The Inside Scoop: Life Insurance Q&A

We heard you! Military Spouse polled our Facebook followers about their aches, pains, concerns, questions, and suggestions about l ife insurance. Together with USBA , we bring you the "Inside Scoop" in this Life Insurance Q&A. Q: Natalie Friend Wilson says, " They want to know the name and address of every doctor you've ever seen! And they don't seem to understand a system where -- even though you're assigned a PCM -- you may have never seen that person (I've never once seen my actual PCM in almost 10 years) or where you don't remember the name of whoever you did see because you don't get to pick your doctors. Also, I got denied Long Term Disability Insurance because there was a remote possibility of getting overseas orders." A: Life insurance companies assume the risk of loss due to an event which (unfortunately) we know will occur at some point. So obtaining all the available medical information for a thorough and comprehensive health evaluation is very important. The underwriting process is a critical part of helping ensure financial integrity for the life insurance company AND offering peace-of-mind to the insureds that their claims will be paid. USBA understands the challenges military families face. However, taking the time to be sure the medical details on your application are accurate and complete to the best of your knowledge makes the underwriting process much more efficient. And be sure to read the question thoroughly. It may ask you to provide health information only from a specific period of time (e.g., if you’ve seen a doctor or been treated for a condition in the past 5 years). Q: Pearlita Price, says, "[My pain is] t he fees (for my husband) because apparently my husband's job is high risk. There should be higher levels of SGLI offered because the cap of $400,000 does not cover 10-12x the total pay of upper enlisted and officers." A: You’re right, Pearlita. Since SGLI coverage maxes out at $400,000, there is often a need for additional life insurance—depending on your family’s financial obligations and income level. It’s a good idea to supplement with non-profit associations like USBA that have plans specifically tailored to military members and their families. They not only understand your needs, but also offer coverage without a war clause. USBA can also provide additional Spouse and Children’s coverage above what FSGLI (Family Servicemembers’ Group Life Insurance) offers. And it’s coverage your family can keep whether your husband is in or out of the service. Q: Brittany Kay Velasco says, "... Life insurance is a great investment. Especially when you have a family." A: USBA agrees, Brittany! If you are married, especially if you have dependent children, or if you have debts such as a mortgage, car payment, or credit card balances, your family could be at serious financial risk if either spouse should die suddenly and their income was no longer available. Life insurance is often overlooked for non-wage earning spouses. Even if you are a stay-at-home parent, be sure to consider the cost of services associated with running a household, such as child care expenses, that would need to be replaced should the unexpected happen. Q: Laura Blair says, " Apparently I'm obese simply because I'm short and muscular, despite the fact that medically all my tests say I'm as healthy as you can get...therefore I don't get the premium rate, but simply the average rate." A: Laura, this is one of the main differences between Group policies, like USBA’s, and Individual life insurance policies. Group policies establish standards for a particular group that all applicants must meet to qualify. This allows potential cost-savings and other specific benefits to be passed on to the entire group. So some may find group coverage to their advantage (even at the Standard premium rate), while others, based on health or other conditions, may find an Individual policy to be a better option. Remember not only to consider price when choosing the best life insurance option for your family, but also the stability of the insurance company and features of the plan. Be sure to read the terms of the coverage thoroughly and don’t hesitate to ask questions. While one plan may offer a lower premium, another may include important features your family needs. Q: Veronica Hunter says, "For us, it hasn't been a problem so far. We have standard policies through SGLI & FSGLI and extra coverage through our banks. The kids also have policies. My husband may be retiring soon so we have been shopping around for rates & terms. One thing is the price difference! Ouch! Glad we are taking time to search because we assumed VGLI would be the best the way to go, but it's not in every case and timing of starting policy makes a difference if required to get medical exams or not." A: Veronica, great job being proactive in your search to replace SGLI and FSGLI before your husband retires! While it may be a good option for some transitioners, since VGLI does not require you to submit evidence of good health if applying within 240 days of separation, you may find that means paying a higher premium rate. For healthy individuals, it can really pay off to consider life insurance that requires medical underwriting. USBA has a variety of plans to choose from and a Preferred Rating is even available on many of them. If you are like Veronica and wondering which is best for you, call one of our trained Product Specialists at 877-221-6841. They can help determine what coverage amount and plan best fits your family’s needs. Or get a quote online for a quick cost comparison. Q: Kelly Griffin says, " We decided to go with the coverage I could get through my husband’s SGLI. It was so much easier." A: Excellent choice, Kelly! SGLI is a valuable program that provides low-cost term life insurance coverage to eligible Servicemembers. But as a spouse, you may find the need for more coverage than the $100,000 maximum offered through FSGLI (Family Servicemembers’ Group Life Insurance). If that’s the case, consider supplementing with affordable group term life insurance from USBA. It’s coverage you can keep even after your husband leaves the military. Q: Jessica Padden says, "[Life insurance is vital to having] adequate coverage when you're the primary caregiver for your kids. A: Great point, Jessica! Often families take only income into consideration when figuring out how much life insurance coverage they need, yet forget to put a value on stay-at-home spouse’s contributions, like childcare. To help assess how much coverage you need right now-- start with USBA’s online needs estimator . It will allow you to consider areas you may not have thought about. If you still need help determining adequate coverage amounts, call one of our trained Product Specialists at 877-221-6841 and they can help you assess your current needs. Founded in 1959, USBA is a non-profit association that offers affordable group life insurance coverage, TRICARE and CHAMPVA Supplements, and financial products to active duty, retired and veteran military families . USBA’s group life insurance plans are underwritten by New York Life Insurance Company … one of the oldest and strongest life insurance companies in America . To find out more, visit www.usba.com or call us toll-free at 877-221-6841. Connect with us on Facebook!

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