Since being in the military poses an increased risk to your health and life, it is important to make sure you have the proper life insurance coverage so your loved ones will be cared for in the unfortunate event you are no longer around.
Service life insurance is a great option for military personnel and their families – here is what you should know to choose the right policy.
Life Insurance Defined
Life insurance provides financial support for family members when the policyholder passes away. Depending on the policy options chosen, the policyholder pays a monthly premium to keep his or her coverage current.
Upon death, the beneficiaries of the policy will be able to make a claim and have the insurance company grant them a lump sum of cash. This money can help to pay final expenses, lingering debt, and help to keep the family financially stable after the holder’s passing.
There are different types of life insurance that offer different features. You can choose from policies that are only for a limited amount of time or will cover you your entire life.
Policies also vary in the amount of funds they offer beneficiaries, how much the policyholder will pay every month to keep up coverage, and if funds can be withdrawn from the policy before the holder passes away. Your needs and preferences will often determine the type of policy that is right for you, so make sure to do your research.
Should You Consider Armed Forces Life Cover?
The military will offer what is known as “death in service” benefits – this is a package that the military will give to families of military members who pass away while serving. It is important, however, to read up on the coverage that is provided through your specific branch to find out exactly what benefits your family will receive.
If the amount the policy offers will not be enough to cover final expenses, debts, and keep the family financially secure, you may want to consider purchasing an additional supplemental policy.
Another reason you may want to consider taking up a life insurance policy is to keep your family protected if and when you leave the military. Once a member has left, the “death in service” benefits no longer apply, leaving your family without any financial support should you pass away after your service has ended.
Even though your chosen career may make life insurance more expensive, you may be able to secure a refund for higher premiums through the Service Risks Insurance Premium Refunds scheme.
Comparing Armed Forces Life Cover
In order to compare policies and determine the best option, it is important to know how much your family will need to make ends meet should you pass away. Make sure to take into consideration all your bills, expenses for children under 18, and emergency funds.
Keep in mind, they will no longer have your income to live off of, so the insurance money will need to take care of that as well. Some insurance companies will exclude military members since they are at higher risk – when comparing policies, make sure you are looking at insurance companies who do not exclude military members.