This is a sponsored blog post by USAA. All opinions are 100% from Wives of the Armed Forces.
If anyone knows how quickly things can change, it’s a military spouse.
We’re talking last minute orders to PCS across the country in the peak of the most brutal housing market in ages with your brand-new baby, change.
Despite how challenging those military life curveballs are, we handle them in stride because we prepare. We’re in a constant state of PCS purging, so that when those orders drop our house is easier to manage and pack. We have our paperwork *mostly* organized and ready, so that when we show up to a new school with our sweet kids, they can get plugged right in.
Why does that preparation seem to stop where the life insurance conversation starts? If you have a policy and you’re not updating it with each PCS you’re missing out on a big opportunity to prepare yourself and your family for whatever curveball may come next.
Should I update my life insurance coverage each PCS?
There are a variety of life events that could require you to consider a coverage change (for example: having a baby) and some of them happen almost every time you PCS – buying a new home or changing jobs. With those big life changes, you should revisit your coverage and ensure it’s still adequate.
Beyond PCS season, when should I revisit my life insurance coverage?
Ideally once per year, but at a minimum anytime something big in your life changes! A common, overlooked change for this community is the transition out of military life.
Wait, what if I don’t even have life insurance?
Check with your military member to see if they are covered under Servicemembers’ Group Life Insurance (SGLI) (they should be but double checking to make sure is never a bad thing!), and have you covered under Family Servicemembers’ Group Life Insurance (FSGLI). If they say yes to both, that’s a great start! You can visit THIS post to determine if the coverage you have through that is enough for your family. It the answer is no, don’t worry, we are here to walk you through how to find the “right” kind of life insurance for your unique needs as painlessly as possible!
What are the different types of life insurance?
There are two broad categories of life insurance:
- Permanent (Whole life, universal, variable) Plain speak explanation: lifelong coverage that comes with a cash value living benefit and is generally the more expensive of the two.
- Term (group, annual renewable, 5-,10-,20,30-year term). Plain speak explanation: coverage that last for a pre-determined period of time or age (hence the “term”), has no cash value in addition to death benefit, and is generally more affordable coverage.
You can find more on the further breakdowns of these categories HERE.
How do I know which one to pick?
Well if you’re like us then your first thought may be that the most expensive one is better, but it’s actually more nuanced than that. It all depends on your personal needs. Typically matching the type of coverage with the reason for the coverage will help you figure out the best type of policy.
Examples of which policy could be better for you:
- Temporary needs associated with paying off debts, caring for kids or replacing employment income are likely best covered by term insurance.
- Coverage you want to have forever, i.e, funding a special needs trust, replacing Survivor Benefit Plan, or for use as an estate planning tool, is best covered with a permanent policy.
If you would like to chat with a professional to help you determine what would be the best option for you, get in touch with one of USAA’s support representatives HERE and they will walk you through any additional questions you may have!
I think I know what I need, what’s next?
Now is shopping time. Did we say shopping? Yes! It is important to take the time to compare life insurance policies available to you. This article from USAA is a great place to find out more on the importance of comparing life insurance to best fit your families personal and financial needs.
Where do I get started?
You can set up term coverage within minutes by filling out THIS application.
Permanent coverage has a more involved process, but fortunately for technology and support representatives from USAA, it’s still extremely simple. You can get started HERE today.
