Are you a military veteran who is thinking about getting life insurance? Well, you’ll find that there are many companies and nonprofits offering life insurance for veterans. These plans are available for those who have recently left the services as well as those who left years ago. Even if you are in your fifties and looking for insurance for the first time, there are options for death benefits.
Life Insurance for Veterans
Veterans can buy life insurance from different companies. We recommend the top 5 providers below who specialize in providing life insurance to veterans, so they understand the needs of veterans and offer good prices. However, veterans, especially who are in good health, can also buy life insurance policy, from life insurance companies similar to normal people too.
Another great life insurance option for veterans is to convert their service member term life insurance that they are automatically signed up for when they join the military to veterans life insurance within a year and 120 days from leaving the service. This option is great because they can convert from a term life policy to a permanent life policy with lifelong coverage at a great cost. The premiums they have to pay after converting are very reasonable compared to usual rates of permanent life insurance policies that they can find in the market. This is a joint program between the Department of Veterans Affairs and Prudential Life Insurance company. You can learn more about the program, including rates for different coverage and age groups, here.
Life Insurance for Disabled Veterans
Disabled veterans can also find life insurance tailored to their needs although it may be more difficult depending on your health. If you are in poor health or living with a terminal illness, the insurance company may not approve a high death coverage plan or may ask you to pay a higher monthly premium. However, your policy should provide a death benefit that covers afterlife expenses and even leaves something extra for loved ones.
One option to look into is Servicemembers’ Group Life Insurance (SGLI), which is available on a two-year extension if you are totally disabled when you leave the service. You may also want to look into a final expense life insurance or guaranteed-issue life insurance which doesn’t require a medical exam for approval. For instance, the American Armed Forces Mutual Aid Association offers a Veteran Survivor Plan for veterans aged 45 to 84 with no medical exam required and a cash-value up to $25,000.
What is the Cost of Life Insurance for Veterans?
Your potential premiums may be quite affordable as a veteran. SGLI insurance is provided free for service members for 120 days after they leave the military. Service members can also convert to Veterans Group Life Insurance (VGLI) before leaving the military and keep their policy for as long as they continue paying the premiums. Standard rate tables show that a 35-year-old man can obtain $100,000 of life insurance from VGLI for $13 a month or $400,000 policy for $52 a month, which are very reasonable. These are either whole life insurance or guaranteed life insurance policy, which means you have’ll lifelong permanent coverage. Your family will get death benefit whenever you pass away.
On the other hand, you may want to consider a private insurance company. For instance, USAA offers a 10-year $100,000 term life insurance policy for a 35-year-old male at $12 a month.
While both options seem similar, VGLI only offers permanent life insurance. It is most likely to be whole life or guaranteed life insurance in this case. Private companies can offer both term life and whole life insurance for veterans. Plus, VGLI becomes very costly for veterans as they grow older. The same $100,000 policy from VGLI for a 60 year-old-male would be $108 per month.
Best 5 Life Insurance Companies for Veterans and Disabled Veterans
There are many life insurance programs geared towards serving veterans and military members. If you get out of the services and want to maintain a life insurance policy consider one of these top five providers:
USAA – Best for All-in-One Financial Services
First established in 1922, USAA offers a number of financial services for their customers. Just a few of the products you can find through this company include home insurance, car insurance, checking and savings accounts, and even credit cards. Not to mention, their life insurance for veterans is available as term or permanent coverage.
VGLI – Best for Easy Conversion
If you are a recent service member who has just left the military or is planning on leaving within the year, you may be able to qualify for VGLI. Offered through the U.S. Department of Veterans Affairs, you can convert an existing SGLI plan to a VGLI plan and maintain your benefits coverage. It’s also possible to increase your coverage by $25,000 every five years up to $400,000 until the age of 60 years old. This is probably the best option for veterans. It offers permanent life insurance coverage, either whole life or guaranteed universal life policy. Its costs are very reasonable compared with other permanent life insurance available in the market.
AAFMAA – Best for Wide Selection of Coverage
If you like having a lot of options, turn to the AAFMAA. Established way back in 1879, the AAFMAA offers a number life insurance, wealth management, and mortgage options for military members and veterans. Just a few of their life insurance policies include:
- Annuitylife
- Veteran Survivor Plan
- Wealth Builder Life Insurance
- Simple Term Life Insurance
- Term Level 1 and Term Level 2 Life Insurance
Military Benefit Association – Best for Quick Quotes
A non-profit association established in 1956, the Military Benefit Association offers term life insurance and some health insurance for military members and former military members. When you want straightforward and easy to understand quotes, this company is the best choice. You can find quick quote calculators for most of their life insurance policies on their website.
The Military Benefit Association is also quite affordable. For instance, their Military Term Insurance to age 90 features a $100,000 policy for a 35-year-old male at just $6.20 a month.
Uniformed Services Benefit Association (USBA) – Best for Online Features
While many insurance companies allow you to apply and make payments online, the USBA also offers a selection of online features that can make purchasing and understanding your insurance easier. The Life Insurance Needs Estimator helps you determine how much insurance to get for your family. There’s also a library of insurance information and articles to help you brush up on the industry, and a military jobs center with information to help with the job search after leaving the service too. You can also request that a free life insurance information packet be sent to you via email or postal mail.
Final Thoughts:
- The U.S. Department of Veterans Affairs offers a Veterans’ Group Life Insurance (VGLI) for all veterans who have recently left the services.
- Life insurance for disabled veterans may be harder to find, but there are options, such as an extension on SGLI or a guaranteed-issue life insurance plan from a private insurance company.
- Life insurance for veterans can be found through the USAA, VGLI, AAFMAA, Military Benefit Association, and the USBA.
- Life insurance can be quite affordable when you are young, but premiums increase over time.