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Life Insurance question
- Thread starter satpak77
- Start date
Navy Mutual Aid isn't a bad deal. I've got an extra $100k coverage for $8.50 a month, and they don't care if you fly or if it's a war zone.
You also get a pretty good loan deal through Navy Mutual....
The Navy Mutual Aid Association’s (NMAA’s) Career Assistance Loan and Insurance Program - New officers coming into the uniformed services are eligible during the first 6 months of their commission to receive a one-time “career assistance loan”. The loan is $5,000 and is paid back at a 1%interest rate. Generally, you pay it back in 2.5 years, and in this time, you pay about $103 in interest(GREAT deal!). The loan is intended to help new officers get settled in their new job by providing money for personal expenses that may arise shortly after commissioning. It is directly withdrawn out of your
paycheck. http://www.navymutual.org
To get the loan, you must also purchase life insurance through NMAA. This is a competitive and cheaper
option than (SGLI). For example, this year, SGLI lowered its rates to become competitive with NMAA’s
rates. NMAA responded by cutting their low rates even lower. Also, it’s important to remember that SGLI
benefits end when an officer separates from service. That is not the case with NMAA.
The Navy Mutual Aid Association’s (NMAA’s) Career Assistance Loan and Insurance Program - New officers coming into the uniformed services are eligible during the first 6 months of their commission to receive a one-time “career assistance loan”. The loan is $5,000 and is paid back at a 1%interest rate. Generally, you pay it back in 2.5 years, and in this time, you pay about $103 in interest(GREAT deal!). The loan is intended to help new officers get settled in their new job by providing money for personal expenses that may arise shortly after commissioning. It is directly withdrawn out of your
paycheck. http://www.navymutual.org
To get the loan, you must also purchase life insurance through NMAA. This is a competitive and cheaper
option than (SGLI). For example, this year, SGLI lowered its rates to become competitive with NMAA’s
rates. NMAA responded by cutting their low rates even lower. Also, it’s important to remember that SGLI
benefits end when an officer separates from service. That is not the case with NMAA.
redmariner97
Navy
I have Midland National Life Insurance through First Command Financial. Our Financial Advisor that works for First Command Financial got us a reduced rate through this Life Insurance Company with clauses to buy additional insurance at the healthy rate even through three months after buying this policy my wife became uninsurable. Get it while your young that way if any problems do arise in the future you can still buy more insurance.
Goober said:
Good to know. I've had a hard time finding extra insurance for my family. I've got $60k through NFCU and $50K through Gerber. NFCU has limits though, such as if I die in my plane as crew or pax, the wife gets nothing. SGLI is now at $400K but I wouldn't mind a bit more.
Here's some links that explain in a little more detail what life insurance is, the different types, and how much is needed, and when (depending on what phase of your life you're in).
What is it?
How much?
Replacement Income: Factors
Replacement Income: Coverage
Life vs. Cash Value
Which to buy?
Renewable term
Future insurability
Paying less
Riders
The following is an email I received from Navy Mutual Aid not too long ago. It may have some information of interest to a few of you.
Congress has made September "Life Insurance Awareness Month" and coincidentally, increased SGLI to $400,000 automatically effective 1 September 2005. The monthly SGLI premium remains $3.25 per $50,000 of coverage, so the monthly premium for full coverage will be $26.00 beginning in September 2005. This compares to NMAA's FLEX-TERM $19.00 monthly premium.
These changes will not affect spouse or child coverage under Family SGLI, which will continue under previously existing elections.
A member, who wishes to retain the $400,000 of coverage with beneficiary designations as before Sept 1, 2005, does not need to take any action. The $400,000 of coverage will apply along with the new premiums and beneficiary designations will remain the same as those in effect before Sept 1, 2005.
Even members, who had previously declined SGLI coverage or elected less than the maximum coverage, will automatically be covered for $400,000 on Sept 1, 2005. If they wish to again decline or reduce the coverage, they must complete a new SGLI 8286 form (September 2005 version) indicating the amount of coverage desired including no coverage if applicable. Note that if a member declines SGLI and dies while serving in a combat zone, their family will still receive the $150,000 of SGLI which is provided at no cost to the service member under the new law.
If the member properly completes and submits the form before Sept 30, 2005, the member will not be liable for the September 2005, premium associated with the reduced or declined portion of coverage. This gives members 30 days to reduce or decline unwanted coverage without charge. Units will be asked to process elections as expeditiously as possible to avoid the necessity for corrections in financial transactions. The Defense Finance and Accounting Service will refund premiums deducted for coverage in September, when the member files a valid election to reduce or decline the coverage between Sept 1-30, 2005.
I would encourage you to look at the advantages of Navy Mutual's FLEX-TERM all for $9.75 less per month:
Cost is less than SGLI $19 vs $26 monthly premium (and that's the gross premium-remember the refund)
For $1 more than the cost of SGLI you can get $600,000 FLEX-TERM INSURANCE
Guaranteed convertibility to other NMAA insurance plans
As an individual term life insurance plan, it stays with you throughout your military career and after. Once a member-always a member.
Member and Spouse individual coverage is available up to $750,000 each.
No occupational, war or geographical restrictions or clauses.
If you are on active duty, under age 40 and desire FLEX-TERM insurance coverage in either $250,000 or $400,000 death benefit amount fill out our NMAA FLEX TERM QUICK APPLICATION. No physical exam is required for the "Quick Application" in most cases. For all other amounts of coverage use our standard FLEX TERM APPLICATION.
September is "Life Insurance Awareness Month". Why not download an excellent tutorialfrom Navy Mutual Aid's website on Understanding Life Insurance to share. It can be used for a short GMT/PME or given out for individual reading.
Look for more information in our Fall Newsletter reaching your mail box within the next month.
What is it?
How much?
Replacement Income: Factors
Replacement Income: Coverage
Life vs. Cash Value
Which to buy?
Renewable term
Future insurability
Paying less
Riders
The following is an email I received from Navy Mutual Aid not too long ago. It may have some information of interest to a few of you.
Congress has made September "Life Insurance Awareness Month" and coincidentally, increased SGLI to $400,000 automatically effective 1 September 2005. The monthly SGLI premium remains $3.25 per $50,000 of coverage, so the monthly premium for full coverage will be $26.00 beginning in September 2005. This compares to NMAA's FLEX-TERM $19.00 monthly premium.
These changes will not affect spouse or child coverage under Family SGLI, which will continue under previously existing elections.
A member, who wishes to retain the $400,000 of coverage with beneficiary designations as before Sept 1, 2005, does not need to take any action. The $400,000 of coverage will apply along with the new premiums and beneficiary designations will remain the same as those in effect before Sept 1, 2005.
Even members, who had previously declined SGLI coverage or elected less than the maximum coverage, will automatically be covered for $400,000 on Sept 1, 2005. If they wish to again decline or reduce the coverage, they must complete a new SGLI 8286 form (September 2005 version) indicating the amount of coverage desired including no coverage if applicable. Note that if a member declines SGLI and dies while serving in a combat zone, their family will still receive the $150,000 of SGLI which is provided at no cost to the service member under the new law.
If the member properly completes and submits the form before Sept 30, 2005, the member will not be liable for the September 2005, premium associated with the reduced or declined portion of coverage. This gives members 30 days to reduce or decline unwanted coverage without charge. Units will be asked to process elections as expeditiously as possible to avoid the necessity for corrections in financial transactions. The Defense Finance and Accounting Service will refund premiums deducted for coverage in September, when the member files a valid election to reduce or decline the coverage between Sept 1-30, 2005.
I would encourage you to look at the advantages of Navy Mutual's FLEX-TERM all for $9.75 less per month:
Cost is less than SGLI $19 vs $26 monthly premium (and that's the gross premium-remember the refund)
For $1 more than the cost of SGLI you can get $600,000 FLEX-TERM INSURANCE
Guaranteed convertibility to other NMAA insurance plans
As an individual term life insurance plan, it stays with you throughout your military career and after. Once a member-always a member.
Member and Spouse individual coverage is available up to $750,000 each.
No occupational, war or geographical restrictions or clauses.
If you are on active duty, under age 40 and desire FLEX-TERM insurance coverage in either $250,000 or $400,000 death benefit amount fill out our NMAA FLEX TERM QUICK APPLICATION. No physical exam is required for the "Quick Application" in most cases. For all other amounts of coverage use our standard FLEX TERM APPLICATION.
September is "Life Insurance Awareness Month". Why not download an excellent tutorialfrom Navy Mutual Aid's website on Understanding Life Insurance to share. It can be used for a short GMT/PME or given out for individual reading.
Look for more information in our Fall Newsletter reaching your mail box within the next month.
KimberlyD
Registered User
I just sat through NMAA's presentation on Wednesday, we had FORMC Slingerland, USN Ret & he went on & on ab how he cannot sell us life insurance. He went on to explain that SGLI is the best deal you can get but that if you need additional insurance, on their website is a list of companies willing to sell to military families at good rates. In addition to his ringing endorsement of SGLI, he explained that rather than purchasing VGLI, you should purchase civilian life insurance b/c the rates are better & that if you convert fr SGLI to a company on NMAA's website within I think it was 90 days, that even if you have a service related disability or illness, they have to offer you coverage.
I have to say, the guy who did our presentation seemed VERY slick. He went on & on ab how the MCPON & the MCPOCG have only authorized NMAA to give presentations on the bases b/c they cannot sell anything. Please tell me, if you can't sell anything, how is it that so many of you are endorsing buying life insurance through them?
Also, when doing his presentation, he stated that military families who lose a servicemember are eligible for all kinds of money, he made it sound like an "ask & you shall receive" situation when in truth, very few people will ever receive any of the money fr the Federal Gov't that he spoke of & those who do will likely have had to hire lawyers to aid them in getting it.
He was just too slick for my tastes. He seemed to do the same thing that First Command gets accused of regularly, the "I was a Chief (or above) in the Navy, I wouldn't lead a fellow servicemember astray" tactic.
I have to say, the guy who did our presentation seemed VERY slick. He went on & on ab how the MCPON & the MCPOCG have only authorized NMAA to give presentations on the bases b/c they cannot sell anything. Please tell me, if you can't sell anything, how is it that so many of you are endorsing buying life insurance through them?
Also, when doing his presentation, he stated that military families who lose a servicemember are eligible for all kinds of money, he made it sound like an "ask & you shall receive" situation when in truth, very few people will ever receive any of the money fr the Federal Gov't that he spoke of & those who do will likely have had to hire lawyers to aid them in getting it.
He was just too slick for my tastes. He seemed to do the same thing that First Command gets accused of regularly, the "I was a Chief (or above) in the Navy, I wouldn't lead a fellow servicemember astray" tactic.
$150k of your SGLI is covered by the gov't when in a IDP/HFP zone such as C5F. I think the intent is to keep younger service members from cancelling it to get an extra $16 a month in the paycheck...and Mom and Dad get nothing if he is killed. Sort of leaves a bad taste in the mouth of the NOK, even though junior elected no coverage.
This says you get $150k in a combat zone whether you like it or not because Uncle Sam is paying.
See: http://www.defenselink.mil/releases/2005/nr20050701-3863.html
If I knock off over here, the wife is a millionare.
r/
G
This says you get $150k in a combat zone whether you like it or not because Uncle Sam is paying.
See: http://www.defenselink.mil/releases/2005/nr20050701-3863.html
If I knock off over here, the wife is a millionare.
r/
G
KimberlyD
Registered User
Schnuggapup said:
The additional $150K for free is only if you died BEFORE September 1, effective September 1 everyone started paying for the additional $150K unless they elected to not increase their insurance. You should have been approximately $6 short on your last paycheck b/c of the increase.
"The supplemental also increases the maximum amount of SGLI coverage from $250,000 to $400,000 for all service members effective Sept. 1, 2005 and provides that the department will pay or reimburse the premiums to service members, who are deployed in a designated combat zone for $150,000 of SGLI coverage."
That's not how it reads to me...maybe I'm missing something in the bureaocratic language.
Please explain.
That's not how it reads to me...maybe I'm missing something in the bureaocratic language.
Please explain.
KimberlyD
Registered User
Read the paragraph below the one you copied, it states
Until the effective date for the SGLI increase, the supplemental provides for a special death gratuity of $150,000, retroactive to October 7, 2001, for survivors of those whose death is in a designated combat operation or combat zone or occurred while training for combat or performing hazardous duty
That was only until the effective date of September 1.
Until the effective date for the SGLI increase, the supplemental provides for a special death gratuity of $150,000, retroactive to October 7, 2001, for survivors of those whose death is in a designated combat operation or combat zone or occurred while training for combat or performing hazardous duty
That was only until the effective date of September 1.
A couple things here. First, MCPON doesn't make policy as much as may like to think. For that matter, Chiefs in general do not make policy. Second, no endorsements here...just people giving their opinion.KimberlyD said: