Pentagon Federal Credit Union Life Insurance – Policies, Rates and Calculator

Life insurance can help provide crucial financial security for your loved ones in the event of your passing. But finding the right policy at an affordable rate can be challenging. That’s where credit union options like Pentagon Federal Credit Union, also known as PenFed, can help.

In this comprehensive guide, we’ll explore PenFed’s life insurance offerings, underwriting process, costs, online calculator tools, and more. Read on for an in-depth look at securing life insurance protection through your PenFed credit union membership.

Overview of PenFed Life Insurance

PenFed is one of the largest credit unions in the U.S., serving over 2.4 million members globally. The financial institution offers a variety of insurance solutions, including:

• Term life insurance
• Whole life insurance
• Universal life insurance
• Accidental death insurance

Policy options are available from leading insurers like Mutual of Omaha and Manhattan Life. You can apply for coverage entirely online in minutes with instant decisions for term life policies up to $350,000.

As a PenFed member, you’ll enjoy potential discounts on life premiums along with benefits like:

• Access to group rates not available to the public
• Online account management and policy updates
• Payroll deduction or automated payments from your PenFed account
• Guidance from PenFed financial planners

Credit union membership can be an affordable route to gaining life insurance coverage for yourself and family members.

Types of Life Insurance From PenFed

PenFed offers all the standard permanent and temporary life insurance policy types.

Term Life Insurance

Term life provides pure death benefit protection for a set period of time or “term” – usually 10 to 30 years. It pays out a tax-free lump sum to your beneficiaries if you pass away during the coverage term.

• Affordable premiums – Term policies have lower monthly costs than permanent insurance.
• Coverage amounts from $25,000 up to $1 million
• Guaranteed renewable – Policies can be renewed up to age 95 without medical underwriting.
• AD&D rider – Add accidental death coverage.
• Living benefits – Access a portion of the death benefit if terminally ill.

Term life works well for covering temporary needs like mortgages, college costs, or replacing income for family members. It provides affordable peace of mind that your loved ones will be taken care of financially if you die prematurely.

Whole Life Insurance

Whole life insurance provides permanent lifetime death benefit coverage along with a cash value savings component that grows tax-deferred over time. Premiums remain level for life.

• Cash value fund – Earns interest at a guaranteed rate and can be withdrawn or borrowed against.
• Adds longevity protection by covering you for life.
• Stable premiums – Rates will never increase once the policy is issued.
• Can be used for burial/final expenses since death benefit is guaranteed.
• Policy loans – Borrow against cash value if needed.

Whole life is ideal for permanent needs like final expenses, business buyouts, and financial legacy planning since coverage never expires if premiums are paid.

Universal Life Insurance

Universal life insurance provides lifelong death benefit coverage like whole life but with more flexibility. You can adjust your coverage amount up or down and vary premium payments month to month as needed.

• Customizable coverage – Raise or lower the death benefit when life circumstances change.
• Flexible payments – Pay whatever premiums fit your budget each month.
• Multiple investment options for how your cash value accumulates – fixed or equity-indexed.

The adjustable coverage and payments make universal life very adaptable to changing income and family situations. It provides lifelong protection and cash value savings.

How Much Does PenFed Life Insurance Cost?

PenFed life insurance rates will vary based on factors like:

• Type of policy – term, whole, or universal life
• Age, gender, and health status when applying
• Amount of coverage requested
• Duration of coverage for term policies
• Added policy riders or options

However, as a PenFed member you’ll enjoy access to group rates not available to the general public. This makes life insurance through PenFed very competitively priced.

Here are some sample monthly premium costs for a 30-year old healthy male PenFed member:

• $250,000 term life policy: $16 per month
• $500,000 whole life policy: $150 per month
• $1 million universal life policy: $200 per month

Of course, your specific life insurance quote from PenFed will depend on the details of your policy. Connect with a PenFed representative to get accurate pricing based on your age, health, lifestyle, amount of coverage needed, and other personal factors.

PenFed Life Insurance Eligibility and Underwriting

To qualify for life insurance coverage from PenFed, you must be a member of the credit union. Membership is open to:

• Active duty or retired military
• Veterans
• Family members of armed forces or veterans
• Most federal employees or contractors
• Certain associations and employee groups

If you don’t currently qualify through military/government affiliation, you can join the PenFed Foundation for a one-time $17 membership fee.

The underwriting process involves completing an application and providing basic medical history. You may also need a medical exam consisting of height/weight, blood pressure, and labs depending on your age and amount of coverage requested.

PenFed offers simplified issue term life policies up to $350,000 for those in good health, with no medical exam required. Getting coverage with certain health conditions may involve providing additional details.

Using PenFed’s Life Insurance Calculator

One useful resource PenFed provides is an online life insurance calculator to estimate the right amount of coverage. You input details like:

• Current age and income
• Family status – spouse and number of dependents
• Existing savings and life insurance
• Debts and final expenses
• Income replacement and survivor needs

The calculator then shows the estimated total and per person coverage needed to help your beneficiaries maintain their standard of living.

You can tweak the variables to reflect different scenarios and assumptions. The printable results make it easy to discuss your specific situation with PenFed agents.

Why Choose PenFed for Life Insurance?

Here are some top benefits of getting life insurance through your Pentagon Federal Credit Union membership:

• Access to group rates only available to PenFed members
• Apply and manage your policy completely online
• Military-friendly provider that serves armed forces
• Well-rated financial institution with over 85 years of service
• Guidance from PenFed advisors for personalized service
• Payroll or account deduction for easy premium payments
• Discounts and policy incentives exclusively for members

For an affordable and hassle-free life insurance experience, PenFed membership can be a great option for eligible individuals.

Alternatives to PenFed Life Insurance

While PenFed offers solid coverage for members, make sure to also consider:

• Checking quotes from other insurers to compare rates on equal coverage amounts.
• Considering an independent life insurance agent who can provide quotes from 50+ companies.
• Checking rates if you already have membership with another credit union to weigh options.

The most important thing is finding life insurance tailored to your budget that provides sufficient protection for your loved ones’ future. Shop multiple avenues to determine the best fit.

The Bottom Line

For those eligible for PenFed credit union membership, life insurance can be an easy and cost-effective option. Take advantage of group rates, simplified online application, and account management through your PenFed account access.

Use their online calculator to get estimates, and work with PenFed advisors for personalized guidance. Gain peace of mind knowing your family is protected through PenFed life insurance.