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Thread: Military Protection Plus

  1. Quis custodiet ipsos custodes?
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    #1

    Military Protection Plus

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    I just got off the phone with USAA, and I told them DH was considering not re-enlisting and just separating after his deployment.

    They told me about military protection plus as a good way to replace the benefits of the SGLI without him having to take a medical exam and risk getting denied by private insurance companies.

    Does anyone else do this? Do you start paying for the life insurance with MPP in addition to the SGLI or is it something that only starts after you call them when he separates?
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    #2
    it is best to start before seperation - DH is getting out in 2014 and we will start payng next jan we have double coverage but we don't want to risk getting denied
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    I agree with gunsgirl--you want to look at replacing SGLI a couple months before separation. If you do that, you may have a couple of months of overlap (paying for SGLI and the replacement policy), but you won't have a lapse in coverage. While you're looking for coverage, compare the offers from private companies like USAA to Veteran's Group Life Insurance (VGLI)--VGLI is available to replace SGLI without medical underwriting as long as your spouse applies within 120 days of separation. If your spouse is healthy and a non-tobacco user, typically you can get a policy that's much less expensive than VGLI. However, if there's a chronic illness or injury in the picture VGLI may be the right answer.

    USAA Life Insurance offers a number of unique benefits for the military. First, an accelerated application process if a deployment is imminent. Next, a $25,000 severe injury benefit (on top of SGLI benefits), and finally (and this is the part you asked about) the ability to increase your coverage by up to two times the base coverage (up to the SGLI max which is currently $400K) without underwriting. So if you had a $100,000 USAA policy and then separated, you could get an additional $200,000 of coverage...given the timing of your situation, I don't know how beneficial this rider will be. On the other hand if your spouse stays in the military and you need more coverage now it could be a great help.

    The last part is called the "Military Future Insurability Rider" and helps ensure that those that are separating are able to easily and affordably replace SGLI.

    In your case, since it sounds like separation is just around the corner it's a basic question of determining how much insurance you need (USAA and the VA have easy to use calculators to help you answer that question) and then making sure you have the right amount of coverage once SGLI is gone. Does that make sense?
    J.J. Montanaro is a CERTIFIED FINANCIAL PLANNER practicioner with USAA Financial Planning Services one of the USAA family of companies.
  4. Quis custodiet ipsos custodes?
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    #4
    Quote Originally Posted by USAA_JJ View Post
    I agree with gunsgirl--you want to look at replacing SGLI a couple months before separation. If you do that, you may have a couple of months of overlap (paying for SGLI and the replacement policy), but you won't have a lapse in coverage. While you're looking for coverage, compare the offers from private companies like USAA to Veteran's Group Life Insurance (VGLI)--VGLI is available to replace SGLI without medical underwriting as long as your spouse applies within 120 days of separation. If your spouse is healthy and a non-tobacco user, typically you can get a policy that's much less expensive than VGLI. However, if there's a chronic illness or injury in the picture VGLI may be the right answer.

    USAA Life Insurance offers a number of unique benefits for the military. First, an accelerated application process if a deployment is imminent. Next, a $25,000 severe injury benefit (on top of SGLI benefits), and finally (and this is the part you asked about) the ability to increase your coverage by up to two times the base coverage (up to the SGLI max which is currently $400K) without underwriting. So if you had a $100,000 USAA policy and then separated, you could get an additional $200,000 of coverage...given the timing of your situation, I don't know how beneficial this rider will be. On the other hand if your spouse stays in the military and you need more coverage now it could be a great help.

    The last part is called the "Military Future Insurability Rider" and helps ensure that those that are separating are able to easily and affordably replace SGLI.

    In your case, since it sounds like separation is just around the corner it's a basic question of determining how much insurance you need (USAA and the VA have easy to use calculators to help you answer that question) and then making sure you have the right amount of coverage once SGLI is gone. Does that make sense?
    Thank you so much, that's really helpful. I may have overstated how soon the separation is ... if he doesn't re-enlist he'll be done in October 2012 I think, so we have some time. On the other hand he is deployed, and the agent did mention that $25,000 benefit and that really interested me. One thing they couldn't answer that maybe you might know, she said the $25,000 would be received upon "severe injury," does that include death? I know it's morbid but DH asked me.

    Thank you for that link about the VLGI too, I hadn't heard of that. I just mailed DH some literature to look at so hopefully we can talk about it soon. I definitely want us to have a plan of what to do that we can implement as soon as he gets back.
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    #5
    That rider is called Military Severe Injury Benefit Rider and covers things like dismemberment, loss of limb function, loss of vision, and severe burns. So, it's separate (and not in addition to) the death benefit of whatever policy you have.

    I would encourage you to use one of the life calculators I mentioned. If what you have through SGLI is enough coverage, then you're right, you've got enough time to make it a smooth transition. If not, get started now. Good luck!
    J.J. Montanaro is a CERTIFIED FINANCIAL PLANNER practicioner with USAA Financial Planning Services one of the USAA family of companies.
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    #6
    Or get started as soon as you can!
    J.J. Montanaro is a CERTIFIED FINANCIAL PLANNER practicioner with USAA Financial Planning Services one of the USAA family of companies.

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