To the brave men and women of the United States Air Force, we give you many thanks for your dedicated service to the protection of the United States. The US Air Force is a historic fighting force well known for their extreme performance standing watch over this great country of ours. This article is designed to help you purchase life insurance for US Air Force veterans and their family while securing the lowest premiums possible. Purchasing life insurance can be confusing at times but it can also be a simple and smooth process when you have the right life insurance agent or broker to help you.
You have quite a few excellent choices for life insurance today and we want to make sure you understand exactly what they are.
If you are still an active member of the Air Force or you have just been discharged, this article should definitely help you find affordable life insurance.
Some Airman have purchased their life insurance through the SGLI.
The SGLI (Service Members Group Life Insurance) offers life insurance to members of the armed forces and is purchased many times because the military member is being deployed and going overseas. When a military member is under orders to be deployed, the SGLI is usually your only option at that point in time. This can work well because of the simple fact you can purchase life insurance at this very risky point in your life and not be declined because of the threat of going off to a war zone. At this point in your life the SGLI is your one and only choice where you can purchase up to $400,000 in coverage.
After a combat tour of duty has been completed many service people change their policy to a VGLI plan design.
Once your active duty overseas is over and you are possibly being discharged, many military men and women will make a change to a VGLI (Veterans Group Life Insurance) policy. With this government sponsored program you can purchase a life insurance policy from VGLI for less premium once you are discharged or at least out of harm’s way. The SGLI policies are normally purchased when an individual joins a branch of the military and then is deployed to a potentially hazardous destination for active duty.
The veteran’s administration (VGLI) Veterans Group Life Insurance policies have a rate increase every five years.
These plan designs are in essence a five-year renewable Term life policy that includes a substantial rate increase every 5 years like clockwork. If you are in decent health your premiums would be drastically less with a conventional life insurance product with level premiums that do not go up. Take a look at a sample of the VGLI rates with a $400,000 face amount. Especially pay attention to the higher age groups starting with 50-54 years of age. These rate increases are very costly to say the least.
Age 29 & Below – $32.00 per month
Age 30 to 34 – $40.00 per month
Age 35 to 39 – $52.00 per month
Age 40 to 44 – $68.00 per month
Age 45 to 49 – $88.00 per month
Age 50 to 54 – $144.00 per month
Age 55 to 59 – $268.00 per month
Age 60 to 64 – $432.00 per month
Age 65 to 69 – $600.00 per month
Age 70 to 74 – $920.00 per month
Age 75 & Up – $1840.00 per month
The youngest age category of age 29 and below have rates that are still higher than conventional Term life insurance but the older age categories have incredibly high rates that most Americans could not even afford. Conservatively speaking if you were age 55-59 your premiums would be $3,216.00 per year. The age 60-64 veterans would be paying $5,184.00 per year. The final age group of 75 and over would have an annual premium of $22,080.00 per year. See the rate chart on the VGLI website.
If an individual is in very poor health, these policies may work for you. If any veteran or reservist is in good health and is considering purchasing life insurance through the VGLI, the life insurance offered from the conventional life insurance companies in the US will be the only way to go. These 5-year rate increases are brutal to the wallet and don’t make sense when there are so many other great options to choose from.
Let’s take a close look at your other options for purchasing low cost Term life insurance.
This article is about your other options available from the conventional civilian market for much less money straight across the board. This life insurance is what any civilian would apply for and very well you can too. There are many new life insurance products to choose from. The most common plan designs are Term life insurance and the permanent version referred to as Universal life.
Here are the deciding factors that will enable you to be able to apply for life insurance on the civilian market if you are currently a United States Airman.
- How much time are you going to be spending overseas?
- Are there any plans for deployment in the next 12 months?
- What are your current duties & responsibilities?
The single most important question regarding life insurance for a Reservist, National Guardsman or full time regular Air Force is “Deployment Orders Status”
If there are no deployment orders pending for the next 12 months you have a green light to purchase excellent life insurance products with very competitive premiums. This would be your best option by far over purchasing a VGLI policy in respect to premium cost and policy benefits.
What difference does it make if I am a full time regular Airman or have a Reserve status?
This is an excellent question that we have to clarify to the fullest extent. If you are a National Guardsman or a Reservist you can purchase any life insurance product you wish as long as you do not have deployment orders pending for the next 12 months. If you are a full time regular member of the Air Force with no deployment order pending you can still purchase civilian life insurance. There would be companies that have specialty markets for the full-time Airman such as Prudential, MetLife and one of the all-time lowest rates are offered are from AIG American General.
The underwriting time for American General takes a little longer than most of the other companies but their rates are by far the lowest in the industry for full time Airman.
If you are in the Reserves or the National Guard like I had mentioned earlier in this article, any company would be fine as long as you do not have deployment orders.
How much will Term life insurance cost for a US Airman who is applying for life insurance on the civilian market?
If you apply for Term life insurance or a permanent plan design such as Universal Life your rates will be based on the usual underwriting criteria below:
- Your Current Age
- Health History
- Tobacco Status
- Height & Weight
- Occupation (If Hazardous)
- Sports (If Hazardous)
- Driving Record
Keep in mind that the above list applies to fully underwritten policies. These types of policies have the lowest rates available. Simplified issue life insurance which is also referred to as Non-Med policies can be approved in 24-48 hours. They do cost more because the life insurance companies do not know as much about your health history so they have to add some extra buffer premium for the added risk they take. I always recommend the fully underwritten policies so you can receive the lowest premiums possible.
What happens if I have any pre-existing medical conditions?
Applying for life insurance with medical conditions such as high blood pressure, high cholesterol, anxiety, height & weight issues and many others are very common today and we work with these medical conditions for our applicants on an everyday basis. A medical pre-screen will help direct you to the correct company to apply with and help you to receive the lowest rates.
A medical pre-screen takes just a few minutes and is totally confidential and simple to perform. Insurance agents can take care of this for you and get you on track to a smooth application process. We find that pre-screens are vital to take the guesswork out of the application process and receive the lowest premiums. Choosing the correct life insurance company for your specific needs is very important to assure the lowest life insurance rates.
How do I go about applying for affordable life insurance?
Just for starters, you can compare Term life insurance quotes along with Universal Life also on our free life insurance quote engine on the right. You can compare the lowest rates from the most competitive and trusted life insurance companies. Don’t hesitate to contact us 7 days a week by calling (800)897-5699 for answers to all your questions.
If you are looking for the best Term life insurance quotes, you can call us toll free for a quick quote right over the phone. Our application process is also very simple with applications done by telephone vs. the old paper applications that some agents still use.
Term life insurance quotes will always have the lowest premiums when compared to any of the other plan designs on the market. Most people today are now comparing life insurance quotes online to save time. Many consumers today want to speed up the process and they choose to compare life insurance quotes with no medical exam which has an extremely fast underwriting time once applied for online.
Working with an independent insurance agent will enable you to compare all the top companies to make sure you receive the lowest life insurance rates possible.
Independent insurance agents are also known as brokers. They have complete access to all the best life insurance companies. State Farm agents and Farmers agents for example are referred to as captive agents and only have their one company to show you. In today’s competitive life insurance market, looking at only one company will be a huge handicap when trying to receive the lowest term life insurance rates available on the market today.
Our office utilizes over 40 of the best life insurance companies such as Prudential, Banner Life, Transamerica, Protective Life, Assurity, Voya, MetLife, Aviva, AXA Equitable, ING, SBLI, Fidelity Life and many more. Check out our Top 12 Life Insurance Companies blog post where you can get some more information about the excellent companies we use.
You proudly served our country and now it is about time somebody serves you with equally premiere service and dedication.
If any of this sounds confusing to you, don’t worry because our no obligation service will allow us to do all the leg work for you so you don’t have to. Call us with any questions you have and we can answer them over the phone within a matter of minutes. Learn more about us and our business by visiting our About Us page. Again, thank you very much for being a United States Airman and protecting us while we sleep at night. We cannot thank you enough!