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Life Insurance

Your life will change, so the way you protect loved ones should, too.

2017-05-18

If something were to happen to you today, is your family protected?  When we first started serving, it was relatively simple to provide financial security for our loved ones. The $400,000 life insurance coverage we received through SGLI most likely met all of our needs. Not only do rising prices make life increasingly expensive, but, as life’s circumstances change – we marry, buy a house, have children, and perhaps need to care for others – we have greater responsibilities and a need for better financial protection.

We don’t like to think about it, but who would cover the costs of a mortgage or college tuition if any of the family’s income earners passed away? Planning for these specifics requires us to reevaluate and adjust our level of life insurance over time. Doing so protects our family by covering these high value, high expense items. Our families provide critical support so that we can effectively serve our country.  We owe it to them to protect them fully when we are not there. With Military Family Life Insurance coverage from AAFMAA starting at just $12 a month, you can breathe easy knowing that your family is financially protected, no matter what happens. Military Family Life Insurance can provide coverage for you, your spouse, and your children.

For those on Active Duty, the $400,000 of SGLI may not provide necessary income for your spouse and children, especially if you have a mortgage, college costs, or aging parents. National Underwriter recently reported that nearly half of American households have a significant gap of approximately $200,000 between their life insurance coverage and their life insurance needs. It would be hard enough to deal with the loss of a loved one emotionally; insurance protects against the financial consequences of such a loss. Take the very simplified example of a servicemember with a family who has $400,000 SGLI coverage and purchases a home with a $500,000 mortgage. Also assume that in the event of death, the spouse earns sufficient income to cover routine expenses, but not the mortgage payment. There is a potential gap in coverage of up to $100,000. However, if the spouse isn’t able to earn enough to cover everyday expenses, the gap may be larger. And, if one is leaving or has left the Service, he or she will most likely need to replace that SGLI coverage, in essence creating a larger shortfall. Importantly, you don’t have to wait until separation. You can obtain coverage now that would remain in effect after your service ends.

Another common reason for gaps in coverage is the failure to set up life insurance for our spouses. Whether or not a spouse earns income, he or she contributes significantly to the family’s financial security. They care for family members, care for the home, provide transportation for children, do the shopping, and more.  Replacing these services in their absence would come at great cost. Fortunately, the same great coverage available for you is also available to your spouse.

Lastly, we have to consider financial security for our children. Although we may not depend on them for income, there are several excellent reasons to provide them coverage. First, you can lock in low premiums while they are young and healthy. Second, you can lock in eligibility for other services while they have an active policy. Third, permanent insurance provides a store of cash value that safely grows at a high crediting rate, which can be used to help fund future expenses like college tuition. Lastly, in the event of loss, a policy can cover the ever growing expenses of funerals and burials and protect your savings.

AAFMAA’s Military Family Life Insurance includes protection for every member of your family, now and in the future, for as low as $12 a month. Whatever your needs, it’s fast and easy to apply. Visit us online at www.aafmaa.com/discoveraafmaa to start your application or call a Membership Coordinator at 877-398-2263 to get started now.