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The Santa Clause

We don't usually think of Santa when we shop for life insurance, but may find ourselves confronted with myriad clauses included in the applications' finer print.  Historically, these clauses have addressed policy modifications for war, aviation, and more recently, terrorism. Navy Mutual has been serving with, and for, the Sea Service personnel for 128 years. Because the Association understands where and how you serve, you won't find these types of clauses in the policy products offered to address your life insurance needs.

A simple fact: Life insurance provides protection against financial loss resulting from death.  The contract is a promise from the life insurance company to the owner of the policy to pay a specific amount of money when the insured dies.  This promise is offered in return for timely premium payments.  Why complicate this simple agreement with clauses?

All aspects of life involve risk.  Insurance transfers the financial burden of certain risks from the individual to an insurance company.  Life insurance is just like auto, fire, theft, homeowners', medical, and renters' insurance. 

Navy Mutual has no war, aviation or terrorism clause or for that matter any other type of clause that would limit the amount of death benefit paid.  Navy Mutual is a true mutual life insurance company, but more importantly a veteran's service organization.  Formed by a group of Navy officers in 1879 "to provide for the widow(s) and orphan(s)," Navy Mutual holds true to its original mission,  a mission that began a full thirty-five years before the federal government passed the War Risk Insurance Act (1914) and got involved in the insurance business. 

Clauses in life insurance contracts usually eliminate or limit the amount of death benefit paid.  A war clause in a life insurance contract might impact the death benefit if the insured dies as a result of war (remember- you must still pay the premiums).  A terrorism clause might affect the death benefit if the insured dies as a result of a terrorist act.  Same goes for an aviation clause.  If one dies as a result of an aircraft incident and was a member of the air crew, the death benefit might not be paid at all, or the benefit amount may be noticeably reduced.  One way around an aviation clause is to have those in the aviation community pay an extra premium to cover their death resulting from an aviation incident.

Imagine that, as you prepare to go into harm's way, and as you decide you need additional life insurance, you find that commercial life insurers either exclude protection against the extra hazards of war, or if such protection was included, premium rates were much higher than the normal rate.  This is not something new. In fact, it happened at the outset of World War I.  The War Risk Insurance Act (1914) was amended in October 1917, authorizing, for the first time, issuance of government life insurance to members of the armed forces.

Navy Mutual had been taking care of its members for a full thirty seven years by 1917. Navy Mutual has no clauses like those mentioned.  In fact, we don't limit coverage amounts or prevent those about to go into harm's way from obtaining individual life insurance coverage.  Coverage up to $900,000 is available no matter what you do for a living or wherever your job takes you. 

Navy Mutual's life insurance guarantees your family will enjoy a visit each year from the only 'Clause' they care about -- Santa Claus.

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Since 1879, Navy Mutual has faithfully fulfilled its duty to support military families by providing excellent life insurance and annuity products. We are proud to serve as steadfast advocates for Navy Mutual Members to ensure they receive the benefits and financial security they deserve. At Navy Mutual, our guiding principle is to serve our Members the same way they serve our country — with integrity, passion, and commitment. Learn more at

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