Every year, on June 28, we celebrate National Insurance Awareness Day. While it may not be the most exciting holiday or even truly a day of celebration, reviewing and understanding everything that comes with your insurance policy is more valuable than you might think. Insurance is often an afterthought, something we purchase and almost immediately forget about. But it doesn’t have to be. At the very least, take one day a year — National Insurance Awareness Day — to evaluate your insurance situation. Once you stop to take a look at what you have (or don’t have) what you find might surprise you.
According to a 2017 Insurance Barometer Study, only 59% of adults owned life insurance even though 70% claimed they needed it. Not only did people realize they needed life insurance, they also wanted more! Of those that did have insurance, more than 20% of them claimed they didn’t have as much life insurance as they’d like or need in case of an emergency. Additionally, 39% wished their significant other had more life insurance. (See also LIMRA’s 2024 life insurance barometer study.)
So why don’t more people opt into a life insurance plan? Most people (66%) cite cost as their biggest barrier. However, the vast majority of folks also assume life insurance is at least two times more expensive than it really is. And that’s especially true among younger generations. Four in 10 Millennials believe a yearly life insurance policy would cost them more than $1,000, an estimate that is more than five times the actual cost.
With all these inaccurate ideas about life insurance floating around, taking some time to understand what your insurance provider offers and how it stacks up against the competition is more beneficial than you may realize. Recently, Military Times shared their 2024 Insurance Guide, which compares major military life insurance providers. In that report, AAFMAA president, Mike Meese (BG Army, Ret) is quoted saying “that troops in ‘fair or better health’ should try to find life insurance through another program before they leave the military to avoid VGLI’s higher cost… We’re seeing a lot more people getting $300,000 to $500,000 life insurance on their spouse, because it would be hard for anybody to continue to serve in the military if they lost their spouse and had young, school-age children.”
Among providers offering $500,000 policies, AAFMAA consistently provides some of the most affordable and valuable coverage for servicemembers, Veterans, and their Military Spouses across all age brackets.
Although SGLI is available to active duty servicemembers and VGLI is available to Veterans, many servicemembers and Vets choose to get a different or additional life insurance policy. It’s totally based on personal need, so if you’ve been happy with your SGLI and/or VGLI coverage, keep it! But if you can afford it, adding some extra coverage isn’t a bad idea. You never know what the future holds, and ensuring your family is priceless.
This story was originally published on June 28, 2018.
