Navy Mutual Insurance Review & Complaints: Life Insurance (2024)

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The Navy Mutual Aid Association is a long-standing organization that provides life insurance and annuities to members of the U.S. navy and several other related branches of the military and government. They operate as a membership-based non-profit organization across the country.

What is Navy Mutual?

Navy Mutual was founded in 1879 by a group of naval officers, and initially offered products only to active duty officers in the Navy and Marine Corps. In 1920 the rules were changed, opening membership to temporary and reserve officers, and in 1925 further expansion made Coast Guard officers eligible. Over the following decades Navy Mutual continued to open its doors to a more diverse membership. The website offers a tool to check eligibility for membership.

Navy Mutual is a chartered Veteran Service Organization and can assist members with Department of Veteran’s Affairs services. They also provide many other benefits to members including free document storage and financial planning assistance. Since they cater to military members, their products are designed to meet specific needs and do not include war clauses or anything else that would restrict a member from collecting benefits.

Currently, Navy Mutual offers term and whole life insurance options, as well as annuities and estate planning services for military members and their families. Navy Mutual is a nonprofit organization and the nation’s first federally recognized veterans service organization. The carrier provides survivor benefits to military members, such as educational services, at no cost.

Navy Mutual has its headquarters in Arlington, Virginia, but offers products across the nation and also to those stationed outside the U.S.

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What products do Navy Mutual offer?

Navy Mutual has a basic list of products, with several life insurance and annuity options to choose from.

Life Insurance

Life insurance products are mainly term life insurance, although there is one whole life insurance plan available as well.

Flex Term is a budget term life insurance plan that has level premiums based on the amount of coverage selected. The flexible coverage lasts until age 50, or until 40 for tobacco users, with no premium increases. The plan can be converted to any other life insurance product up until 2 years before the end of the term without a medical exam. Death benefits amount range from $50,000 up to $1,000,000. An accelerated death benefit and child rider can be added to this policy.

Express Term Plus is a simplified issue policy with no medical exam required. It is a 10-year term policy with a death benefit of $250,000. Issue age is between 18 and 55. This policy can also have the accelerated benefit rider added.

Level II Plus provides term coverage from age 45 up to age 85, with terms starting at 5 years and increasing by one-year increments from there. Coverage is again available from $50,000 up to $1,000,000 in increments of $10,000. There are three levels of premium rates based on health. Several riders can be added to this plan, including two different convertibility riders, a child rider, and the accelerated death benefit option.

Flagship Whole Life is the one permanent coverage option and can be issued between the ages of 18 to 80. Death benefit amounts start at $10,000 and go up to $1,000,000. This plan has the potential to pay dividends to the policyholder, and also has a cash accumulation account. There are various rider options include chronic/terminal illness and paid up additions, and the plan is also available as a child policy.

Annuities

Navy Mutual offers three annuity choices to provide retirement income.

The Single Premium Immediate Annuity requires one lump sum deposit between $10,000 and $1,000,000. Payment options are flexible, and can be monthly, quarterly, semi-annually, or annually.

The Single Premium Deferred option is also a one-time deposit with an interest rate lock-in period of either 5, 7, or 10 years. There is a minimum guaranteed annual interest rate of 1% and several payout options.

The third annuity option is the Flexible Premium Retirement Annuity. There is a minimum initial contribution of $100, and after that contributions may be made in amounts of $25 and above. The interest rate is variable, but again 1% is guaranteed.

Are the rates competitive?

While there online quoting is not offered, the website does provide rate charts for several of the policy options that are based on the amount of the death benefit. For the Flex Term policy, $100,000 in coverage has a rate of $6.80 up to age 50. For $1,000,000 in coverage, the rate is $41.00. Rates are the same for male or female.

These rates are reasonable considering the term length could be more than 30 years if issued at age 18, although if issued later in life a different option may be more affordable, but even at a 10-year term for $100,000 in coverage the rate here is low. Considering the simplicity and straightforward nature of the term policies, these are good rates.

Level Term Plus II rates are also listed, and these do differ for male or female applicants. A 45-yar-old male can take out $100,000 in coverage up to age 85 for $14.40 a month, and $1,000,000 for $70 a month. These rates are again reasonable given the age of issue and the length of the term.

What Discounts Does Navy Mutual Offer?

While Navy Mutual does not make information about their specific discounts readily available, most life insurance companies today offer several common discounts on comparable coverages.

Navy Mutual Claims Process

Ease of Filing a Claim

Navy Mutual Insurance offers multiple options for filing a claim, ensuring convenience for its policyholders. You can file a claim online, over the phone, or through mobile apps, making it accessible and user-friendly.

Average Claim Processing Time

While specific claim processing times may vary depending on the nature of the claim and other factors, Navy Mutual Insurance strives to provide efficient service to its policyholders. The company aims to process claims promptly to ensure that beneficiaries receive their benefits in a timely manner.

Customer Feedback on Claim Resolutions and Payouts

Navy Mutual Insurance values customer feedback and aims to provide satisfactory claim resolutions and payouts. Policyholders’ experiences and opinions play a crucial role in improving the claims process, and the company is committed to addressing any concerns or issues promptly.

Navy Mutual Digital and Technological Features

Mobile App Features and Functionality

Navy Mutual Insurance offers a mobile app with a range of features and functionalities to enhance the overall customer experience. The app allows policyholders to manage their accounts, file claims, access policy information, and receive updates on the go.

It provides a convenient way to stay connected with the insurer.

Online Account Management Capabilities

The company’s online account management platform offers policyholders the ability to access and manage their insurance accounts online. This includes reviewing policy details, making premium payments, updating personal information, and accessing important documents.

Navy Mutual Insurance aims to provide a seamless and user-friendly online experience.

Digital Tools and Resources

Navy Mutual Insurance provides digital tools and resources to assist policyholders in understanding their coverage and making informed decisions. These resources may include educational materials, calculators, and other online tools designed to help customers navigate their insurance needs effectively.

The insurer is dedicated to leveraging technology to support its policyholders.

What are the financial strength ratings and consumer reviews?

Navy Mutual is not Better Business Bureau (BBB) accredited but has an A+ rating with only three complaints on file in the past three years. There have been no reviews left on the BBB page.

There are six reviews on Yelp with an overall 3.5-star rating. The two negative ratings both have the same complaint – a low rate quote followed by an increase in rates after the underwriting process was completed. The other ratings are all five-star and cite great customer service – only one was from a policyholder who had filed a claim and had a good experience.

Navy Mutual has not been rated by A.M. Best, the leading global credit rating agency monitoring the insurance industry. While ratings through this organization are not a requirement for an insurance company, they do help to solidify a carrier’s credibility and financial strength ratings and potentially influence prospective customers‘ decisions about whether to trust the carrier with their coverage needs.

The overall complaint volume is really low, and we did not find further reviews of this company on any of the other usual websites.

What is the bottom line?

Navy Mutual has some basic products available at reasonable rates, and they cater to the needs of their members by removing some clauses and exclusions that can make life insurance policies difficult for military members. If you are among those that qualify for membership with Navy Mutual and have simple life insurance coverage needs, they are well worth considering.

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