Navy Federal Life Insurance Reviews: Is It Worth It?

By

Life insurance is a crucial component of financial planning, particularly for military personnel and their families, who face unique challenges. Navy Federal Credit Union offers life insurance through trusted partners, promising affordable coverage tailored to its members’ needs. 

But is Navy Federal life insurance a good choice? This article reviews their policy options, customer experiences, costs, and benefits to help you decide if it fits your goals. 

We’ll explore term and whole life insurance, eligibility, and how Navy Federal compares to other providers. By the end, you’ll have a clear picture of whether this insurance is worth it for you.

What Is Navy Federal Life Insurance?

Navy Federal Credit Union (NFCU) is a trusted financial institution serving over 9 million members, primarily military personnel, veterans, and their families. It doesn’t issue life insurance directly but partners with companies like Navy Mutual, TruStage, and Covr to offer policies. These partnerships provide a range of options, including term life, whole life, and accidental death and dismemberment (AD&D) coverage.

  • Term Life Insurance: Covers you for a set period, like 10, 20, or 30 years. It’s budget-friendly and pays a death benefit if you pass away during the term.
  • Whole Life Insurance: Offers lifelong coverage with a cash value that grows over time. It’s more expensive but provides long-term financial security.
  • AD&D Coverage: Pays out for accidental death or severe injury, often with no health questions required.

These options aim to meet the needs of military families, offering flexibility and competitive rates.

Policy Options and Coverage Details

Term Life Insurance

Term life insurance through Navy Federal is ideal for individuals who require coverage for specific periods, such as while raising children or paying off a mortgage. 

Policies range from $50,000 to $1,000,000 in coverage, with terms of 10, 15, 20, or 30 years. Premiums stay level during the term, making budgeting easier.

  • Key Features: Affordable premiums, no war or combat exclusions, and options to convert to permanent coverage without a medical exam.
  • Who It’s For: Young families, those with temporary financial obligations, or military members seeking supplemental coverage beyond Servicemembers’ Group Life Insurance (SGLI).

Some policies, such as those offered through Navy Mutual, provide coverage up to age 85 with no restrictions on active duty. This is a big plus for service members in high-risk roles.

Whole Life Insurance

Whole life insurance provides lifelong protection and builds cash value over time. Navy Federal’s whole life policies, available through partners like Navy Mutual and TruStage, range from $10,000 to $1,000,000 in coverage. The cash value can be borrowed against or used to pay premiums, offering flexibility.

  • Key Features: Guaranteed death benefit, level premiums, and potential dividends (if offered by a mutual insurer). Some policies, such as Navy Mutual’s Flagship Whole Life, offer guaranteed issue for individuals transitioning from SGLI.
  • Who It’s For: Those planning for long-term needs, like estate planning or leaving a legacy.

Whole life insurance is more expensive than term life, but it suits those seeking permanent coverage.

Accidental Death and Dismemberment (AD&D)

AD&D coverage, offered through TruStage, provides quick approval with a two-question application. It covers accidental death or severe injuries, like loss of limbs or eyesight, with no medical exam required. Coverage goes up to $300,000.

  • Key Features: Fast application process (decisions in 15 minutes), no health questions, and affordable rates.
  • Who It’s For: Members seeking extra protection without medical underwriting.

This option is ideal for individuals who may not qualify for traditional life insurance due to health concerns.

Eligibility and Application Process

To get Navy Federal life insurance, you must be a member of the credit union or an immediate family member (spouse, child, parent, or sibling). Membership is open to:

  • Active duty, reserve, or retired military personnel.
  • Department of Defense civilians, contractors, and their families.
  • Cadets and midshipmen at service academies.

The application process is simple and can be done online or by phone. You’ll need to provide details like age, health, and lifestyle habits. Some policies, such as TruStage’s AD&D, require no medical exam, while others may necessitate one for higher coverage amounts. Approval can take a few days, but simplified issue policies can be issued quickly.

Costs and Fees

The cost of Navy Federal life insurance varies based on:

  • Policy Type: Term life is cheaper than whole life.
  • Coverage Amount: Higher coverage typically results in higher premiums.
  • Age and Health: Younger, healthier applicants pay less.
  • Lifestyle: Factors like smoking can increase rates.

Term life premiums are generally affordable, starting at a few dollars per month for low coverage amounts. Whole life premiums are higher due to lifelong coverage and cash value. Additional fees, like policy or surrender charges, may apply if you cancel early. Navy Federal’s rates are competitive, but comparing quotes from multiple providers is wise to ensure you get the best deal.

Pros of Navy Federal Life Insurance

Navy Federal’s life insurance has several strengths that make it appealing, especially for military families.

  • Military-Friendly Policies: No war or combat exclusions, making it ideal for active-duty members.
  • Competitive Rates: Term life policies are often more affordable than those offered by civilian providers, and whole life policies offer good value for permanent coverage.
  • Flexible Options: Choose from term, whole life, or AD&D coverage, with amounts up to $10 million available through partners like Covr.
  • Portability: Policies stay with you after leaving the military or retiring, unlike SGLI, which ends 120 days after separation.
  • Trusted Partners: Navy Federal collaborates with reputable insurers, including Navy Mutual and TruStage, to ensure reliable claims processing.

Customer reviews often praise the affordability and ease of applying, especially for term policies.

Cons and Limitations

While Navy Federal life insurance has strong points, there are some drawbacks to consider.

  • Limited Customization: Permanent life options may not offer as much flexibility as those provided by standalone insurers, such as universal life with adjustable premiums.
  • Membership Requirement: You must be a Navy Federal member, which may not be suitable for everyone.
  • Potential Delays: Some customers report slow underwriting or policy changes, especially for complex cases.
  • Not Top-Rated: Navy Federal’s insurance isn’t among the highest-ranked providers, as it relies on third-party carriers whose policies may vary in quality.

Comparing Navy Federal’s offerings with other insurers, like USAA or MassMutual, can help you find better coverage for your needs.

Customer Reviews and Experiences

Customer feedback on Navy Federal life insurance is mixed but generally positive. Many members appreciate the affordability and military focus. For example, active-duty members appreciate policies that have no combat exclusions, providing peace of mind during deployments. The online application process is often described as quick and user-friendly.

However, some reviews mention issues with underwriting delays or confusion over policy terms. A few customers felt that the permanent life options were less competitive compared to those of other insurers. Overall, Navy Federal scores well for service but may fall short for those needing highly customized policies.

How Navy Federal Compares to Other Providers

USAA is another popular choice for military personnel and their families. It offers term, whole, and universal life insurance with high financial strength ratings (A++ from A.M. Best). USAA’s policies include unique features, like a severe injury benefit for term policies. 

However, USAA’s premiums may be higher than those of Navy Federal for similar coverage, and it’s also limited to military members and their families. Navy Federal’s partnership model offers a broader range of policy options through multiple carriers.

Navy Mutual, one of Navy Federal’s partners, specializes in military-focused life insurance. It offers term and whole life policies with no war exclusions and competitive rates. Navy Mutual’s financial strength is solid (rated A+ by Fitch), but it lacks the broader product range of Navy Federal’s other partners, such as Covr, which offers up to $10 million in coverage.

Servicemembers’ Group Life Insurance (SGLI) provides up to $500,000 in low-cost term coverage for active-duty members. It’s automatically deducted from your pay unless you opt out.

However, SGLI ends after military service, requiring conversion to Veterans’ Group Life Insurance (VGLI) within 1 year and 120 days. Navy Federal’s policies are portable and offer higher coverage limits, making them a good supplement or alternative to SGLI.

Is Navy Federal Life Insurance Worth It?

To decide if Navy Federal life insurance is worth it, consider your needs and situation:

  • If You’re a Military Member: The lack of war exclusions and portable coverage makes it a strong choice, especially for active-duty personnel.
  • If You Want Affordability: Term life policies are budget-friendly and ideal for temporary needs.
  • If You Need Flexibility: Whole life or AD&D options provide long-term security or quick coverage without medical exams.
  • If You Value Convenience: Applying through a trusted credit union simplifies the process for members.

However, if you need highly customizable policies or the lowest possible rates, it’s best to shop around. Independent agents can compare multiple carriers to find better options tailored to your health, age, and lifestyle.

Tips for Choosing Navy Federal Life Insurance

  1. Assess Your Needs: Calculate how much coverage you need based on debts, income, and future expenses. Navy Federal’s website has a calculator to help.
  2. Compare Quotes: Get quotes from Navy Federal’s partners (Covr, Navy Mutual, TruStage) and other insurers to ensure competitive rates.
  3. Check Policy Details: Look for riders, such as term conversion or accelerated death benefits, that add value to the policy.
  4. Understand Fees: Ask about policy fees or surrender charges to avoid surprises.
  5. Consult an Advisor: Navy Federal offers complimentary consultations with financial advisors to provide guidance.

Conclusion

Navy Federal life insurance offers solid options for military members and their families, with affordable term policies, lifelong whole life coverage, and quick AD&D plans. 

Its partnerships with Navy Mutual, TruStage, and Covr provide flexibility and competitive rates, especially for those in high-risk roles. However, limited customization and potential underwriting delays may be drawbacks. 

By comparing Navy Federal’s offerings with those of other providers and assessing your needs, you can determine if it’s the right fit for you. For personalized advice, use Navy Federal’s tools or consult an independent agent to secure the best coverage for your family’s future.

Sources:

Related Posts

Scroll to Top