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Wealth Builder Life Insurance

Peace of mind, always

  • CheckmarkNo medical records or physicals are required
  • Checkmark$10,000 increments from $10,000 to $1,000,000
  • CheckmarkLong-term care settlement option included
  • CheckmarkMembers, Military Servicemembers, Member spouses

About This Plan

What is included?

  • Specially designed Net Single Premium (one lump sum payment) Value-Added Whole Life policy
  • The Net Single Premium is $750 per $1,000 of death benefit ($10,000 - $1,000,000 coverage)
  • Cash value grows at a current crediting rate of 5.1%*
  • Guaranteed crediting rate of 2.5%*
  • Can be approved regardless of age, sex, or nicotine use
  • No medical records or physicals are required
  • Option to convert into a lifetime stream of income after holding the policy for 10 years
  • Long-Term Care Settlement Option included for no additional premium

Who is it for?

Members of the military community who are approaching or beyond retirement age.

  • Veterans
  • Military Spouses
  • Children of Active Members
  • Surviving Military Spouses
  • Those who might not meet medical requirements of other policies

Cover Your Retirement Needs with One Simple Policy

Wealth Builder Life Insurance is a comprehensive product that consists of 1 Plan with 4 Solutions to help members of the military community, their spouses, and widows/widowers over age 55 prepare for their changing needs in retirement and confidently achieve a secure financial future.

The 4 Solutions built into Wealth Builder Life Insurance include:

1.  Permanent life insurance coverage, which grows a cash value at AAFMAA’s industry-leading 5.0% crediting rate*;

2. The ability to convert your cash value into a stream of income and create your own pension, with no fees;

3. A Long Term Care Settlement Option that can give you access to your death benefit while you are still alive should you need help covering long-term care costs; and

4. The ability to take out a policy loan or even surrender the policy and receive the cash value back with no penalties from AAFMAA.

With Wealth Builder Life Insurance, you receive permanent coverage and cash value growth that continues to build your retirement savings at a high rate, tax-deferred, over time without any RMDs. You also have options to diversify your retirement mix, direct your funds easily to your changing needs, and your loved ones will receive AAFMAA’s exclusive Survivor Assistance Services, all with no hidden fees, restrictions, long-term commitments, or medical exam.

At the time of application, the insured must not be in a hospital, confined to a bed or have a known terminal illness expected to result in death within two years of issue. The policy is subject to standard two-year contestability and suicide clause.

Download the Wealth Builder Life Insurance Brochure to print or share more information about this retirement changing opportunity with your loved ones.

Considering a Deferred Annuity? Wealth Builder is a Better Solution.

When investing in a life insurance plan, there are several types of deferred annuities to consider. A deferred annuity is a long-term investment in which you invest a sum of money now and receive payments after the initial sum has accrued interest over a period of time, typically years in the future. The type of deferred annuity you purchase—fixed, variable, indexed—will determine how the rate of return is computed. 

While there are many benefits of tax-deferred annuities, once the policy is annuitized and the accumulation period ends, earnings in the deferred annuity become subject to taxation. This applies to both individual annuities and joint and survivor annuities. 

One significant benefit of Wealth Builder Life Insurance is that all policies are Modified Endowment Contracts (MEC). A Modified Endowment Contract is a tax qualification of a life insurance policy where premiums are paid into a life insurance policy more quickly than normal, usually less than seven years. Since MECs grow tax-deferred and have a tax-free death benefit, they are seen as a beneficial alternative to traditional deferred annuities. 

Read more: What is a MEC (Modified Endowment Contract) life insurance policy?

Common Questions

You may access your Wealth Builder Life Insurance cash value any time by taking a policy loan, annuitizing the cash value, or surrendering your policy. If you choose to surrender your policy, you will receive all of your money back—both the premium paid and any interest earned. If you receive the funds before you are age 59½, you may have to pay a 10% tax penalty on the interest earned to the IRS. Alternatively, after holding the policy for 10 years, you may convert your Wealth Builder Life Insurance policy into a lifetime annuity payment. Additionally, at any time you may take a policy loan of up to 75% of the cash value in the policy.

All Wealth Builder Life Insurance policies are Modified Endowment Contracts (MECs) and subject to TAMRA. You may own any number of Wealth Builder Life Insurance policies, in increments of at least $10,000 each, up to a total combined face value of $1 million.

If you decide to cash surrender one or more Wealth Builder Life Insurance policies purchased during the same calendar year, you will pay taxes on the interest earned for all of the policies you own - even those you do not surrender, which remain in force. When you cash surrender subsequent policies, since you have already paid some or all of the taxes, you will pay less tax on the gain for those policies. 

Ultimately, the amount of total taxes on the policies surrendered will be roughly the same, because the tax basis of the subsequent policies will be increased to reflect the taxes already paid. This will not have an impact on policies that are annuitized, if all policies are surrendered simultaneously, or in the event of the policy owner’s death.

Your Wealth Builder Life Insurance policy is guaranteed to earn a minimum crediting rate (specified in your policy) less administrative charges for mortality and expenses. The graded death benefit only applies to issue ages 78 and higher and will pay 90% of the initial death benefit in year one, 95% in year two, and 100% in year three, and thereafter


An annuity is a financial product that offers a guaranteed income stream, primarily for retirement. 

Types of Annuities:

Immediate Annuity
Contract under which an insurance company provides monthly payments, starting immediately, in exchange for a lump sum. 

Deferred Annuity
Contract under which an insurance company provides monthly payments in exchange for a lump sum after an accumulation period in which the earnings accrue interest. 

Individual Annuity
Contract under which an insurance company pays a monthly benefit for the remainder of the beneficiary's life. 

Joint and Survivor Annuity
Contract under which an insurance company pays a monthly benefit for the remainder of both the beneficiary and their spouse’s lives. This ensures that monthly payments to the surviving spouse continue after the passing of the other. 

The crediting rate is the interest applied to the policy investment, expressed as an annual rate. 

A premium is the initial cost of your insurance contract. 


AAFMAA Wealth Builder Life Insurance is a life insurance policy. This is not long-term care insurance. 

Subject to terms and conditions of the policy, including exclusions and limitations. There is no insurance coverage unless you apply and are accepted by AAFMAA, a policy is issued and you pay the required premium. No war, aviation, terrorist clause. All policies include Survivor Assistance Services.

*AAFMAA's crediting rate is currently 5.1% for 2024, minus an administrative cost, currently 0.75% for a net current return of 4.35%. This rate is not guaranteed and is subject to change. The guaranteed crediting rate is 2.5%, minus the administrative fee for a net guaranteed return of 1.75%.

Wealth Builder Life Insurance policies are Modified Endowment Contracts (MECs) subject to the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). Under TAMRA, you may owe taxes and penalties if you surrender or take a loan against the cash value in your Wealth Builder Life Insurance policy. Please read important tax information here. AAFMAA does not provide tax advice. If you have questions about the tax implications of this product or other life insurance products you own, please consult a qualified tax professional.

The U.S. Government does not sanction, recommend or encourage the sale of this product. Subsidized life insurance may be available from the Federal Government.