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.
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:
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.
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.
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.
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 |
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.
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.