03 Jan Life Insurance Calculator for Veterans: What Does Life Insurance Cost?
Are you considering getting life insurance but confused about how much to get? If that’s true, this article discussing life insurance calculator options for veterans may be for you.
Getting life insurance as a current or former military member can be quite challenging because you might be suffering from a physical/mental condition. However, with military credit unions and banks offering many discounts, getting one might be easier than you expected.
In this article, we’ll help you calculate how much life insurance costs based on your unique needs as a veteran.
Related Article: 7 Steps to Getting Life Insurance for Veterans
Life Insurance Calculator: Veterans Life Insurance Costs
Life insurance rates differ according to the policy you choose. Additionally, if you choose VA life insurance policies like SGLI or VGLI, the only determinant would be your age, unlike a private insurance policy that considers your health, gender, and habits.
Veterans’ Group Life Insurance is a policy offered by the US Department of Veteran Affairs (VA) to Veterans. The maximum coverage it offers is $400,000.
To receive this benefit without appearing for a medical examination, you must apply for it within one year and 120 days of leaving the services. After that, you would be required to appear for a medical examination.
If you are 29 or below, $400,000 coverage would cost you $28 per month and $0.70 for $10,000 coverage. For age groups between 30-34, you would have to pay $36 monthly for $400,000 coverage and $0.90 for $10,000 coverage. If you belong to the age group 50-54, $400,000 coverage would cost you $132 monthly. For more information on premium rates, you can click here.
Here’s a tabular representation of the premium rates for VGLI:
|29 and below||$0.70-$28|
|80 and above||$45-$1800|
Available exclusively to service members, Servicemembers’ Group Life Insurance offers coverage from $50,000 to $400,000. Also, unlike VGLI, all service members are automatically covered under SGLI. Meaning, you won’t have to apply for this policy.
The premium rates depend upon the age and the amount of coverage you opt for. The premiums are automatically deducted from the monthly payments.
Here are the premium rates for SGLI.
Family Servicemembers’ Group Life Insurance (FSGLI) covers the spouses and dependents of active duty service members covered under full-time SGLI.
Like other VA insurance policies, FSGLI’s coverage increases with age. The maximum coverage offered is $100,000, which ranges down to $10,000.
Here is a tabular representation of premium rates for the spouse.
|60 and above||$45-$4.50|
If you are a spouse signed up with the Defense Enrollment Eligibility Reporting System (DEERS), the premium will automatically be deducted from the service member’s monthly pay.
In the case of dependent children, you don’t have to pay any premiums. Dependents are automatically covered under FSGLI with the maximum coverage of $10,000.
To keep receiving coverage after the dependent turn 18, either of the following conditions must be true-
- The child is studying full-time.
- The child has a disability before they reach the age of 18 and cannot support themselves.
Servicemembers’ Group Life Insurance Traumatic Injury Protection offers short-term financial protection to service members recovering from traumatic injuries.
You must pass specific eligibility criteria to qualify for this coverage. You might be eligible to receive coverage of up to $100,000 with TSGLI.
The cost of TSGLI is quite nominal, i.e., $1, which will be included in the amount deducted monthly for SGLI.
Unlike a traditional life insurance policy, Veterans’ Mortgage Life Insurance policy helps the family cover up the mortgage cost if the service member dies unexpectedly. This policy is available only to service members who have a severe disability or a condition.
Moreover, you must be receiving SAH grants to qualify. VMLI premiums depend upon the following factors-
- The current balance of the mortgage
- The amount of coverage required
To calculate the premium, click here.
Service-Disabled Veterans Life Insurance offers low-cost coverage to service members with a service-connected disability. To qualify, you must pass the eligibility criteria defined by the US Department of Veterans Affairs (VA).
S-DVI provides $10,000 basic coverage and $30,000 supplemental coverage. The premium rates would depend upon your age and the coverage plan you choose. Moreover, your premiums would be waived off if you are totally disabled before you reach the age of 65 and have the disability for at least six consecutive months. To check premium rates, click here.
Life Insurance Calculator: Private Life Insurance Costs
When it comes to private companies, the life insurance cost depends on several factors like your health condition, age, gender, preferences, term, and the amount of coverage you need.
On average, a 20-year term life insurance can have premiums of more than $147 a month.
Term Life Insurance Cost
Before getting started with life insurance, it’s crucial to consider the coverage amount. The death benefit, also known as the policy’s face value, would be paid to your family after you’re gone. This benefit can help your family cover up the cost of your funeral or consolidate your debts.
On average, the monthly cost of life insurance for $100,000 coverage is $20 and $36 for $250,000 coverage. For $500,000 and $1 million coverage, your monthly premiums would be $60 and $112, respectively.
Moreover, if you opt for a face value of $100,000 for a 10-year long-term policy, you would have to pay somewhere between $16-$22 monthly and $59-$110 for $1 million coverage. In the case of a 20-year term life insurance, you would have to pay somewhere between $17-$23 for $100,000 coverage and $69 to $117 monthly for $1 million coverage.
Whole Life Insurance Cost
Generally, whole life insurance is a bit expensive than term life insurance because you would be insured for an entire lifetime. Like term life insurance, whole life insurance premiums, too, depend upon several factors.
Your rates might differ according to your gender, age and habits. For a 50-year-old male, whole life insurance with $1 million would cost $2,101 monthly and $217 for $100,000 coverage. For a 50-year-old woman, whole life insurance with $1 million coverage would cost around $1,661 monthly and $173 for $100,00 coverage.
Related Article: Term vs Whole Life Insurance: Which Is Best for Veterans?
Universal Life Insurance Cost
Universal Life is permanent life insurance that provides death benefits to the family upon the insured’s death and has an investment savings element with low premiums.
The average cost of this insurance policy ranges from $1,683 to $10,315 for a $500,000 coverage.
Variable Life Insurance Cost
Like Universal Life Insurance, variable life insurance is permanent life insurance that is tied up with accounts like equity funds, stocks, and bonds.
$250,000 coverage for a healthy non-smoker male can cost somewhere between $100-$659, depending upon your age. For a healthy, non-smoker woman, $250,000 coverage would cost somewhere between $87-$571.
Simplified Life Insurance Cost
This insurance policy allows people to qualify without having to appear for a medical examination. While the policy provider might ask some health questions, you would not be required to give a medical exam to prove that you are in good health. This policy can be pretty helpful for Veterans suffering from mental and physical conditions.
The death benefit offered ranges from $5000 to $100,000. Premiums for this policy are generally higher as more risk is involved.
A $100,000 coverage might cost you $52 monthly.
Guaranteed Life Insurance Cost
Guaranteed issue life insurance is a policy that offers coverage without any medical examinations. Most Veterans with terminal illnesses are recommended to apply for this policy.
Because this is a high-risk insurance policy, the premiums would be generally higher, and the maximum coverage you could get is $25,000. The maximum coverage could cost around $200 per month.
Group Life Insurance Cost
Group life insurance is a policy that is generally offered to members of a large organization. In most cases, this policy provides minimal coverage and has no-to-low costs.
This policy is a great choice for people with no spouse or dependents to reduce your premiums and still have coverage.
Life Insurance Discounts for Veterans
As Veterans, you can avail yourself of numerous discounts offered by military banks and credit unions. Organizations like USAA and PenFed provide military discounts to qualifying service members and family members.
You can also purchase different policies like life insurance, auto insurance, mortgage insurance, and health insurance from one organization to avail of special discounts.
Evaluating the Costs With a Life Insurance Calculator
The cost of life insurance can depend upon various factors, especially if you are looking for private options. In the case of private policies, you might be able to get higher coverage but with higher premiums.
If you opt for a VA life insurance policy, you might get coverage of around $100,000 in most cases, but at nominal charges. Whatever the case may be, it’s essential to study the policy before opting for it and choosing the coverage that could support your family once you’re gone.