Breaking Tradition: How USBA Eliminated the ‘War Clause’

There was a time when military service came with a significant financial risk: If you lost your life in combat, your life insurance might not pay out.

That’s because of a long-standing policy exclusion known as the War Clause. For decades, it was a common feature in life insurance contracts, and one that left countless families vulnerable.

But the founder of The Uniformed Services Benefit Association^® (USBA^®), Herb Swarthout, believed that wasn’t just wrong. It was unacceptable. So, he began to do something about it.

The War Clause: An Unspoken Risk

The origins of the War Clause date back to the early 20^th century, when insurers were shaken by the staggering casualties of World War I and World War II. Faced with mounting claims, many companies added exclusions to protect their own financial interests.

These exclusions—grouped under what later became known as the war clause—denied benefits if a policyholder passed as a direct result of war, combat, or hazardous duty.

Timeline: The Evolution of the War Clause in Life Insurance

The war clause didn’t appear overnight—it developed slowly, shaped by global conflict and industry caution. Here’s how it became a standard in life insurance policies:

• 1914–1918—World War I: As global conflict drives mass casualties, life insurance companies begin adding exclusions for deaths caused by war.
• 1939–1945—World War II: The war clause becomes a widespread industry standard. Combat-related deaths were frequently excluded from payouts.
• 1950s—Korean War Era: Insurers continue applying war clauses to life insurance policies. Families of fallen service members risk being denied benefits.

By the end of the 1950s, the war clause had become a deeply entrenched norm, one that would take bold action to overturn.

USBA’s Founding Mission: Protection Without War Limitations

USBA was founded in 1959 by Herb Swarthout, who saw the limitations of traditional insurance coverage. He recognized financial protection should extend beyond the dangers of military service. From the very start, USBA made a bold decision: to remove the war clause entirely. This was more than a minor policy change; it set USBA apart. 

Unlike others that maintained exclusions, USBA created group life insurance products specifically for the military community, free from restrictions related to combat or duty status. The organization was established to address the needs of active-duty military members, many of whom struggled to find adequate life insurance coverage that included combat-related deaths.

USBA was among the first to eliminate the “war clause” from all its life insurance policies. We believe (and continue to believe) that those who wear the uniform deserve protection that honors their sacrifice, not one that vanishes in critical moments.

Changing the Industry, One Policy at a Time

The removal of the war clause had ripple effects. USBA wasn’t just offering a new product; it was challenging the foundation of how life insurance had been written for decades.

Looking at the bigger picture, this decision was revolutionary. It changed the way we see the relationship between insurance and those who serve, encouraging other organizations to rethink their approach to military coverage.

USBA helped prove that coverage could be both financially responsible and ethically sound, and that military families deserved better.

USBA didn’t just remove exclusions; we built life insurance around real military needs.

Why It Still Matters Today

Over 65 years later, we’re still rooted in the same caring principle: we’re here to support your family when you need it most, without any war clauses.

If you’re looking for life insurance designed with your service in mind—coverage that honors your life, not limits it—USBA is here for you. See how term and whole life insurance compare—and which one may fit your mission now. With the backing of insurance leader New York Life Insurance Company, USBA continues to help those who serve our Nation gain security for their future and the future of their families.