You’re at the top of your game when it comes to planning for the needs of your military family.
Whether that’s preparing school lunches for your kids or preparing for your next PCS. But how strong is your grip on your family’s financial future? Well, there’s one sure-fire way to improve it—get yourself a life insurance policy. I know, I know. It’s one of those topics that we tend to avoid. But you really shouldn’t, because the benefits of financial confidence and peace of mind are the foundation of building a stronger us.
As a Military Spouse, you do have the ability to purchase coverage through Servicemembers Group Life Insurance (SGLI) program, which tends to be affordable. Unfortunately, you can only get $100,000 of coverage for yourself, which won’t go very far if something were to happen to you. Think about all the things your servicemember spouse would have to cover without you there — kids, pets, house, education… it’s a long list. Not to mention, that coverage disappears as soon as you transition out of the service. The good news is you have some other options.
Not sure where to start? Well, whenever you’re talking about money, you, of course, should do your research and see what’s out there before investing in coverage. The first thing you should know is there are two basic types of life insurance policies to consider — term life insurance and whole life insurance — and most financial planners recommend that you have some of both.
Term life insurance, like SGLI, usually covers your working years. The time when you are raising a family and paying a mortgage. If you die, term coverage helps make up for your lost income. And just like the name says, it covers a specific term — usually 10-30 years. Term policies give you a large amount of coverage for a small monthly cost. The thing is, if you pay without fail for the entire term and you don’t die, your coverage ends and you don’t collect any benefits. But congratulations, you’re not dead either!
That’s where whole life, or permanent coverage comes in. Pay the premiums and this coverage stays with you for your whole life. In addition, most build cash value over time. With those two features in mind, whole life policies offer lower coverage for higher premiums compared to term. Just be sure to compare the crediting rate, surrender fees and cash growth terms of any policies you consider.
Which leads to the next question, where to get coverage. Military Families fortunately have a few good options out there to help affordably cover their needs. Organizations like AAFMAA, offer coverage to servicemembers and Veterans at lower rates than the government programs with additional benefits included, like exclusive Survivor Assistance Services and long-term care settlement options. No matter who you choose, put yourself on the agenda this year and make getting life insurance coverage for you a priority for your family.