The United States Coast Guard was first launched in the year 1790 and has saved tens of thousands of lives through their highly skilled rescue missions. Many people do not realize that the Coast Guard has played an important role in wars and have participated in active combat against the enemies of the United States. There is no better sight that a maritime accident victim can see than the picture of a US Coast Guard cutter speeding to their rescue. This article has been written to to help you purchase the best life insurance for US Coast guard veterans and secure the lowest premiums possible as well. The more you know about life insurance the better the shopper you will be.
Purchasing your life insurance from the Veterans Administration SGLI (Service Members Group Life Insurance).
The only reason to purchase your life insurance from the SGLI is if you had deployment orders that would send you to a designated combat zone. Life insurance purchased the Veterans Administration SGLI program is specifically for the high risk of active combat where other life insurance providers would decline an application. In this case the SGLI program would be a great asset allowing to purchase up to $400,000 of life insurance. If you are not being deployed overseas for dangerous active duty you have much less costly choices to take advantage of.
Many military men and women who have purchased SGLI life insurance change over to VGLI plans but there are more cost effective options.
The other division of the Veterans Administration would be the VGLI (Veterans Group Life Insurance). The VGLI plans are designed to be purchased for military personnel that have left the hazardous exposure of active combat and will still be active members of the full-time Coast Guard or Reservists. If you are in this category you have the opportunity to purchase the same competitive plans that any civilian would on the conventional life insurance market.
The major drawback of the VGLI policies are the higher cost number one and the 5-year rate increases that drive the rates up to the extremes.
If you are in good health your premiums would be much less with a conventional life insurance product with level premiums that do not go up every 5 years. 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 and take place every five years.
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. Just for example 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 on the chart is age 75 and over would have an annual premium of $22,080.00 per year. You may review this on the VGLI website rate chart.
If an individual is in poor health, these policies may work out well. 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 make these VGLI plans overpriced are not cost effective when there are so many other excellent options to choose from.
Let’s take a close look at your many choices for purchasing low cost Term life insurance or permanent Universal Life plan designs.
This article is mainly about your other options available from the conventional civilian market for much less money straight across the board. These Term life insurance plans is what any civilian would apply for and very well you can too which would drastically reduce your premiums. There are many new life insurance products to choose from. The most common plan designs are Term life insurance and the permanent version known 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 member of the US Coast Guard.
- 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 Coast Guard 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 Coastie or have a Reserve status?
This is an excellent question that we have to completely clarify. If you are 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 Coast Guard with no deployment orders pending you can still purchase civilian life insurance. There would be companies that have specialty markets for the full-time Coast Guard personnel 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 Coast Guard members.
If you are in the Reserves like I had mentioned earlier in this blog post, any company would be fine as long as you do not have deployment orders.
How much will Term life insurance cost for a US Guardsman 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 that every civilian follows 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 No Exam 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 premium for the added risk they take. I always recommend applicants apply for the fully underwritten policies so you can receive the lowest premiums possible. You have to keep in mind that you will be paying these premiums for many years to come unless you cancel the policy.
What happens if I have any pre-existing medical conditions?
Applying for life insurance with any health 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 possible.
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 Term life insurance?
You can easily 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.
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 are still in 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, Country Companies 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 time someone serves you with equal 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. The more you know about life insurance the better off you will be so you can make a sound decision and have confidence that the life insurance you just purchased will be the best fit for your specific needs and your budget. Again, thank you very much for being a United States Coast Guardsman and protecting us all. We cannot thank you enough! Check out our About Us page to learn more about us. Thank you very much for reading our blog post, I hope it answered many of your questions concerning how to find the best life insurance for Coast Guard veterans.