01 Oct Best Life Insurance Companies for Veterans
A life insurance policy is a necessity for military personnel. Life insurance provides you with financial security, as well as a backup plan in case of an unexpected event.
However, when it comes to selecting what type of life insurance is best for you and your family, you must think carefully.
Since you want the best for your families, here is a list of the best life insurance companies and how to choose one based on your needs.
Where Can You Buy Life Insurance for Veterans?
When a veteran or soon-to-be veteran is looking for life insurance, there are many factors and options to consider.
As an active military member, you are automatically enrolled under SGLI. However, once you retire, you have three options: enrolling into VGLI, buying private life insurance, or converting to private life insurance.
Veterans have access to the following life insurance benefits through the VA:
- Servicemembers’ Group Life Insurance (SGLI)
- Veterans’ Group Life Insurance (VGLI)
- Family Servicemembers’ Group Life Insurance (FSGLI)
- Protection from trauma under the Servicemembers’ Group Life Insurance (TSGLI)
- Disability Insurance for Veterans (S-DVI)
Some of the top companies offering life insurance to veterans are listed below:
- Prudential Veterans’ Group Life Insurance
- American Armed Forces Mutual Aid Association
- USBA – Uniformed Services Benefit Association
- The United Services Automobile Association
- Military Benefit Association
How to Choose the Best Life Insurance for Veterans
Within one year and 120 days of leaving active duty, veterans can convert SGLI into Veterans’ Group Life Insurance (VGLI). If you pay the premiums, you’ll stay covered by VGLI. However, VGLI’s policy premiums increase as you age instead of the fixed term life premiums available on the open market.
Here are some tips for choosing the best life insurance for veterans:
- You can purchase a personal insurance policy from trusted companies like USAA or Prudential, where you can apply for whole, universal, or term life insurance.
- After retirement, you can convert SGLI to VGLI and choose FSGLI for your family.
- You can consult an independent life insurance agent to know what’s best for you.
- If you have a service-related disability, you can choose VGLI and qualify for supplemental coverage of $30,000.
- You can also extend SGLI for two years if you have a service-related disability.
What to Look For in a Life Insurance Company?
Here are some important things to consider before choosing one of the best life insurance companies for veterans.
Purchasing the right policy will ensure that your loved ones have a financial safety net, so it’s important to do your homework. However, it’s essential that your policy is both affordable and has the appropriate amount of coverage.
What should you know before buying an affordable policy?
- The most cost-effective life insurance policy for most people is a term life insurance policy.
- Make sure you purchase just enough coverage so you are not overpaying.
- You can save more than $1,300 per year by comparing quotes from multiple life insurance providers.
Strong Financial Stability
The financial strength and stability of an insurance company can be determined by three important indicators—net income, combined ratio, and policyholder surplus.
To avoid paying extra, make sure the company provides you with the support you need.
High Ratings by Financial and Consumer Institutions
The financial strength of insurance companies is rated by independent agencies with factors such as credit rating, proving an insurance company’s ability to pay policyholder claims.
Several independent agencies score the financial strength of insurance companies, including A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody’s, and Standard & Poor’s.
Features and Services That Fit Veterans’ Needs
Some insurance policies and services are not suitable for veterans. For this reason, veterans should keep these tips in mind when applying for insurance.
- Make sure the type of insurance policy you choose offers protection for the people you love.
- Ensure that your dependents won’t face living expenses due to your insurance policy.
- The right policy can make retirement easier.
- An inheritance from life insurance can be passed down to your heirs.
- Federal and state “death taxes” can be paid by a life insurance policy.
Things to Consider When Buying Veterans Life Insurance
There are many types of life insurance, so choosing the right one can be confusing for veterans. We have answered some questions below that may assist you in choosing the best life insurance option.
How Long Do You Need Coverage?
Term Life Insurance
A term life insurance policy provides coverage for a specific period of time. Consider buying a term policy if you only need additional security for a defined timeframe.
Whole Life Insurance
Many people may find it necessary to have life insurance throughout their lifetime. Whole life insurance provides a death benefit regardless of whether you live to be 100 or die tomorrow.
How Much Life Insurance Do You Need?
The amount of life insurance you need is dependent upon your individual situation.
For instance, Service Members’ Group Life Insurance (SGLI) offers up to $400,000 of life insurance coverage to military personnel, which continues for 120 days after leaving the military.
However, it varies according to the individual’s financial and medical conditions. Independent insurance agents can provide vets with more information on this.
A VA Life Insurance beneficiary is the individual you have designated to receive the proceeds of your policy upon your death. That’s why it’s so important to keep your beneficiary information up to date—it’ll be easier for your family to file a claim and get the benefits they’re entitled to.Our Online Policy Access program makes it easy to update your beneficiary if your VA Life Insurance policy number begins with V, RH, J, RS, K, or W. Your beneficiary can be updated online once you create an online account and log in.
Review Your Policy Every Few Years
It is important for vets to regularly review their insurance policies to ensure they are up to date. Stay in touch with your life insurance agent to make adjustments as needed.
What You Can Do With a Veterans Life Insurance Policy
VA life insurance offers financial security for veterans, service members, and their spouses and dependent children. The Veterans’ Group Life Insurance (VGLI) plan can be used in various ways in the future, transforming your SGLI into a civilian program of term life insurance after separation from the military. Additionally, families of Service members can be insured under Family Service member’s Group Life Insurance (FSGLI).
During Your Lifetime
Having a life insurance policy during your lifetime provides the following benefits.
- Easy access to loans – The insurance policies can be used as collateral for a loan. Having an insurance policy as collateral for a home loan can ease the process of being approved by a lender.
- Benefits the taxpayer – If the insured purchases a specific insurance product, then they will receive tax benefits for their premiums.
- Living benefit riders (chronic illness or long-term care) – If you are diagnosed with a chronic illness, a chronic illness rider offers you the option of tapping into life insurance benefits while you’re still alive.
- Surrender the policy to get the cash value – Insurance companies pay the cash surrender value to policyholders when the insured terminates their policy or annuity before maturation or when a covered event occurs.
After You’re Gone
The following benefits are available to your beneficiary and/or family member after you’re gone.
- Debt reduction – The death benefit of a life insurance policy can be used to pay off debt.
- Buy an annuity – An annuity has tax benefits that may be passed on after you’re gone.
- Collect installments – Life insurance provides financial security to both policyholders and their loved ones if they die.
- Invest for growth – Veteran beneficiaries might continue using VA benefits for investment growth if the policyholder passes away.
- Pay for education – Veterans’ children can be eligible for free tuition at state educational institutions, and VA insurance policies can also assist with the costs.
Average Cost of a Life Insurance Policy
The average cost of a life insurance policy is below and varies depending on age and gender. The average term life insurance premium for men is 23% more than for women.
Average Cost of a Life Insurance Policy
Best Life Insurance for Veterans
Your Servicemembers’ Group Life Insurance (SGLI) benefits are automatic if you serve in the Army, Navy, Air Force, Coast Guard, or Marines. However, this coverage expires when you leave the armed forces.
If you’re looking for life insurance after leaving the service, here are some of the best life insurance policies for veterans and their families.
Best Overall Life Insurance for Veterans
The best overall life insurance is Prudential Veterans’ Group Life Insurance, as measured by rating agencies and institutions. With the Prudential Veterans’ Group, veterans can easily apply for coverage without undergoing a physical exam.
The Prudential Insurance Company was founded in 1875 and has an A+ rating from AM Best. The Veterans’ Insurance Act of 1974 provides coverage to millions of active service members and thousands of military veterans. Veteran policyholders aged 35 to 55 paid $19.50 per month for $150,000 coverage, while those aged 35 to 55 paid $100.50 per month.
Best for Senior Veterans
One of the best senior veteran life insurance policies is the American Armed Forces Mutual Aid Association (AAFMAA). The company offers life insurance policies specifically for senior Veterans. Veterans can select from several different policies, which cover them up to age 84.
AAFMAA, founded in 1879 by the War Department in response to Custer’s Last Stand, provides term life coverage and whole life insurance specifically for veteran populations across the country.
Additionally, ANNUITYLife, Wealth-Builder Life, and the Senior Survivor Plan from this company provide no medical examination life insurance policies for veterans and their spouses.
Best for Disabled Veterans
The United Services Automobile Association (USAA) is one of the best life insurance for disabled veterans options. Veterans with disabilities can choose from a variety of life insurance plans offered by a company that has high ratings and online reviews.
USAA has been in business since 1922 and has the highest AM Best rating of A++ (Superior). They offer a few different life insurance policies, including term, whole, and universal life.
In addition, you can apply for a policy via the company’s mobile app, which takes about 20 minutes.
Best for Families
The United Services Benefit Association (USBA) offers military life insurance at affordable rates to veterans after retirement. Veterans with families may find the company ideal because of its family plans, and coverage for married couples and dependents.
USBA offers veterans whole and term life insurance policies to replace their SGLI when they leave the military. The underwriter of these policies, New York Life Insurance Company, has been rated A++ (Superior) by AM Best.
Best Children’s Rider
The Military Benefit Association (MBA) is one of the leading insurance companies offering children’s rider policies. Term insurance to age 90 covers children free of charge up to $12,500. Optional add-ons allow children to become members in their own right as soon as they turn 25 years old.
In 1957, MBA became the first to offer 10- and 20-year term life insurance for veterans. MetLife, Inc. underwrites the company’s life insurance policies, and AM Best awarded the company an A rating. A term life insurance plan for senior veterans is provided by MBA at no additional charge.
Best for Cash Value
In our review, Transamerica Life Insurance stands out as one of the best cash value insurance companies that offer very affordable term life insurance coverage. It has a long history of financial strength and reliability, making it the best value in life insurance.
Although Transamerica may not be a household name, the company has a long history and strong track record of financial strength, including an AM Best A+ rating and an S&P Global A rating. Transamerica offers a range of life insurance products, such as term life insurance, whole life insurance, universal life insurance, and index universal life insurance.
The most important thing to look for when buying life insurance is that the company has a strong and sustainable history, offers a full range of insurance products at the lowest cost, and offers various resources such as articles and calculators to assist you.
Prudential’s Veterans’ Group Life Insurance policy, which offers up to $250,000 in coverage online, checks all these boxes and allows you to obtain an online quote.
What Company Sells the Best Price Life Insurance for Veterans?
We’ll continue our list of the best life insurance companies for veterans below.
Allstate Life Insurance
Rated as “Better than Most” in the 2015 JD Power Household Life Insurance Study, Allstate started providing life insurance back in 1957, just years after it launched its famous “good hands” tagline.
The company offers term, whole, and universal life insurance and provides online features like online bill pay and a rate calculator.
Pros of Allstate
- Instead of sticking with pre-set plans, you can customize some of the life insurance policies such as the TrueFit Term policy.
- No medical examination is required for term life insurance.
- The company has been rated as A+ by the A.M.
- Allstate offers term, whole, universal, and variable universal life insurance plans.
Cons of Allstate
- If your health isn’t perfect, you won’t be able to receive an online quote. You would have to work with Allstate’s agent to get a policy.
- Allstate doesn’t offer online features in some states.
- Most of the information added to the website is superficial.
- The company does not have a mobile app.
Overview of Allstate
The company provides basic term life insurance with maximum coverage of $150,000 for a 15-year term. It comes with additional benefits like accelerated death benefits for someone suffering from a chronic ailment, conversion to a whole policy, and waiver of premium if the applicant cannot afford it. While this policy does not require a medical exam, you must fill out a health questionnaire to apply.
Allstate also offers whole, universal, and variable universal life insurance for veterans.
United Services Automobile Association (USAA)
United Services Automobile Association (USAA) offers some of the best term life insurance for veterans, service members, and their families. The company also offers whole or permanent life insurance with coverage of up to $1 million.
USAA has a team for survivor relations that helps deceased service members apply and navigate their survivor benefits.
Pros of USAA
- Certain programs provide additional coverage for major life events.
- USAA offers free perks like a severe injury payment of $25,000.
- The company has fewer customer complaints compared to other companies.
Cons of USAA
- Some insurance policies offered by USAA are not available in New York and Montana.
- USAA’s term and whole life insurance applications require a medical checkup.
Overview of USAA
USAA’s term life insurance is available for 10, 15, 20, 25, and 30 years, along with the following:
- Coverage during wartime.
- An additional payment of $25,000 for severe injury while on active duty.
- Guaranteed coverage after retirement.
- Term life can be converted into whole life insurance.
- Convert SGLI into USAA’s term life after retirement.
USAA’s whole life insurance provides maximum coverage of $1 million.
Prudential Life Insurance
Among the best life insurance companies for Veterans, Prudential is one of the best-rated insurance companies providing various policies to the active military and Veterans.
According to JD Power’s 2020 US Life Insurance Study, the company has been rated 11 out of 23 for customer service.
Pros of Prudential
- Offers several terms and universal life insurance options.
- Provides life insurance to people with HIV.
- Fewer customer complaints compared to other companies.
Cons of Prudential
- Rated as moderate for customer service.
Overview of Prudential
Prudential offers term life insurance under three plans: Term Essential, Term Elite, and PruTerm One. It also offers universal, variable universal, and index universal life insurance plans.
Workplace benefits, annuities, and investments are among other offerings.
Founded in 1857 and headquartered in Milwaukee, Northwestern Mutual is one of the best life insurance companies for veterans and active military members. The company offers several coverage options and customizable coverage needs.
Pros of Northwestern Mutual
- Offers several coverage plans.
- Convert your term life insurance into whole life insurance.
- Dividends may be available to some applicants.
- Online features like automatic premium payments, an insurance calculator, customer service are available.
Cons of Northwestern Mutual
- The website seems to be full of superficial content and lacks direct answers.
- Company financial advisors are required to start the process.
Overview of Northwestern Mutual
The company’s term life insurance provides coverage starting from $100,000 and includes both annually increasing and fixed premiums. Additionally, this policy can be converted into whole life insurance without a medical exam or additional fees.
Whole life insurance, on the other hand, offers coverage starting from $50,000 and is available to customers between infancy and age 85.
New York Life
New York Life is the country’s largest mutual life insurer and the third-largest life insurer in the country. While it was founded in New York, the company provides services all over the United States.
Pros of New York Life
- Offers a variety of life insurance products, including one of the best whole life insurance for veterans options.
- Allows conversion of term life insurance into whole life insurance.
- Provides policies that can be issued for an applicant as young as age 15 with coverage starting from $5,000.
- Provides life insurance and retirement planning services.
Cons of New York Life
- Lacks online features like rate calculators that are accessible online.
- No 30-year term offerings.
- Whole life policy seems to be a marketing ploy.
- Mobile app lacks functionality.
Overview of New York Life
The company offers term life insurance through the NYLexpress.com agent website, which does not require a medical exam prior to submitting an application. Additional benefits include accidental death benefits, policy purchase options, living benefits, and a disability waiver of premium.
New York Life’s whole life insurance includes benefits like child protection benefits, chronic care, payer protection benefit, and insurance exchange.
MassMutual Life Insurance
MassMutual Financial Group offers a wide variety of services like disability insurance, long-term care insurance, annuities, asset management, retirement plans, and life insurance.
They also offer online features like online bill payment to improve the customer experience.
Pros of MassMutual
- Convert your term life insurance into whole life insurance.
- Rated as “A++.”
- Customer complaint ratio is 0.04.
- Offers guaranteed whole life insurance to those aged 50-75.
Cons of MassMutual
- Does not have a mobile app and lacks online features like rate calculators and making an online claim.
- You will need to go through a medical assessment before qualifying for most policies.
Overview of MassMutual
The minimum coverage value provided under term life insurance is $100,000 but can reach up to $5 million or above.
The company provides a total of five policies under whole life insurance—100, 65, 20 pay, 10 pay, and High Early Cash Value. The minimum face amount is $25,000, which can go up to $1 million or higher.
Uniformed Service Benefits Association (USBA)
Rated as “A++,” the company is a perfect choice for Veterans who are looking for insurance benefits for their families as well. Uniformed Service Benefits Association offers coverage for dependents and married couples.
Pros of USBA
- Offers a family plan.
- Providing services since the 1950s.
Cons of USBA
- Some insurance policies are not offered in all states.
Overview of USBA
The company offers term and whole life insurance for veterans, which can take the place of SGLI once they retire from the services. USBA also offers the USBA Double Value Two for One Family Group Level Term Life Plan, covering couples through one joint monthly premium and payout upon the first spouse’s death.
American Armed Forces Mutual Aid Association (AAFMAA)
AAFMA is a not-for-profit organization providing the best life insurance for veterans and the active military. The company offers services like life insurance, survivor assistance, residential mortgages, and investment management.
Pros of AAFMA
- Rated as A+ by the Better Business Bureau (BBB).
- Provides a variety of services.
- Considered a cheap alternative to VGLI.
- Does not require a medical exam.
Cons of AAFMA
- The company is not BBB-accredited.
- Some facilities are not available in all states.
Overview of AAFMA
AAFMA provides term life, whole life, and universal life insurance to Veterans. Additionally, they have a special list of policies to help senior veterans and their spouses. The plans under this program include Wealth Builder Life, the Senior Survivor Plan, and ANNUITYLife.
Military Benefit Association (MBA)
Military Benefit Association (MBA) is an A-rated company that offers term life insurance plans to veterans, service members, and families. Its policies are written by MetLife Inc, and provide additional benefits to senior Veterans.
Pros of MBA
- Policies are written by MetLife Inc.
- Providing policies since the 1950s.
- Minors are covered automatically.
- Offers policies to people aged 90.
Cons of MBA
- Does not provide whole life insurance.
Overview of MBA
The company provides term life insurance for veterans looking to find an alternative to SGLI.
MBA provides additional senior Veteran benefits like coverage for up to 90 years old. Besides military members, the plans provide coverage of up to $1 million for the spouse, free coverage for each dependant child , and additional term coverage for unmarried children.
Providing the best life insurance for Navy Veterans, Navy Mutual originated in the year 1879, when a group of Navy officers came together. In addition to providing life insurance under a number of programs, the organization also helps with navigating the benefits provided by the VA.
Pros of Navy Mutual
- Offers a variety of services, well suited for different needs.
- Provides online rate charts for policy comparison on their website.
Cons of Navy Mutual
- Offer only one plan under whole life insurance.
- Do not have online features like rate calculators.
Overview of Navy Mutual
For their flex term policy, Navy Mutual provides coverage of $100,000 at a premium of $6.80. If someone wants to choose coverage of $1 million, the monthly rate is $41.00. Rates are the same for men and women.
Veterans’ Group Life Insurance (VGLI)
VGLI is a life insurance policy offered by the VA to Veterans. While all active military members are covered under SGLI, you must enroll yourself for VGLI post-retirement.
Pros of VGLI
- No lab tests or health checkups if you enroll within one year and 120 days of leaving the military.
- Health status does not affect your premiums.
Cons of VGLI
- VGLI’s coverage depends upon your SGLI’s coverage.
- To increase your coverage, you would have to pay $25,000 every five years.
Overview of VGLI
To qualify for VGLI without a medical exam, you must enroll within one year and 120 days of leaving the military. To apply for this policy, you must fill out the form SGL 8714 or apply online through OSGLI.