Many veterans may consider purchasing life insurance after their active duty is completed. The majority of veterans with life insurance are eligible for benefits from the Department of Veteran Affairs. Veterans insurance typically lasts up to 120 days after service, but it’s critical to have a plan in place once that time is up. If you leave the military, air force, or navy, you may be able to convert your veterans group life insurance (SGLI) into a civilian plan. Nonetheless, there may be better coverage options for a veteran’s life insurance policy. Let’s delve deeper into the best life insurance for veterans for disabled and death benefits, as well as the various company policies available, so you can find the best plan for you and your loved ones.
How Life Insurance for Veterans Works
Life insurance provides coverage to help veterans meet their needs, such as disabled and death benefits. It is important to note that there are a number of requirements that must be met in order to be eligible for full-time SGLI coverage. You can also look into other options besides the servicemembers group insurance that is available to veterans.
You may prefer certain benefits in a separate veterans life insurance plan. The maximum amount of SGLI coverage, for example, is $400,000. Another carrier’s life insurance may provide higher coverage amounts that better meet your needs.
How Do Veterans Verify if They Have Life Insurance?
The best way to find out if a veteran has life insurance is to go to the Department of Veterans Affairs website. You should be able to access your life insurance policy online using your file number from there. You can learn about the benefits of your policy and make changes there.
Some veterans will be eligible for full-time life insurance coverage, while others will only be eligible for part-time coverage. The premium rates will vary depending on the level of coverage you apply for. If you have an SGLI plan, the funds will be deducted automatically from your base pay. You may be able to obtain additional information by speaking with the leader of your unit.
Disabled Veterans Life Insurance
Life insurance for Veterans who have received a service-connected disability rating from the Department of Veterans Affairs is known as Service Disabled Veterans Insurance (S-DVI). The basic S-DVI program, also known as “RH Insurance,” covers eligible Veterans for up to $10,000 in coverage. Veterans who have the basic S-DVI coverage and are completely disabled are eligible to have their premiums waived. If a waiver is granted, totally disabled Veterans may apply for up to $30,000 in additional coverage through the Supplemental S-DVI Program. However, premiums for Supplemental S-DVI coverage cannot be waived.
Who Can Get Service Disabled Veterans Insurance (S-DVI)?
You must be a Veteran of the uniformed services who meet the following criteria to be eligible for S-DVI:
- You were discharged from active duty on or after April 25, 1951, for reasons other than dishonorable; AND
- You were evaluated for a service-connected disability (even if it was only 0%); AND
- Also, you are in good health, except for any service-related conditions; AND
- You apply within two years of receiving your new service-connected disability from the VA, or by December 31, 2023, whichever comes first.
Best Veterans Life Insurance
Here are some of the best life insurance policies for veterans and their families if you are looking for life insurance after leaving the military.
#1. Best Overall Life Insurance For Veterans
According to rating agencies and institutions, Prudential Veterans’ Group Life Insurance is the best overall life insurance. Veterans can easily apply for coverage through the Prudential Veterans’ Group without having to undergo a physical exam.
Overview
The Prudential Insurance Company was established in 1875 and is rated A+ by AM Best. The Veterans’ Insurance Act of 1974 covers millions of active military personnel and thousands of military veterans. For $150,000 coverage, veteran policyholders aged 35 to 55 paid $19.50 per month, while those aged 35 to 55 paid $100.50 per month.
#2. Best for Senior Veterans
The American Armed Forces Mutual Aid Association offers one of the best senior veteran life insurance policies (AAFMAA). The company specializes in insurance policies for senior Veterans. Veterans can choose from a variety of policies that cover them up to the age of 84.
Overview
The AAFMAA, founded in 1879 by the War Department in response to Custer’s Last Stand, provides term life and whole life insurance specifically for veteran populations across the country.
Furthermore, this company’s ANNUITYLife, Wealth-Builder Life, and Senior Survivor Plan offer no medical exam insurance policies to veterans and their spouses.
#3. Best for Disabled Veterans
The United Services Automobile Association (USAA) is one of the best options for disabled veterans’ life insurance. Veterans with disabilities can select from a wide range of life insurance plans provided by a company with excellent ratings and online reviews.
Overview
USAA has been in operation since 1922 and has received the highest AM Best rating of A++ (Superior). They provide several types of life insurance policies, including term, whole, and universal life. You can also apply for a policy through the company’s mobile app, which takes about 20 minutes.
#4. Best for Families
After retirement, the United Services Benefit Association (USBA) provides veterans with low-cost military insurance. Because of its family plans and coverage for married couples and dependents, veterans with families may find the company appealing.
Overview
When veterans leave the military, USBA provides them with whole and term life insurance policies to replace their SGLI. AM Best has rated the underwriter of these policies, New York Life Insurance Company, as A++ (Superior).
#5. Best Children’s Rider
The Military Benefit Association (MBA) is a well-known insurance company that provides children’s rider policies. Term insurance until the age of 90 covers children for free up to $12,500. Optional add-ons allow children to become members in their own right when they reach the age of 25.
Overview
MBA was the first to offer 10- and 20-year term insurance to veterans in 1957. MetLife, Inc. underwrites the company’s life insurance policies, and AM Best gave the company an A rating. MBA provides a term life insurance plan for senior veterans at no additional cost.
#6. Best in Terms of Monetary Value
Transamerica Life Insurance stands out in our review as one of the best cash value insurance companies that provide very affordable term life insurance coverage. Because of its long history of financial strength and dependability, it is the best value in life insurance.
Overview
Although Transamerica is not a household name, the company has a long history and a strong track record of financial strength, including an AM Best A+ rating and an S&P Global A rating. Transamerica provides a variety of life insurance products, including term life insurance, whole life insurance, universal life insurance, and index universal life insurance.
#7. Best Price
When purchasing veterans’ life insurance, the most important thing to look for is that the company has a strong and sustainable history, offers a full range of insurance products at the lowest cost, and provides various resources such as articles and calculators to assist you.
Prudential’s Veterans’ Group Life Insurance policy, which provides up to $250,000 in coverage online and allows you to obtain an online quote, checks all of these boxes.
Veterans Life Insurance Company
Life insurance protects and provides for your loved ones after you die, but finding the best life insurance as a veteran can be difficult. While the VGLI plan has advantages, life insurance from a commercial provider may provide you with the best long-term and longest-lasting coverage.
Flexible coverage options, affordable policies, and high customer satisfaction ratings distinguish the best veteran life insurance company. Here are our top picks for the best life insurance company for veterans.
The Best Life Insurance Company for Veterans in 2023
#1. Prudential Veterans’ Group Life Insurance
Prudential is an excellent option for veterans looking for life insurance with living benefits. Prudential’s Living Needs Benefit rider is free with most policies and allows you to receive a portion of the death benefit if you have a terminal illness, are confined to a nursing home, or require an organ transplant.
Pros
- Coverage is available for active service members and military veterans.
- In most cases, no medical examination is required.
- There are no exceptions for mental health, PTSD, or TBI.
Cons
- Strict eligibility criteria
#2. American Armed Forces Mutual Aid Association (AAFMAA)
The AAFMAA provides insurance policies designed specifically for senior veterans. It offers several policies and covers veterans up to the age of 84.
Pros
- Provides a less expensive alternative to VGLI
- Provides no-exam insurance policies
- Has been in operation for over 140 years
Cons
- Not all states have coverage.
#3. United Services Automobile Association (USAA)
The company provides life insurance plans for disabled veterans. It also has a lot of positive feedback and online quotes.
Pros
- Has been in operation since the 1920s
- Customers can include their children in their insurance policies.
- Policies for disabled veterans
Cons
- A medical examination is required to rate the policy.
#4. Uniformed Services Benefit Association (USBA)
Because it provides family plans, coverage for married couples, and coverage for dependents, the company is ideal for veterans with families.
Pros
- Has been in operation since the 1950s
- Provides a family plan
Cons
- It is not available in every state.
#5. Military Benefit Association (MBA)
The military Term Insurance to Age 90 Plan covers children for free up to $12,500. Optional add-ons even allow children as young as 25 to become members in their own right.
Pros
- MetLife Inc. underwrites it.
- Has been in operation since the 1950s
- Eligible children may be covered at no extra charge.
- Provides coverage for policyholders up to the age of 90.
Cons
- There are no whole life insurance plans available.
#6. VA Service-Disabled Veterans Insurance (S-DVI)
VA Service-Disabled Veterans Insurance is an excellent option for disabled veterans seeking life insurance. If you meet certain criteria, you may be eligible for up to $10,000 in life insurance and $30,000 in supplemental coverage.
Pros
- Beneficial to disabled veterans
- Some veterans may be eligible for free health insurance.
Cons
- Inadequate maximum coverage capacity
- Strict qualification standards
- Every five years, premiums are raised.
We reviewed the best life insurance companies, and each one has something unique to offer. Some companies provide multiple types of policies, while others specialize in coverage for children and families. Some policies provide coverage for the rest of your life, regardless of your health or employment status. The company has received mostly positive feedback and does not require a medical exam.
How We Selected the Best Life Insurance Company for Veterans
We researched more than two dozen life insurance companies for reputation, product selection, underwriting methods, and price, including those cited by the VA as options for converting SGLI coverage, as well as other non-profit and member group plans, to find the best life insurance company for veterans.
Conclusion
A variety of factors, including service-related health conditions or disabilities, can make life insurance for veterans more difficult to obtain. However, there are several insurers that offer life insurance policies tailored to veterans, whether they focus solely on service members and their families or provide all-around value. Furthermore, most of the companies on this list allow you to convert your SGLI, FSGLI, or VGLI to an individual policy with them without having to take a medical exam or answer health questions.
Frequently Asked Questions
Do Veterans still get life insurance?
Service-Disabled Veterans’ Life Insurance (S-DVI) provides life insurance coverage to Veterans who have received a VA rating for a new service-connected disability within the last two years. Veterans who are completely disabled are eligible for free coverage and have the option to purchase additional life insurance.
Do Veterans automatically get life insurance?
All military service members are automatically enrolled in SGLI, a group life insurance plan, which can be converted to VGLI after one year and four months of service.
Do honorably discharged Veterans have life insurance?
Servicemembers automatically receive a maximum of $400,000 in SGLI coverage upon enlistment. Servicemembers can decline or elect less coverage in increments of $50,000 in writing. SGLI coverage is valid for 120 days after discharge. Members with SGLI are automatically covered by Traumatic SGLI (TSGLI).
How much does the VA pay for life insurance?
Term life insurance benefits range from $10,000 to $400,000. The amount you’ll receive is determined by the amount of SGLI coverage you had when you left the military. Learn more about the distinctions between term and whole life insurance.
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