Best Life Insurance Companies for Veterans

Prudential Veterans’ GroupLife provides the best life insurance for veterans

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Active-duty military personnel are eligible to receive up to $400,000 in life insurance coverage offered through Servicemembers’ Group Life Insurance (SGLI) and that benefit continues for 120 days after leaving military service. Within 120 days of leaving service, you have the option to convert your current SGLI policy into a civilian one. Additionally, life insurance companies for veterans offer specially designed policies. 

The best life insurance companies for veterans have positive ratings and reviews and a history of serving veterans and their families. They also offer multiple different policy types including whole life policies, and have exclusions for things like PTSD and mental health issues.

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The 5 Best Life Insurance Companies for Veterans in 2021

Best Overall : Prudential Veterans' Group Life Insurance


Prudential

 Prudential

  • AM Best Rating: A+
  • Plans: 11
  • Issue Ages: Doesn’t disclose
Why We Chose It

The company offers veterans a guarantee of lifetime coverage with no medical exam requirements. It’s also a reputable company with a long industry history.

Pros & Cons
Pros
  • Provides coverage for active service members and military veterans

  • No medical exam necessary in most cases

  • No exclusions for mental health, PTSD, or TBI

Cons
  • Strict eligibility requirements

Overview

Founded in 1875, Prudential has an A+ rating from AM Best. It provides coverage for millions of active service members and hundreds of thousands of military veterans with VGLI, a program established with the Veterans' Insurance Act of 1974.

Administered by Prudential on behalf of the Department of Veterans Affairs since the launch of the VGLI program, this product guarantees lifetime coverage for the rest of a veteran's life, no matter what happens to your health or employment status, as long as you pay your premiums. You have one year and 120 days after leaving active military service to enroll. If you apply within 240 days, no medical questions will be asked of you.

The monthly premium for $150,000 of coverage is $19.50 per month for a 35-year-old veteran and $100.50 per month for a 55-year-old veteran.

Online quotes are available on the websites for Prudential and Veterans Affairs. For assistance over the phone, you can call the company directly Monday through Friday between 8 a.m. and 5 p.m. EST.

Read the full Prudential Life Insurance review.

Best for Senior Veterans : American Armed Forces Mutual Aid Association (AAFMAA)


AAFMAA

AAFMAA

  • AM Best Rating: Not rated
  • Plans: 6
  • Issue Ages: Up to 84
Why We Chose It

AAFMAA offers life insurance policies tailored especially to senior veterans. It has several policies to choose from and covers veterans up to age 84.

Pros & Cons
Pros
  • Offers a cheaper alternative to VGLI

  • Offers no medical exam insurance policies

  • Has been in business for more than 140 years

Cons
  • Coverage not available in all states

Overview

Founded in 1879 when the War Department realized there was a need to take care of soldiers after Custer's Last Stand, AAFMAA offers term-life insurance and whole life insurance, specifically for veterans, with coverage available nationwide (although only available to military retirees and their spouses in Washington, D.C., Mississippi, New Jersey, New York, Utah, Washington, and Wisconsin).

In addition, the company offers no medical exam life insurance policies, including ANNUITYLife, Wealth Builder Life, and the Senior Survivor Plan, all of which are designed for older veterans and their spouses.

Instant online quotes are available on AAFMAA's website, without having to speak with an agent. Otherwise, interested customers can speak to an insurance sales representative over the phone, Monday through Friday from 8:30 a.m. to 5:30 p.m. EST.

The company's Level Term I plan offers coverage up to age 49 and its Level Term II offers options ranging from five to 30 years of term life coverage.

An online quote for a nonsmoking 35-year-old male veteran for $150,000 in coverage costs $8.65 per month for Level Term I and $10.35 per month for Level Term II. Whole life monthly premiums range from $136.24 (for the pay for life option) to $357.30 for a seven-year premium duration. For a nonsmoking 55-year-old male veteran seeking up to $150,00 in coverage, insurance costs $45.45 per month for Level Term II. Whole life monthly premiums range from $295.41 (for the pay for life option) to $708.60 for the seven-year premium duration.

Best for Disabled Veterans : United Services Automobile Association (USAA)


USAA

 USAA

  • AM Best Rating: A++
  • Plans: 3
  • Issue Ages: Doesn't specify
Why We Chose It

The company offers life insurance plans that cater to disabled veterans. It also has high ratings and online quotes.

Pros & Cons
Pros
  • Has been in business since the 1920s

  • Customers can add their children to their policies

  • Policies for disabled veterans

Cons
  • Medical checkup is required to rate the policy

Overview

With the highest rating available from AM Best of A++ (Superior), USAA has been in business since 1922 and offers a variety of life insurance policies for active military and veterans, including term, whole, and universal life.

Online quotes are available but you must create an account first. Otherwise, interested customers can reach out to the company over the phone Monday through Friday, 8:30 a.m. to 11 p.m. EST, and Saturday, 9 a.m. to 6 p.m. EST.

You can also apply to get a policy in the company's mobile app, with the process taking about 20 minutes. At that point, a free medical exam is required and will be scheduled at a time that works for you. This appointment can be done at your home or wherever you choose. Within a couple of weeks, USAA will review your eligibility and determine your premium.

The company offers term life insurance policies for as little as $12 a month for military members that includes coverage during wartime and up to $25,000 in assistance to cover the cost of severe injuries. Policyholders can retain this coverage—guaranteed—after leaving active duty. These policies, available in increments of 10, 15, 20, 25, or 30 years, can be upgraded to whole life insurance and universal life insurance as well. USAA gives retiring military members the option to replace SGLI once they leave active duty with the ability to lock in premiums—even for retiring military members who are disabled.

Read the full USAA Life Insurance review.

Best for Families : Uniformed Services Benefit Association (USBA)


USBA

 USBA

  • AM Best Rating: A++
  • Plans: 8
  • Issue Ages: Doesn't specify
Why We Chose It

The company is ideal for veterans with families because it offers family plans, coverage for married couples, and coverage for dependents.

Pros & Cons
Pros
  • Has been in business since the 1950s

  • Offers a family plan

Cons
  • Not available in all states

Overview

Founded in 1959 to meet the needs of military personnel, USBA offers veterans term and whole life insurance to replace SGLI when they leave the military. Policies are underwritten by New York Life Insurance Company, which has received an A++ (Superior) rating from AM Best.

Instant online quotes are available. You can also call the company and speak with a sales agent Monday through Friday from 9 a.m. to 5:30 p.m. EST.

A nonsmoking 35-year-old male can expect to pay $18 per month for $150,000 of 20-year level term insurance and $163.50 per month for lifetime value whole life insurance. A nonsmoking 55-year-old male can expect to pay $38.50 per month for $150,000 10-year level term insurance and $433.50 per month for life-time value whole life insurance.

The company has a first to die policy called the USBA Double Value Two for One Family Group Level Term Life Plan. This offers equal coverage for married couples with one joint monthly premium and pays upon the death of the first spouse. This is an appealing choice for veterans and their families looking to maximize their budget. The monthly premium for $150,000 in coverage is $15.75 for nonsmoking couples ages 31 to 40 and $51 for nonsmoking couples ages 51 to 55. Dependent children can be added to the plan for just $1.50 more per child per month.

Best Children's Rider : Military Benefit Association (MBA)


Military Benefit Association

 Military Benefit Association

  • AM Best Rating: A
  • Plans: 8
  • Issue Ages: Up to 90
Why We Chose It

Children are covered for free up to $12,500 with the military Term Insurance to Age 90 Plan. Optional add-ons even allow children to become members in their own right starting at age 25.

Pros & Cons
Pros
  • Is underwritten by MetLife Inc.

  • Has been in business since the 1950s

  • Eligible children may be covered at no additional cost

  • Offers coverage for policyholders up to age 90

Cons
  • No whole life insurance plans are available

Overview

Founded in 1957, MBA offers 10- and 20-year term life insurance for veterans as an alternative to or supplement for existing VGLI coverage. The company's life insurance policies are underwritten by MetLife, Inc., which has received an A rating from AM Best. As an added benefit to senior veterans, MBA offers an additional term life insurance plan that provides coverage up to age 90.

Aside from the veteran, family members can obtain policies. Spouses are eligible for $1 million in coverage. All policies come with free coverage for each dependent child for up to $12,500 per dependent. And, as an optional add on, customers can apply for $10,000, $20,000, or $25,000 of additional term coverage for each unmarried child under 21 years old (or 25 years for full-time students who are unmarried and are dependents of the policyholder). Beyond that, eligible children can become MBA members starting at age 25.

Instant online quotes are available on the company's website. Interested customers can also call the company and speak with a sales agent Monday through Thursday, 8 a.m. to 7 p.m. EST, and Friday, 8 a.m. to 4 p.m. EST.

For $150,000 in coverage benefits, a nonsmoking 35-year-old male can expect to pay $9.30 per month for term life insurance, while a nonsmoking 55-year-old male can expect to pay $46.50 per month. 

Final Verdict

We reviewed the best veterans life insurance companies and all of them have different things to offer. Some companies offer multiple different types of policies and others provide coverage especially for children and families. Some policies provide lifetime coverage regardless of your health or employment status. Overall, we recommend checking out Prudential Veterans’ Group Life Insurance. The company has overall positive ratings and no medical exam requirements.

Compare the Best Veterans Life Insurance

Company AM Best Rating Coverage Capacity Issue Ages Premiums Policies Offered
Prudential Veterans' Group Life Insurance
Best Overall
A+ Up to $10,000,000 Doesn't specify $19.50+/month Term and various universal life
AAFMAA
Best for Senior Veterans
Not rated $10,000–$1,000,000 Up to 84 $8.65+/month Term and whole
USAA
Best for Disabled Veterans
A++ Varies Doesn't specify $12+/month Term, whole, and universal
USBA
Best for Families
A++ Varies Doesn't specify $18+/month Term and whole
MBA
Best Children's Rider
A Varies Up to 90 $9.30+/month Term
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What is Life Insurance?

What Is Life Insurance for Veterans?

Life insurance offers a way to provide financial support to your loved ones—specifically surviving dependents, a spouse, or other designated recipient—in the event of your death.

It can be more difficult for veterans to get traditional insurance policies due to residual mental and physical health issues. Life insurance for vets considers these challenges that these men and women face and provides them with alternatives.

Does the VA Offer Life Insurance?

The Department of Veterans Affairs offers SGLI to active duty members while they're serving. It also offers VGLI with up to $400,000 in coverage and Service-Disabled Veterans Life Insurance (S-DVI) for those that meet certain eligibility criteria, which includes meeting application deadlines.

What Does Life Insurance for Veterans Typically Include?

Veterans life insurance companies often include optional coverage for children and spouses. Some, such as AAFMAA, offer coverage for eligible grandchildren. Some offer preferred ratings (or discounted monthly premiums) for those with healthy lifestyles. Many pay benefits even in the event of a war-related death.

What Does Life Insurance for Veterans Typically Exclude?

Life insurance is no different than other types of insurance where it has noted exclusions. Suicide as a cause of death is commonly excluded from all life insurance policies. VGLI does not exclude for PTSD, TBI, or suicide, though that may not be the case for other providers. Be sure to read through the policy terms and take advantage of the free look period that allows you to read every line of the contract obligation-free.

What Are the Expected Costs of Life Insurance for Veterans?

Age, health, gender, and smoking history are a few of the main factors that affect the cost of life insurance for veterans. Another element that can affect the premium is the type and length of the plan.

On the younger side, nonsmoking 35-year-old male veterans can expect to pay between about $9 to about $25 per month for $150,000 in term coverage, depending on their overall health and plan selections.

Nonsmoking 55-year-old males can expect to pay between about $39 to about $86 per month for $150,000 in term coverage, depending on their overall health and plan selections.

Methodology

We reviewed dozens of life insurance companies to find those that offer the best options for veterans, based on overall ratings, history of serving veterans, range of plan offerings, pricing, plan features, and coverage options for family members and spouses. These are all important criteria for those looking for life insurance coverage after leaving the military.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. AM Best. "AM Best Affirms Credit Ratings of Prudential Financial, Inc. and Its Subsidiaries." Accessed July 11, 2021.

  2. AM Best. "AM Best Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation." Accessed July 31, 2021.

  3. AM Best. "AM Best Affirms Credit Ratings of New York Life Insurance Company and Its Subsidiaries." Accessed July 11, 2021.

  4. AM Best. "AM Best Places Credit Ratings of Members of MetLife Auto & Home Group Under Review With Negative Implications." Accessed July 11, 2021.