How to Choose the Right Life Insurance for Veterans

Written by Jeff Root

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

A.M. Best Rating

A.M. Best is a financial rating based on the overall strength of a company. A++ is the highest rating, and it goes down alphabetically from there all the way to F.

You want to choose a company that has a solid financial rating, because you know they are dependable, and will be there when you need them.  The last thing you want is to pay for life insurance and the life insurance company fall through when your family needs them the most.

Life Insurance Company Reviews

Reviews for life insurance companies can sometimes be brutal, but that is to be expected when providing complex products and services that also cost a lot of money and have a big impact on people’s lives.

Every life insurance company has bad reviews, but we chose the ones that had the least amount of them and that were few and far between.  We chose companies who are dependable and generally uphold good customer service practices and high customer satisfaction ratings.

Best Life Insurance Rates for Veterans

Lastly, we chose these best life insurance companies for veterans based on their pricing.  While price is not everything in this industry, it is certainly important, as small pricing differences in monthly premiums on insurance policies can add up to thousands of dollars over a lifetime. These companies have some of the best life insurance rates for veterans on the market.

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.

2. Veterans Group Life Insurance-Prudential Insurance

The Department of Veterans Affairs has come up with the Veterans Group Life Insurance (VGLI) program. This program may replace the SGLI that the military personnel enjoys during active duty. VGLI does not require any medical examination during the first 240 days after the date of separation from the military. However, it has a 1 year and 120 days window during which you can convert the SGLI program to VGLI. The premium of this insurance plan is determined based on your age. You can also convert VGLI into any given commercial policy at any stage.

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.

4. Uniformed Services Benefit Association (USBA)

USBA makes the transition of ex-military personnel smooth and convenient. The Life Insurance plans that USBA offers include both, Term and Whole Life policies. You can choose from a variety of options in each category depending on your needs and preferences. These include:

  • Long Term 20
  • Basic Value
  • Smart & Lean 15
  • Smart Value 10
  • Lifetime Value
  • 50 Plus

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.

6. Navy Mutual

Navy Mutual has come up with an Insurance Program proves to be a lot of help for the military personnel even after the discontinuation of their service. The Insurance policies from Navy Mutual address nearly all the needs and requirements of your entire family. The coverage limit of Navy Mutual’s Insurance Programs is up to $1,000,000.

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.

8. Veterans of Foreign Wars (VFW)

VFW offers life insurance to its members via its partnership with Transamerica. The life insurance policies give you the peace of mind you need when it comes to protecting your family. An amazing thing about this program is that it offers some benefits to the grandchildren of the veterans too.

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.

Term Life Insurance For Veterans

Term life insurance, as the name, suggests, lasts for a set ‘term’. It, therefore, gives protection to your family if you pass away during the set term. However, the policy has no value after the term period elapses. Veterans usually opt for a period between 10 and 30 years.

The benefit that your family members receive in case of early death is worth the same amount all throughout the term. If you are not sure of what term to set, you can choose one that coincides with the number of years you will be liable to pay bills. You can determine the benefits of your family members by calculating your income and your family’s needs.

Whole Life Insurance for Veterans

Whole life insurance policy is a permanent coverage option that lasts a lifetime. You can also increase the value of the benefit received or cash and can loan it out whenever you need to. However, if you fail to return the loan amount to your policy, you will end up reducing the overall benefit for your family. The insurance holder also has the option of suspending the policy at any time thereby leaving the family with no coverage. The premium remains the same throughout your life, and the rate at which the cash value grows remains the same.

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:

Premium

In case of a whole life insurance policy, the premium amount remains the same throughout one’s lifetime. Whereas, in the case of term life insurance policy, the premium stays the same until the term of the policy elapses. After that, you will need to renew the policy. At the time of the renewal, you will have to agree to pay a higher premium than before.

Cash Value

Term life insurance does not have any savings component. Therefore, this policy is less lucrative for some of the veterans looking for the right life insurance policy. In case of whole life insurance, veterans can enjoy unused premiums in the form of savings.

Understanding

Because SGLI is a term insurance policy, many veterans find it easier to switch to a term policy rather than a whole life. That’s because there can be a lot of confusing details about the whole life insurance policy. If you are considering opting for one, you will have to seek help from a professional. It is for this reason you see many sellers trying to explain the benefits of whole life insurance to individuals who have just left the army.

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!

Compare the Best Life Insurance Rates for Veterans

We protect the ones who protect us.



 

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About Best Life Insurance Companies

We work with individuals across the nation to secure the best life insurance rates.

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