Should I cancel SGLI?

[Guest baileyf16]

I have 800K of life insurance through AAFMAA for $35/month and $300K through AFA for about $16/month. I also have $400K of SGLI, which happens to be the most expensive of the three.

$1.5 million is a little excessive for us, is there any reason why I shouldn't cancel SGLI?

My one concern is that I trust SGLI will be quicker and more reliable in paying than AAFMAA and AFA. AAFMAA and AFA don't have a war or aviation clause, and as near as I can tell they are both legitament companies, however, I don't really know if there is some small print that I didn't read in the coverage that will preclude my family from getting the death benefit.

Any input?

Thanks

[Login Name]

i wouldn't canx it. the more money you leave your family with the better...you never know what may happen where they'll need the money.

[ 17. April 2006, 17:31: Message edited by: Login Name ]

[M2]

$300K through AFA for about $16/month

Really? Dang, I should look into that.

AAFMAA looks decent as well, how do you like them? I did a quick quote with them and they weren't too bad (about $30/mo for $750K, but thing I don't like is the fixed premiums and fixed death benefit to age 50, then decreasing death benefit to age 60. I am 43, so that isn't that far off!

Cheers! M2

[Guest twinkle toes]

Is there a "no-combat death payouts" exclusion on the other life insurances?

[Guest baileyf16]

As I stated in the question, there is not a "war clause". I am not aware if a war clause is the same as a "no-combat death pay out" exclusion. To me it seems the same, but you know how insurance companies try everything in their power to weasle their way out of paying.

[Guest twinkle toes]

I would call and check on it. I HAD more life inscurance, but cancelled it when sgli went up to 400k. The other life said I could go to combat and still have coverage, but if I died from the war(gun fire/bombs) I was not covered. If i died because I rented an atv at "the deid" and rolled it over my self, I was covered.

[Guest CAVOK]

Along the subject of life insurance...

I have a good friend (former AF, airline guy) whose wife died. He came back out to the unit & talked to us all about it.

His biggest point was that probably every one of us had our wives under-insured if we had children. In order to continue being an airline pilot he had to hire a full-time nanny & add a room to his house for her. Very expensive. Most of us view it from the point of view that if she doesn't earn much or any money that we don't need much coverage on her.

By the way, she was under 40 and in "perfect" health. Brain aneurism.

Login Name: You dying shouldn't be the lotto for your survivors. More is better only to a point.

My view is: House & debt paid off; college covered for the short ones; comfortable/unchanged lifestyle for a few years. (After that you are probably just buying some "new" guy a really cool boat)!!! A financial manager WHO DOES NOT SELL INSURANCE could tell you what you really need.

CAVOK

[Guest SnakeT38]

Originally posted by MajorMadMax:

Really? Dang, I should look into that.

AAFMAA looks decent as well, how do you like them? I did a quick quote with them and they weren't too bad (about $30/mo for $750K, but thing I don't like is the fixed premiums and fixed death benefit to age 50, then decreasing death benefit to age 60. I am 43, so that isn't that far off!

Cheers! M2