11 May Why Veterans Need Life Insurance Even If They Think They Don’t
Despite offering financial scrutiny to your family, it’s a fact that life insurance is pretty underrated. Many think they don’t actually need it.
However, despite this widespread belief, life insurance is pretty important. Especially if you’re a Veteran or an active military member. The insurance offers financial security to your family after you’re gone and makes sure that they have enough funds to live their life.
Moreover, because the tragedy can strike at any point in time, it is wise to get the necessary coverage, so you know your loved one is in good hands after your death.
Here’s a but on why active and former military members need life insurance, its benefits and how to actually get one.
What is Life Insurance?
Factually speaking, life insurance is a contract where the insurer promises to provide monetary benefits to the family of the insured in case the insured dies due to covered perils.
Depending upon your short or long-term needs, life insurance is of generally two types– term life insurance and whole life insurance.
Term life insurance lasts for 10, 20 or 30 years. If the insured dies during the term, the insurance company will pay out the death benefit to their family. Whole life insurance, on the other hand, offers coverage throughout the life of the insured. While it comes with higher premium rates, whole life insurance is often a better option than term life insurance. In some cases, you can even convert your term life insurance into whole or permanent life insurance.
The monetary benefit provided upon the death of the insured can be used to cover up funeral expenses or consolidate debt.
Moreover, before you opt for any insurance, it’s wise to assess your needs and choose the insurance that meets your financial requirements and would help your family in a better way.
Benefits Of Life Insurance For Veterans
In addition to providing financial stability to your family, life insurance comes with a number of benefits. Here’s an overview of some of them-
The payouts are generally tax-free.
If you died during the term of the policy by a covered peril, your family would receive the death benefit. And, because this benefit is not considered taxable income, they won’t have to pay any taxes when they file their tax returns.
The payout can sustain your family’s living expenses.
Frankly speaking, if you’re wise enough to choose an insurance plan that would payout ten times more than your current annual income, your family would have no problem sustaining their financial meets, especially if they are dependent on you.
The claim can cover final expenses.
The average cost of burial in America is more than $7,000, which is a daunting financial burden for your family. However, with the right policy, your family can use the claim to cover up the cost of your funeral without having to take a dip in their savings or taking credit.
You can qualify for a policy even if you suffer from a terminal illness.
Some policies come with riders, like accelerated death benefits that pay out the claim under certain circumstances. If you are expected to live 12 months or less due to your terminal illness, you can qualify for this rider, which will not only pay the lump sum amount to your family upon your death but would also cover your medical bills while you’re still alive.
It can cover your retirement expenses.
If you have opted for a policy with cash value, it will have an increased cash value as time passes. You can use this extra money to pay for your new car or make a downpayment for your home. In fact, the funds can even be used to help you get through your life after retirement.
What Are Your Options As A Veteran?
Before you retire as a Veteran, chances are you would be enrolled under Service Members’ Grup Life Insurance. This coverage is offered by the US Department of Veterans Affairs, and all service members are automatically enrolled under this. However, once you retire, you can either enroll yourself under VA’s VGLI, a life insurance option for Veterans or contact insurance providers who offer great perks to military members