Who Should You Trust ?

Who Should You Trust?
(For Supplemental Life Insurance)

It seems there is some confusion over the choices military members have if they want life insurance in addition to the Servicemembers Group Life Insurance (SGLI). First of all, don’t let anyone tell you how much life insurance you need. No one knows your unique set of circumstances better than you do.

If you decide to buy life insurance, go with a reputable association sponsoring group term life insurance. The premium you are quoted will be the premium you will pay, providing your application is approved. Beware of a “bait and switch” offer where you are quoted very attractive premiums, but required to complete an extensive medical questionnaire. Consider this from Financial Web http://www.finweb.com/:

“When you first hear the terms and rates for the best term life insurance, the prices advertised are extremely low, generally speaking. The rates quoted in these ads are generally the preferred plus rates – for the customers in the best health.

“To get these rates, you must be in excellent health, not smoke or use tobacco, have no history of substance or alcohol abuse, be within the average weight category (not obese), have average (not high) blood pressure and cholesterol levels.

“The majority of people who get life insurance do not qualify for preferred plus rates, so when you compare rates, make sure you’re comparing the actual rate for which you qualify.”

Also, make sure you’re not penalized with a higher premium or no payout because you are in the military or have deployment orders. Good supplemental insurance for the military should not have clauses that limit payout for members on flight duty or when death occurs in an area of conflict.

Remember, whether or not you think you need additional life insurance now, you should have it prior to leaving the military. When you separate, your SGLI will terminate and you will be offered Veterans Group Life Insurance (VGLI). Compare the cost of VGLI coverage with your association-sponsored insurance. Chances are you can save money and have more benefit options available to you through the association. For more information on association-sponsored life insurance, contact 877-MBA-1020.