Life Insurance

Mlt852

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Mar 29, 2016
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Our DS is going thru his paperwork for his appointment and got to the life insurance. (I'm still recovering being named a beneficiary for my DS). I told him to take the lowest amount to save money, since he has no dependents or other outstanding debt. However, does anyone know if years later can he increase coverage?
 
Our DS is going thru his paperwork for his appointment and got to the life insurance. (I'm still recovering being named a beneficiary for my DS). I told him to take the lowest amount to save money, since he has no dependents or other outstanding debt. However, does anyone know if years later can he increase coverage?


This link is a place to start. Do not know answer to your exact question.

http://www.benefits.gov/benefits/benefit-details/585

Term life policy with no combat exclusion, inexpensive for the price.

I took the max, even when unmarried and house-free, and mom was beneficiary. I figured if something happened to me, that chunk of money could help my parents or other family members in old age or in need. I was an only child and knew that I would be the one responsible for elder care. It took a weight off my mind.
 
We did ours a while back and the portal still isn' t updated to reflect it. Does anyone know if this is unusual?
 
We did ours a while back and the portal still isn' t updated to reflect it. Does anyone know if this is unusual?
I know that you're also allowed to just bring it with you on R-day so it may be possible that they're waiting until then to start processing them so it's not all scattered? I don't know though
 
Our DS is going thru his paperwork for his appointment and got to the life insurance. (I'm still recovering being named a beneficiary for my DS). I told him to take the lowest amount to save money, since he has no dependents or other outstanding debt. However, does anyone know if years later can he increase coverage?
Yes, he can go to the S1 shop at any time and update his SGLV to a higher coverage level.
 
Honestly, if he has no dependants, and noone is relying on him for income, there isn't a great reason to pay for life insurance. Too often I think folks consider term life insurance to be some kind of payment for the suffering survivers have when a loved one dies. But to each his own.
 
brovol, I agree with you, he has no dependents/spouse so I don't see a reason to pay for much at this time. I just wanted to make sure he wasn't locked into an amount. scoutpilot, what is the S1 shop?

Thanks for the comments & advice
 
$4.50 a month for $50,000 in coverage. Your plebe will get paid about $200 a month after the $4.50 is deducted. The amount can be changed later without any problem. $29 a month for $450,000 is the maximum. You also need renters insurance. USAA is who we use. They have an academy rate.
 
Why in the world would you need renters insurance? When I had an apartment full of furniture, bikes, etc I had it. But, a dorm room? With nothing but uniforms and a computer?
 
^unfortunately in a place where individual room doors are not locked and there are civilian workers with access (in addition to 4000+ cadets), things sometimes "disappear." The uniforms, computer, cell phone, and any other person items can be expensive to replace.

In Plebe year, c/o 2018 had expenses of $4,900-uniforms & equipment, $1,800-books & supplies, $3,780-computers & supplies. >$10,000

Renter's insurance is highly recommended for cadets.
 
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USAA offers something called Academy Personal Property Policy, available only to the 5 SAs, roughly $5-$8/month, low deductible, replacement value. Covers uniforms, personal electronics, high ticket sports gear, musical instruments, any personal gear, class ring, other jewelry, engagement ring down the road, wherever that stuff happens to be, with them, car trunk, storage unit, sponsor's basement, buddy's house, USNA locker, etc.

Though much would be covered by homeowner's policy of parents, the HO deductible would be too high or it might not be a good thing to have too many small claims against the HO policy. The mid gets this in their own name, which lays the basis for a multi-policy discount when it's time for auto insurance.

Agreed - not too much utility for plebes/doolies/swabs, but all mids/cadets only get more stuff.

After graduation, the new ensign/2nd lieutenant simply calls USAA to update the profile, and the personal property insurance continues wherever they happen to be, even if they are not renting. All stuff is covered.

We usually recommend to our USNA sponsor mids they consider it no later than when a car and class ring are now in their possession, 2/c year, second semester.

We had a sponsor mid who finally got personal property coverage two weeks before graduation. On graduation night, he parked his car off-Yard, filled with every brand-new uniform, Play Station, new sword, new cover, bicycle, laptop "safely out of sight," etc. Everything he owned was in that car, ready for him to PCS to first duty station. Car was stolen that night. USAA auto insurance covered car theft, but nothing non-car-related. USAA personal property insurance covered everything else, except for his $50 deductible.

Like all insurance, it's a hedge against risk and a personal decision.
 
brovol, I agree with you, he has no dependents/spouse so I don't see a reason to pay for much at this time. I just wanted to make sure he wasn't locked into an amount. scoutpilot, what is the S1 shop?

Thanks for the comments & advice
It's the personnel shop.
 
With the USAFA, the default for SGLI (life insurance) was $400K. This is ridiculous for a single person with no dependents and no debt, especially since it cost about $35+ per month. I had DD change it to $50K, which is about $8 per month.

Also, we will probably be taking out the personal property insurance through USAA just to cover miscellaneous such as computer, phone, etc.
 
With the USAFA, the default for SGLI (life insurance) was $400K. This is ridiculous for a single person with no dependents and no debt, especially since it cost about $35+ per month. I had DD change it to $50K, which is about $8 per month.

Also, we will probably be taking out the personal property insurance through USAA just to cover miscellaneous such as computer, phone, etc.
To be clear, SGLI doesn't vary by academy or branch in terms of the "default" because the servicemember must choose the coverage. There is no default value. The academy may advise 40ok, but the SGLV form clearly indicates "Coverage is available in increments of $50,000 up to a maximum of $400,000." The servicemember must choose which value they prefer and then name beneficiaries. This cannot be done for them by an administrator or personnel clerk.
 
Capri120 - I'm going to advise DS to follow suit. The minimum $50K is more than sufficient. DS opened an account with USAA, and it looks like a no brainer taking out the cadet renters/personal property insurance
 
My understanding is an enrolling Cadet automatically gets signed up for for $400K worth of coverage when entering the Academy. They specifically have to "opt out" or select a lower coverage level, hence the term "default" for $400K.

I agree that a young Cadet does not need any life insurance if they have no debt and if nobody relies on their income. The difficult decision relates to what happens down the road when things change in their life. They can later apply for SGLI (at the same low cost) when they really need it, but if a new medical condition develops, they may be rejected. Same thing if they want to increase the coverage level - they must go through a "medical underwriting" process.

Good tips above by Captan MJ regarding USAA rental insurance. We are looking into USAA enrollment now.
 
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SGLI does not have the same restrictions and prerequisites as civilian life insurance policies.

Besides, to be AD military, you are subject to and undergoing medical physicals routinely. If you don't pass, you will have bigger concerns than trying to increase your life insurance policy amount, i.e., staying in the military.
 
Interesting point, but I'm guessing the Medical Underwriting guidlelines for SGLI are different than the routine physical requirements. Otherwise the insurance company would just use the routine physical for the underwriting decision, meaning you could be denied SGLI but not necessarily staying in the Military.
 
Current Cadet, here to offer insight.

No matter how much you choose for your coverage amount, you still receive $200 a month for pay. Doesn't matter if you choose 50K or 400K, you will not receive more or less money in your bank account at the beginning of each month. I chose 400K because, considering the above, what do I have to lose sending my family 400K if I die?

Don't be stingy with this kind of stuff, guys. Money won't fix a dead child, but it's the most they can do for you if the worst ends up happening.
 
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