Term life insurance is the most popular form of life insurance available, largely due to its affordability. Depending on your age and other health factors, term life policies can provide hundreds of thousands of dollars in coverage for as little as a few dollars a month in some cases, making it a smart, affordable way to protect your loved ones should something happen to you.
Term life insurance, however, is deemed “pure insurance,” meaning you pay for the insurance but nothing else. Unlike whole life insurance, term life does not build cash value that you can draw upon for future use. It is also coverage for a defined period of time, meaning that the coverage expires at the end of the selected “term” — whether that’s 5 years, 30 years, or somewhere in between. At the end of the term, the policy will expire unless it is able to be renewed or converted to a different policy (usually whole life insurance).
While the military provides term life insurance through the Servicemembers’ Group Life Insurance (SGLI), $400,000 is the maximum amount of coverage you can receive, and you lose it when you leave the service. You can convert your SGLI to Veterans’ Group Life Insurance (VGLI) without medical underwriting if you do so within 240 days of separation, however VGLI premiums are much higher and increase exponentially every five years.
What We Offer:
AAFMAA’s military term life insurance options offer more flexibility than SGLI and VGLI, as well as always-affordable rates. Plus, our life insurance experts work with you and your family to answer all of your life insurance-related questions, and help you find the best term life policy for you.
Level Term I
AAFMAA’s Level Term I plan offers affordable coverage from $50,000 to $800,000 with premiums that never increase. Unlike the military’s SGLI, Level Term I protection stays with you even after you leave the military. Members also get $10,000 of coverage per dependent child under age 21 at no additional cost.
Level Term I is available to military servicemembers and Veterans, spouses, and children ages 18 to 49, as well as grandchildren ages 18 to 26. Up to age 49, the level premium payment provides the stated face value death benefit — for example, you buy a policy for $400,000 of coverage at age 29, you pay the same monthly premium through age 49 and have the same $400,000 benefit available throughout those 20 years. If you keep the level term I policy past age 50, your premium stays the same but the death benefit will begin decreasing until the plan ultimately terminates at age 60. Up until age 48, you can convert 100% of the initial face amount to our 5-Year Renewable Term plan or our Value-Added Whole Life policy to continue your coverage without additional medical underwriting. (Note that the ages mentioned are reduced for tobacco users.) Upon conversion, your new premium will be determined based on the policy you choose, your age and nicotine use.
Level Term II
Level Term II is a flexible term policy available to military members, Veterans, and spouses and their children, ages 18-75, as well as their grandchildren ages 18-26. Level Term II lets you choose various term lengths, ranging from a minimum of 5 years to a maximum of 30 years. Unlike Level Term I, you can choose an Annual Renewable Option beginning at the end of your initial term that allows you to extend your coverage up to age 100 (though new rates apply) without decreasing your death benefit.
5-Year Renewable Term
AAFMAA’s 5-Year Renewable Term policy is designed for Veterans and military spouses over age 45 in order to bridge the gap from the time that other term policies expire. It provides an alternative to VGLI with coverage from $50,000 to $800,000 that renews every 5 years at an adjusted rate up to age 70. Before age 66, the policy can be converted to our Value-Added Whole Life plan with guaranteed insurability.
Find the Right Life Insurance Coverage with AAFMAA
AAFMAA’s life insurance experts are here to help you find the best policy for your unique needs. AAFMAA offers affordable military term life insurance for Veterans, servicemembers, spouses, their children, and grandchildren with superlative personal service from an organization dedicated to serving military families. Call 877-398-2263 to speak with a Membership Coordinator or get a free quote online today!