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Does PTSD Jeopardize Insurability for Veterans?

life insurance

By Debbie Gregory.

Can you qualify for life insurance if you have PTSD? It depends on each individual’s circumstances, as well as the insurance company’s policies. There are many variables to evaluate when choosing a life insurance policy, including the age at which you choose to purchase, if you are single or have a family, and your medical status.

Life insurance options for military families include:

  • Serviceman’s Group Life Insurance (SGLI) may be purchased by any active duty military, members of Reserves and ROTC, and other groups such as employees of the U.S. Public Health Service, and the National Oceanic and Atmosphere Administration.
  • Veteran’s Group Life Insurance (VGLI) offers a natural transition from an active duty policy to a retired veteran’s policy. VGLI and SGLI both serve group policies in which the enrollees collectively keep premiums low.
  • The Army and Air Force Mutual Aid Association (AAFMAA) offers a range of insurance terms and policies for all five military branches who are active duty, reservists, or retired service members. ROTC members may also purchase an AAFMAA policy under certain provisions.
  • The Navy Mutual Aid Association (NMAA) offers a selection of life insurance and financial planning tools to active and retired military. Contrary to the name, these policies are not restricted to Navy service members; Army, Marines, and Coast Guard personnel, as well as employees of the U.S. Public Health Service and the National Oceanic and Atmosphere Administration are also welcome.

Insurers will look at whether the applicant has a VA disability rating, since decisions are made based on the risk. While Post-traumatic stress itself is not an automatic disqualifying diagnosis,  applicants may still be denied or have to pay more for insurance.

All this leads to one conclusion: the best time to think about purchasing  life insurance is prior to transition.

Military Connection salutes and proudly serves veterans and service members in the Army, Navy, Air Force, Marines, Coast Guard, Guard and Reserve,  and their families.