Navy Mutual Life Insurance Review [The Honest Truth]

Navy Mutual Life Insurance Review

When evaluating life insurance, there is no shortage of insurance companies to select from. Some life insurance companies are publicly traded, and others are owned by their policyholders.  However, some life insurance companies were set up to aid their fraternal members or organizations.

Navy Mutual Life Insurance is one of those companies whose sole purpose of existing is to serve the needs of military servicemen and their families.  We will go in depth in our Navy Mutual Life Insurance review on the advantages of working with Navy Mutual such as their member benefits and competitive products.

However, we always recommend that if you are trying to save time that you should stick to comparing rates and quotes with all life insurance companies.

You can do this easily below using our instant life insurance quotes rate engine to compare rates with 50 of the top rated life insurance companies.

Navy Mutual Life will even be one of the options for the rates displayed that you can view depending on the parameters and coverage amount you are searching for.

You can do this easily by using our rate engine directly below.

The Navy Mutual Life Insurance Company History

Navy Mutual has been supporting military families since 1879 with life insurance and annuity solutions and is currently headquartered in Arlington, VA. Navy Mutual is set up as a non-profit created for the sole benefit of its members.  Profits go towards improving the benefits of its members not improving Wall Street bottom lines.

Until 1920, only officers of the Navy and Marine Corps on the active-duty list were eligible to apply for membership. After 1920, membership opportunity was granted to both active and inactive temporary and reserve officers.

Membership was temporarily closed in 1942 and 1950 due to the United States entrance into World War II and the Korean War. Membership re-opened shortly after both wars were ended.

At the time, in order to qualify to become a member of the Navy Mutual Aid Association you must be on active duty, in the Reserve Component, or retired from the following branches of the United State’s military:

  • S. Navy (USN)
  • S. Marine Corps (USMC)
  • S. Coast Guard (USCG)
  • S. Army (USA)
  • S. Airforce (USAF)
  • S. Public Health Service Commissioned Corps (USPHSCC)
  • National Oceanic and Atmospheric Administration (NOAA)

Navy Mutual Ratings and Financial Strength

One of the most important considerations when selecting the life insurance company that will protect your family is being confident that they will pay the claim when the time comes. Navy Mutual receives an A+ rating from Fitch, a third-party insurance company rating agency.

An A+ rating can be regarded as investment grade and indicates that Navy Mutual is in excellent financial strength to pay the obligations to their policyholders. Navy Mutual also has over $3 billion in total assets and collects over $86 million in total direct premiums!

Navy Mutual is rated A+ by the Better Business Bureau.  While Navy Mutual is not accredited by the BBB, it holds its highest rating indicating quality customer service.  It is no surprise that Navy Mutual also boasts a 97% customer retention. Most companies do not stay in business for over 140 years without delivering a high-quality customer service experience.

Navy Mutual Life Insurance Solutions

Navy Mutual life insurance is pretty simple and straightforward with their term life insurance and whole life insurance options.  Navy Mutual does not employ complex indexing strategies that can be confusing or opaque to the consumer, and they do not invest any of your hard earned cash in the volatile stock market within their life insurance policies.

In addition to Navy Mutual’s life insurance, they offer annuities to their members as well.  The core focus of our Navy Mutual life insurance review is, of course, their life insurance.  Although, we will touch upon their annuity products as well if you are interested.

Finally, Navy Mutual offers member benefits to all of their policyholders in addition to the death benefits or annuity benefits they would receive as stated within their policy. These Navy Mutual membership benefits are additional perks that you receive for being a member of the aide society similar to another fraternal life insurance company we work with called Foresters Life.

Navy Mutual Term Life Insurance

Term life insurance is the most efficient way to get a high amount of death benefit protection for minimal premium cost temporarily. Navy Mutual term life insurance makes sense for younger applicants who are looking to use the death benefit to replace their income, pay off their mortgage, or provide higher education funds for their children if they pass away prematurely.

Navy Mutual offers three types of term life insurance options for its members:

  • Navy Mutual Flex Term
  • Navy Mutual Express Term
  • Navy Mutual Level II Plus

Navy Mutual Flex Term gives you level term life insurance with an affordable monthly premium. Your monthly premium is guaranteed until age 50 or (40 for nicotine users), and you can purchase death benefit amounts of $50,000-$1,000,000. Your Navy Mutual life insurance coverage continues after your military service as well.

Navy Mutual’s Flex Term is a fully underwritten policy.  You will need to take a medical exam, and the life insurance company may request your medical records in order to determine if and what rates you qualify for.

The Flex term has a term conversion feature that is built into the policy that allows you to exchange your term life to a whole life without having to go through underwriting.  Also, there are no military service restrictions, war clauses, terrorism clauses, aviation restrictions, or travel restrictions for those on active duty in Navy Mutual’s life insurance.  The lack of such limitations is huge for active duty military personnel who may see combat.

Navy Mutual Level II Plus picks up where Flex Term leaves off by offering level life insurance coverage and level premiums for Navy Mutual members up to the age of 85. This is an affordable alternative to the Veterans Group Life Insurance (VGLI) due to its stable premiums and death benefits.

Navy Mutual only offers three health classes for its Level II Plus policy (Standard, Select, and Super-Select).  While a great option for servicemen in fair-to-excellent health who can qualify, not having substandard rates can exclude applicants who would otherwise qualify for life insurance with another company.

You can purchase the Navy Mutual Level II Plus policy in one-year increments, but you must purchase a minimum of five years. The Level II Plus is offered in $10,000 increments from $50,000 to $1,000,000 death benefits. The Level II Plus also is convertible to whole life with no physical as well.

Navy Mutual Express Term Plus is Navy Mutual’s no-exam life insurance option. An express term life insurance policy is a great fit for military members who want coverage quick, for example, those preparing for deployment. It also you to avoid medical exams, lab tests, and paperwork to get coverage fast!

Navy Mutual no-exam express term life insurance is available for members between the ages of 18 and 55, and you can take it with you after you complete your military service. Like the Navy Mutual Flex Term Life Insurance policy, there are no military restrictions like war, aviation, or terrorism clauses, nor any travel or residence restrictions.

However, Navy Mutual’s no-exam coverage will only offer you $250,000 coverage for 10-years.  If you are purchasing Navy Mutual’s no-exam coverage because you are about to deploy, then it is a great option. However, if the war clauses are no longer a concern of yours, take a look at a company like Sagicor Life who specializes in accelerated underwriting for greater coverage options.

Navy Mutual Whole Life Insurance

Navy Mutuals Flagship Whole Life is there only Navy Mutual’s participating whole life product. Luckily it is a solid option for those looking for lifetime death benefits with strong guarantees.  Whole life is usually used for permanent life insurance needs such as final expenses or estate planning.

Unlike term life insurance, which is pure insurance, whole life has tax-deferred cash value accumulation. Navy Mutual’s policy offers strong guaranteed cash value and a non-guaranteed dividend that can purchase paid-up additions or lower your insurance premiums.

You can purchase the Navy Mutual Flagship whole life insurance policy in death benefit increments of $10,000 up to $1,000,000 of death benefits. Navy Mutual’s whole life premiums are competitive and affordable. Once you purchase your policy, your premiums are locked in for the remainder of your life.

As long as you pay your monthly whole life premiums, you will always have life insurance no matter how old you live, unlike term life insurance that eventually will expire. Because of the way Navy Mutual is structured, there are no surrender fees or commissions associated with the policy, which reduces the cost of the insurance to you the consumer.

In addition, the Navy Mutual whole life insurance plan offers two types of accelerated benefits for chronic illness and terminal illness. However, Navy Mutual surprisingly did not include a critical illness option. As living benefits go, having chronic illness benefit is good, but there are other companies like Ameritas Life who are leading the way in accelerated benefit riders.

Navy Mutual Annuities

Navy Mutual also offers annuity products to its members. Just like their life insurance offerings, Navy Mutual has uncomplicated and straightforward annuity options. Do you want income now? Do you want income later? Do you want to grow your cash principal safely? That’s it.

Navy Mutual Annuities:

  • Navy Mutual Single Premium Immediate Annuity (SPIA)
  • Navy Mutual Single Premium Deferred Income Annuity (DIA)
  • Navy Mutual Flexible Premium Retirement Annuity (FPRA)

Navy Mutual’s single premium annuity is the traditional type of annuity that goes back to the time of the Roman’s.  The SPIA provides you a guaranteed income stream over a fixed period or the rest of your life in exchange for a lump sum payment.

This one-time premium payment is non-refundable.  Once your income stream starts, you lose access to the principal amount. If you pass away before all of your principal is used, there are often return of premium features that ensure that the insurance company does not keep your unused money.

Navy Mutual’s deferred income annuity functions just like it’s SPIA counterpart accept the income stream starts at a future point in time, not immediately. You are generally compensated for waiting to take your income with higher lifetime payments.

Navy Mutual’s Flexible Premium Retirement Annuity allows for tax-deferred cash accumulation of your investment through a variable interest rate. While interest rates will go up and down periodically, your principal is protected from investment loss.

How to Apply for Navy Mutual Life Insurance?

Navy Mutual does not allow their products to be sold by independent insurance agents.  Since Navy Mutual does not work with the general public, this makes sense. Instead, you can apply for Navy Mutual life insurance products directly on the web or by calling Navy Mutual’s phone number 1-800-628-6011.

In order to apply as a Navy Mutual member, you must be on active duty, retired, in the reserves/guard, or separated within 120 days of the United States Military, USPHS, or NOAA.

In addition, any honorably discharged veterans residing in the states of Rhode Island, Connecticut, Maryland, Virginia, North Carolina, South Carolina, Hawaii, Arizona, Oregon, Florida, or Texas can apply for Navy Mutual membership.

Navy Mutual Member Benefits

In addition to the life insurance and annuity products sold by Navy Mutual, you have access to various member benefits as well.

  • What Do You Receive from Navy Mutual?
  • Financial protection planning services.
  • Free Military Survivor Benefits Education Presentations
  • Beneficiary service and support.  Your survivors receive the counseling and claims assistance they need to get the survivor benefits your service earned for them
  • Representation to the Department of Veterans Affairs. As a chartered Veteran Service Organization, Navy Mutual is uniquely poised to provide you with the assistance you need to get the survivor benefits you deserve.
  • Free secure vault storage of valuable documents for members

Sample Navy Mutual Life Insurance Quote

We have included some sample Navy Mutual term life insurance quotes.  Please note that you need to qualify for these rates based on your health, lifestyle, and other factors.

Sample Navy Mutual Life Insurance Quote: Term Under Age 45

Death BenefitMaleFemale
$ 250,000$ 12.50$ 12.50
$ 400,000$ 18.20$ 18.20
$ 1,000,000$ 41.00$ 41.00

Please note that these Navy Mutual Life Insurance quotes are for the non-nicotine health class. 

The Final Word: Is Navy Mutual Right for My Family?

Navy Mutual serves the specific niche market of the U.S. Military and their family members. Navy Mutual’s products are certainly unique and tailored towards the men and women who protect our great nation.

If you are eligible to apply for Navy Mutual and are an active-duty serviceman, we think they are worth a look especially since Navy Mutual life insurance policies generally do not contain military service restrictions or war, aviation, or terrorism clauses.

However, if the war clauses are not a factor for you, it may be worth taking a second look elsewhere if you have a pre-existing medical condition.  The private life insurance market can underwrite greater medical risks and has more options when it comes to purchasing life insurance without a medical exam.

All in all, Navy Mutual looks like a dependable company, but it is worth comparing the rates of multiple companies before moving forward regardless.  Request a quote on our website or give us a call today to get a second opinion.


Resources: Navy Mutual