Military Association Supports Government Efforts to Boost Troop Benefits
Support for state and national efforts to increase the value of government-sponsored life insurance coverage for the military is coming from one surprising area – an association that also sells a wide variety of insurance products to troops.
Overland Park, KS (PRWEB) March 23, 2005 -- Support for state and national
efforts to increase the value of government-sponsored life insurance coverage
for the military is coming from one surprising area – an association that also
sells a wide variety of insurance products to troops.
USBA (Uniformed
Services Benefit Association) is a non-profit organization offering insurance
and financial products to active duty as well as retired and former military
families. The association, in existence for more than 45 years, currently
insures over 200,000 lives and is considered to be one of the largest military
groups offering “no war clause” insurance plans.
USBA President/CEO, Rear
Admiral Larry G. Vogt, US Navy (Ret.) says lawmakers are on the right track with
their proposed legislation to raise the death gratuity to $100,000 from $12,420
for military personnel killed in combat and combat-related training as well as
increase the Serviceman’s Group Life Insurance (SGLI) maximum benefit to
$400,000 from $250,000. “Absolutely, we support these initiatives being reviewed
and more importantly, the motivation behind it,” says Vogt. “We believe these
measures recognize the moral obligation every American citizen has to appreciate
the sacrifices made by military families.”
While these changes may
initially reduce the potential sales of USBA products, Vogt believes USBA has an
ethical duty to support such proposed increases, should they come into effect.
“As a veteran, myself, I am not going to tell a serviceman to drop his SGLI
coverage – these proposed boosts make it a smart decision to have such coverage
while in a combat zone.”
The caveat, Vogt points out, is when the soldier
looks at the long range picture. “It’s important to remember ALL the reasons for
purchasing supplemental financial protection in the first place. Life is about
transitions -- children grow up, careers redirect, and lifestyles
change.”
Ultimately, Vogt states, troops will leave the service and lose
their SGLI which terminates for military personnel 120 days after separation.
“That’s where USBA comes into play because our coverage is portable –
servicemembers can take it with them when they leave the service,” explains
Vogt. “No reapplying, no converting to a new policy, no risk they won’t be able
to get life insurance later on or their spouse may become
uninsurable.”
Vogt says USBA is advising the active duty among their
membership to take advantage of whatever government-sponsored life insurance
perks might happen as a result of proposed legislation. “If, for instance, you
are a member of National Guard, and your state picks up the tab for your life
insurance coverage – definitely exercise that option,” he says. “But then,
consider purchasing and retaining supplemental coverage as well because it is a
sound decision to have something in place today for that time in the future when
your active duty is behind you, but your family obligations are still
prevalent.”
If a servicemember opts to only have SGLI or state-sponsored
life insurance, he or she may encounter sticker shock further down the road when
it’s time to go shopping for coverage to replace it. Veterans Group Life
insurance (VGLI) is available regardless of health or disability but while it
might appear to be the most easily obtainable life insurance option at that
point, it may not be the most comprehensive or affordable
coverage.
VGLI’s guaranty is what makes it expensive because the
insurance is based on a risk pool and most VGLI policyholders are relatively
high risk compared to the rest of the population because of health conditions
due to a service related event. And that’s another point to keep in mind, Vogt
says. “If a service member opts to drop supplemental coverage right now, that
person may have difficulty finding affordable life insurance coverage outside
VGLI in the civilian world after separation due to these pre-exisiting
conditions,” he points out. “Having a policy that offers portability like USBA’s
products solves that challenge.”
USBA is a nonprofit organization
providing a variety of low-cost group life insurance plans and other financial
services to the Active Duty and Retired Military market as well as Honorably
Discharged Veterans, National Guard, Reserves and Federal civilian employees.
With over 200,000 insured lives, USBA is one of the largest military
associations offering life insurance plans.
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Source : http://www.prweb.com/releases/2005/3/prweb221028.htm