Life insurance is an important part of almost any financial plan. This is the case regardless of one’s occupation.
When obtaining life insurance coverage, there are some professions – such as those who are members of the military – who may have a harder time getting all of the benefits that they may need.
Likewise, most life insurance providers will charge an additional amount of premium to cover those who are in “hazardous duty” occupations.
And, even if an individual in such an occupation can obtain coverage, there may be a long list of restrictions that can make the coverage difficult to collect in the event of a claim.
This, however, is not the case for those who get their life insurance and other various benefits through Navy Mutual.
The History of Navy Mutual Life Insurance
Navy Mutual has been in the business of offering insurance and annuity benefits to military members since 1879 – often without fees, fine print, or frustration on the part of the policyholders regarding securing coverage.
This insurer, which is the Navy Mutual Aid Association (but referred to as Navy Mutual for short), is a non-profit entity that offers benefits to the Navy and other military veterans.
As a non-profit, Navy Mutual has acted as a mutual insurer, with payments going towards improving member services, and for reducing its overall costs.
For more than a century, this insurer has fulfilled its duty of supporting military families by offering numerous life insurance and retirement annuity options so that they can also experience the financial security they deserve.
In addition to offering life insurance and annuities, Navy Mutual offers other helpful services, as well, such as assistance with obtaining government benefits to which military members are legally entitled and educating veterans and their families on matters of insurance and financial security.
Also, beneficiary service and support is an important aspect of what is offered by Navy Mutual, as is the representation of the Department of Veterans Affairs.
As a chartered Veteran Service Organization, Navy Mutual can provide its members with the assistance that they need with their benefits. An added service is free secure vault storage of valuable documents for its members.
Navy Mutual Life Insurance Review
In addition to the financial and insurance-related benefits it offers, Navy Mutual is well known for being a leader in community service, as well as in civic responsibility.
The company is very active within the communities that it serves – particularly with those that pertain to military (current and former) members.
Some of the areas in which Navy Mutual serves include the following:
- Terminal Illness Options Counseling – Navy Mutual offers to counsel military families – regardless of their membership status – at no charge or obligation, when an active duty military member has been diagnosed with a terminal illness.
The company also presents various financing options to the survivors of those military members who die during active duty versus those who die during retirement.
Also, the company provides survivors and military members with an explanation of various benefit election options that are available.
- Help for Military Families in Need – Navy Mutual also helps military members and their families in times of need by contributing to the Toys for Tots program, as well as to the Nav Marine Corps Relief Society, on a yearly basis.
As it pertains to benefits, the plans that are offered through Navy Mutual offer some unique components, such as the following:
- No War Clauses. Regardless of where a member serves, he/she does not have to worry about benefits being denied due to a war clause.
- No Military Service Restrictions. Most life insurance providers will charge an additional amount of premium to those who serve in the military – if they even cover military personnel at all – to provide benefits for hazardous duty situations, aviation, and acts of terrorism.
At Navy Mutual, insureds do not need to worry about this, either.
- Maximum Coverage Is Available. Navy Mutual allows its members to purchase their maximum amount of life insurance coverage – which is currently up to $1 million – regardless of where the individual is currently, or where he or she is going.
- No Sales Fees or Commissions. Because Navy Mutual is not a commercial life insurance company, there are no shareholders to keep satisfied, and members can enjoy the benefits of low costs.
- Portable Coverage. Unlike some other insurers that cater to military members, the insurance coverage that is obtained through Navy Mutual can stay with the individual – even as he or she transitions from the military.
- Fast Application for the Process for Members Who Are Preparing to Deploy. Navy Mutual also offers expedited processing of insurance and annuity applications for those members who are preparing to deploy. This can help them to get a plan in place – often within just a few days.
- Online Application Process. Navy Mutual also offers a convenient application process, so members do not need to meet in person with an insurance agent to get their information completed, and their policy in place.
It can also help those members who are already stationed in war zones and other remote areas to still apply for coverage.
Navy Mutual is secure and stable from a financial standpoint, and the company is known for making timely payments of its policyholders’ claims.
The company has more than $25 billion of total insurance in force and receives more than $80 million in total direct premiums.
As of year-end 2016, the company had more than 114,000 policyholders in its book of business and more than $2.9 billion in total cash and invested assets.
Insurer Ratings and Better Business Bureau (BBB) Grade
Over the years, Navy Mutual has kept a high level of financial stability. One of the key reasons behind this is the company’s low overhead, as well as its consistently increasing number of new members.
The company also has substantial financial reserves so that it can pay out its policyholder claims promptly. Due in large part to its stable financial footing, Navy Mutual has received high ratings from the insurer rating agencies. This includes an A+ rating from Fitch Ratings Agency.
Also, even though Navy Mutual is not an accredited life insurance company through the Better Business Bureau (BBB), it has been given a grade of A+ by the BBB. This is on an overall grading scale of A+ to F.
Over the past three years, Navy Mutual has only had to close out one single customer complaint through the Better Business Bureau.
This criticism centered on the company’s advertising and sales issues. (No complaints have had to be closed out with the BBB within the past 12 months).
Life Insurance Coverage Offered Through Navy Mutual Life
Navy Mutual Life Insurance offers an extensive list of different life insurance policy options to choose from. These include both term and permanent life insurance options.
These include the following:
- Flex Term Life Insurance – The Flex Term policy offers a way to obtain level term insurance coverage for a set period of time, along with small premiums. This coverage is guaranteed up to the insured’s age of 50 (or to age 40 if the insured is a smoker).
There are no restrictions, and the coverage can continue even after the insured is no longer in the military. This plan provides death benefit coverage from $50,000 up to $1 million – and there are no military service restrictions, war clauses, terrorism clauses, aviation restrictions, or travel restrictions.
There are several additional notable features on this coverage, including a guaranteed convertibility option, accelerated death benefit option, and a child benefit rider that can be added.
- Express Term Life Insurance – The Express Term plan is a term life insurance policy that members can secure immediately, without having to take a physical as a requirement for approval. This policy offers $250,000 in life insurance coverage for a full ten years at a fixed monthly premium.
This can be a viable option for those who are preparing to deploy soon and need to secure life insurance protection for those they care about.
- Level ll Term Life Insurance – The Level ll term life insurance product essentially takes over where the company’s Flex Term plan ends by providing level life insurance coverage – and stable premiums – for members up to the age of 75.
This policy is offered in benefit increments of $50,000 – with a maximum coverage amount of $1,500,000. This policy is purchased in one-year increments, for a minimum duration of five years.
There are actually three different underwriting categories for this policy – which can impact the amount of premium that is due. These underwriting classes include the Standard, the Select, and the Super Select.
This plan can also be converted over to a whole life insurance policy with no physical requirements in order to prove evidence of insurability.
- Flagship Whole Life Insurance – The Flagship Whole Life insurance policy option through Navy Mutual offers coverage for the member’s entire lifetime – provided that the premium is paid. This participating whole life insurance plan combines the protection of a permanent life insurance policy with the flexibility of tax-advantaged cash value growth.
This means that the funds inside of the policy’s cash value can grow and compound over time without the gain being taxed (unless the funds are withdrawn). The policyholder can borrow against the cash value for any reason, such as paying off higher-interest debt, or even supplementing his or her retirement income.
The death benefit on the Flagship Whole Life plan starts at $10,000 and goes up to $1 million. This program offers guaranteed lifetime death benefit protection, as well as a chronic/terminal illness rider. In addition, because Navy Mutual is a mutual entity, policyholders may also be eligible to receive dividends with this policy.
Navy Mutual Life Insurance Coverage Options
|Coverage Option||Key Features|
|Flex Term Life Insurance||• Level Term Coverage up to Age 50 |
• Benefits: $50,000 to $1 Million
• No Military or Health Restrictions
• Convertibility, Accelerated Benefit, Child Rider
|Express Term Life Insurance||• Immediate Approval, $250,000 for 10 Years |
• Ideal for Those Preparing for Deployment
|Level II Term Life Insurance||• Level Life Coverage up to Age 75 |
• Benefits: $50,000 to $1.5 Million
• Convertible to Whole Life Without Proof
|Flagship Whole Life Insurance||• Lifetime Coverage, Cash Value Growth |
• Death Benefit: $10,000 to $1 Million
• Chronic/Terminal Illness Rider, Dividends
Other Products and Services Available
Navy Mutual also offers retirement annuities, which can help to ensure that members will have an ongoing lifetime income in retirement, as well as a way to save and grow money in a tax-advantaged manner.
The company offers three annuity options, including:
- Single Premium Immediate Annuity
- Single Premium Deferred Annuity
- Flexible-Premium Retirement Annuity
How to Get the Best Premium Rates on Life Insurance Coverage Through Navy Mutual
When searching for the best premium rates on life insurance, it can be important to shop and compare to determine that the coverage you need is priced to meet your budget. If you are interested in comparing policies and premium quotes from several top insurers, we can help.
We are an independent insurance brokerage, and we work with many of the best life insurance carriers in the industry today. That means we can provide you with detailed information about multiple options, and from there, you can choose which will be the best one for you and your specific needs.
To see the policies and quotes geared toward your situation, just click here to fill out our quote form.
The Bottom Line – Navy Mutual Life Insurance Review
Navigating the multifaceted world of life insurance, especially within military professions, brings forth unique challenges and demands.
Navy Mutual emerges as a commendable beacon in this sector, addressing the specialized needs of service members with its robust, flexible, and attuned offerings.
Not just an insurer, the entity extends its hand, delivering a mixture of financial security, education, and support services, which seamlessly meld with its compassionate community and outreach endeavors.
It stands as a testament to a dedication that transcends mere financial transactions, intertwining support, reliability, and unwavering commitment into the very fabric of its offerings, thereby rendering a comprehensive safety net for military families across generations.
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Navy Mutual Life Insurance Review
Product Name: Navy Mutual Life Insurance
Product Description: Navy Mutual Life Insurance steadfastly serves military members and their families, offering a range of life insurance and annuity products without imposing military service restrictions or war clauses. Tailoring their services with a firm understanding of the unique challenges faced by the military community, the company renders a secure financial foundation, ensuring that those who serve, or have served, along with their families, are enveloped with financial protection and stability throughout varying life stages.
Providing an array of products, including term and whole life insurance, alongside annuities aimed at ensuring financial security in retirement, Navy Mutual Life Insurance strides beyond mere transactional interactions, positioning itself as a steadfast ally to the military community. The non-profit status of the company ensures that it’s driven not by shareholder demands but by a genuine inclination to cater to the best interests of its members, reinvesting its profits to enhance services and reduce overall costs. Apart from its insurance and annuity offerings, Navy Mutual distinguishes itself through a variety of services that facilitate access to government benefits, educate on insurance and financial planning, and ensure continual support to beneficiaries, thereby embedding itself as a crucial pillar within the financial planning landscape of military personnel and their families.
Cost and Fees
- No War Clauses or Service Restrictions: Offers peace of mind to service members knowing that their coverage is not restricted by their service conditions.
- Financial Strength: Exhibits significant financial stability, ensuring the company’s reliability in meeting policy obligations.
- Non-Profit Status: Being a non-profit organization, it prioritizes member services and offers competitive premium rates without compromising on comprehensive coverage.
- Additional Services: Beyond insurance, the company assists with securing government benefits and provides educational resources, broadening its utility to members.
- Limited Audience: Products and services are specifically tailored, and therefore limited, to military members and their families, excluding a broader public demographic.
- No Online Quotes: Potential customers cannot obtain instant online quotes, which might be seen as an inconvenience in the digital age.
- Product Range: While comprehensive, the range of products may not be as extensive as those offered by larger, commercial insurance entities.
- Geographical Limitations: Although it provides valuable services, accessibility and localized support might be limited in some geographical areas.