When you know you’ll be leaving the military—even if your departure is a year or more away—take advantage of the military transition programs offered by your branch. You’ll gain knowledge and practical tools you’ll need to move back into civilian life.
With all the changes you face as you transition from military service, don’t forget to update your life insurance. It’s as important to have life insurance protecting your family when you’re out of the service as when you were on active duty.
As you know, the military offers a maximum of $400,000 in Servicemembers’ Group Life Insurance (SGLI) to active duty military personnel. Spouses are eligible for a maximum of $100,000. But SGLI ends 120 days after you leave the service.
If you’ve had SGLI, Veterans’ Group Life Insurance (VGLI) is a government option after you leave the service. However, VGLI rates are generally most attractive only to tobacco users and those with an injury or chronic illness.*
If you’re in good health, you should start shopping for an affordable life insurance policy such as those USBA offers as soon as you make the decision to leave the military. Even if it’s a year or two out. The younger you are when you apply, the lower your rates will be. Plus, it’s part of your transition planning and civilian budgeting process. Keep in mind that when you own your own policy rather than having coverage through your employer, it’s portable. You can take it with you wherever you work. And if there’s a period when you’re unemployed, your family still has protection as long as premiums are paid.
How much do you need? Get help here estimating how much life insurance you and your family need. Then check out USBA’s affordable life insurance plans. You’ll find preferred and non-smoker rates are available to help keep costs down. Spouse coverage is also available.
*SGLI and VGLI info source: http://www.benefits.va.gov/insurance/vgli.asp