Is “Enough” Really Enough?
This Life Insurance Awareness Month, make sure your military family isn’t one of the statistics. Are your loved ones adequately protected? Consider this:
According to a LIMRA (Life Insurance Marketing Research Association) study, many U.S. households are significantly underinsured. In fact, the 2016 study showed that a whopping one in three households would have immediate trouble paying living expenses if the primary wage-earner died.
That may come as a shock since the majority of Americans seem to understand the importance of having coverage. Nearly nine in 10 consumers agree that most people need life insurance*. Unfortunately, the study also found that 40% haven’t bought life insurance, or more of it, because they’re unsure of how much or what type to buy. And it’s no wonder. With so much information out there, how do you know where to start?
USBA, a non-profit association that’s provided life insurance exclusively for military families for over 50 years can help. There’s an advantage to having a company in your corner that understands the unique needs and culture of a military family. They suggest starting here:
Determine if $400K of SGLI coverage, the max available to active duty service members, is enough. Would your family be able to meet financial obligations and maintain the same standard of living without your spouse’s income? Put pen to paper on how far that $400K will go. If it won’t meet those obligations, it’s time to supplement SGLI. Be sure to look for an affordable plan without a war clause.
Determine how much coverage you need as a military spouse. Contrary to popular belief, even if you’re not the primary breadwinner, you need life insurance too! If your spouse is on active duty, FSGLI (Family Servicemember’s Life Insurance) provides an optional $100K on you. By today’s standards, that’s not a lot. Think about how much your contributions, like childcare for instance, would cost if you were no longer there. Also, if you contribute to the household income, your family may not be able to cover the rent or mortgage, car payments, utilities, college education costs, and other bills without your portion. Two-income families can quickly be in financial jeopardy with the loss of either wage-earner. Life insurance helps fill this financial gap.
Are your children covered? You may never want to think about coverage on your children, but remember the sage rule. Get life insurance when you’re young and healthy so you are covered when you’re older. It’s cheaper too.
Then follow these easy steps:
- For each category above, do a free assessment to see how much coverage you need.
- Use USBA’s Product Recommender to help decide which product is the right fit for your life and budget.
- Get a free quote for that plan with no obligation or contact information.
- When you’re ready to purchase, simply fill out their quick and easy online application.
Need more help? A USBA Product Specialist can walk you through these steps over the phone at 877-221-6841.
*According to the 2016 Insurance Barometer Study by Life Happens and LIMRA