Navy Mutual Review

ByTop10.com StaffJul.17, 2018

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In a Nutshell

Navy Mutual is a reliable life insurance company, providing an exhaustive and varied array of life insurance options for US military members. It knows its target audience well, and is easily able to procure coverage that suits all types of customers at a relatively low rates.

pros

  • Instant coverage of $250,000
  • Low premiums

cons

  • Limited to only one whole life policy
  • Only for past or present military service members

Best For?

Navy Mutual’s life insurance plans are best for military personnel who are on active duty or are retired, in the reserves and more recently, those who have been honorably discharged – though coverage only applies to residents of 11 US states. 

All policies offered by Navy Mutual extend past active service, continuing coverage until expiration regardless of current employment status. This means that Navy Mutual’s policies are great for customers who need coverage even after they are released from active duty. A heavy focus on term life plans specifically are excellent for changing needs, and there is something for everyone within the 3 plans available. A guaranteed convertibility rider offers members who want whole life coverage the ability to convert their term plan without a medical exam, or alternatively, they can opt for the formidable whole life plan.

Features

The depth of Navy Mutual’s strength comes from its long-time relationship with the U.S. military and its trusted status among service members from all branches. Those working for the Army, Navy, Air Force, Marine Corps, Coast Guard, US Public Health Corps and NOAA rely on Navy Mutual’s financial stability to protect them and their families, and have since 1879.

Another positive note for Navy Mutual is that it clearly understands what its customers need: a simple interface that helps them understand the best plan for them, thoroughly explains the features available and how much they will cost, then gives access to the plan quickly.

When it comes to stability, Navy Mutual is a powerful financial backer, with $80 million in direct total premiums coming in every month and over $2.9 billion in invested cash and assets. It has received an A+ financial strength rating from Fitch, one of the major agencies. An average yearly investment yield of 6.00% is also impressive, and contributes to the dividends that whole life policyholders consistently receive.

Application Process

The application process is dependent on which plan you go for. Starting the submission can be done directly from the Navy Mutual website, where you’ll be prompted to create an account and then select the plan you want. Since many active duty service members are on foreign soil and cannot wait to receive mail or bother with paperwork, coverage can be acquired by calling Navy Mutual or using their online and email-based forms.

A unique characteristic is that the express term life policy has no application process apart from a single form and questionnaire before covering applicants immediately for $250,000 without the need for a medical exam.

Policy Types and Terms

Though it may look like options are sparse on the surface since there are just 3 term life options and a single whole life option, the adjustability and features included in each policy make them more than sufficient for the average life insurance applicant. There are also a small variety of riders, most of which are compatible with every policy offered, further expanding their suitability. 

  • Express Term Life: Express term life insurance is available to service members immediately without a physical. This unique plan offers coverage of $250,000 for 10 years through a simple form that can be filled out quickly online. The form shows applicants their level monthly premium after inputting some personal details, and then coverage begins immediately without a medical exam. There is no bureaucracy and no waiting, which is highly relevant for Navy Mutual’s clientele. Applicants between the ages of 18 and 55 are automatically covered, with the policy valid past the conclusion of their service like most plans available from Navy Mutual. In addition, the express term life plan is compatible with the accelerated death benefit rider.
  • Flex Term Life: This plan provides level coverage and a consistent premium rate, and both amounts can be adjusted to the discretion of the customer. Coverage is guaranteed until age 50 (or 40 for smokers). All 3 riders including the guaranteed convertibility, the accelerated death benefit, and the child benefit rider are applicable to the flex term plan. Coverage continues even after military service for as much as $1,000,000 at $41.00 per month, or as low as $100,000 for $6.80 per month.
  • Term Level II: This plan is called “Level II” because it is designed to take over where the flex life plan leaves off. Customers can receive level coverage for a stable premium until the age of 85, with both prices and terms adjustable by small amounts. Coverage ranges from $50,000 to $1,000,000 in increments of just $10,000, meaning that nearly any qualified applicant can find the right mix. Furthermore, this policy is offered in increments of 1-year, with a minimum of 5 years, so the exact right term length can also be selected by the prospective policyholder. There are several complementary riders available. The guaranteed convertibility rider transforms the Level II plan into a whole life version without a medical exam, an accelerated death benefit rider pays out in a lump sum when the policyowner falls terminally ill, and the option to add children to the policy at a low rate is also available.
  • Flagship Whole Life: The only whole life plan from Navy Mutual provides a permanent life insurance solution with the advantage of cash-value growth and extra financial options. For customers aged 18 to 80, the flagship whole life plan offers $10,000 to $1,000,000 worth of coverage at affordable monthly premiums, plus a dividend that can be used to add cash value to the policy by increasing the death benefit, pay premiums, or be withdrawn as cash. Like other whole life plans, the value of the death benefit can be used as a financial asset and can be borrowed against if the policyholder wants a loan. Two kinds of accelerated death benefits apply to the flagship whole life plan, one for the terminally ill and one for chronic illnesses. Children of the policyholder that are under age 24 are eligible for coverage in differing amounts as well.

Help and Support

The toll-free phone support line number for Navy Mutual is posted on almost every page of the website, encouraging those with questions to call and speak with a representative. On the phone, callers do not have to wait long before being connected, and the same applies to email as well, with inquiries usually addressed within a single business day.

The easy-to-use tools available on the homepage of the Navy Mutual website can also help guide potential customers towards the best plan, how much coverage they need, and provide quotes to follow up on. Moreover, the option to speak with a financial planner is great for those who need a professional word of advice.

Summary

In business since 1879, Navy Mutual has developed a small but solid number of life insurance options—3 term life and 1 whole life—that thoroughly cover a wide range of current and former military personnel, who often have needs different than their civilian counterparts. Accordingly, Navy Mutual offers a unique express term life policy that covers anyone for up to $250,000 immediately via an online application, with no medical examination required. This and other options are aimed at servicemembers who may be away from home or shipping out soon, but there are no specific requirements or restrictions.

A clean and transparent interface as well as some handy tools come in useful when it comes to understanding your options. Furthermore, support is prompt and adept at handling any question or concern. For customers who are currently serving in the military or have since left active duty, Navy Mutual presents an excellent choice.

Physical Address

Henderson Hall

29 Carpenter Road

Arlington, VA 22212

NavyMutual