- Need-to-know life insurance facts for military
- May 27, 2011
The Government Option
The U.S. government provides affordable group term life insurance through the Servicemembers’ Group Life Insurance (SGLI), U.S. Department of Veterans Affairs. Life insurance insurers USAA and USBA, which is underwritten by New York Life, offer these customized plans.
According to the VA, SGLI premiums are .065 per 1,000 dollars of insurance. They also offer coverage ranging from 50,000 to 400,000 dollars.
Members of the Armed Forces are automatically signed up for coverage when they join the military, but they can choose to “opt out” of being enrolled in a SGLI life insurance plan. SGLI plans also offer “no cost” disability coverage for up to two years.
Another form of life insurance offered by the military is Veterans Group Life Insurance (VGLI), which is life insurance offered to members of the military after they leave the service. However, Life insurance provided by both SGLI and VGLI are limited to term life policies.
“If they (military personnel) can’t afford everything they want right now, they can get a guaranteed insurability option,” said Ashe. “That means regardless of their future health, they would have the right to buy more insurance.”
Experts also recommend shopping around. Research each company to determine which insurer can provide the best deal. Some private insurers are more attuned to the needs of armed services members.
“Many policies allow riders for spouses and children,” said Ashe. “So military personnel can add a spouse or child to their coverage and typically those riders allow the spouse or child to convert to a permanent life insurance plan at some point.”
Although U.S. deployment overseas continues, affordable life insurance options can ease the financial stress felt by the families of those who bravely serve.Pages: 1 2
- Category: Featured Story, Life Insurance
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