Navy Mutual Aid Association

Overview

Navy Mutual Aid Association (NMAA), commonly known as Navy Mutual, is a nonprofit, federally tax-exempt, mutual-benefit organization dedicated to providing life insurance and financial services to members of the U.S. military, particularly those in the sea services. Established in 1879, it is one of the oldest and most respected Veterans Service Organizations (VSOs) in the United States.

History

The concept of Navy Mutual emerged after the Battle of Little Big Horn in 1876, where the widows and children of fallen officers were left with little financial support. In response, a group of U.S. Navy officers formed the association to aid the families of deceased members. Initially, membership was limited to active duty officers of the Navy and Marine Corps. Over the years, eligibility has expanded to include officers from the U.S. Coast Guard (1925), U.S. Public Health Service (1963), National Oceanic and Atmospheric Administration (1972), enlisted personnel from the Navy, Marine Corps, and Coast Guard (1980), and retired personnel of the sea services (1993). As of 2020, Navy Mutual extended membership to active duty, reserve, and honorably discharged personnel from the U.S. Army and U.S. Air Force, as well as their families.

Products and Services

Navy Mutual offers a range of life insurance options, including:

• Whole Life Insurance: Known as Flagship Whole Life, which provides permanent coverage with cash value accumulation over time.
• Term Life Insurance: Includes products like Level II 'Plus' for individuals aged 40+ and Flex Term for those under 40, offering coverage for specific periods.

In addition to life insurance, Navy Mutual provides annuities such as:

• Single Premium Deferred Annuities
• Flexible Premium Retirement Annuities
• Single Premium Immediate Annuities, offering secure and competitive returns.

Mission and Governance

The primary mission of Navy Mutual is to provide affordable, non-commissioned life insurance and annuities to its members without the burden of sales commissions or military service restrictions. The organization is governed by a volunteer Board of Directors, ensuring that it remains true to its founding principles of serving the sea services community.

Financial Performance

As a nonprofit entity, Navy Mutual's financial strength is evident in its assets and insurance in-force. By 2019, the organization managed over $3 billion in total assets and had more than 145,000 insurance plans in effect. Navy Mutual consistently earns high ratings for financial stability, including an A+ rating from Fitch for seventeen consecutive years through 2020.

Education and Advocacy

In addition to life insurance, Navy Mutual provides free financial education to its members and their families, focusing on survivor benefits and financial management. The organization also offers assistance in navigating veterans' benefits without cost to the U.S. Department of Defense.

Leadership

Navy Mutual is currently led by President and CEO Brian E. Luther, a retired Rear Admiral of the U.S. Navy. The Chair of the Board is Vice Admiral Stanley R. Szemborski, USN.

Impact

For over 141 years, Navy Mutual has been a cornerstone of financial security for military families. It continues to evolve, ensuring that it meets the changing needs of service members across the branches it supports. Its commitment to providing high-quality insurance products without military service limitations has made it a trusted name in the veterans' community.