For most families, life insurance is an important way to ensure their loved ones will be protected after the loss of the policyholder. For military families whose servicemember likely faces increased risk during their service, this protection is particularly important. While Servicemembers’ Group Life Insurance (SGLI) provides basic protection, it may fall short in meeting your family’s long-term needs, such as paying off a mortgage or funding a child's education, should the worst happen.

Although choosing the right coverage for your family may seem overwhelming, there are aspects to the top life insurance companies for military families that set them apart in terms of coverage options, benefits, and customer service. Learn how to evaluate different policies to select the right plan for your family’s unique needs and goals below.

What to Look for in a Life Insurance Policy for Your Military Family

When choosing a life insurance policy, consider prioritizing coverage that aligns with the needs of your military family’s unique lifestyle. The right policy should offer security during deployment, flexibility after service, protection for dependents, and financial sustainability. 

Here’s what to keep in mind when evaluating life insurance options:

• Deployment and war clause coverage: Look for a policy that provides coverage during Active Duty deployments or wartime, as some policies may exclude specific circumstances, such as all policies offered by Armed Forces Mutual.
• Flexibility after separation or retirement: Select a policy that allows you to adjust coverage as your military career progresses or when you transition to civilian life.
• Spousal and dependent coverage options: Confirm that your spouse and children can be included in the policy so they have financial security in the event of your passing.
• Affordable premiums and portability: Opt for a policy that offers competitive rates, especially if you anticipate frequent moves, and one that stays with you even after your military service ends.
• Financial strength and customer service reputation: Choose a company with strong financial backing and a reputation for excellent customer service.

Term, Whole, and Universal Life Insurance

There are three major types of life insurance plans available: term, whole, and universal. Each offers its own advantages and considerations, outlined below. 

Term Life Insurance: Offers coverage for a specific period, usually 10, 20, or 30 years. It’s affordable and straightforward, making it an excellent option for younger servicemembers who need cost-effective protection for a set period, such as while raising a family or paying off a mortgage. For younger servicemembers, term life insurance is often the most practical choice, as it provides significant coverage at an affordable price during the years when family and financial responsibilities are typically highest.

Whole Life Insurance: Provides coverage for your entire life, with the added benefit of accumulating cash value over time. However, it tends to be more expensive than term insurance and may not be necessary for those in the early stages of their career or with smaller families.

Read also: Comparing Term vs. Whole Life Insurance

Universal Life Insurance: Combines lifelong coverage with an investment component, allowing you to adjust premiums and death benefits. Though flexible, this type of policy can be complex and may require more attention to ensure that the investment portion continues to meet your goals.

Top 6 Life Insurance Companies for Military Families

As a military family, one of the most important things you can do when selecting life insurance is find a provider that understands the challenges and needs that come with military life. The right company can offer tailored coverage options that fit your specific circumstances, whether you're on Active Duty, transitioning to civilian life, or planning for long-term financial security. 

Below are some of the top life insurance companies that stand out for their military-specific benefits and services. Each of these companies brings certain strengths to the table that may work for you.

Armed Forces Mutual

• Company Overview: Armed Forces Mutual is a historic, Member-owned association specializing in providing life insurance products for military servicemembers, Veterans, and their families. With a focus on survivor support and financial readiness, you’ll find affordable and accessible coverage that caters exclusively to the military community.
• Best For: Servicemembers, Veterans, and their families looking for family-focused plans.
• Key Features: Flexible coverage options, personalized survivor benefits, and a deep commitment to military families.
• Why It Stands Out: Armed Forces Mutual's dedication to survivor support, family benefits, and financial education makes it an excellent choice for those seeking more than just basic coverage.

MassMutual

• Company Overview: MassMutual offers a range of life insurance products with a strong emphasis on long-term financial planning. Their policies are designed for those looking for permanent life insurance solutions.
• Best For: Servicemembers and Veterans who are planning for long-term financial security.
• Key Features: Comprehensive permanent life insurance options, financial planning support, and investment-linked policies.
• Why It Stands Out: MassMutual is known for its focus on helping individuals plan for the future, especially with permanent life policies that build cash value over time.

New York Life

• Company Overview: New York Life offers flexible whole and term life policies. They also provide military-friendly underwriting that accounts for the needs of servicemembers and their families.
• Best For: Servicemembers seeking flexible life insurance policies that offer both term and whole life options.
• Key Features: Customizable policies, military-friendly underwriting, and strong financial backing.
• Why It Stands Out: Their ability to offer both whole and term life insurance with the flexibility needed by military families.

Prudential

• Company Overview: Prudential offers life insurance solutions with a focus on Veterans transitioning out of the military. They understand the needs of Veterans and provide flexible options for coverage.
• Best For: Veterans making the transition to civilian life.
• Key Features: Transition-friendly policies, flexible coverage options, and a wide range of life insurance products.
• Why It Stands Out: Prudential’s expertise in serving Veterans during and after their return to civilian life makes it a go-to choice for those seeking long-term coverage with flexibility.

State Farm

• Company Overview: State Farm is widely known for providing accessible life insurance coverage and offers family bundle options for military families. They emphasize convenience and personalized service for policyholders.
• Best For: Military families seeking accessible coverage with the option to bundle policies.
• Key Features: Affordable premiums, flexible coverage options, and family bundling for greater savings.
• Why It Stands Out: State Farm is an excellent option for families seeking cost-effective solutions, with the added benefit of bundling insurance policies for even more value.

Uniformed Services Benefit Association (USBA)

• Company Overview: USBA specializes in providing affordable supplemental term life insurance for military members and their families. Their policies are designed to supplement existing military coverage for comprehensive protection.
• Best For: Active-duty military members seeking affordable supplemental life insurance.
• Key Features: Low-cost supplemental term insurance, easy eligibility, and military-specific benefits.
• Why It Stands Out: USBA offers highly affordable rates and a streamlined application process for those looking to boost their coverage on a budget.

Comparing Military-Specific vs. Civilian Life Insurance Options

When it comes to life insurance, military families face different challenges than civilian families do. Many military families opt for private life insurance policies for greater flexibility and comprehensive coverage, despite government programs like SGLI and VGLI (Veterans Group Life Insurance). 

Let’s look at the difference between military-specific options and civilian policies.

SGLI:

• Coverage Amount: Up to $500,000.
• Portability: Only valid while on Active Duty; not portable once you leave the military (unless converted to VGLI).
• Premium Range: Low premiums, but coverage is basic.

VGLI:

• Coverage Amount: Up to $500,000.
• Portability: Fully portable after leaving the military, but premiums increase with age.
• Premium Range: Higher premiums compared to SGLI, based on age and coverage amount.

Private Life Insurance:

• Coverage Amount: Varies greatly, can be tailored to family needs, often exceeding $500,000.
• Portability: Fully portable, even after leaving the military, with the ability to adjust coverage.
• Premium Range: Premiums vary based on the insurer, policy type (term, whole, universal), and individual factors such as age and health.

Why Many Families Supplement SGLI or VGLI with Private Policies

Many military families choose to supplement their SGLI or VGLI coverage with private life insurance policies to increase coverage limits, add flexibility, and ensure long-term financial security. While SGLI provides basic coverage during Active Duty, and VGLI offers portable options post-service, these programs may not provide sufficient protection for your family. Private life insurance allows for customizable policies that can be tailored to your specific financial goals.

This comparison should help you weigh the pros and cons of each option, making it easier to choose the right policy for your needs:

 

Policy Type	Coverage Amount	Portability	Premium Range
SGLI	Up to $500,000	Not portable after service	Low, based on coverage
VGLI	Up to $500,000	Portable, increases with age	Higher, age-based rates
Private Life Insurance	Customizable, can exceed $500,000	Fully portable, flexible	Varies by insurer and health

 

How to Choose the Right Policy for Your Family

Choosing the right life insurance policy starts with understanding your family’s specific needs. Begin by assessing your income replacement goals to find coverage sufficient to maintain your family's lifestyle in the event of your passing. Also, consider any existing debts, such as a mortgage or car loan, that would need to be paid off to avoid financial strain on your loved ones. Finally, think about future expenses, like your children’s education, which may require more coverage than you may initially anticipate.

As you evaluate different policies, remember to factor in your military transition plans. If you're planning to move from Active Duty to civilian life, consider how your insurance needs will change. Some policies, like SGLI, are only active during your service, while others, such as VGLI or private policies, offer more flexibility post-service. Make sure your plan will continue to meet your family’s needs as your career evolves.

Always review policy exclusions, riders, and conversion options when selecting the best insurance plan. Exclusions may limit the circumstances under which your beneficiaries receive payouts, so it’s important to be clear about what’s covered. Riders can add extra coverage, such as for accidental death. Conversion options may allow you to switch from term to permanent life insurance later on. Considering any value-added options offered by a company may also influence your decision-making. These features offer added flexibility and protection for your family.

While it can feel overwhelming and confusing, a licensed insurance advisor who understands military benefits and options may help. Their job is to provide personalized advice based on your family’s situation and future needs. They’ll help you navigate the complexities of military life insurance programs so that you select the most suitable plan for your needs.

Get the Right Coverage with Armed Forces Mutual

Armed Forces Mutual provides you with the peace of mind that comes from a military-focused company that puts you and your family first. Find a policy that’s right for you or subscribe today to learn more about different types of insurance coverage, and see why Armed Forces Mutual offers the best policies for servicemembers, Veterans, and their families.