Best Life Insurance for Active Duty Military | Top 5 Picks With Details
If you’re one of the 1.3 million Americans who serve in the military, you can use specialist life insurance products intended specifically for military personnel. Military life is risky, and military life insurance was created to cater to the increased risk of serving in the military. As a result, we’ve included some recommendations for the best life insurance for active-duty military personnel below. People serving in the Armed forces, Navy, Marine Corps, Air Force, and Coast Guard are eligible for these programs. Let’s find out the best life insurance for the active-duty military.
Types of Life Insurance for Active Duty Military Personnel
Active-duty military life insurance coverage is categorized into the following categories:
Term life insurance policies
If the insurance owner dies within the life insurance policy term, the policy owner receives a lump sum payment. Rates for term life insurance do not fluctuate and are lower than premiums for full life insurance. You can include mortgage life insurance like term life insurance policies. This is insurance that ensures that your house mortgage is paid off in the event of your death. Beneficiaries receive no other type of death compensation.
According to all military branches, exclusion provisions in military-specific life insurance contracts may apply to service personnel. Exclusions from war zones, for example, are prevalent. Fortunately, active military and retired veterans have access to life insurance choices that are only available to armed forces members.
Whole life insurance
Whole life insurance policies also provide a lump-sum payment upon the death of the policyholder. These plans can also be used as investment vehicles, and policyholders can even borrow against them. Premiums are higher and may vary depending on criteria such as age, health, and available investment possibilities.
Life insurance with a variable premium
Variable life insurance provides both a death reward and tax benefits. Premiums are accumulated in a tax-free account and then invested on the policyholder’s behalf, with the death benefit calculated based on the earned value of these assets over time. Before death, you can borrow this cash worth.
Universal life insurance
Universal life works similarly, but premium payments are split between investment funds and interest-bearing cash accounts. These are also tax-free and could be used as collateral for loans. While variable universal insurance is more expensive, it combines both benefits and allows policyholders to choose how to invest their money.
Factors to Consider Before Opting for the Best Life Insurance for Active Duty Military
Before purchasing a life insurance policy for active-duty military personnel, there are various aspects to consider. Here are a few examples:
Is it something you require?
That is the simple part. You generally don’t need life insurance for the active-duty military if you aren’t accountable for anyone or anything. If you die, life insurance will compensate your family with enough money to replace your salary. You probably don’t need life insurance if you’re single, have no children, and don’t have a lot of people depending on your income too. Remember that the military already covers you up to $400,000 in life insurance.
However, if you’re married, have children, or care for elderly parents, government coverage is unlikely to be sufficient. Additional life insurance is generally a smart idea as well. Furthermore, your life insurance should be tailored to the needs of your family. Here are a few examples:
Housing: If you’ve just gotten a new mortgage, you may want enough coverage to pay off the sum and save your family from having to relocate. If you own your house outright, you may not require as much coverage.
Other Debts: Someone who would abandon behind a significant amount of debt — such as vehicle loans, private education loans, or credit card debt — should consider purchasing an adequate life plan to cover these outstanding obligations.
Do you have plans for your child to attend a private high school? What about saving for college? This is something to think about while deciding on a life insurance coverage amount.
Savings: If you’ve managed to save a substantial sum of money, you may require less life insurance than someone who hasn’t.
Is it possible for me to obtain it?
Military personnel has challenging and frequently deadly occupations. Some military vocations, such as fighter pilots and ground troops, cannot obtain life insurance because their line of work deem too dangerous by some insurance firms. Finding an insurance company that knows the military and will cover you regardless of your military career is a solid bet.
Is there a “war clause” in the contract?
Some life insurance policies do not payout if you die due to war, which is a little-known fact. This is a big issue for military personnel. When looking for life insurance coverage, ensure that your family will get coverage if you die while serving in the military.
How much coverage do you require?
Although there is no magic formula, you can begin by determining what you want life insurance to perform for you. Do you need coverage for your funeral, debts, and outstanding medical bills? Or are you concerned about your children’s college funds or your spouse’s retirement resources if you pass away unexpectedly? According to some experts, you should purchase coverage that is seven to ten times your annual salary. However, that isn’t the case for everyone. Your unique circumstances determine the quantity and type of insurance you need. To figure out what fits your budget and circumstances, you’ll need to ask yourself a few essential questions. Speaking with an insurance provider or a financial adviser can be beneficial in this situation.
Locate a reputable insurance company.
Another key step in obtaining the best life insurance for the active-duty military is to select a suitable company. Here are a few examples:
Best Life Insurance for Active Duty Military
SGLI
The United States government offers Service members’ Group Life Insurance (SGLI), military life insurance. The majority of active military personnel will be eligible for SGLI. Through their military branches, service members immediately enroll in a maximum of $400,000 coverage. Although service personnel gets automatic enrolment in the SGLI, they can choose to restrict the benefits of the life insurance program or drop out entirely. However, we urge that you keep at least a portion of the SGLI program.
Armed Forces Insurance
For qualifying personnel, Armed Forces Insurance offers both term and permanent life insurance. Currently serving or having served in the military, surviving spouses, present and retired DoD civilian employees, current and former commissioned officers in the NOAA and PHS, service academy and ROTC members, and others are eligible.
Navy Mutual Life Insurance
One of the earliest non-profit military service groups is Navy Mutual. They’ve been serving the military for more than a century. Its purpose as a non-profit organization is to serve its members by keeping fees low. Navy Mutual offers both term and whole life insurance and a variety of annuities to current serving personnel. The Navy Mutual website has more information.
The American Armed Forces Mutual Aid Association (AAFMAA)
The American Armed Forces Mutual Aid Association (AAFMAA) provides a variety of insurance terms and policies for current duty, reservists, and retired service members from all five military branches. Certain rules allow ROTC members to acquire an AAFMAA policy.
USAA life insurance
USAA is a well-known financial service and insurance firm that serves all military members and their families. You can supplement an SGLI or VGLI coverage with a USAA life insurance policy. The USAA website also has interactive tools that explain the different forms of life insurance and help you figure out the amount of life insurance you need to protect your family.
Over the phone, USAA’s customer care department can assist you in determining your needs. In just a few minutes, you can acquire a free life insurance quote from USAA.
Frequently Asked Questions
Is it possible to receive life insurance while serving in the military?
Yes. Active-duty military personnel is eligible for life insurance coverage of up to $400,000.
Is USAA Life Insurance exclusively available to service personnel?
Yes. Military service members and their families are the only ones who can use USAA. The firm offers term, whole, and universal life insurance policies to meet the specific demands of that population.
As an active duty military member, how much life insurance do you require?
If you die, life insurance intends to replace your income and earning potential. So think about how much money your family will require if you are unable to pay for them. Consider your home loan, any debt you may have, whether you need to finance your children’s college education and other considerations.
According to one estimate, you should buy a plan worth ten times your annual earnings. So, if you earn $35,000 each year, you should have at least $350,000 in coverage. However, if you have a mortgage and other debt, and you expect your family to need more money in the future to meet big expenses like education, you may find this to be insufficient.
If you are not the family’s principal breadwinner, though, you may be able to get away with cheaper coverage. Consider using a life insurance coverage calculator if you’re unsure how much you should buy. It will assist you in making a more informed decision based on data. After you’ve decided between term and permanent life insurance, there’s only one thing left to do: sign up. There are various possibilities for both forms of life insurance. Make sure you speak with a financial advisor and make informed decisions.
Conclusion
In conclusion, insurance comes with great merits. And if you desire more help, the above highlight of the best life insurance for the active-duty military will aid you immensely.
