Life insurance is a good idea for any adult who has loved ones who rely on them for financial support. It is especially important to have life insurance coverage if you are a member of the military who is actively on duty. You are risking your life for your country, and you deserve some peace of mind that you won’t be leaving your family with any financial burdens if something horrible ever happens to you. One of the best ways to provide financial protection for your family is with life insurance — but who are the best life insurance companies for military personnel? Is coverage even possible?
Prudential Life Insurance for Active Members of the Military
Unfortunately, obtaining life insurance is not easy for military members, especially if you are eligible for deployment. There is a substantial risk involved in guaranteeing someone’s life financially when their daily activities put them directly in harm’s way. Some life insurance companies won’t even cover military personnel because the chance of paying out on their policy is too high.
Prudential OSGLI VGLI
The Prudential life insurance company provides shoppers with a variety of wealth accumulation and life insurance products, as well as annuities. Prudential is one of the top life insurance companies that you can find. They are a great carrier for a variety of niches and should be looked at closely by shoppers looking for term and permanent life insurance.
About Prudential Life
Prudential Life Insurance Company is one of the top life insurance companies in the USA and has an A+ rating with both Fitch and A.M. Best. Prudential has an AA- rating from Standard & Poor’s as well as an A2 from Moody’s. These are all excellent financial ratings. Prudential Life deserves high marks since they’re a financially strong life insurance company with an excellent reputation among consumers.
Prudential Term Life Insurance
Term life insurance from Prudential is one of the few options available. Prudential will approve active members of the military even after they have received their deployment papers. The only guideline is that military personnel will need to be in the U.S. when they physically sign the insurance agreement.
Understanding Your Insurance Options
There are two basic types of insurance products from Prudential that are available for members of the military. There is SGLI (Service members Group Life Insurance) for while you are still on duty and VGLI (Veteran’s Group Life Insurance) for after you retire.
SGLI is available to:
- Ready Reserves,
- National Guard
- Service Members who are on Active Duty.
VGLI can be obtained for:
- National Guard
- Reserves who have been released from active duty
Benefits of SGLI
For eligible service members, SGLI is a great program that can offer you a low cost term life insurance policy. They provide some great choices with Group Life insurance. SGLI insurance for veterans can provide:
- Affordable rates
- No medical exam is required to qualify
- Predetermined premiums for all ages
- Available in $50,000 increments up to a maximum of $400,000
The cost of your insurance comes out to 7 cents per $1,000 of life insurance coverage. That’s a flat rate for every grand of coverage.
So for the minimum amount of coverage your could buy, you’d pay $3.50 a month for a $50,000 life insurance policy. For the maximum $400,000 policy, you’d spend $28.00 per month.
What happens to my life insurance when I leave the military?
What do you do with your policy once you leave the military and you’re done serving your country? You’re given the option of transferring your life insurance policy to another approved commercial life insurance policy.
You have up to 120 days after you are discharged or you can choose to a Veteran’s Group Life Insurance policy (VGLI).
VGLI Rates Will Increase
VGLI has its own benefits, like the fact that smokers receive the same rates as non-smokers, however there is a medical examination and the rates will go up every five years as you age.
Since VGLI offers smokers the same rates as those that don’t smoke, you can be certain that the non-smokers rate is higher than the competition. The insurance company will need to make sure that they are protected based on the average life expectancy of all military members who are covered by the policy.
The rates for a VGLI policy can actually skyrocket to double or triple the original rate once you are over the age of 55. Most members of the military will end up paying less if they lock themselves into a cheap term life insurance plan for a 20 or 30 year period. If you lock in a good rate when you are 40 years old, you will still be paying that same great rate when you are age 70.
VGLI Life Insurance Quotes
We wanted to compare the cost of coverage through VGLI to the cost of buying term coverage for the same period of time through Prudential. As you can see, Prudential’s rates are more competitive. You would pay 18% more for VGLI than Prudential for the same term.
|Age||VGLI||Prudential Term Life|
|Average Monthly Premium||$68.66||$56.54|
The sample life insurance quotes are for a 30-year old non smoking male in excellent health buying 30-year term and $250,000 of coverage.
Average Monthly Savings:
Military Life Insurance Options
Most independent agents will recommend Prudential term life insurance for members of the military, because it is the preferred choice. It has the lowest rate for active military personnel and you can secure the low rate for up to 30 years. It is also the easiest way to secure life insurance once you have received your deployment papers.
Are there other options besides Prudential?
Will Prudential offer you the best policy at the lowest rate? That’s impossible to say as there are so many factors that determine which company will be best for you.
Basic factors such as Gender, Tobacco Use, life insurance types, coverage lengths, and payout amount will make a difference. Complex factors such as preexisting conditions, family history and lifestyle will also play a role.
At Life Insurance Blog we work with dozens of the top life insurance companies in the USA in order to help our clients find the best deal. We’ll find you the best policy no matter if you’re shopping for:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Guaranteed Universal life insurance
- Final Expense
You can get a quote using our quote form or call us to discuss quotes or apply for life insurance coverage. Please contact us if you have any questions about SGLI insurance for veterans, OSGLI Prudential or anything else life insurance related.
Thanks for reading our Prudential Life Insurance for Active Members of the Military review. To learn more about life insurance, make sure to visit our page Life Insurance 101 or find out how much you may end up paying for coverage on our Life Insurance Rates by Age page.