insurance coverage Archives

Troops will get an extra $100,000 in life insurance coverage March 1

March 30, 2023Ana R. Cheatwood

Service members will automatically receive an extra $100,000 of life insurance coverage as of March 1, increasing the maximum Servicemembers’ Group Life Insurance coverage amount to $500,000.

All service members will automatically get the increased coverage, including those who have previously reduced or declined their Servicemembers’ Group Life Insurance, known as SGLI. The boost in coverage applies to all those eligible for SGLI, including active duty, Guard and reserve members.

Troops will pay a premium of $31 per month for $500,000 worth of coverage, a $6 increase, which will be deducted from their pay. The monthly SGLI premium is the same regardless of the service member’s age or other factors. Currently, troops pay $25 a month for $400,000 of life insurance coverage. The rate hasn’t changed; the cost is still 6 cents per $1,000 of insurance. SGLI coverage is offered in increments of $50,000.

Also on March 1, the maximum coverage for Veterans’ Group Life Insurance, or VGLI, is also increasing to $500,000, up $100,000 from the current $400,000. That is not automatic. Eligible veterans must request it.

The Department of Veterans Affairs will now be providing $1.45 trillion of life insurance coverage, making it the 12th largest group life insurer in the United States, said Daniel Keenaghan, executive director of the VA insurance service. The VA administers both the SGLI and VGLI insurance programs.

This is the first time the SGLI coverage amount has increased since 2005.

“This is going to help support our service members and veterans protect those who matter most,” Keenaghan said during a media roundtable. “As costs have increased, we are increasing our overall life insurance coverage correspondingly.”

All monthly SGLI premiums include $1 for TSGLI. Servicemembers’ Group Life Insurance Traumatic Injury Protection provides short-term financial support to help eligible service members recover from a

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Shopping Life Insurance? Dave Ramsey Says Avoid This Option

February 25, 2023February 25, 2023Ana R. Cheatwood

Unless you’re independently wealthy, the best way to ensure the financial security of your family in the event of your death is to buy a life insurance policy. The question is which kind of policy to buy. You typically have two main choices: term life insurance and whole life insurance. Both have their pros and cons, but in almost all cases financial experts recommend term life over whole life — and it’s not even close.

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According to a recent post on the website of financial guru Dave Ramsey, it’s “far better” to get term life than whole life.”

“We don’t want you to get ripped off, we do want to see your family well protected, and we for sure want your financial future to include wealth and the chance to become self-insured,” the post said. “The only kind of policy that lets you hit all those goals is term life. But whole life misses the mark in every department.”

Ramsey isn’t the only one who feels that way. Many other financial experts say that with few exceptions, term life is better than whole life because of the amount of money involved.

In case you need a primer: Term life insurance insures you for a specific amount of time, such as 20 years. When that term is up, the life insurance policy ends. If you die during the specified term, then your family is covered and will receive either a one-time payment, annuity or monthly payment.

Whole life insurance, also known as cash value insurance, refers to coverage that lasts your whole life, no matter how long. These kinds of policies work

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Experts Suggest Buying Multiple Life Insurance Policies

February 7, 2023February 7, 2023Ana R. Cheatwood

Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Not only can you have multiple life insurance policies, but you can purchase multiple at once.
Buying 20-year coverage and 30-year coverage at the same time can help as your savings grow.
Adding a 20-year policy whenever you have a child means it will last until they’re an adult.

While many believe each person can only have one life insurance policy (and one death benefit) in place, this common misconception couldn’t be further from the truth. Not only can you have multiple life insurance policies on yourself or your spouse or partner, but insurance agents maintain there are instances when you should have more than one policy.

This means you can keep whatever life insurance you have and still buy more coverage if you feel you need to. Heck, you can even purchase multiple life insurance policies at once. I talked to some life insurance experts to find out when it makes sense for individuals to have several life insurance policies.

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1. Buying life insurance to supplement workplace coverage

Steve Sanders, who serves as the senior vice president of life distribution at F&G, says that workplace life insurance coverage can be a great benefit to employees. However, it shouldn’t necessarily be the only coverage workers have in place.

For starters, Sanders says the total death benefit of workplace coverage tends to be

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Why I Opted Out of Buying More Life Insurance After Having a Second Child

January 17, 2023January 17, 2023Ana R. Cheatwood

Woman working on taxes while holding infant in her lap.

Image source: Getty Images

There’s a few simple reasons why I decided not to buy more life insurance.

Key points

Life insurance should provide financially for surviving loved ones.
It often makes sense to buy more life insurance after major life events, but I did not buy more coverage after having my second child.

Life insurance should provide a death benefit that is large enough to provide for surviving loved ones in case of an untimely death. It is important to buy a policy early on when coverage is still affordable and is available before pre-existing conditions develop. But, it’s also important to make adjustments to that policy as life changes happen.

There are many different life circumstances that could necessitate the purchase of more life insurance. For example, getting married may prompt the purchase of more coverage if a spouse depends on income. And, often, when a child is born, it also makes sense to purchase more life insurance because of the costs of raising that child into adulthood and providing education.

When my first child was born, I made the decision to buy more life insurance for that very reason. But, when my second child came along, I opted out of buying more protection. Here’s why.

There’s a simple reason I didn’t buy more life insurance

When my second child was born, I carefully assessed the amount of coverage I already purchased. I had a generous life insurance policy in place before my son came along, and I added additional coverage that would help fund the costs of raising and educating him if something happened to me.

In fact, when my daughter came along and I evaluated my coverage needs, I realized that I had a large enough policy in place not to support just one child but

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How Much Life Insurance Does a 50-Year-Old Need?

January 16, 2023January 16, 2023Ana R. Cheatwood

Mature man looking at his laptop with concern on his face.

Image source: Getty Images

The DIME formula can help you determine the right amount of life insurance coverage.

Key points

To figure out how much life insurance you need, consider your individual needs and circumstances.
It is also important to consider other factors such as lifestyle and future goals when making this decision.
The DIME formula is a good way to estimate insurance needs.

When it comes to life insurance, there’s no one-size-fits-all approach. Every individual has different needs and different reasons for getting a policy. This is especially true for those aged 50 and older, as the amount of coverage they may need can vary greatly depending on their lifestyle and financial situation. So how much life insurance does a 50-year-old need? Let’s look at the factors to consider when selecting your life insurance policy.

Determine your needs

Before you can determine the optimal level of coverage for your life insurance policy, you need to figure out what it is you need from a policy in the first place. Do you plan to leave money behind for your loved ones after you die? Are there any debts that will be left unpaid should something happen to you? Will your spouse or partner still need income if you are no longer around? These are all questions that should be considered when deciding how much coverage you should get.

It is also important to consider other factors when deciding how much life insurance a 50-year-old should have. These include your current lifestyle, future goals such as retirement planning or starting a business, and whether you want to leave a legacy behind.

One rule of thumb is to multiply your annual income by 10 and add it to all your debts. If someone has debts equaling $250,000 and a salary of

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With rising inflation, fill the gap with life insurance, analyst says [Video]

December 28, 2022December 28, 2022Ana R. Cheatwood

Inflation has increased budget costs for most Americans, which should be taken into consideration when evaluating life insurance coverage.

Being underinsured means that loved ones wouldn’t be able to cover expenses incurring debt or maybe loss of the family home.

“Life insurance helps provide resources to cover in the event of an untimely death…to care for and support family,” Sandi Bragar, chief client officer and partner at Aspiriant, told Yahoo Finance Live (video above). “In this rising inflation environment, those costs have gotten a lot higher and because there’s a gap, we’re filling it with life insurance.”

Senior couple payings bills inside home — Credit: Getty Images

The rule of thumb is to have 10 times your annual income in life insurance, according to insurance nonprofit Life Happens, to cover expenses beyond the funeral like housing, mortgage, childcare, health care, and education, so your family won’t go into debt.

Because the costs of food, gas, and housing have increased, consumers should evaluate their life insurance coverage to make sure it is enough, which is why, while 10 times your salary is recommended, your coverage amount should increase with the cost of living.

Some financial planners recommend a combination of term life and permanent life insurance policies. Because term life insurance expires, a permanent life insurance policy offers lifetime coverage and earns cash value that can be used during the policyholder’s lifetime in the form of a loan or withdrawal.

More Americans are tapping their permanent life insurance policies to help them weather inflation and avoid drawing on retirement accounts battered by the stock market’s volatility this year.

“You want to look at all the different types of policies that are out there and find the one that best fits your needs,” Bragar said. “One thing we like to do with clients is stack life

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What Military Families Can Teach You About Preparing for the Unexpected

November 3, 2022November 3, 2022Ana R. Cheatwood

Whether it’s the Air Force, Space Force, Army, Navy or Coast Guard, members of the U.S. armed forces are well known for their discipline and readiness – even when it comes to life insurance. That comes through in a new survey from USAA Life Insurance Company that examines how civilian and military families handle life insurance and end-of-life planning.

If you’re considering life insurance, you might want to work with a financial advisor who can help you determine the right amount and type you need to protect your family.

Preparing for the Unknown With Life Insurance

While 84% of military family respondents (from the USAA survey) said they believe their family would be financially secure in the event of their death, just 74% of civilians said they were protected.

“Preparedness is key when it comes to dealing with uncertain financial situations,” said Brandon Carter, president of USAA. “Life insurance may be an uncomfortable topic, but it can make an enormous difference for your family in the event of an unexpected death.”

It’s no surprise that active-duty military personnel would carry insurance, and most have coverage through Servicemembers’ Group Life Insurance, but many working civilians also get coverage as an employee benefit. On top of that, nearly 50% of both military and civilians said they also carry private life insurance policies, with about 75% purchasing benefit amounts of $500,000 or less.

Despite that coverage, 40% of civilian families and 27% of military families say they wouldn’t have enough money to cover more than one year of housing payments, childcare and other basic living expenses if the family’s primary financial provider died.

Military Families’ Opinions on Life Insurance

The survey also provided a lot of other opinions related to

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Military Members and Veterans Are Financially Savvy, USAA Life Insurance Survey Shows

September 14, 2022September 14, 2022Ana R. Cheatwood

Here at USAA, we just wrapped up our second annual life insurance survey. Over the first couple of years, the survey has provided insights into people’s thinking regarding life insurance as well as other timely financial topics.

This year, inflation was top of mind. One unique feature of the survey is the demographic blend of the participants. The responses reflect a balanced mix of folks with military ties — currently serving, veterans and military spouses — and the broader US population.

If there was any notable trend this year, it supports what I have heard anecdotally at events and in conversations with USAA members over the past couple of years: On a relative basis, the military community is faring well financially.

You can dig into all the details at www.usaa.com/lifesurveybut here are a few of the findings that caught my attention.

Only Half of Americans Are Concerned Inflation Will Affect Their Retirement.

I feel safe in saying that the half that aren’t concerned should be. Heck, I felt that way before inflation really started to take off last year. Even at 3%, rising prices can erase your lifestyle in retirement. So ensure that inflation is part of your retirement plans and projections. If I’m wrong, you’ll just be in a better position to live your best life.

Military Members Lead the Way.

According to our survey results, military members are outpacing their civilian counterparts in several important areas. From maintaining an emergency fund to carrying adequate life insurance coverage, military-affiliated respondents held a positive double-digit advantage over civilians.

Cost Is a Key Factor in the Life Insurance Decision.

At just under 70%, “cost of the coverage” was just behind the “type of coverage” in importance, according to all survey respondents. In today’s environment, it’s easy to

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This is what life insurance can be used for

September 2, 2022September 2, 2022Ana R. Cheatwood

Life insurance policies can be used for several different reasons. / Credit: Getty Images

When it comes to protecting the people who depend on you, life insurance is crucial. It’s a smart way to ensure that your loved ones will be taken care of in the event of your death.

Granted, there are a variety of considerations to account for when trying to determine how much life insurance you actually need. And which type of life insurance you choose (whole or term) is specific to your personal financial situation.

Once the amount and type of life insurance are determined you can start paying your premiums knowing that your loved ones will remain secure and protected. But how secure and protected will they actually be? How does a life insurance payout work and what can that money be used for? The answers to these questions will help you decide if the type of policy you have – or want to upgrade to – is sufficient.

If you don’t have life insurance or want to boost how much you already have, now is a good time to get started. you can start with a price estimate today.

Regardless of where you fall in terms of life insurance protection, however, it’s helpful to understand what an eventual policy payout can be used for.

What can you use life insurance for?

Life insurance policies can be used for several different reasons.

Many people will use a portion of a life insurance policy to cover funeral expenses. Those with spouses or children will usually buy a policy so their loved ones can easily cover the service costs after they’re gone.

You can also place the proceeds in a trust so the beneficiaries will not have access to the entire funds when

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4 Steps to Get Your Life Insurance on Track

August 6, 2022August 6, 2022Ana R. Cheatwood

Sidetracked.

It happens to all of us. That’s true, whether you are on a quest to accomplish tasks at work or home. I’d venture to say that we have all reached the end of a day and marveled, “What happened? I got nothing on my list accomplished.”

Unfortunately, this phenomenon can negatively impact your family‘s finances, as well as your productivity at work or on the home front.

Life insurance is a great example. Discussions and plans related to this touchy subject are easily sidetracked because of its perceived complexity or a general discomfort surrounding the topic. With that in mind, here’s an easy-to-implement, four-step process for your family to tackle life insurance.

1. Determine the right amount of coverage

Begin with the end in mind. Literally. Figuring out what you will need, given your unique situation, if something happened to you or your significant other is a key step in making family decisions about life insurance. Yes, it’s likely there would be major financial implications for your family if either of you passed away. Things like paying off debts, covering final expenses, raising kids and then sending them off to college, Replacing lost income, and giving you or your spouse time to get back on your feet if something happened to the other can come with a significant price tag .

There are online calculators to help you figure out what you need. The VA has one. There is an easy-to-use calculator at lifehappens.org. And, of course, an insurance agent could help you find the answer.

2. Analyze what you have.

Once you know what you need, it’s time to stack that up against what you have. First, for those in uniform, you likely have $400,000 of Servicemembers’ Group Life Insurance (SGLI), the military’s group

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