Midshipman life insurance?

Discussion in 'Naval Academy - USNA' started by cmartin1069, Apr 25, 2013.

  1. cmartin1069

    cmartin1069 Member

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    Going through the Permit to Report package and was wondering what the general consensus is on the life insurance offered. an earlier seach on the forum seems to support it but here are some other factors that apply to DS that might warrant another thought.

    DS is 18 and single. no dependents and no need for his parents to benefit.
    cost to DS is $27 per month. so why have him spend the 27 per month when I think he can sign up later (say after graduation) or when he has a dependant. And he will need to prove his health at that time, but so do I when I get a new term policy.

    I'd say that perhaps the best reason is the add-on to cover Traumatic Injury payments. Thoughts?
     
  2. dohdean

    dohdean Member

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    Our DD is an about to graduate Firstie at USAFA. She has paid for the life insurance throughout her 4 years. Before going to the Academy, she made her younger brother her beneficiary. If something had happened to her while at the Academy -- car accident, illness, etc. she figured the proceeds would be a legacy of sorts to leave to her brother for graduate school, his first home, etc. This made sense for our family and was a gesture that made our DD feel good -- but of course, depends entirely on the family. She will keep him as her beneficiary until she marries.
     
  3. suddensam

    suddensam USNA BGO

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    We took the coverage, but at a lower amount that we felt more appropriate for a healthy 18 year old with no debt or dependents. He can always increase it later, assuming that he medically qualifies.
     
  4. Memphis9489

    Memphis9489 Parent

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    I remember something my dad told me many years ago (he was in the insurance business) - "If nobody depends on your income - paying for life insurance is a waste of money."
     
  5. 4thgennavy

    4thgennavy Member

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    I'm not a big believer in term life insurance unless 1) someone is dependent on the income or 2) there is significant personal debt. SGLI can always be picked up at a later date if either of those circumstances change with a very simple physical. Over the 4 years, the premium adds up to $1300.00 completely down the drain. Something like only 2-3% of term policies ever pay out. It's my position that your son would be better of putting the 27$ into savings.

    For our DD, we opened/purchased a whole life (permanent plus) policy thru Navy Mutual Aid. It has a cash value, earns interest tax free, and can be borrowed against while keeping the life insurance in place.
     
  6. futuremarinemom

    futuremarinemom Member

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    It's interesting that people on this USNA forum seem to be hesitant to recommend the life insurance, yet over on the USAFA forum, most people agree that it is advantageous to get the full amount. I'm wondering why? Is it because they are jumping out of perfectly good planes? :)
     
  7. Memphis9489

    Memphis9489 Parent

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    I know this sounds really callous but: As sad as it may be when a college-aged student dies, it usually doesn't have any significant financial impact on anybody's life. That's WHY we buy life insurance - to protect others in the event of their death.

    If it makes you feel good - buy it. But, from a logical viewpoint, making life insurance premium payments for a college student is throwing money away. As somebody else said - save the money. Put it into an account.
     

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