Life Insurance For Navy Reserves: What's On Offer?

Life insurance is an important consideration for anyone, especially those with financial dependents. For those serving in the military, it is no different, and the Navy offers life insurance as part of its benefits package for Navy Reserve Sailors. The Navy Reserve is a part-time commitment, but it offers benefits that rival many full-time civilian positions. So, what life insurance benefits are available to Navy Reserve Sailors, and how do they work?

Service Member's Life Insurance (SLGI)

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all eligible military members. If you meet the eligibility criteria, you will be automatically enrolled in SGLI.

Eligibility

To be eligible for full-time SGLI coverage, you must meet at least one of the following requirements:

• You are an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• You are a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• You are a cadet or midshipman of the U.S. military academies.
• You are a member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• You are a member of the Ready Reserve or National Guard, assigned to a unit, and scheduled for at least 12 periods of inactive training per year.
• You are a volunteer in an Individual Ready Reserve (IRR) mobilization category.

If you are in nonpay status with the Ready Reserve or National Guard, you may still be eligible for full-time SGLI coverage if you meet both of the following requirements:

• You are scheduled for 12 periods of inactive training for the year.
• You are drilling for points rather than pay.

Benefits

SGLI offers a range of benefits, including:

• Coverage up to a maximum of $500,000, in $50,000 increments.
• 120 days of free coverage from the date you leave the military, with the option to convert to Veterans' Group Life Insurance (VGLI).
• A free coverage extension of up to 2 years if you are totally disabled when you leave the military.
• Part-time coverage if you are a Reserve member who doesn't qualify for full-time coverage.

SGLI also includes Traumatic Injury Protection (TSGLI), which provides financial protection against loss due to traumatic injuries. This coverage ranges from $25,000 to $100,000, depending on the nature of the injury.

Costs

SGLI costs 6 cents per $1,000 of coverage, with a monthly premium of $31 for $500,000 worth of coverage. This includes a $1 monthly charge for TSGLI.

Navy Mutual Aid Association

The Navy Mutual Aid Association provides life insurance and annuity products to military members and their families. The organisation also assists service members and their survivors in understanding federal benefits and provides education on financial security matters tailored to military members and their families.

Navy Mutual offers affordable life insurance and annuities to those who have served in the US military or uniformed service, including the US Public Health Service and the National Oceanic and Atmospheric Administration. This includes those who are active duty, in the reserve or guard, or retired.

The Navy Mutual Aid Association helps to protect the future of those who have served the nation and their loved ones. They provide a financial safety net for those who depend on the income of military members, ensuring that their families won't be left to pay funeral costs and debts.

Navy Mutual's life insurance options include term life and whole life policies. Term life insurance covers a specific period, such as 10, 20, or 30 years, and is generally more affordable. Whole life insurance, on the other hand, covers the insured for their entire life and often includes additional benefits.

In addition to life insurance, Navy Mutual also offers a range of secure, low-cost annuities to help ensure financial security for its members. Their annuities provide a steady income stream during retirement, with rates as high as 4.75%.

With their commitment to serving those who serve the nation, the Navy Mutual Aid Association plays a crucial role in providing financial peace of mind to military members and their families.

Navy Federal Credit Union

Life insurance is important for everyone, especially those with financial dependents. It is a financial safety net that ensures your loved ones are taken care of in the event of your death. It can be used to pay off debts, funeral costs, and provide for your family's day-to-day needs. Navy Federal Credit Union understands this and has partnered with several life insurance companies to offer its members affordable options.

As a member of Navy Federal Credit Union, you are eligible to apply for coverage with their partner insurance companies and explore their Guaranteed Asset Protection Program. They offer both term life and whole life insurance policies. Term life insurance is the most affordable option and allows you to choose the amount and duration of coverage. Whole life insurance, on the other hand, offers lifelong protection and can be customized to address unique financial goals, such as transferring assets and charitable giving.

Additionally, Navy Federal Credit Union provides Accidental Death & Dismemberment (AD&D) insurance, which pays a cash benefit in the event of an accidental death or specific permanent injuries caused by an accident. This can be an important part of your financial safety net.

When deciding how much life insurance you need, consider your current financial situation, future needs, and the likely coverage your dependents will require. A common rule of thumb is to purchase coverage equal to 5 to 10 times your annual income, but this may vary depending on your circumstances.

Tricare Reserve Select

• They are not on active duty orders
• They are not covered under the Transitional Assistance Management Program
• They are not enrolled in the Federal Employees Health Benefits (FEHB) program
• They are not eligible for the FEHB program as a sponsor

It is important to note that survivor coverage is not affected by FEHB eligibility. Those in the Individual Ready Reserve, including Navy Reserve Voluntary Training Units, do not qualify for Tricare Reserve Select.

Additionally, enrollees in Tricare Reserve Select cannot be assigned a Primary Care Manager (PCM) at an MTF. Instead, they can choose any TRICARE-authorized provider as their Primary Care Provider (PCP). Qualified Selected Reserve members located overseas may submit an enrollment request at a TRICARE Service Center.

Federal Long Term Care Insurance Program

The Federal Long Term Care Insurance Program (FLTCIP) is administered by Long Term Care Partners and underwritten by John Hancock Life & Health Insurance Company. The program is under contract with the U.S. Office of Personnel Management (OPM).

FLTCIP provides long-term care insurance to help pay for the costs of care when enrollees need help with everyday activities or have a severe cognitive impairment such as Alzheimer's disease. This type of care is required when an individual can no longer perform "activities of daily living" by themselves, such as eating, bathing, or getting dressed.

When the program is not suspended, most Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives are eligible to apply for insurance coverage under the FLTCIP. Employees must be eligible for the FEHB Program to apply for coverage, although they do not need to be enrolled. Annuitants do not need to be eligible or enrolled in the FEHB Program. Certain medical conditions may prevent some people from being approved for coverage.

The OPM suspended applications for coverage under the FLTCIP on December 19, 2022, to allow time to thoroughly assess benefit offerings and establish sustainable premium rates.

Frequently asked questions