Life Insurance

[HOORAH]

Whole life in the amount of $10K is considered by the experts to be what you should have so that even if you're 85 when you die, you can be buried.

Attending the life insurance class I mentioned would be how you could personally calculate how much term & for how many years you need it, in other words, calculate when you'll be finished raising kids, paying for the mortgage, etc...

VGLI is incredibly expensive compared to buying life insurance when you're young. This is where Navy Mutual Aid is an excellent resource, they have a great calculator that shows that purchasing a minimal whole life policy ($10K) at 22 will save you thousands compared to converting your SGLI to VGLI at 42 years old.

Let us not forget that TODAY is when $10,000.00 is adequate for a burial. It costs the average family $7,000.00 and they want the moeny up front. They don't take payments. When we're 42 I'm thinking it'll be more. I used to sell insurance, burial plans being the most previlant of my policies. For somone who was 21 yoa I would advise going for more like a $15,000.00 or $20,000.00policy with a rider that allows you to buy at a healthy rate no matter what your heath. It's also supposed to be purchased in order to keep your family living as they are now. You mentioned hitting the lottery. Yeah that's not what insurance is for. And they won't approve you for a $400,000.00 policy, just so you know. You aren't worth that. No offense. They check out your income level and health and blah blah blah and will approve you for what you're worth.

Now someone mentioned term life. That's fine, much cheaper. Can't borrow off of it and it's basically just throwing away your money. If you buy a 10 year policy and die 10 years and 1 month later your family gets nothing. If you don't have a family there's really no reason to get a term life policy especially with being in the military and having that term life policy available.

If your afraind that you'll become uninsurable in the future I'd buy some small whole life now and add to it as your needs change. FYI, even term life you can't get if you have bad health unless you go for that senior citizen's policy which is hardly any money back and expensive for what you get because you're working from a bad batch of apples.

 

[HOORAH]

My thoughts exactly. I have dangerous hobbies, and I have chosen a dangerous job. The least I could do is make sure my niece and nephews can go to whatever college they want, and go there in a brand new beemer. It's only 30 bucks a month, why not?

When you fill out an app they ask you about your dangerous hobbies and lieing can void your policy. So if you say I don't swim with sharks and don't ride motorcycles and then you get eaten by a shark and you rode a motorcycle to the beach that day they'll do some investigating as to how long you've been doing those 2 things. Having dangerous hobbies will increase your rate if not disqualify you from a policy all together. The insurance company isn't into taking risks. They weigh the risk i.e. you and decide if your a good risk or a bad risk. They don't like to pay out policies. And sending your neice and nephew to college in a new Beemer isn't what insurance is for.

 

[Purdue]

When you fill out an app they ask you about your dangerous hobbies and lieing can void your policy. So if you say I don't swim with sharks and don't ride motorcycles and then you get eaten by a shark and you rode a motorcycle to the beach that day they'll do some investigating as to how long you've been doing those 2 things. Having dangerous hobbies will increase your rate if not disqualify you from a policy all together. The insurance company isn't into taking risks. They weigh the risk i.e. you and decide if your a good risk or a bad risk. They don't like to pay out policies. And sending your neice and nephew to college in a new Beemer isn't what insurance is for.

No offense, sir (or madam), but you may be slightly mistaken in this regard. I spoke to my rep at Navy Mutual and was assured of a few things:

Any Officer that applies is approved just like they are for SGLI. I am not worth it, but i can insure myself up to $600K if I so choose. I haven't heard of anyone being declined for SGLI either.

And, I am still covered, even if I go skydiving and deep sea diving. Just like SGLI. I'm still covered in a war zone. I'm still covered if I die in combat. And, if anyone feels better insuring themselves for 4 or 15 dollars a month... even if they have no responsibilities... what's the harm? I think it's smart. I have to help pay for my sibling's schooling anyway, or they couldn't go. considering the reality that we are in a risky profession, were not everyone comes home as often as some civilian jobs... I think it's perfectly acceptable to give my family a small economic boost if they I weren't going to be returning. Even if they aren't dependants... at 4 dollars a month... that's me going without desert at dinner. I think it's a safe bet, and I think the small price for such a large gift to my family is worth it.

 

[Brett327]

B/c someday EVEN YOU will have dependents & you won't always be young &/or healthy. Buying insurance w/ a rider that allows you to purchase more whole &/or term at the healthy rate as your needs change, while you're young & healthy is advisable for anyone.

That's a pretty big assumption for someone who doesn't know me. Why must I have a family? I'm sorry that I don't conform to your Judeo-Christian cookie-cutter approach to life.

Brett

 

[Brett327]

No offense, sir,

Or madam.

Brett

 

[Catmando]

Never buy life insurance, if you don't need it.

However, if you have dependents (or maybe nieces and nephews who totally depend on you), buy some term insurance. And make sure you are covered in an act of war.

Do not buy whole life. Buy term, and invest the rest of the whole life premium in a mutual fund.

If you don't have a family, you probably do not need life insurance. But certainly get it when you do. And steer far clear of life insurance salesmen. Their commissions can be staggering. And they will steer you into the product with the highest commissions, and the least return for you . . . if they can.