally free to talk with an agent.
Speak with an insurance agent today to find the best life insurance for veterans today!