The sacrifices they make every single day deserve both our respect and recognition.
Our servicemen and women also have loved ones and families that need financial protection.
The best way to provide those families with a financial safety net is through life insurance.
Now, as an independent insurance agent, I know that you have some wonderful choices when it comes to buying Group Life Insurance through such fine institutions such as Service Member’s Group Life Insurance (SGLI).
But, there are a number of details to consider, because your life insurance coverage may simply not be enough!
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If you are in service to your country, you may not be fully aware of what SGLI offers. Well, in a nutshell, you can buy up to $400,000 in Term Life Insurance which is available in increments of $50,000.
The cost of insurance is based on flat fee of $0.07 cents per $1,000 dollars of coverage.
This means that the minimal amount of coverage would be $50,000 and you would pay a monthly premium of $3.50 per month to a maximum policy of $400,000 which would cost you $28.00 per month. With an additional monthly premium of $1.00 per month you can also provide protection for traumatic injury.
When you leave the military you also have the option of transferring to an approved commercial policy within 120 days of discharge, or opt to go with VGLI (Veteran’s Group Life Insurance).
There are certain benefits and drawbacks to both of these options.
One of the benefits of choosing VGLI within the conversion period, is that you will not have to undergo a medical exam. If your health has deteriorated, this can be a plus.
The drawback is, if you opt to go with a commercial carrier you will have to pay for a Whole Permanent Life policy, which is your only choice because all others such as Term, Universal Life and Variable Life are not permitted.
The drawback with the VGLI option is that you are restricted to a coverage amount equivalent to what you had under the SGLI policy you had selected. Exceptions for being approved may apply, such as PTSD (Post Traumatic Stress Disorder) and others which may affect whether you qualify for a conversion policy.
Additionally, the premiums you pay for VGLI will be based on your age when you convert.
So, if you are considering what to get for a SGLI policy amount, you should think long term and most experts suggest going for the maximum amount.
Why would you need to consider other life insurance options?
The first major question I would pose to anyone who is participating in the Navy, Army, Marines, Air Force, Coast Guard, and Border Patrol Agents, is the following question:
“Will the life insurance you buy through SGLI be enough?”
The truth is that most Americans who have a life insurance policy don’t have enough!
When you consider life insurance you want to fully provide for all your family’s needs while in the military and after your service is over. That’s taking the long term approach.
You might not have a family now, or own a home, but it’s very likely you will down the road.
You will want life insurance to financially cover your family and beneficiaries with all the following needs including:
• Income replacement if you are the primary breadwinner
• Cover all your personal debts
• Household expenses
• Your mortgage or rent
• Provide college tuition for your children
• Final expenses
On average, each child costs about $250,000 from the time they are born to when they reach the age of majority.
If you died while in service, it’s vital that you consider just much life insurance your family will need to financially manage in a level of comfort they had become accustomed to while you provided for them.
Most life insurance experts will tell you that the MINIMUM amount of life insurance you need should be roughly equivalent to 10 times your current salary. Salaries don’t remain static and there’s a good chance you might be earning more money after you leave the military.
To provide fully for your family, it’s time that maybe you should buy additional coverage using an independent life insurance agent who can comparison shop the policies and costs for you so you can buy additional coverage.
To bolster your life insurance coverage, you don’t want to wait especially if you are currently young and healthy.
Here, at JRC, we can help you find additional Term Life Insurance at very competitive rates. We can find policies that can provide you anywhere from $100,000 to $1,000,000 in life insurance coverage for terms up to 30 years.
There are many Term policies available which are also convertible to permanent insurance or are renewable without having to undergo a medical exam.
And, if you looking for a policy which would add to retirement income or if you looking for a conservative investment vehicle, we could also set you up with a Permanent Life Insurance policy such as Universal Life, Indexed Universal Life or Whole Life.
NOTE: These competitive rates would be applicable so long as you don’t have current deployment orders.
If you happen to serve in the Special Forces such as the Navy Seals or Army Rangers, we can also help you find additional life insurance coverage.
In most instances, you won’t likely qualify for normal rates and will likely be accessed an additional flat extra on top of your regular rates. This would be due to the increased hazard of your particular branch of service. This is also applicable to other civilians who are employed in high risk occupations.
However, the point is that there numerous insurers out there and some are far more lenient than others, so it’s always a good idea to use an independent agents like the ones here at JRC because we can shop the market for you to find the best rates.
Whether you are currently serving or about to leave the military, your health may have deteriorated since you enlisted. If you need additional life insurance and are worried about how your health issue might impact your premiums, we can help.
Here at JRC, we specialize in high risk health issues and we know what insurers are looking at when they evaluate each person’s situation. Keep in mind that not all life insurers are the same as some are much more liberal than others when it comes to various health conditions.
It’s vital that you review you life insurance needs because your circumstances will change. Make sure your family has the life insurance safety net they need so they can carry on living the way you would want them to!
Call us today toll-free at 855–247–9555 if you need additional and/or affordable life insurance; we can help!
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