Life insurance?

[hornetguy]

I'm fortunate that my employer provides a significant amount of term life insurance coverage. I can also purchase supplemental from them for $0.35 per $10K of coverage. So, for someone like me who is healthy with employment benefits, the VGLI is a bad deal.... but of course, my insurance is dependent on my continued employment with my company.

 

[MemberLG]

I am curious now. Let's assume they are released from the military for PTSD....would they not be medically retired and eligible for VGLI? If so, than doesn't that make this moot? They have life insurance.

To me the PTSD seems like a marketing point leveraging on the fear of uninsurability. It seems like some insurance brokers are marketing life insurance policies as a finanical vehicle, not as an insurance. I am old fashioned so I go with a standar definition of insurance. Oxford dictionary defines insurance as "a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium." As discussed in different postings, there are many ways to take care of loved ones without buying a whole life insurace with guarantee insurablity.

As PIMA pointed out, disabled veterans should be able VGLI. I believe many civilian companies offer basic life insrauce coverge to their employees without restriction. Perhaps increasing the value will require higher preimum based on medical condition. Term life is a viable option for insurance purposes. My term life insurnace which I got with medical screening before my deployment to Iraq as about 1/3 the cost of my whole life I got 15 years before with doule the value. Of course, my term ends I don't get anything back, but it was money well spent for insurance purposes.

 

[bpu]

Interesting discussion. As someone quasi "in the trade" he's my 2 cents. Never ever buy any type of "life" insurance. Instead purchase what you really need. If you have an income from wages and want to protection spouse and children from premature death then purchase income replacement insurance, aka term insurance. You have estate considerations where you need insurance for your entire life then purchase that estate insurance = a permanent policy. If you have a ROTC college loan and aren't active duty and IF your parents would suffer a hardship if stuck paying off your loans then purchase student loan payoff insurance = a small declining death benefit short duration term insurance.

Active duty and no dependents = no "financial loss" if you die, hence no insurance needed. Insurability a potential issue in the future? Then the VA insurance, which is otherwise expensive, is a great deal.

Insurance isn't "relatively cheap" for the young and healthy since they are not likely to die; period. Whatever the cost take those dollars saved by not buying unneeded insurance and toss it into a TSP account instead. Rates of return for whole life, universal life, etc are awful compared to a TSP equity investment.

Now, be smart and plan ahead, a LITTLE bit. Buy term when engaged, not married. Buy term when planning on having children, not after birth. No reason to jump into this game too early.