I've got USAA and they're fine with GSDs.
I love the breed. I prefer the K9 breeds like these and Belgian Malinois and Dutch Shepherds.
Your family sounds like they can handle the dog. Around $800-$1500 is acceptable and normal for a good pup. Personally, I like pups 6 months to even 18 months old. They're still young but housebroken.
When dog shopping look for less of a sloped back on the sire/bitch and the rest of their dogs. Of course, look for a health/hip guarantee and ask hard questions about the hips. Some other things you can personally look for is a breeder that advertises health over Schutzhund titles and doesn't go on and on about gait (the sloped back on many GSDs is due to breeders wanting a better, smoother gait in the show ring, no shit).
Some slope to the back is fine but I think it's obvious to most when it's a possible health issue. Personally, I would prefer a nice straight back like the original GSDs. Hip disease is a very real issue with GSDs and it's because of stupid breeding choices. Buyer beware.
GSDs are not Labs. I know that you know this but it bears repeating. These dogs need an alpha and/or a family not afraid to correct the dog. It's not hard to do so but you cannot be afraid of the dog and you must always know and feel that you are the boss, the same goes for the rest of your household. These dogs
want that. Don't get wrapped up in silly dog psychology bullshit,
be the boss and give the dog lots of love too. Do this right and you'll have a confident and fearless animal that knows when to bite and when to be friendly. This result is not hard to produce. In fact, unless you're going to get formal training via a trainer or Schutzhund, don't worry about encouraging the dog to bite; that's built in.
They will know if and when the time comes.
These dogs need activity. Not just running them
X amount of miles a day, actual mental activity.
Find the tennis ball, wrassling roughly with Dad; these things count just as much as running. Their little brains love play like this and it will give them an outlet for their energy. With regards to wrassling, here's another "not a Lab" moment: this is one of the breeds that
instinctively grabs your arm (sans puncturing) and holds onto it. It's not a big deal, be prepared, and be ready to teach them "OUT!" As some here have noted, the dogs really mature and come into their own around 2.5-3 yrs of age.
I think that a good GSD is perfect for someone getting into K9 breeds. Yes, the Mals (Belgian Malinois) are more athletic, replacing GSDs in police and military use in many places, shed less, and so on. They also routinely chase their tails as adults if not exercised (mental stimulus as wrote about previously is something Mals need as well) and can be quite aggressive if not trained right. The way I see it, the Mal is a like a guided missile; if guided in, it's very destructive. The GSD is more like a sentry on auto pilot. Of course, there's many GSDs that can do everything a Mal can do.
Here's some picture to help you out:
One of the first German Shepherds, note the
beautiful back:
What breeders breeding for the show ring have done to the breed ("half dog half frog")
: