Life Insurance question

[Schnugg]

From a government SGLI brochure handed out to us.

Will certain Service members receive Free Coverage?
SGLI members serving in areas or operations designated by the SECDEF as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the DOD. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premium themselves.

Will the increase be retroactive to a specific date?
Yes. The DOD will be paying a death gratuity of $150,000 for deaths that occurred in specified combat conditions on or after Oct 7, 2001 but before September 1, 2005 or were incurred in the theater of operations of OEF or OIF. The gratuity is in addition to the existing DOD death gratuity that is increasing from $12,420 to $100,000 for the same group of servicemembers.

They also included a table that displayed the amount paid by DOD, for me it's $150,000, as I'm serving in a combat zone. All as of Sept 1, 2005.

I think you are confusing death gratuities with extra SGLI coverage paid for by the DOD for service members in a combat zone.

The following is pretty clear to me....

"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."

After Sept 1, 2005, DOD pays my premium for SGLI for $150,000 while I'm in a combat zone. Has nothing to do with deaths that occurred between 10/7/01 and 9/1/05.

 

[wink]

I think you are confusing death gratuities with extra SGLI coverage paid for by the DOD for service members in a combat zone.

That is the key. Snug is right. The death grauity was a gift to the survivors of those that died before the new rules went into effect. (Congress reponding to outrage from the public about low death benefits for some of the early casualities in OIF and OEF.) If you get killed now your survivors get the $150K as an insurance benefit with premimums paid by the govt if you are in certain zones or conditions.

 

[Fly Navy]

Tag for later

 

[gagirl]

We have extra life insurance through USAA. Not too bad. $250,000 for 20 yrs and I think it's $26 a month. No exclusions either. I also acquired it when he was already overseas and did it with a POA.

USAA has a lot of good stuff.

 

[Goober]

I think the Navy Mutual aid coverage is cut in half if you die as aircrew so not sure if it is that great a deal. I have it but Im single so I dont care so much, too lazy to cancel it after I paid off the loan.

No occupational, war or geographical restrictions or clauses.

That's why they're such a good deal. They don't care what you do or care why you croaked. They pay regardless.

 

[KimberlyD]

Schnuggapup, you're right, the gov't is footing the bill for $150K of the coverage but as of yet, everyone had the larger deduction taken (so noone has actually saved money yet) & there is not a plan to pay for the $150K indefinitely so noone knows when that will end. Also, if a member elects no SGLI, the gov't isn't paying for $150K for them, they'll still have no SGLI at all.

 

[crysmc]

Also, if a member elects no SGLI, the gov't isn't paying for $150K for them, they'll still have no SGLI at all.

Will Certain Servicemembers Receive Free Coverage?

SGLI members serving in areas or operations designated by the Secretary of Defense as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the Department of Defense. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premiums themselves.

http://www.operationhomefront.org/Info/sgli_info.shtml

 

[KimberlyD]

Will Certain Servicemembers Receive Free Coverage?

SGLI members serving in areas or operations designated by the Secretary of Defense as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the Department of Defense. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premiums themselves.

http://www.operationhomefront.org/Info/sgli_info.shtml

If the servicemember elects NO coverage, they will still have NO coverage when deployed meaning if they chose to not pay for coverage prior to leaving, the gov't isn't going to insure them while they are in zone. I jumped through a lot of hoops to get this explained to me & this is the one caveat to the whole thing. No coverage while stateside means no coverage while deployed & SGLI only has the occasional enrollment period so you can't unenroll w/ the intent of enrolling just before going overseas.

 

[Schnugg]

Bottom line: If you have a family, get insurance.

I have $600k with USAA, $400k with the gov't and a few other cats and dogs here and there.

Well worth it considering where I am.

r/
G

KimboD: I'll take a look at my SGLI brochure tonight and see what's up with zero elected coverage in a combat zone.

 

[Steve Wilkins]

Bottom line: If you have a family, get insurance.

I have $600k with USAA, $400k with the gov't and a few other cats and dogs here and there.

One smart cat. Good advice for all.