SGLI Question?

Discussion in 'Naval Academy - USNA' started by matthewcod, May 15, 2010.

  1. matthewcod

    matthewcod New Member

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    All of the members of the Class of 2014 should have received a huge packet of paperwork. One of the things to fill out is the Servicemembers' Group Life Insurance contract. I have a couple of questions about it.

    1. Should I elect to have the coverage. (max is 400k or lower in increments of 50k, price is $26 a month for 400k of coverage)

    2. If I decide to not sign up for the coverage can I sign up at a later time, such as when I graduate and join the fleet.
     
  2. Luigi59

    Luigi59 Banned

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    Take the max - it's extremely affordable, and you never know what may happen in the future to make you ineligible for life insurance.
     
  3. DMeix

    DMeix Retired Staff Member

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    Yes, take the coverage. I'm sure the cost changes depending on how much you elect to take, but I have the 400K and it costs me $27 a month that's automatically taken from my pay. It doesn't affect the $100 stipend that you get as plebe or any other year as a mid.

    Yes, you have the option to sign up at a later time. You can talk to your SEL about getting the paperwork anytime during the year, and right before you graduate you update all that information anyway, so you can get it then too.
     
  4. chris

    chris New Member

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    Why exactly do we need life insurance though? It's not like we have dependents who rely on our income or such.
     
  5. jomass

    jomass Member

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    Chris is correct. Think of life insurance as 'income for dependents' insurance. Unless you have dependents, there's really no need for this. Life insurance can be a confusing topic, but it's real value is to provide security to your dependents in case of your death. As for getting in at a young age, there's very little difference in premiums when you're in your late teens or late 20's.
     
  6. AF6872

    AF6872 Member

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    Chris is Wrong! You guys always think you can live forever. Seen that before. Went to the "Wall" last month and my daughter did some rubbing's from some of the panels. Two of my best friends are on there. They were immortal too.

    Take the Max. It is very cheap for insurance. Make it out to anyone you would. My understanding is that it does not need to be made out to a qualified dependent. Since, by law, they do not have a dependent. Father, Mother, Sibling or significant other can be designated as the beneficiary. You can always change the beneficiary but you should take at least the minimum and best bet the maximum. You will never see it in your pay check.
     
    Last edited: May 17, 2010
  7. PositiveThinking

    PositiveThinking Member

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    What swayed us to recommend that our son accept this insurance was the fine print on the insurance form: "Note: reduced or refused insurance can only be restored by completing form ### with proof of good health and compliance with other requirements. Reduced or refused insurance will also affect the amount of Veteran's Group Life Insurance you can convert to upon separation from the service." It seemed like a good deal to get it going in, instead of taking a chance on what the future may bring. Besides, I always feel like "get it and you'll never need it"! :rolleyes:
     
  8. AF6872

    AF6872 Member

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    Take the Max. It is affordable and once they get a raise it will never be seen in the "Pay Check". Just like an allotment. If you never see it it doesn't count.:yllol:
     
  9. jomass

    jomass Member

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    AF, who are the mids insuring? It's not a question about if you should die or living forever or being immortal. Life insurance is to protect against loss of income for your surviving dependents. Period. It's not a consolation prize if you die, to help offset the grief.

    Actually, they have a higher chance of getting getting disabled than they do of dying, so with that mindset, disability insurance would be a better bet. With that, you're insuring yourself from loss of future income generation opportunities.

    I remember when Gerber baby foods used to try to sell new parents life insurance for their newborns....lol. Like I said, it's not a consolation prize.

    If you want to buy it go ahead; the life insurance co will appreciate it. But first go out and price it competitively and also price a policy for a 20 yr old or a 28 yr old; not much difference. Once you have a wife or kids...THEN you need life insurance.
     
    Last edited: May 17, 2010
  10. AF6872

    AF6872 Member

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    You are only insuring a possibility as with any other insurance you never want to collect or make a claim. Not insuring any specifiuc person and/or event. Life Insurance is a Fact of life and if you can get it at the lowest rates jump in. It is not a proctection against loss of income. That is a civil suit if it comes to that. If you want to take out Disability be my guest and see what your priemiums will be with any other Insureance Company as an active duty or anyone involved with any State or Local responders. My brother in law couldn't get any insurance coverage while he was on the Bomb/Swat/Dive Squad other than the State Government provided Insurance. TAKE THE INSURANCE. You can't beat the price.:thumb:
     
  11. Luigi59

    Luigi59 Banned

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    Go out and price a 15-year term policy as a 20 year old, before you are diagnosed with High Blood Pressure or Diabetes or Irregular heartbeat, and after as a 28 year old who is by all reasons, un-insurable.
     
  12. MomoftheMagik

    MomoftheMagik Member

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    jomass is correct in saying that life insurance is not "a consolation prize"; however, there are costs associated with the passing of a loved one. As grim and unfeeling as it seems, someone has to pay for the funeral, not to mention any outstanding debt held by the deceased. The last thing a parent needs is to worry about how they are going to handle the financial consequences in addition to the horrible grief of losing a child. I watched it happen to my sister. You may think you would not be worried about money at a time like that, but it all mixes together in an emotional tangle that is nearly unbearable. Believe me, you do not need anything to add to that pain.

    We have had all four of our children insured for a small amount since they were young. Perhaps $400K is a lot, and you may opt to lower that amount, but do consider having at least enough to cover any debts.
     
  13. pbell

    pbell Member

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    Term Insurance for Armed Forces personnel

    Before going out and purchasing that term insurance policy, make certain it doesn't have an exclusion that will prevent payment of the death claim to a person in the Armed Forces. 90% of the policies (term, whole life, UL, VUL) have these exclusions that will not pay for servicemen and women. That's what makes SGLI such a great deal, and I sell life insurance!:thumb:
     
  14. aznarkarus

    aznarkarus Member

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    Chances are you will end up paying for it either way.
     
  15. Profmom2

    Profmom2 Member

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    Take the insurance! You may not have a dependent today but tomorrow you may and at that point you could find yourself un-insurable. Trust me, found that out the hard way!

    Also, if you can't justify the max at least take the minimum so that your family can pay for a funeral etc.
     

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