Jeffrey Wade
Navy personnel have access to various insurance options to protect themselves and their families. Servicemembers' Group Life Insurance (SGLI) is a popular choice, offering low-cost term coverage with customizable levels of protection. Additionally, Navy Federal Credit Union provides life insurance options, including term and whole life policies, to cater to different needs and budgets. Navy Mutual Aid Association also specializes in affordable life insurance and annuities. For healthcare, Navy members can rely on TRICARE, a comprehensive health care program that covers active-duty service members, retirees, and their families worldwide. This program includes special programs, prescriptions, and dental plans. Furthermore, Navy Federal Credit Union offers GAP coverage for vehicles and property damage, providing additional peace of mind.
| Characteristics | Values |
|---|---|
| Insurance type | Life insurance, health insurance, dental insurance, commercial insurance, GAP coverage |
| Providers | Navy Mutual Aid Association, Servicemembers’ Group Life Insurance (SGLI), Veterans’ Group Life Insurance (VGLI), Navy Federal Credit Union, VA health care, TRICARE |
| Features | Low-cost, tax-free payout, permanent or term coverage, financial planning, affordable coverage, whole life or term life policy, beneficiaries can be chosen |
| Eligibility | Active-duty members of the Navy, Army, Air Force, Space Force, Marines, Coast Guard, NOAA, USPHS, National Guard, Reserve Officers Training Corps, Navy Reserve Voluntary Training Units |
| Cost | Basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, $1/month for Traumatic Injury Protection coverage |
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What You'll Learn
Servicemembers’ Group Life Insurance (SGLI)
Servicemembers' Group Life Insurance (SGLI) is a low-cost term insurance coverage option for eligible service members. If you are a service member who meets the criteria, you will be enrolled automatically.
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 are scheduled to perform at least 12 periods of inactive training per year.
If you have SGLI coverage, you will pay a monthly premium that will be automatically deducted from your base pay. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, including an additional $1 per month for Traumatic Injury Protection coverage (TSGLI). You can choose your level of coverage or even refuse coverage entirely. You can also select your beneficiaries (those who will receive the money from your life insurance policy in the event of your death) and change them as needed. You can submit your changes online through the SGLI Online Enrollment System (SOES).
When you leave the military, you have the option to convert your SGLI coverage to a permanent, individual insurance policy within 120 days of your discharge date without proof of good health. You may be able to keep your coverage for up to 2 years after leaving the military at no cost if you meet certain requirements, such as permanent loss of speech or the long-lasting loss of use of your hands, feet, or eyes.
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Veterans’ Group Life Insurance (VGLI)
People serving in the Navy have access to Servicemembers' Group Life Insurance (SGLI), which offers low-cost term coverage. When they leave the service, they have the option to convert their SGLI to Veterans' Group Life Insurance (VGLI).
VGLI is a life insurance program that allows service members to convert their SGLI coverage to term life insurance that is renewable every five years. Members with full-time SGLI coverage are eligible for VGLI when they leave the service. VGLI, like SGLI, is overseen by the Department of Veterans Affairs but administered by the Office of Servicemembers' Group Life Insurance.
VGLI coverage is issued in multiples of $10,000 up to a maximum of $500,000. However, a service member's VGLI coverage amount cannot be more than the SGLI they had when they left the service. To get VGLI coverage, one has to apply within one year and 120 days of leaving the military. The application can be done online with the Office of Servicemembers' Group Life Insurance (OSGLI) or by filling out the Department of Veterans Affairs' Form SGLV 8714.
VGLI premiums increase over time—every five years as the policyholder hits age milestones (35, 40, etc.). For example, while $500,000 of VGLI coverage for a veteran under 30 costs $35 per month, the price jumps to $300 per month for those aged 55–59, and $735 per month for those aged 65–69.
VGLI can be a good option for those who may struggle to get cost-effective coverage elsewhere, such as tobacco users, who typically pay much more for life insurance. Additionally, VGLI offers coverage without any medical questions or reviews, which can be helpful for veterans who may have physical or mental "wear and tear" from their military service. However, if one finds a more cost-effective solution or no longer needs the coverage, they can easily cancel their VGLI policy by visiting the OSGLI website or making a quick phone call.
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TRICARE Health Care Program
TRICARE is the health care program for service members, retirees, and their families worldwide. It is considered the gold standard for medical coverage and is managed by the Pentagon's Defence Health Agency. TRICARE provides comprehensive coverage, health plans, special programs, prescriptions, and dental plans.
TRICARE offers several services for beneficiaries with special needs, including applied behavior analysis, cancer clinical trials, durable medical equipment, home health care, hospice care, mental health care, and skilled nursing facility care. TRICARE also offers medical case management services at an extra cost to those being treated for chronic, high-risk, high-cost, catastrophic, or terminal illnesses. Medical case management involves a team of health care professionals who help find solutions to complex health problems.
TRICARE has four pharmacy options: military pharmacies, home delivery, network pharmacies, and non-network pharmacies. Each option is available worldwide, but there are some limits overseas. TRICARE also covers applied behavior analysis for beneficiaries with autism spectrum disorder. Family members of active-duty service members may be eligible for the TRICARE Dental Program. When not activated, reserve and national guard members can enroll in the TRICARE Dental Program.
TRICARE Reserve Select is a premium-based health plan for selected reserve members (and their families) who qualify. Purchasing TRICARE Reserve Select is a two-step process. Individual Ready Reserve members, including Navy Reserve Voluntary Training Units, do not qualify. TRICARE for Life (TFL) is Medicare wraparound coverage for TRICARE beneficiaries who have Medicare Parts A and B. Children enrolled in TRICARE under a parent's plan may purchase TRICARE Young Adult when their coverage ends at age 21 (or 23 if enrolled in college) if they meet certain eligibility requirements.
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Navy Mutual Aid Association
Navy personnel in the United States are eligible for various insurance options, including Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI). Additionally, they can also benefit from the TRICARE Health Care Program, which provides comprehensive health coverage, plans, and special programmes for service members, retirees, and their families.
One notable organisation catering specifically to Navy personnel is the Navy Mutual Aid Association (NMAA), also known simply as Navy Mutual. Founded in 1879, Navy Mutual is a nonprofit, federally tax-exempt, mutual-benefit Veterans Service Organisation (VSO). Its establishment was spurred by the Battle of Little Big Horn, where no surviving officers were left to provide for the widows and orphans of their fallen comrades. Thus, Navy Mutual's primary mission has been to offer high-quality, trustworthy, and affordable life insurance options to active-duty service members, reservists, and honourably discharged veterans of the US military and uniformed services, including the Navy, Marine Corps, Coast Guard, and more.
Navy Mutual provides both term life and whole life (permanent) plans with no fees, sales commissions, or active military service restrictions. Their life insurance policies aim to offer financial security to members and their loved ones. Additionally, Navy Mutual offers a range of secure, low-cost annuities with flexible payment options, guaranteed minimum interest rates, and competitive fixed returns. These annuities are ideal for those with well-funded, tax-advantaged retirement accounts who seek to further ensure their financial security in the future.
Navy Mutual's services extend beyond insurance, as it is also the nation's oldest federally recognised VSO. As a VSO, Navy Mutual provides free representation to veterans and their families when filing claims for benefits from the Department of Veterans Affairs. This aspect of their work underscores their commitment to supporting those who have served and their families.
Navy Mutual has consistently earned high ratings from Fitch Ratings, a global leader in credit ratings and research. For over two decades, Navy Mutual has maintained an "A+" rating, reflecting its financial stability and the confidence placed in its insurance and annuity offerings.
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Navy Federal Credit Union
The credit union offers a range of insurance products to its members, including auto, home, and life insurance. Members can access these insurance products through partnerships with TruStage and Liberty Mutual Insurance Company. TruStage has been offering insurance products to credit union members since 2000, and its partnership with Navy Federal Credit Union provides members with access to savings on auto and home insurance. Liberty Mutual Insurance is also made available to members through TruStage, offering auto and home insurance products.
Life insurance products are also available through Navy Federal Credit Union, with policies ranging from $300,000 to $10 million in coverage. These policies can provide financial security for beneficiaries, covering final expenses, paying off debts, and funding children's education. Term life insurance, covering a specific period, is typically more affordable than whole life policies, which last a lifetime.
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Frequently asked questions
Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members in the Navy. If eligible, you will be automatically signed up.
When you leave the military, you can apply for Veterans’ Group Life Insurance (VGLI) within 1 year and 120 days from your date of discharge. You can keep your coverage for up to 2 years after leaving the military at no cost if you meet certain requirements.
TRICARE is a health care program for service members, retirees, and their families worldwide. It provides comprehensive coverage, health plans, prescriptions, and dental plans.
Navy Mutual is a military life insurance company that provides affordable life insurance options to provide financial security for your loved ones.
Navy Federal Credit Union offers life insurance and GAP coverage to protect you, your family, and your assets. They also provide financial planning services.
