Unlike some clothing, there is no “one-size-fits-all” when purchasing a life insurance policy. Life insurance is more like a seat belt and shoulder strap combination – it is adjustable and is meant to be utilized for your protection. The list of types of life insurance plans is relatively short, and each type and plan has a function and specific purpose.
Most commercial life insurance companies are driven by corporate guidelines, whereas Navy Mutual Aid Association is a non-profit, member-owned organization founded for the express purpose of helping secure the financial future of its members and their families. Navy Mutual offers life insurance products and services to service members in the Navy, Marine Corps, Coast Guard, U.S. Public Health Service, or NOAA, who is on active duty, a reservist, or retired.
At its elemental form, life insurance is an agreement between the purchaser (insured) and the provider (insurer) that is purchased on an established schedule during an expected timeframe. The purchase of a life insurance policy is a method of mitigating risk.
When considering the purchase of a life insurance policy from anyone, it is important to define personal and family financial goals. Choosing a policy with a premium that is affordable and delivers the coverage and benefit needed is core to decision-making. At Navy Mutual, we can help by offering understandable information about robust options tailored to Navy Mutual Aid Association members. Our insurance counselors offer possible solutions to your unique needs and have answers to your specific questions. The following are considerations you, the applicant, should make:
- Family Financial Needs
- Level of Protection
TERM LIFE INSURANCE
Individual life insurance policies are offered in two forms of protection – for a specific term (term life insurance), or for the insured policyholder’s entire life (whole life insurance). At Navy Mutual, we provide the best value in life insurance protection no matter which type of plan is chosen.
If considering a life insurance plan for the first time, and you are younger than 50 years of age, the basic term life offered at Navy Mutual, Flex Term
is the most affordable and provides an extensive level of protection. Navy Mutual Flex Term insurance includes the following features:
- There are No Qualifying Restrictions Based on Military Service
- Policies Contain No War, Aviation, Terrorism Clauses, or Travel Restrictions
- Insurance Policy Stays with You after Separation or Retirement
- Expedited Processing for Deployed Personnel
If you are 45 years of age or older, consider Level II term insurance and select a policy that fits your financial goals. Navy Mutual Level II Term insurance offers the following:
- Flexibility in Length of Time for Coverage
- Can Convert Policy to Permanent Life Insurance without a Medical Exam
- Five-year Guaranteed Convertibility within First Five Years of Plan, under Age 70
- Early Payout for Insured who Acquire Terminal Illness
These term life insurance plans are kept affordable because sales fees or commissions by Navy Mutual counselors are prohibited in our service structure. They provide a high level of death benefit coverage at low premiums and the application process is fast and simple.
Both Flex Term and Level II Term
life insurance policies provide a minimum $50,000 to a maximum $1,000,000 death benefit. They both can be customized for coverage amount and monthly premiums and both offer a child benefit rider. The rider is only $2.50 a month and coverage is $10,000 per unmarried child up to the child’s 26th
birthday. Both plans can be converted to a policy that provides tax-deferred cash value growth in the future.
The end of life is naturally unscheduled and unpredictable. It takes decisions and planning in the present to ensure what will happen after death. There is risk that the death of the insured will happen, which could place a financial burden on survivors. As we move through life, the risk naturally increases and financial responsibilities vary with life changes – education, marriage, home purchase, children, and retirement.
“I consider NMAA's "Permanent Plus" insurance to be the absolute best available on the market. I like the "growth" in my cash value, and the death benefit. Also like the fact that it can be converted to long term care insurance, if needed.” - Roger Knapper
The main question in the mind of the purchaser must be answered before deciding which life insurance plan fits. That is, what will happen when this policy becomes a claim? More specifically, will my survivors get what was promised and will it be the financial security net I planned?
Quality service to our members is at the heart of why Navy Mutual life insurance continues to be the affordable, reliable, and preferred component of personal financial security. Get the right fit for you – contact a professional Navy Mutual life insurance counselor to discuss which plan will provide you and your family with financial security. Visit us at www.navymutual.org, or call 800-628-6011.