Life Insurance

Discussion in 'Air Force Academy - USAFA' started by tsband, Mar 28, 2013.

  1. tsband

    tsband Member

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    My DS is filling out his life insurance forms and we hadn't really given much though to life insurance for him before. We have small ones for him and our daughter through my husband's employer...mostly to cover funeral expenses. But now this has me wondering if trying to get life insurance outside the academy would be problematic for him. Would other life ins. companies charge higher rates because he might be considered "high risk"? Does anyone have any leanings on the pro/cons between going for the lower or higher pay outs (aside from the monetary cost of the monthly payments)? I would appreciate input based on your experiences, if you don't mind. As a disclaimer, obviously, I don't like to think about this stuff but I'm trying to look at things logically and practically. From my own personal experience, when I was applying for Life Ins. in my mid 30's I was first given quotes that were great because I didn't have any "risk factors". That coincided with a visit to a doctor (just my own physical) and the tests came up with a slight medical condition. This was discovered before I finished my paper work the ins. co. My premiums went from what would have been $17/month to close $147/month. Yikes! Sorry, this is long-winded. Still, would appreciate feedback on the ins. policy question. Thanks!
     
  2. batmom

    batmom Member

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    I am actually a life insurance agent (since 1976) and I think that the offer from the military for our cadets is a very fair (and appealing option). First of all, this option is open to all cadets without undergoing medical underwriting. As you have already experienced, your medical exam may reveal medical problems that you never even knew existed. Secondly, the majority of life insurance companies will not insure people who will be knowingly moving to a high-risk area (such as Iraq, Iran, Kuwait etc.) or will be entering a high-risk job. So, if you don't want to have your DS/DD purchase the full amount of life insurance that is available (I believe it is $400,000) without being individually underwritten, you can opt for a lower face amount (i.e. death benefit amount). Please keep in mind that if you take the lesser face amount (say $100,000) and later on your cadet (in their future) gets married and has children) I believe that they would then be subjected to the "regular underwriting process".
     
  3. usafahopeful1

    usafahopeful1 Prospective Cadet 2017

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    Recommend $400,000

    What I have been told by reliable sources (have used it themselves):

    Use this life insurance. It is the best deal and as PP said, it will cover you in high-risk areas.
    Get full $400,000 coverage because (PP already mentioned as well) when you get married and have kids you will be eligible for and be able to pay for the full coverage (it will cost less than if you do not get it now). You will have the funds to pay for full coverage as a cadet and should be able to continue to get it afterwards, why not pay it forward now, your future self will probably appreciate it.
     
  4. Bullet

    Bullet Member

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    ServiceMen's Group Life Insurance

    SGLI - the life insurace offered to all active duty members and (I believe) Academy cadets.

    Simple answer: Sign up for it. The full amont.

    Frankly, perhaps the best deal on life insurance they can find anywhere. Sure, a lot of companies advertise cheap term insurance, but the coverage does go down as you age. And try telling that company that you are a flyer, or a tank driver or a submariner, or practically ANY career in the military, and watch the rates go up because you are considered "High risk".

    $400K if a very tidy sum for a young Lt with a spouse. But honestly, once the young ones start coming along into this family, you'll most likley want to increase coverage. You'll have to use a private isurance company. And you'll then realize just how good a deal you're getting.

    I can't emphasize this enough. It's one of the best benefits military members are eligible for. Sign up for it.
     
  5. navy

    navy Member

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    Highly recommend SGLI, the cadet insurance. Payroll deducted, and it covers military flying, and other risky items. Try telling your insurance agent you are into sky diving, see what he says.

    Do it now, do not wait. No one ever "gets around" to signing up for it later. Also, once you sign up, periodically check your PG2/beneficiaries. Each year before a DET, we would always find someone with an ex wife, or forgotten beneficiary.
     
  6. kdc246

    kdc246 Member

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    I worked AF Personnel for many years. Listen to what others have said! Take the full amount, with no regrets. It is much harder, later on, to upgrade. Though the underwriting is different in the service, you must get commander authorization. The commander must attest to your health. I am sure if they wanted to take the time, on some level, they could have your medical records reviewed by a doctor and take their recommendation.
     
  7. tsband

    tsband Member

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    Thanks!

    Thanks for all the feedback. Will take the full amount offered. On with the paperwork!
     

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