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Looking after the welfare of loved ones following our death is among our most important duties, which is why identifying the best life insurance for veterans is paramount. Thankfully, when uniformed service members separate from the military, they have an abundance of options regarding life insurance. While we discuss these in detail later, departing personnel can convert their Servicemembers Group Life Insurance (SGLI) into Veterans’ Group Life Insurance (VGLI), purchase coverage from a private company, or convert SGLI or VGLI into a private policy.
In any event, there are decisions to make, and each carries its own advantages, costs, and benefits that a veteran should understand to ensure they choose the best solution to their needs. What’s more, there are deadlines for converting SGLI, as well as additional deadlines for converting policies without triggering a medical exam requirement. It’s complicated, and there are a lot of moving parts. So to help you make the most informed decision possible, we’ve rounded up some of the highest-rated companies that provide life insurance for veterans.
- Best Overall: Prudential Veterans’ Group Life
- Best Whole Life Insurance: New York Life
- Best Term Life Insurance: American Armed Forces Mutual Aid Association (AAFMAA)
- Best for Families: United Services Benefits Association (USBA)
- Best for Disabled Vets: United Services Automobile Association (USAA)
Best Overall
Prudential Veterans’ Group Life
Pros
- Term and universal life insurance available
- Wide variety of riders to customize your policy
- Online quotes available
Cons
- Whole life insurance is not available
- Some account management is done via mail
Key Features
- Continuous lifetime coverage, provided premiums are paid on time
- No exclusions for PTSD, TBI, or other medical and mental health conditions
- No medical exam required for most policyholders
Why It Made The Cut
- Veterans who want a VGLI alternative may find their best option with Prudential. You’ll potentially enjoy all the benefits of your military life insurance with less hassle and fewer costs.
Best Whole Life Insurance
New York Life
Pros
- Wide variety of riders to customize your policy
- Living benefits rider for terminally ill policyholders
- Industry leader for financial stability
Cons
- Online quotes not available
- Not all policies available in every state
Key Features
- Military SGLI and VGLI plan conversion available
- Eligible whole life policies pay dividends
- Offers whole, term, and universal life policies
Why It Made The Cut
- Veterans in search of whole life insurance from a well-established company may like what they see in the venerable New York Life. It’s been underwriting policies since 1845.
Best Term Life Insurance
American Armed Forces Mutual Aid Association (AAFMAA)
Pros
- Also offers wealth management and mortgage loans
- Modern website and online resources
- Policies exclusively offered to military households
Cons
- Not available to separated veterans in all states (available to active duty, Guard, Reserve, and retirees nationwide)
Key Features
- Many policies do not require a health screening
- Variety of term life plans and several whole life policies
- Coverage for active-duty military, retirees, veterans, military spouses and children at any age
Why It Made The Cut
- If you’re looking for flexible and inexpensive term life insurance, then you may have much to celebrate with AAFMAA. You’ll likely receive a competitive premium with no medical exam requirement.
Best for Families
United Services Benefits Association (USBA)
Pros
- Low-cost children’s group term rider
- Digital resources and coverage calculators available online
- Sponsors veterans scholarship program and community projects
Cons
- Age limits are stricter than most
- Term coverage limits could be higher
Key Features
- Whole life coverage limits upwards of $750,000
- Term life policies are renewable and range between five to 20 years
- 30-day “free look” that fully refunds your money
Why It Made The Cut
- This not-for-profit insurer offers veterans with families a variety of reasonably priced household plans and policies for families and married couples with dependents.
Best for Disabled Vets
United Services Automobile Association (USAA)
Pros
- Coverage can be added after major life events
- Guaranteed insurability included at no additional cost
- Few complaints with the National Association of Insurance Commissioners (NAIC)
Cons
- Most plans require a medical exam
- Some policies not available in every state
Key Features
- Coverage limits in excess of $10 million for both term and whole insurance
- Age limits as high as 90 years with select plans
- Supplemental coverage beyond SGLI benefits for active-duty service members
Why It Made The Cut
- Disabled veterans who are searching for high coverage limits should check out USAA life insurance. This military provider can insure amounts well beyond VGLI’s $400,000 limit.
Things to consider before buying life insurance for veterans
VA life insurance
Active-duty military enjoy ample and affordable coverage through the Servicemembers’ Group Life Insurance plan, simply referred to as SGLI. While this protection isn’t available post-service, veterans have the option to convert their SGLI policy into a Veterans’ Group Life Insurance plan (VGLI) within 485 days of being discharged from duty. Those who convert to VGLI coverage within 240 days of discharge are not required to undergo a health screening. Yet, veterans who wait until after this threshold are often obliged to provide proof of good health.
VGLI is generally preferable for veterans and retirees with medical conditions that may make qualifying for private life insurance challenging, such as PTSD, cardiovascular disease, neurological conditions, or service-related injuries, to name a few. However, VGLI is often costlier than SGLI, and its premiums increase with the policyholder’s age. This is not always the case for traditional term life policies. Further, VGLI has a maximum coverage limit of $400,000, which is much lower than comparable private plans. So, depending on a veteran’s personal situation, a whole or term life policy from a civilian company may be preferable.
Veterans have four main life insurance options
Both veterans and retired military members have more options than most when it comes to life insurance. But this abundance adds a layer of complexity, too. Here are the most common options veterans face when choosing a policy.
- Purchase a civilian life insurance policy. Military members can let their SGLI plan lapse and purchase a policy from a private insurer. This is a VGLI alternative that is best for those who are looking for coverage limits and premiums that better suit their needs.
- Convert SGLI to VGLI. If you want to carry your military benefits over into civilian life, you have 485 days to do so.
- Convert SGLI to a civilian life insurance plan. A handful of providers will allow you to convert an SGLI policy into a private one without the burden of a health screening within 120 to 240 days of discharge. This could be beneficial to those with medical conditions they’d prefer to keep private.
- Convert SGLI to VGLI, and the VGLI to a civilian policy. Some companies allow you to convert from VGLI to a private policy at any time without the need for a health screening. This option provides plenty of flexibility to veterans and retired military members who need time to compare rate quotes.
Be mindful of the reality that life insurance policies vary significantly from one underwriter to the next. If you don’t receive an agreeable quote from one, you just might from another. This is why it’s always recommended to comparison shop your life insurance policy with three to five providers. Doing so will always yield the lowest rate.
FAQs about life insurance for veterans
Q: What is the best life insurance for veterans?
A: The best life insurance for veterans is generally the policy that is most sensible for each unique policyholder. For instance, a veteran who is relatively young and healthy will likely find attractive coverage through a private insurance company like New York Life. Similarly, a Navy veteran may find Navy Mutual easily fits within their current suite of financial products. On the other hand, the best for disabled vets could be VGLI, or a VGLI alternative like Prudential. It really comes down to cost and personal preference.
Q: Do veterans get free life insurance?
A: Some veterans will get free life insurance. Specifically, policyholders who suffer extreme disability due to a combat-related injury may qualify for free life insurance through Service-Disabled Veterans Life Insurance, or S-DVI. However, aside from those with dire circumstances, most veterans will not receive life insurance for free.
Q: Can veterans with PTSD get life insurance?
A: Yes, veterans with PTSD can get life insurance. Although, their options are much more limited because most private insurers will deny coverage to veterans with certain medical issues and disabilities, PTSD included. Still, veterans with PTSD are eligible for coverage through VGLI, as well as S-DVI — two VA life insurance programs that are backed by the Department of Veterans Affairs.
Q: Do honorably discharged veterans have life insurance?
A: Honorably discharged veterans have plenty of life insurance options. Some will choose to transfer their military benefits into their civilian life by converting their SGLI plan into a VGLI plan. Alternatively, others will opt for a private life insurance policy with a civilian company. The VA also offers programs such as S-DVI for disabled veterans and those suffering from traumatic brain injury (TBI) and PTSD.
Final thoughts
Veterans have plenty of choices when it comes to purchasing life insurance. But to take the most advantage of your benefits, you’ll need to make a few big decisions within 240 to 485 days of being discharged from the service. Speak with three to five insurance companies to see which can offer you the best rate on a high-quality policy. Don’t settle for cheap coverage that comes with an unreasonable number of exclusions. Value for money is important, but so is the financial well-being of your loved ones.
Methodology
To choose the best life insurance for veterans for this list, the team at Task & Purpose looked at a large number of companies. We focused on cost, plan features and options, ease of use, customer service reviews, and past customer ratings as the most important factors in our ratings. Learn more about our methodology in the Task & Purpose review guide.
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