Life Insurance Woes

I know, I know...nobody wants to talk about dying, and frankly, we all hope we die later rather than sooner! But, let me talk to you about something called "peace of mind". "Peace of mind" is knowing that even if something terrible happens, you are covered as good as it's gonna get on the face of this earth anyway. So, let's talk life insurance.

If you are in the military, you already know about Servicemembers' Group Life Insurance (SGLI). So for about $400,000 worth of life insurance, the military will automatically deduct about $29 from your husband's paycheck. This is of course the maximum amount of insurance you are allowed to take out through SGLI. You might think that this is enough and it sure sounds like a huge amount! But...here are some things you need to think about.

Not only will you be paying for a funeral and all the associated expenses, but consider some of the following costs and debts you might still have should the inevitable happen, such as: a mortgage, car payments, four years' college for the little ones, credit card debt, medical bills and not to mention the heartache and grief that comes after the loss of a loved one...you won't want to get right back to work, struggle to make ends meet and make possible bad financial decisions. To get an idea of what your needs might be, try this handy financial calculator. You'll quickly see that there are a lot of things that you might not have thought about. The ideal situation would be to live off your earnings from your life insurance policies after you invest them responsibly (rather than going through all that money, month by month until there is nothing left).

So, here I was with these ideas mulling around in my head...I hated thinking about these things, but I also wanted to make sure I didn't have to make any rash decisions should I find myself in such a situation, plus I wanted to make sure our little boys were cared for. I quickly grabbed the phone and called the company I have our car insurance through, USAA. I thought for sure that they would be able to help me. Most of their financial products are "military friendly", and I was already patting myself on the back for a job well done. Well, I was shocked to hear that because of my husband's high risk Army specialty, a modest life insurance policy for him would cost....over $200 a month! I think I dropped the phone at that point.

I tell you...I was in a funk and wondered what in the world I was going to do next. I got on the internet the next day and started googling life insurance. I had a few more companies contact me, but many had clauses where they wouldn't pay out under wartime circumstances or anything that wasn't "normal"...well, that ruled all us military folks out. After a few days, I finally stumbled upon The Army and Air Force Mutual Aid Association (AAFMA) I emailed them, and they got back to me right away.

After answering a few simple health questions about my husband, they gave me a quote. For example, for $600,000 worth of life insurance, the cost would only be $27 a month! I couldn't believe my ears at this point! Of course we wanted to sign up right away, and after my husband filled out a health survey, we were insured. It was as simple as that. That was three years ago. AAFMA is my recommendation today. Give them a call and don't delay.

Along those lines, be sure that the non-working or non-military spouse also has some life insurance. You can do these cheaply and quickly through SGLI as well. Many a soldier has been rudely awakened, finding out how much work their wife does at home and with the children, and you want your hubby to have some money to use in such a case too. Also, even though our military healthcare system is fairly good in most cases (and woefully inadequate too I might add at times), it may be wise to research disability insurance, especially for some of the lower enlisted ranks and those who have not been in the military long enough to qualify for a good "enough to live on" pension. A good topic for a later date!

If you yourself have any comments or experiences to add to this topic, please take the time to share.

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