Life Insurance

Discussion in 'Military Academy - USMA' started by Mlt852, Apr 5, 2016.

  1. Mlt852

    Mlt852 Member

    Joined:
    Mar 29, 2016
    Messages:
    29
    Likes Received:
    36
    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?
     
  2. Capt MJ

    Capt MJ Member

    Joined:
    Sep 27, 2008
    Messages:
    2,358
    Likes Received:
    1,820

    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.
     
    Falcon A likes this.
  3. USMA_ljm

    USMA_ljm Member

    Joined:
    Oct 19, 2015
    Messages:
    81
    Likes Received:
    24
    We did ours a while back and the portal still isn' t updated to reflect it. Does anyone know if this is unusual?
     
  4. nikkip

    nikkip Member

    Joined:
    Apr 25, 2015
    Messages:
    153
    Likes Received:
    56
    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
     
    USMA_ljm likes this.
  5. scoutpilot

    scoutpilot Member

    Joined:
    Apr 29, 2010
    Messages:
    4,275
    Likes Received:
    607
    Yes, he can go to the S1 shop at any time and update his SGLV to a higher coverage level.
     
  6. 845something

    845something Member

    Joined:
    Feb 22, 2013
    Messages:
    739
    Likes Received:
    166
    Or change the beneficiary to his girlfriend/boyfriend because they are sure that this is the one...this time for sure...
     
  7. brovol

    brovol Member

    Joined:
    May 26, 2015
    Messages:
    836
    Likes Received:
    556
    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.
     
  8. Mlt852

    Mlt852 Member

    Joined:
    Mar 29, 2016
    Messages:
    29
    Likes Received:
    36
    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
     
  9. cptenca

    cptenca Member

    Joined:
    Feb 19, 2016
    Messages:
    14
    Likes Received:
    4
    $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.
     
  10. LLJ

    LLJ Member

    Joined:
    Nov 16, 2015
    Messages:
    78
    Likes Received:
    26
    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?
     
  11. ca2midwestmom

    ca2midwestmom Member

    Joined:
    Oct 23, 2013
    Messages:
    1,282
    Likes Received:
    179
    ^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.
     
    Last edited: Apr 7, 2016
  12. Capt MJ

    Capt MJ Member

    Joined:
    Sep 27, 2008
    Messages:
    2,358
    Likes Received:
    1,820
    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.
     
    EOD/SEALmom likes this.
  13. scoutpilot

    scoutpilot Member

    Joined:
    Apr 29, 2010
    Messages:
    4,275
    Likes Received:
    607
    It's the personnel shop.
     
  14. Capri120

    Capri120 Member

    Joined:
    Feb 10, 2016
    Messages:
    304
    Likes Received:
    201
    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.
     
  15. scoutpilot

    scoutpilot Member

    Joined:
    Apr 29, 2010
    Messages:
    4,275
    Likes Received:
    607
    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.
     
  16. Mlt852

    Mlt852 Member

    Joined:
    Mar 29, 2016
    Messages:
    29
    Likes Received:
    36
    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
     

Share This Page