6 Reasons Military Members Should Own Their Own Life Insurance Policy

If you are an active-duty military member, thank you for your service. If you plan to leave or retire one day, you should consider purchasing a private life insurance policy before your SGLI coverage ends. While VGLI is an option, there are some potential drawbacks to consider:

• 1. Potentially higher premiums: VGLI premiums are typically higher than those of private life insurance policies, especially for older people. Premiums increase every five years, so the cost of VGLI can become significantly higher over time.
• 2. Limited coverage amounts: VGLI offers coverage in increments of $10,000, up to a maximum of $500,000. This may not be enough coverage for people with large financial obligations or dependents.
• 3. Higher premiums as you age: It is advisable to purchase a life insurance policy now if you are still young and healthy with no major medical conditions, as this will allow you to lock in more favorable rates. It becomes more difficult to find affordable life insurance coverage as you get older.
• 4. Lack of flexibility: VGLI does not offer as much flexibility as private life insurance policies. You cannot increase your coverage beyond the maximum limit, and you cannot add riders or options to customize your policy.
• 5. Availability restrictions: VGLI is only available to veterans and military service members who were insured under SGLI during their active duty. If you did not elect to continue SGLI coverage within the specified time frame after leaving the service, you may not be eligible for VGLI.
• 6. Competitive alternatives: There are many private life insurance providers that offer more comprehensive coverage options, greater flexibility, and potentially lower premiums than VGLI. It is advisable to compare your options before settling on VGLI.

Contact our licensed insurance specialists today for a free life insurance consultation.