Life Insurance questions (SGLI, supplemental)

[Guest IAGuardWife]

av8tor55 - If I can give a recommendation, not from the military stand point, but from the view of someone who worked for a large insurance company and someone who sold term life insurance, term life is a waste of money. If you were looking for a small amount of supplemental insurance, term could be the way to go. If you are looking at covering your mortgage, I would look at mortgage insurance. Otherwise, I would recommend spending the extra money on whole life insurance. It builds cash value that you can borrow against. Basically with term life you would be giving USAA $90 a month and saying "I bet I die this month". And USAA says "Okay, I will take that bet".

Look into meeting with your local First Command Rep. they are used to covering people who fly and have competitive rates for whole life insurance. Hope this helps!

[Guest Chuck Sargent]

Originally posted by IAGuardWife:

av8tor55 - If I can give a recommendation, not from the military stand point, but from the view of someone who worked for a large insurance company and someone who sold term life insurance, term life is a waste of money. If you were looking for a small amount of supplemental insurance, term could be the way to go. If you are looking at covering your mortgage, I would look at mortgage insurance. Otherwise, I would recommend spending the extra money on whole life insurance. It builds cash value that you can borrow against. Basically with term life you would be giving USAA $90 a month and saying "I bet I die this month". And USAA says "Okay, I will take that bet".

Look into meeting with your local First Command Rep. they are used to covering people who fly and have competitive rates for whole life insurance. Hope this helps!

This is great advice. There are other vesions of this, too. Some can help you towards retirement (which I highly recommend for you aspiring airline pilots). Shop around, but always make sure it will cover you when you fly and when you are in combat.

Don't pick a number that you "think would be a nice gift." Have a professional sit down and asses how much you need. This will consider your mortgage, kid's college tuition, cars, etc.

FLY GOOD!

[Tone deaf]

The Air Force Association offers term life at a very reasonable rate, up to $300K with no war or aviation exclusions. I'm paying $56 quarterly (NOT monthly) for $300K coverage, nonsmoking 34 year old male.

https://www.afa.org/AboutUs/memben/ben2.asp

[ClearedHot]

Merits to both term and whole life arguments. Those that argue for term and invest the difference assume the person will have the discipline to follow up and invest.

When I was younger it was tough to look at the extra few bucks in my pockets and decide between beer or an investment.

While they may not be the cheapest organization out there, thanks to First Command (formerly USPA), after 15 years I have a very nice nest egg. I started with $300 per month from my first paycheck and never missed it. Another technique is to raise it everytime your flight pay goes up.

Whatever you do, do something. Start now and stay with it.

Good Luck

[ 01 February 2004, 13:45: Message edited by: Clearedhot ]

[Guest MitchBaernet]

Originally posted by Clearedhot:

Merits to both term and whole life arguments. Those that argue for term and invest the difference assume the person will have the discipline to follow up and invest.

When I was younger it was tough to look at the extra few bucks in my pockets and decide between beer or an investment.

While they may not be the cheapest organization out there, thanks to First Command (formerly USPA), after 15 years I have a very nice nest egg. I started with $300 per month from my first paycheck and never missed it. Another technique is to raise it everytime your flight pay goes up.

Whatever you do, do something. Start now and stay with it.

Good Luck

Now that's good advice! I won't disagree that for some people, whole life might not be so bad, if you otherwise lack the discipline or skills to save and invest. Basically, the need to keep your premiums current forces you to invest. I got some very good advice early on at the start of my career out of college. My new boss advised me to contribute the maximum to my 401K. Early on it was more then I could afford, but I somehow made it work. I have been doing so every since, and 15 years later I don't have a single worry as far as retirement is concerned, and spend my money flying!

[Guest baileyf16]

I've been trying to get life insurance, but I'm finding it very difficult to find something reasonable. Any one know of any companies that will cover pilots for a reasonable price?

I am still in ROTC and am technically not in the military. I will be going to UPT after I commission.

Thanks

[Toro]

I use the military SGLI for my life insurance, but I use USAA for everything else insurance related. I don't know specifics on life insurance, but I am a big fan of their rates and service for everything else.

Their link is at www.usaa.com

[Guest mrharvester]

I checked on USAA a few months back for my family. Surprisingly, they were quite expensive. You may try a broker called Pilot's Insurance Center (www.piclife.com).

[Guest austinh12]

One that I have found to be great is Armed Forces Benefit Association

[kkboris]

USAA has reasonable rates up to $150K of coverage, then their rates skyrocket. If you are a member of the Air Force Association, you can get good rates for individual and family policies (AFA uses Met Life). You have to be careful with life insurance as a pilot, some policies will not cover you if you are killed in a military flying accident or in war. USAA and the AFA policies have no such exclusions.

[CD512]

Most insurance companies dont increase their premiums for pilots of scheduled air carries and military pilots. The only pilots I have seen pay an additional premium for flying are GA pilots.

[Sierra Hotel]

Just curious if anyone opted to turn down the SGLI for something better and if so who did you go through. Im pretty sure I can get more coverage for the same cost but want to see what others think....

Thanks,

Tonedef

[spectre56]

When I was enlisted, I was getting 450,000 for 20 bucks a month. I didn't think you could get a better deal than that! If you can, I would be all over it (sts).

[Guest ACJ7464]

Just curious if anyone opted to turn down the SGLI for something better and if so who did you go through. Im pretty sure I can get more coverage for the same cost but want to see what others think....

Thanks,

Tonedef

My latest research on supplemental term life brought me back to the fact I am a pilot. The largest road block to getting a better deal than SGLI is the pilot stuff. It appears the insurance industry still has realized that riding a motorcycle maybe more life threatning than flying.

[Guest Viperfixr]

My latest research on supplemental term life brought me back to the fact I am a pilot. The largest road block to getting a better deal than SGLI is the pilot stuff. It appears the insurance industry still has realized that riding a motorcycle maybe more life threatning than flying.

Look into AFBA (Armed Forces Benefit Association). They won't deny your claim if it is discovered that you died breaking a law (speeding, not wearing a seatbelt/helmet). With AFBA (speeding, not wearing a seatbelt/helmet, even suicide) doesn't matter, they will honor the claim. I am a crew chief so I don't know how it applies to pilots. I haven't reviewed my policy or compared any prices or services lately but I pay $6.50 a month for $100K. Just a suggestion, look into it at https://www.afba.com/afbamain/life-insurance-home.shtml. Good Luck!!

[Guest SQUARE PAIR]

Look into AFBA (Armed Forces Benefit Association). They won't deny your claim if it is discovered that you died breaking a law (speeding, not wearing a seatbelt/helmet). With AFBA (speeding, not wearing a seatbelt/helmet, even suicide) doesn't matter, they will honor the claim. I am a crew chief so I don't know how it applies to pilots. I haven't reviewed my policy or compared any prices or services lately but I pay $6.50 a month for $100K. Just a suggestion, look into it at https://www.afba.com/afbamain/life-insurance-home.shtml. Good Luck!!

Not sure if this is what you're alluding to, but the idea that SGLI has certain "clauses" for seatbelts or helmets is an urban legend. If you die, no matter how (murder, suicide, war, car crash, Darwin-award-winning-redneck-stunt, whatever) they WILL pay. Plain and simple. See 38 USC Sections 1965 - 1976 and 38 CFR Part 9.

The only exception is in regards to valid eligibility questions - i.e. only uniformed members are eligible, so if you go AWOL and die, no cash.

[av8tor55]

SGLI is a good deal, especially for flyers. I have an additional $300K from USAA. It's a 30 year term, no war or aviation clause, for about $45 a month.

Edited March 6, 2007 by av8tor55

[Herk Driver]

SGLI is a good deal, especially for flyers. I have an additional $300K from USAA. It's a 30 year term, no war or aviation clause, for about $45 a month.

AFBA (and MOAA, I think) offer very comparable rates to SGLI. Check into it. I think the AFBA policy specifically states that they have no war/aviation clause, etc. Make sure you read all the guidance. SGLI is still a very good deal.

[Tone deaf]

I've investigated the following and they offer life insurance policies that are all good for flyers with no war, aviation, or terrorism exclusions:

Air Force Association

Military Officers Association of America

Army & Air Force Mutual Aid Association

Military Benefit Association

All of their websites are the acronym of their name + .org

Of them all, AAFMAA offers policies up to $800K and were the most competitive.

[Guest CrazyErnie]

Try 1-800- Select Quote.

$500,000 for $22/month. I don't have any of the war/terrorism clauses, but I had the policy before joining the AF. You can always just see what they have to offer, and turn it down if you don't like it.

-Crazy

[Guest mjk5401]

SGLI is a good deal, especially for flyers. I have an additional $300K from USAA. It's a 30 year term, no war or aviation clause, for about $45 a month.

Out of curiousity, What is the need to have $750K?

[Tone deaf]

Out of curiousity, What is the need to have $750K?

While that may sound like a lot to a single dude, it is really not that much to leave a widow with kids to raise, especially one that is not working. Couple the loss of pay along with benefits, and you'll see that to ensure a widowed wife w/kids can keep a decent standard of living, the insurance should well exceed $1M to provide income that will not diminish over time due to inflation and draws on the balance.

[av8tor55]

While that may sound like a lot to a single dude, it is really not that much to leave a widow with kids to raise, especially one that is not working. Couple the loss of pay along with benefits, and you'll see that to ensure a widowed wife w/kids can keep a decent standard of living, the insurance should well exceed $1M to provide income that will not diminish over time due to inflation and draws on the balance.

Exactly. Just in case I don't perform the Four Engine Flameout Boldface in time, I want the wife and baby(on the way) to have sufficient funds to live on. Never underestimate how much you need or may need in the future. I have no problem paying the yearly premium, it means I made it through another year! For the younger and single dudes, it may seem like a waste of money, but I would look into getting a policy asap. You can save some serious coin by locking in when you are young. You never know when a health problem might make you ineligible for coverage. My 6.9 cents, FWIW.

[biggie17]

AAFMAA (Army Air Force Mutal Aid Association) is what I use...It has been around since Custer's Last Stand, it has no flying or war clause (started it when I was deployed), and it has awesome customer support. $35/month for 800,000, $19/month for 400,000 for term fixed until you are 50, no physical/blood test required.

[El Duderino]

*THREAD REVIVAL*

I'm shopping around for term life insurance to supplement SGLI but am not entirely sure how to decide what is best. I gather that no war, aviation, or terrorist clauses are a must but are there any other fine print details to look for? Other than the rates per amount of coverage what makes one policy/company better than another? I use USAA for all of my banking and insurance right now but their quote for coverage is higher than that of the Army and Air Force Mutual Aid Assoc and the AFA. Any words of wisdom on how to best look out for the family should the worst happen would be appreciated.