Compare Life Insurance Companies That Focus on the Military (2022)

The government provides up to $400,000 of military life insurance for current and former service members. But private life insurance companies offer lower rates and more policy options. Understanding life insurance companies that focus on the military will help you find the best coverage.

Before learning about life insurance companies that focus on the military, enter your ZIP code to get free life insurance quotes in your area.

Why should you get coverage from private life insurance companies that focus on the military?

Life insurance companies use risk to determine eligibility and rates for customers. High-risk hobbies or jobs can result in higher rates or the denial of coverage. Insurers consider military careers high risk, limiting your coverage options and making it more complicated to determine your eligibility.

Current military personnel can obtain life insurance coverage through Servicemembers’ Group Life Insurance (SGLI) to combat this problem. Additionally, military life insurance after retirement is available through Veterans’ Group Life Insurance (VGLI).

While both government-provided options cover you and your family, plans are only available as term life insurance and have a maximum value of $400,000. This amount might be enough for some families, but others might desire a more significant death benefit.

Knowing that it can be hard to find coverage, many private life insurance companies offer plans specifically for those in dangerous professions, such as military personnel. These policies provide current and former service members with more policy options and a high maximum value.

A higher death benefit and long-term coverage will provide your family with plenty of financial support after your death. Some common ways that your family can use the tax-free death benefit include:

• Paying off debt
• College tuition
• Creating an emergency fund

While you can find insurers that offer coverage, there are some life insurance companies that don’t focus on the military. So make sure to ask specifically about military coverage when looking for quotes.

How much is coverage from life insurance companies that focus on the military?

You can find affordable life insurance companies that focus on the military with lower rates than SGLI or VGLI coverage. The following chart shows the average monthly rates for a $400,000, 20-year term life policy based on age.

As you can see, rates from private life insurance companies that focus on the military are significantly lower than VGLI term life rates. A comparison between private companies and SGLI coverage shows similar differences.

Can you add coverage from life insurance companies that focus on the military to your current plan?

Some private life insurance companies allow you to add coverage while keeping your SGLI or VGLI plan. This combination of policies is a good option for service members who like their current policy but would like more than the maximum value offered by military life insurance.

The companies most likely to allow you to keep your military-provided insurance are dedicated to service members. Three of the most popular companies are:

• USAA
• Navy Mutual
• Armed Forces Institute

As previously mentioned, private companies have lower rates than government-provided insurance. Therefore, to get the lowest possible rates, you can set your base policy to a lower amount and purchase a private addition at a higher value.

How do you choose from the best life insurance companies that focus on the military?

Before looking into quotes from life insurance companies that focus on the military, you should decide if it’s necessary. Depending on your situation, your government-issued coverage might be enough, allowing you to avoid searching for a new plan.

Even if you already know that your current coverage isn’t enough, you’ll need to decide how much you need. The Insurance Information Institute provides tips for determining the amount of necessary coverage.

Life insurance for military families usually covers spouses, children, and sometimes grandchildren. However, some exclusions could result in your beneficiary being unable to claim military life insurance death benefits. Some of these exclusions include:

• Suicide
• Illegal activity
• Risky activity
• Substance abuse
• Providing false information

While life insurance for veterans with PTSD is available, suicide and substance abuse are exclusions that sometimes accompany the disorder. Before choosing a company, ask for a list of exclusions.

If you decide to switch your coverage to a private company, you’ll need to compare your options. While policy options and rates are good factors to consider, you’ll also want to ensure that the company has the financial stability to provide a payout when your beneficiary files a claim.

Credit rating agencies regularly review and rate insurance companies based on their financial strength. The most trusted companies that provide these ratings are:

• A.M. Best
• Standard & Poor’s
• Moody’s
• Fitch

You can usually find these ratings on the websites of life insurance companies, allowing you to compare their ability to weather the ups and downs of the economy and financial markets.

SGLI and VGLI don’t require medical exams for coverage. However, private companies might require an exam, depending on the type of policy you choose. If you’ve suffered injuries during your service, this can cause a problem, as the results of these exams can be a determining factor in eligibility for a policy.

Fortunately, there are other options if you are not in great health. For example, guaranteed issue life insurance policies feature automatic acceptance without an exam, allowing you to obtain coverage with poor health. You might also consider final expense insurance, which pays for funeral and burial costs.

Life Insurance Companies That Focus on the Military: The Bottom Line

The military provides life insurance to current and former service members. But this coverage might not be enough to protect your family entirely. Private life insurance companies that focus on the military provide more coverage options with a higher maximum value.

Now that you know about life insurance companies that focus on the military, enter your ZIP code to find free life insurance rates in your area.