![\"\"](\"https://www.sandboxx.us/wp-content/uploads/2024/04/money-2724241_1280.jpg\")
Among the benefits that come with military service, military retirement pay is often at the top of the list. Even better, military retirements enjoy protection from inflation through annual Cost of Living Adjustments (COLAs). Let\u2019s look at what makes up military retirement pay. Then we’ll cover why it\u2019s important, and how to make the most of these benefits if you\u2019re considering a career in the military.\u00a0
\n\n\n\nIn 2018, the United States military underwent a significant transformation in its approach to military retirement pay planning. This led to the introduction of the Blended Retirement System (BRS). Transitioning from the traditional 20-year cliff-vesting pension system marked a shift towards a more flexible military retirement pay framework. Understanding the this new system can feel overwhelming, but it\u2019s essential for service members as they navigate their career paths and plan for their financial futures.
\n\n\n\nFor decades, the military’s retirement system revolved around the concept of a 20-year cliff-vesting pension. With this option, service members became eligible for retirement benefits after completing 20 years of service. While this system provided a stable and guaranteed source of income for career personnel, it also posed challenges for those who left the military before reaching the 20-year mark, offering no retirement benefits.
\n\n\n\nRecognizing the need for a more inclusive and adaptable retirement system, Congress enacted the National Defense Authorization Act (NDAA) of 2016, paving the way for the implementation of the Blended Retirement System.
\n\n\n\nThe Blended Retirement System introduced several fundamental changes aimed at modernizing military retirement pay and planning.\u00a0
\n\n\n\nDefined Benefit: If you retire from active duty at 20 years under the BRS, you receive 40 percent of the average of your highest 36 months of basic pay as your defined benefit. This percentage increases by 2 percent for each additional year of service. That pay will start immediately after your retirement and will be a monthly payment for the duration of your life.\u00a0\u00a0
\n\n\n\nDefined Contribution Component: Unlike the traditional pension system, the BRS incorporates a defined contribution component. This is called the Thrift Savings Plan (TSP), a retirement and savings plan. The plan offers Federal employees the same type of tax benefits and savings as a 401K. Under the BRS, after 60 days of service, service members are automatically enrolled in the TSP. With that they begin receiving government matched contributions for their own contributions, up to five percent of their pay.\u00a0 For example, when you contribute 2% of your pay, there is an automatic 2% contribution match combined with the 1% automatic contribution. That total now goes to 6%.\u00a0
\n\n\n\nContinuation Pay: To incentivize retention beyond the initial years of service, the BRS offers a one-time Continuation Pay bonus. This option is offered to service members who commit to serving an additional period of service. The bonus is payable upon reaching specific career milestones, typically around the 12-year mark.
\n\n\n\nPortable Retirement Benefits: One of the most significant advantages of the BRS is its portability. Service members who leave the military before reaching 20 years of service can still retain their TSP accounts and the government matching contributions. This provides a valuable retirement savings vehicle regardless of their length of service.
\n\n\n\nFinancial Literacy Training: Recognizing the importance of financial preparedness, the BRS includes mandatory financial literacy training for all service members. This training equips personnel with the knowledge and tools necessary to make informed decisions about their military retirement pay, planning, investment strategies, and overall financial well-being.
\n\n\n\nOpt-In and Opt-Out Flexibility: Service members entering the military after January 1, 2018, are automatically enrolled in the BRS. Those with prior service have the option to opt into the new system or remain under the legacy pension system. This flexibility allows individuals to choose the retirement plan that best aligns with their career goals and financial objectives.
\n\n\n\nTo make the most of the new framework for military retirement pay, service members should consider the following steps:
\n\n\n\nEducate Yourself: Take advantage of the resources and training available. It’s important to understand the nuances of the BRS, including its impact on retirement benefits, eligibility criteria, and available options.
\n\n\n\nAssess Your Goals: Evaluate your career aspirations, financial goals, and long-term plans. Then, determine whether the BRS aligns with your objectives. Consider factors such as length of service, likelihood of reaching the 20-year mark, and appetite for investment risk.
\n\n\n\nUtilize Tools and Calculators: Use online calculators and retirement planning tools provided by the military. These can help you estimate the potential benefits of the BRS compared to the legacy pension system. These tools can help you make informed decisions about opting into or remaining under the new retirement framework.
\n\n\n\nSeek Guidance: Consult with financial advisors, counselors, or peers who are knowledgeable about the BRS. Their expertise can help you navigate the complexities of military retirement pay and make informed choices.
\n\n\n\nWhen it comes to military retirement pay and planning, military personnel have some of the best options compared to other industries. The introduction of the BRS has brought flexibility and empowerment to service members, allowing them to tailor their retirement strategies to align with their goals. It’s crucial to understand your choices, set goals, and calculate your retirement pay. By staying informed, you can confidently pave the path to a secure retirement.
\nThe post How Does Military Retirement Pay Work? appeared first on Sandboxx.
\n", "content_text": "Among the benefits that come with military service, military retirement pay is often at the top of the list. Even better, military retirements enjoy protection from inflation through annual Cost of Living Adjustments (COLAs). Let\u2019s look at what makes up military retirement pay. Then we’ll cover why it\u2019s important, and how to make the most of these benefits if you\u2019re considering a career in the military.\u00a0\n\n\n\nGet to Know Military Retirement\n\n\n\nIn 2018, the United States military underwent a significant transformation in its approach to military retirement pay planning. This led to the introduction of the Blended Retirement System (BRS). Transitioning from the traditional 20-year cliff-vesting pension system marked a shift towards a more flexible military retirement pay framework. Understanding the this new system can feel overwhelming, but it\u2019s essential for service members as they navigate their career paths and plan for their financial futures.\n\n\n\nFor decades, the military’s retirement system revolved around the concept of a 20-year cliff-vesting pension. With this option, service members became eligible for retirement benefits after completing 20 years of service. While this system provided a stable and guaranteed source of income for career personnel, it also posed challenges for those who left the military before reaching the 20-year mark, offering no retirement benefits.\n\n\n\nRecognizing the need for a more inclusive and adaptable retirement system, Congress enacted the National Defense Authorization Act (NDAA) of 2016, paving the way for the implementation of the Blended Retirement System.\n\n\n\nThe Blended Retirement System\n\n\n\nThe Blended Retirement System introduced several fundamental changes aimed at modernizing military retirement pay and planning.\u00a0\n\n\n\nDefined Benefit: If you retire from active duty at 20 years under the BRS, you receive 40 percent of the average of your highest 36 months of basic pay as your defined benefit. This percentage increases by 2 percent for each additional year of service. That pay will start immediately after your retirement and will be a monthly payment for the duration of your life.\u00a0\u00a0\n\n\n\nDefined Contribution Component: Unlike the traditional pension system, the BRS incorporates a defined contribution component. This is called the Thrift Savings Plan (TSP), a retirement and savings plan. The plan offers Federal employees the same type of tax benefits and savings as a 401K. Under the BRS, after 60 days of service, service members are automatically enrolled in the TSP. With that they begin receiving government matched contributions for their own contributions, up to five percent of their pay.\u00a0 For example, when you contribute 2% of your pay, there is an automatic 2% contribution match combined with the 1% automatic contribution. That total now goes to 6%.\u00a0\n\n\n\nContinuation Pay: To incentivize retention beyond the initial years of service, the BRS offers a one-time Continuation Pay bonus. This option is offered to service members who commit to serving an additional period of service. The bonus is payable upon reaching specific career milestones, typically around the 12-year mark.\n\n\n\nPortable Retirement Benefits: One of the most significant advantages of the BRS is its portability. Service members who leave the military before reaching 20 years of service can still retain their TSP accounts and the government matching contributions. This provides a valuable retirement savings vehicle regardless of their length of service.\n\n\n\nFinancial Literacy Training: Recognizing the importance of financial preparedness, the BRS includes mandatory financial literacy training for all service members. This training equips personnel with the knowledge and tools necessary to make informed decisions about their military retirement pay, planning, investment strategies, and overall financial well-being.\n\n\n\nOpt-In and Opt-Out Flexibility: Service members entering the military after January 1, 2018, are automatically enrolled in the BRS. Those with prior service have the option to opt into the new system or remain under the legacy pension system. This flexibility allows individuals to choose the retirement plan that best aligns with their career goals and financial objectives.\n\n\n\nThe Transition to Military Retirement\n\n\n\nTo make the most of the new framework for military retirement pay, service members should consider the following steps:\n\n\n\nEducate Yourself: Take advantage of the resources and training available. It’s important to understand the nuances of the BRS, including its impact on retirement benefits, eligibility criteria, and available options.\n\n\n\nAssess Your Goals: Evaluate your career aspirations, financial goals, and long-term plans. Then, determine whether the BRS aligns with your objectives. Consider factors such as length of service, likelihood of reaching the 20-year mark, and appetite for investment risk.\n\n\n\nUtilize Tools and Calculators: Use online calculators and retirement planning tools provided by the military. These can help you estimate the potential benefits of the BRS compared to the legacy pension system. These tools can help you make informed decisions about opting into or remaining under the new retirement framework.\n\n\n\nSeek Guidance: Consult with financial advisors, counselors, or peers who are knowledgeable about the BRS. Their expertise can help you navigate the complexities of military retirement pay and make informed choices.\n\n\n\nThe Bottom Line\n\n\n\nWhen it comes to military retirement pay and planning, military personnel have some of the best options compared to other industries. The introduction of the BRS has brought flexibility and empowerment to service members, allowing them to tailor their retirement strategies to align with their goals. It’s crucial to understand your choices, set goals, and calculate your retirement pay. By staying informed, you can confidently pave the path to a secure retirement.\nThe post How Does Military Retirement Pay Work? appeared first on Sandboxx.", "date_published": "2024-04-02T13:47:27-04:00", "date_modified": "2024-04-02T13:48:17-04:00", "authors": [ { "name": "Kris Broadus", "url": "https://www.sandboxx.us/author/kris-broadus/", "avatar": "https://www.sandboxx.us/wp-content/uploads/2024/04/T02FTFJ5M-U03F8GGSV1Q-3d2dce03f823-512.png" } ], "author": { "name": "Kris Broadus", "url": "https://www.sandboxx.us/author/kris-broadus/", "avatar": "https://www.sandboxx.us/wp-content/uploads/2024/04/T02FTFJ5M-U03F8GGSV1Q-3d2dce03f823-512.png" }, "image": "https://www.sandboxx.us/wp-content/uploads/2024/04/money-2724241_1280.jpg", "tags": [ "Finance" ] }, { "id": "https://www.sandboxx.us/?p=102295", "url": "https://www.sandboxx.us/blog/what-does-the-military-pay/", "title": "What Does the Military Pay?", "content_html": "![\"\"](\"https://www.sandboxx.us/wp-content/uploads/2024/04/pexels-tima-miroshnichenko-6266283-scaled.jpg\")
Military pay is a critical aspect of compensation for service members. However, understanding military pay can be daunting and feel overcomplicated. We\u2019re breaking down military pay and the different factors that make up total compensation for service members.\u00a0\u00a0
\n\n\n\nAt the core of military compensation is basic pay, which serves as the foundation of a service member’s earnings. Basic pay is determined by rank and years of service, with higher ranks and longer tenures being directly related to increased pay. Military pay scales are publicly available and are regularly updated to reflect changes in cost of living and legislation. You can view the most current pay chart here. You’ll see this has changed quite a bit since 2022.
\n\n\n\nIn addition to basic pay, service members receive various allowances to offset expenses incurred during their service. These allowances include the following:
\n\n\n\nHousing Allowance (BAH): BAH is provided to service members who are not provided government housing. The amount is based on location, rank, and dependency status, aiming to cover housing costs in the civilian community. To view current housing rates click here.
\n\n\n\nSubsistence Allowance (BAS): BAS is designed to offset the cost of food for service members. Unlike BAH, BAS is not affected by location and is provided at a flat rate. The 2024 rate for BAS is $316.98 for Officers and $460.25 for Enlisted per month.
\n\n\n\nCost of Living Allowance (COLA): COLA is provided to service members stationed in high-cost areas outside the continental United States, aiming to maintain purchasing power comparable to living in the continental U.S.
\n\n\n\nService members may be eligible for special pays and incentives based on their skills, duties, or assignments. Examples include hazardous duty pay, combat pay, and reenlistment bonuses.
\n\n\n\nBonuses and Special Compensation: Service members may also receive bonuses and special compensation for certain skills, assignments, or circumstances. These include:
\n\n\n\nSigning Bonuses: Offered to individuals who enlist or reenlist in critical occupations or during times of manpower shortage.
\n\n\n\nCareer Field Bonuses: Service members in specific career fields may receive bonuses to incentivize retention or fill critical skill gaps.
\n\n\n\nSpecial Duty Assignment Pay (SDAP): SDAP is provided to service members who perform duties designated as unusually demanding or requiring special qualifications.
\n\n\n\nWhile military pay is generally not subject to state income taxes in some states, federal income taxes still apply. Additionally, service members may have deductions for various benefits and services, such as:
\n\n\n\nThrift Savings Plan (TSP) Contributions: Similar to a civilian 401(k), service members can contribute to their TSP to save for retirement.
\n\n\n\nServicemembers Group Life Insurance (SGLI): Service members have the option to enroll in life insurance coverage through SGLI, with premiums deducted from their pay.
\n\n\n\nUniform Allowance: Some service branches provide an annual allowance to assist with the cost of purchasing and maintaining uniforms.
\n\n\n\nUnderstanding military pay is essential for service members to manage their finances effectively and maximize their compensation. While the system may seem complex, taking the time to understand total compensation is in your best interest. Learning the system empowers you to ensure you make the most of the resources available to you, and receive fair compensation for your dedication and sacrifice to our country.
\nThe post What Does the Military Pay? appeared first on Sandboxx.
\n", "content_text": "Military pay is a critical aspect of compensation for service members. However, understanding military pay can be daunting and feel overcomplicated. We\u2019re breaking down military pay and the different factors that make up total compensation for service members.\u00a0\u00a0\n\n\n\nWhat\u2019s Included In Military Pay?\n\n\n\nAt the core of military compensation is basic pay, which serves as the foundation of a service member’s earnings. Basic pay is determined by rank and years of service, with higher ranks and longer tenures being directly related to increased pay. Military pay scales are publicly available and are regularly updated to reflect changes in cost of living and legislation. You can view the most current pay chart here. You’ll see this has changed quite a bit since 2022. \n\n\n\nMilitary Pay Allowances\n\n\n\nIn addition to basic pay, service members receive various allowances to offset expenses incurred during their service. These allowances include the following:\n\n\n\nHousing Allowance (BAH): BAH is provided to service members who are not provided government housing. The amount is based on location, rank, and dependency status, aiming to cover housing costs in the civilian community. To view current housing rates click here.\n\n\n\nSubsistence Allowance (BAS): BAS is designed to offset the cost of food for service members. Unlike BAH, BAS is not affected by location and is provided at a flat rate. The 2024 rate for BAS is $316.98 for Officers and $460.25 for Enlisted per month. \n\n\n\nCost of Living Allowance (COLA): COLA is provided to service members stationed in high-cost areas outside the continental United States, aiming to maintain purchasing power comparable to living in the continental U.S.\n\n\n\nService members may be eligible for special pays and incentives based on their skills, duties, or assignments. Examples include hazardous duty pay, combat pay, and reenlistment bonuses.\n\n\n\nBonuses and Special Compensation: Service members may also receive bonuses and special compensation for certain skills, assignments, or circumstances. These include:\n\n\n\nSigning Bonuses: Offered to individuals who enlist or reenlist in critical occupations or during times of manpower shortage.\n\n\n\nCareer Field Bonuses: Service members in specific career fields may receive bonuses to incentivize retention or fill critical skill gaps.\n\n\n\nSpecial Duty Assignment Pay (SDAP): SDAP is provided to service members who perform duties designated as unusually demanding or requiring special qualifications.\n\n\n\nMilitary Pay & Taxes\n\n\n\nWhile military pay is generally not subject to state income taxes in some states, federal income taxes still apply. Additionally, service members may have deductions for various benefits and services, such as:\n\n\n\nThrift Savings Plan (TSP) Contributions: Similar to a civilian 401(k), service members can contribute to their TSP to save for retirement.\n\n\n\nServicemembers Group Life Insurance (SGLI): Service members have the option to enroll in life insurance coverage through SGLI, with premiums deducted from their pay.\n\n\n\nUniform Allowance: Some service branches provide an annual allowance to assist with the cost of purchasing and maintaining uniforms.\n\n\n\nThe Bottom Line\n\n\n\nUnderstanding military pay is essential for service members to manage their finances effectively and maximize their compensation. While the system may seem complex, taking the time to understand total compensation is in your best interest. Learning the system empowers you to ensure you make the most of the resources available to you, and receive fair compensation for your dedication and sacrifice to our country.\nThe post What Does the Military Pay? appeared first on Sandboxx.", "date_published": "2024-04-01T10:02:45-04:00", "date_modified": "2024-04-01T10:02:52-04:00", "authors": [ { "name": "Kris Broadus", "url": "https://www.sandboxx.us/author/kris-broadus/", "avatar": "https://www.sandboxx.us/wp-content/uploads/2024/04/T02FTFJ5M-U03F8GGSV1Q-3d2dce03f823-512.png" } ], "author": { "name": "Kris Broadus", "url": "https://www.sandboxx.us/author/kris-broadus/", "avatar": "https://www.sandboxx.us/wp-content/uploads/2024/04/T02FTFJ5M-U03F8GGSV1Q-3d2dce03f823-512.png" }, "image": "https://www.sandboxx.us/wp-content/uploads/2024/04/pexels-tima-miroshnichenko-6266283-scaled.jpg", "tags": [ "Finance" ] }, { "id": "https://www.sandboxx.us/?p=98120", "url": "https://www.sandboxx.us/blog/why-you-need-life-insurance-beyond-sgli/", "title": "Why You Need Life Insurance Beyond SGLI", "content_html": "![\"\"](\"https://www.sandboxx.us/wp-content/uploads/2024/01/Life-Insurance-Beyond-SGLI-980x490-1.webp\")
SPONSORED BY NAVY MUTUAL
\n\n\n\n\n\n\n\nIt\u2019s easy not to think too much about life insurance when you are in the military since your coverage is automatic. In fact, the\u00a0military ensures that all servicemembers are covered from day one \u2013 with $500,000 of Servicemembers\u2019 Group Life Insurance Coverage (SGLI) and up to $100,000 in Traumatic Injury Protection (TSGLI)\u00a0\u2013 for $31 a month.
\n\n\n\nIf $500,000 seems like a lot of money, you are right. It is often more than enough coverage for young, single servicemembers. When you start doing the math, though, for those with a spouse, children, a mortgage, debt, and future education costs, $500,000 does not go as far as you would think.
\n\n\n\nYou may need life insurance beyond what SGLI can provide if:
\n\n\n\nWhen thinking about how much life insurance you need, think about how much money your family would need to maintain their standard of living without your income. Not only will there be the immediate cash needs of funeral and final expenses, but your family members may also assume your debt, and those payments still need to be made in your absence. Long-term, you want to provide a large enough death benefit that your income is replaced and any future expenses, like education, are covered (if you have children).
\n\n\n\nNote: Survivors of servicemembers who died while on active duty may be entitled to monthly survivor benefits through Dependency and Indemnity Compensation and the Survivor Benefit Plan, and survivors of any death may be entitled to benefits through Social Security. A family\u2019s additional life insurance need (beyond SGLI) should be based on monthly expenses minus monthly survivor benefit entitlements.
\n\n\n\nIt\u2019s in your best interest to purchase individual life insurance coverage when you are young and healthy, because that is when life insurance is the most affordable. For example, if you purchase a policy with level premiums when you are 30 years old, your rates will be much lower than if you wait until you are 40 years old to purchase the policy. Furthermore, if you were to develop any illnesses or disabilities later in life and do not have any life insurance coverage, you may find that you cannot medically qualify for insurance at all, which leaves your family unprotected after SGLI or FSGLI coverage ends. Developing a plan for post-military life insurance well before the end of your military career provides many reasonably priced options.
\n\n\n\nNote: If you convert your SGLI to VGLI within 240 days of leaving the service, you will not be required to undergo a medical exam. If you wish to obtain coverage through Navy Mutual without a medical exam (Guaranteed Issue Flagship Whole Life), you must apply within 120 days of separation.
\n\n\n\nOnce you own an insurance plan with a company, you can often make changes to your coverage amount, retain eligibility for other products or extend eligibility to your family members, or convert your policy to another form of insurance (e.g., from term insurance to permanent insurance). Getting in while you are young, then, almost certainly will benefit you in the long run.
\n\n\n\nSGLI does offer the option of covering a military spouse. Family SGLI (FSGLI) provides up to $100,000 in coverage and charges an additional monthly premium ranging from $0.45 to $45 depending on your age and the chosen amount of coverage. It also provides $10,000 for each dependent child, free of charge.
\n\n\n\nLife insurance policies for employed military spouses should cover the loss of their income if they were to suddenly pass away. A death benefit for a stay-at-home parent would need to cover all future childcare expenses and any other household expenses that would arise without their presence. The $100,000 coverage provided by FSGLI may not cover all of those costs. As with SGLI, when a servicemember separates from the military, their spouse and children will lose their FSGLI coverage. Having a supplementary life insurance plan in place ahead of time ensures a seamless transition.
\n\n\n\nTake some time to evaluate your finances and your family\u2019s needs and give your family the peace of mind that comes with knowing they will be taken care of even after you are gone. If you are interested in a consultation, you can reach a representative at 800-628-6011or you can schedule an appointment at your convenience.
\n\n\n\nThis content was originally published by Navy Mutual.
\nThe post Why You Need Life Insurance Beyond SGLI appeared first on Sandboxx.
\n", "content_text": "SPONSORED BY NAVY MUTUAL\n\n\n\n\n\n\n\nIt\u2019s easy not to think too much about life insurance when you are in the military since your coverage is automatic. In fact, the\u00a0military ensures that all servicemembers are covered from day one \u2013 with $500,000 of Servicemembers\u2019 Group Life Insurance Coverage (SGLI) and up to $100,000 in Traumatic Injury Protection (TSGLI)\u00a0\u2013 for $31 a month.\n\n\n\nIf $500,000 seems like a lot of money, you are right. It is often more than enough coverage for young, single servicemembers. When you start doing the math, though, for those with a spouse, children, a mortgage, debt, and future education costs, $500,000 does not go as far as you would think.\n\n\n\nYou may need life insurance beyond what SGLI can provide if:\n\n\n\n\nYou have a spouse and/or child(ren) who depend on your income.\n\n\n\nYou have other family members (e.g., older parents) whom you support financially.\n\n\n\nYou have a mortgage.\n\n\n\nYou want to send your children to private school or college.\n\n\n\nYou want to leave an estate to your family after your passing.\n\n\n\n\nHow Much Supplemental Coverage Should You Purchase?\n\n\n\nWhen thinking about how much life insurance you need, think about how much money your family would need to maintain their standard of living without your income. Not only will there be the immediate cash needs of funeral and final expenses, but your family members may also assume your debt, and those payments still need to be made in your absence. Long-term, you want to provide a large enough death benefit that your income is replaced and any future expenses, like education, are covered (if you have children).\n\n\n\nNote: Survivors of servicemembers who died while on active duty may be entitled to monthly survivor benefits through Dependency and Indemnity Compensation and the Survivor Benefit Plan, and survivors of any death may be entitled to benefits through Social Security. A family\u2019s additional life insurance need (beyond SGLI) should be based on monthly expenses minus monthly survivor benefit entitlements.\n\n\n\nWhen to Purchase Supplemental Life Insurance Coverage\n\n\n\nIt\u2019s in your best interest to purchase individual life insurance coverage when you are young and healthy, because that is when life insurance is the most affordable. For example, if you purchase a policy with level premiums when you are 30 years old, your rates will be much lower than if you wait until you are 40 years old to purchase the policy. Furthermore, if you were to develop any illnesses or disabilities later in life and do not have any life insurance coverage, you may find that you cannot medically qualify for insurance at all, which leaves your family unprotected after SGLI or FSGLI coverage ends. Developing a plan for post-military life insurance well before the end of your military career provides many reasonably priced options.\n\n\n\nNote: If you convert your SGLI to VGLI within 240 days of leaving the service, you will not be required to undergo a medical exam. If you wish to obtain coverage through Navy Mutual without a medical exam (Guaranteed Issue Flagship Whole Life), you must apply within 120 days of separation.\n\n\n\nOnce you own an insurance plan with a company, you can often make changes to your coverage amount, retain eligibility for other products or extend eligibility to your family members, or convert your policy to another form of insurance (e.g., from term insurance to permanent insurance). Getting in while you are young, then, almost certainly will benefit you in the long run.\n\n\n\nSpecial Circumstances:\n\n\n\n\nIf you are deploying soon or have already deployed, Navy Mutual offers a range of life insurance plans, all of which feature no military service restrictions. There are no war, aviation, terrorism, or travel clauses for those on active duty.\n\n\n\nIf you are buying a home, getting married, having children (or all of the above), congratulations! With such big lifestyle changes \u2013 and the associated financial implications \u2013 it may be time to purchase additional life insurance. Navy Mutual offers a term life plan with higher coverage amounts at our lowest cost. You can also secure your children\u2019s financial future with a whole life option that builds tax-deferred cash value over time.\n\n\n\nIf you are separating from the military, it is important to remember that SGLI will not follow you when you leave the service, and monthly survivor benefits through the VA and SBP may not either. When you separate, you will retain SGLI for 120 days (for free) after which your coverage expires. During this time \u2013 and for an additional year afterwards\u2013 you can convert your SGLI coverage to Veterans\u2019 Group Life Insurance (VGLI) coverage, although you will need to complete a medical exam to qualify if applying after 240 days of retiring. That being said, VGLI can become quite expensive as you age. For example, you would pay $165 per month for $500,000 of coverage between 50 and 54 years old, but that premium becomes $735 a month once you turn 65. Navy Mutual offers affordable term life coverage you can keep through age 85 and Guaranteed Issue Flagship Whole Life, a permanent life insurance option offered exclusively to separating servicemembers and their families.\n\n\n\n\nWhat About Military Spouses?\n\n\n\nSGLI does offer the option of covering a military spouse. Family SGLI (FSGLI) provides up to $100,000 in coverage and charges an additional monthly premium ranging from $0.45 to $45 depending on your age and the chosen amount of coverage. It also provides $10,000 for each dependent child, free of charge.\n\n\n\nLife insurance policies for employed military spouses should cover the loss of their income if they were to suddenly pass away. A death benefit for a stay-at-home parent would need to cover all future childcare expenses and any other household expenses that would arise without their presence. The $100,000 coverage provided by FSGLI may not cover all of those costs. As with SGLI, when a servicemember separates from the military, their spouse and children will lose their FSGLI coverage. Having a supplementary life insurance plan in place ahead of time ensures a seamless transition.\n\n\n\nTake some time to evaluate your finances and your family\u2019s needs and give your family the peace of mind that comes with knowing they will be taken care of even after you are gone. If you are interested in a consultation, you can reach a representative at 800-628-6011or you can schedule an appointment at your convenience.\n\n\n\nThis content was originally published by Navy Mutual.\nThe post Why You Need Life Insurance Beyond SGLI appeared first on Sandboxx.", "date_published": "2024-03-01T09:47:27-05:00", "date_modified": "2024-01-09T12:31:03-05:00", "authors": [ { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" } ], "author": { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" }, "image": "https://www.sandboxx.us/wp-content/uploads/2024/01/Life-Insurance-Beyond-SGLI-980x490-1.webp", "tags": [ "Life Insurance", "Military Life Insurance", "Navy Mutual", "Service Member Group Life Insurance", "SGLI", "Finance", "Military Family", "Milspouse" ], "summary": "It\u2019s easy not to think too much about life insurance when you are in the military since your coverage is automatic. In fact, the\u00a0military ensures that all servicemembers are covered from day one \u2013 with $500,000 of Servicemembers\u2019 Group Life Insurance Coverage (SGLI) and up to $100,000 in Traumatic Injury Protection (TSGLI)\u00a0\u2013 for $31 a month." }, { "id": "https://www.sandboxx.us/?p=98117", "url": "https://www.sandboxx.us/blog/retirement-planning-for-current-active-duty-military/", "title": "Retirement Planning for Current Active Duty Military", "content_html": "![\"\"](\"https://www.sandboxx.us/wp-content/uploads/2024/01/MicrosoftTeams-image-1-1.webp\")
SPONSORED BY NAVY MUTUAL
\n\n\n\nNo matter how far off your military retirement is, there are programs and benefits you can learn about now and actions you can take that will make your life easier when it does come time to separate. Preparing for retirement head on and with a plan is one of the most important tasks you can set for yourself during your working years.
\n\n\n\nAs a current servicemember, you have multiple options available to you that are not available to civilians that can help you craft your retirement plan. Taking advantage of the Thrift Savings Plan, knowing what to expect in terms of retirement and disability pay after you transition, and understanding the Survivor Benefit Plan are key steps in guaranteeing a happy retirement for yourself and a stable future for your family.
\n\n\n\nAs an active-duty service member or an employee of the federal government, you are eligible to participate in the Thrift Savings Plan (TSP). TSP is the government\u2019s version of a 401(k)-retirement plan. Your contributions \u2013 up to a maximum of $23,000 annually \u2013 are taken out of your monthly pay and deposited into a Roth or traditional TSP account, depending on your elections. Up to 4% of your contributions may also be matched by the federal government if you are enrolled in the Blended Retirement System (BRS).
\n\n\n\nNote: Your retirement plan depends on when you joined the military. If you joined before January 1, 2006, you were enrolled in the legacy High-3 system. If you joined after January 1, 2018, you were enrolled in the Blended Retirement System. If you joined the military between January 1, 2006, and December 31, 2017, you were given the option to choose between the two retirement plans \u2013 enrollment decisions had to be made by December 31, 2018.
\n\n\n\nUnder the legacy High-3 system, there are no matching contributions for your TSP account. If you are enrolled in BRS, it\u2019s important that you contribute at least as much is required to earn the matching funds or you are missing out on an additional 1\u20134% of your paycheck that is funded by the federal government \u2013 essentially free money. With compound interest and time, even a 1% match can grow into a significant nest egg for your retirement.
\n\n\n\nIf you are approaching your military retirement and have not started contributing to a TSP account, you still have time. You can open a TSP account when you have at least two months left on active duty and it will stay open even after you retire provided there is a balance of at least $200. While you cannot contribute your monthly pay to your TSP account after retirement (unless you work for the federal government), you can still actively manage the fund allocations within the account through TSP.gov and you can contribute to the account in other ways. To fund your TSP post-military service, you can roll over future 401(k) accounts (both Roth and traditional) or traditional IRAs into the TSP to take advantage of low fees.
\n\n\n\nWhen you reach 59 \u00bd years old, you can start withdrawing funds from your TSP account without penalty to fund your retirement goals
\n\n\n\nWhen you reach age 73, the IRS requires you to withdraw a specific amount of money from tax-deferred retirement accounts each year. Traditional TSP withdrawals will act as your required minimum distribution (RMD) \u2013 provided you receive a withdrawal in at least the amount required by law. If you withdraw less than your RMD amount, TSP will mail you an additional sum of money (a supplementary payment) to make up for the difference. You will not have to pay taxes on earnings withdrawn from Roth TSP accounts, but you will pay taxes on earnings withdrawn from traditional accounts, so allocate your funds accordingly when you can still contribute to TSP.
\n\n\n\nNote: If you close your TSP account, you will not be allowed to reopen it unless you rejoin the military or get another position with the federal government. TSP has low fees compared to other retirement accounts; keeping yours open after you leave the service will allow your money to continue to grow without being encumbered by the higher fees you might find if you roll your funds over to a new 401(k) or IRA.
\n\n\n\nYour retirement pension depends on when you joined the military. Again, if you joined before January 1, 2006, you were enrolled in the legacy High-3 system. If you joined after January 1, 2018, you were enrolled in the Blended Retirement System. If you joined the military between January 1, 2006, and December 31, 2017, you were given the option to choose between the two retirement plans \u2013 enrollment decisions had to be made by December 31, 2018.
\n\n\n\nWhen considering your long-term retirement needs, your military pension is a significant portion of the income you will use to fund your goals. While most civilians will need to fund their retirement expenses with only Social Security income and the investments they have made within a 401(k) or IRA, military retirees are able to factor in their monthly pension for life, and can significantly reduce the amount of savings required to self-fund their retirement needs.
\n\n\n\nIf you have a service-connected illness or injury, you may be eligible for disability compensation from the Department of Veterans Affairs. To get a disability rating \u2013 which then determines your level of eligibility \u2013 you must first file a disability claim. You will need to submit your DD 214, evidence of your illness or injury (like test results, medical opinions, or X-rays), and service treatment records. Once you receive a disability rating, provided it is at least 10%, you will begin receiving monthly payments.
\n\n\n\nYou may also be eligible for benefits at the state and federal level that come with having a disability rating (some even starting at a 0% rating) such as VA loan funding fee waivers, college tuition benefits, and property tax reductions. Benefits vary by state and are dependent on disability rating requirements.As a Veterans Service Organization (VSO), Navy Mutual is authorized to represent and assist veterans and their beneficiaries in applying for and contesting benefit claims before the U.S. Department of Veteran Affairs (VA). We can help guide veterans of any branch of the U.S. uniformed services through the claims process and provide formal representation. Contact our Veterans Services team to learn more.
\n\n\n\nThe Survivor Benefit Plan (SBP) is a government-subsidized program in which a retiree pays a set percentage of their retired pay to the Survivor Benefit Plan to ensure that their loved one(s) (typically a spouse or child) continue to receive a portion of their military pension after their passing. A retiree can choose their level of coverage or decide not to participate in the program entirely, and this decision must be made prior to leaving active duty.
\n\n\n\nWhile the Survivor Benefit Plan is an important way of securing a portion of your retirement as a benefit for your family, permanent life insurance can help fill any gaps. For example, a retiree who designates their child as a beneficiary may outlive their child\u2019s eligibility (children can only receive SBP benefits until age 18, or 22 if they are enrolled full-time in school, unless the child has a disability that was diagnosed while they were still eligible). If a retiree wishes to provide a guaranteed death benefit to their child(ren) after their passing, they should consider purchasing a permanent life insurance policy.
\n\n\n\nNote: Keep in mind that the Servicemembers\u2019 Group Life Insurance (SGLI) provided to servicemembers for the duration of their military service ends 120 days after separation. When transitioning out of the military, veterans have one year and 120 days to convert their SGLI to Veterans\u2019 Group Life Insurance (VGLI). In order to be eligible for guaranteed coverage without a medical exam through VGLI, a veteran must apply within 240 days of separation. VGLI premiums increase every five years, so while it may be affordable at young ages, a fixed-premium commercial policy may be less expensive over time if purchased while you are young and healthy.
\n\n\n\nPermanent life insurance policies also have riders that allow early access to the death benefit if the insured develops a chronic or terminal illness and needs funding to help pay for long-term care or other costs associated with their disease. This is an important consideration when it comes to retirement planning, as a majority of the population will need some level of long-term care at some point in their lives \u2013 and long-term care is expensive. Having access to a life insurance policy that can help alleviate the cost can secure your retirement and your family\u2019s financial future.
\n\n\n\nMilitary retirement pay and disability compensation payments are paid monthly through the end of your life and should be factored into your income in retirement. Annuities too, could provide another source of income that would be paid out monthly for the remainder of your life. You may also be eligible to receive Social Security benefits and, eventually, will be required to take distributions from your TSP and any other retirement accounts that you have. Rounding out your retirement planning with Survivor Benefit Plan participation and a permanent life insurance policy to cover any long-term care costs during retirement will help secure the savings you built up during your working years.
\n\n\n\nPlanning for what comes next is easy with Navy Mutual. Our VSO representatives are here to help guide you through any VA claims questions our expert life insurance advice ensures you never have to make decisions in the dark. Schedule a consultation, request a quote, or call us at 800-628-6011 to start planning your future today.
\n\n\n\nThis content was originally published by Navy Mutual.
\nThe post Retirement Planning for Current Active Duty Military appeared first on Sandboxx.
\n", "content_text": "SPONSORED BY NAVY MUTUAL\n\n\n\nNo matter how far off your military retirement is, there are programs and benefits you can learn about now and actions you can take that will make your life easier when it does come time to separate. Preparing for retirement head on and with a plan is one of the most important tasks you can set for yourself during your working years.\n\n\n\nAs a current servicemember, you have multiple options available to you that are not available to civilians that can help you craft your retirement plan. Taking advantage of the Thrift Savings Plan, knowing what to expect in terms of retirement and disability pay after you transition, and understanding the Survivor Benefit Plan are key steps in guaranteeing a happy retirement for yourself and a stable future for your family.\n\n\n\nThrift Savings Plan\n\n\n\nAs an active-duty service member or an employee of the federal government, you are eligible to participate in the Thrift Savings Plan (TSP). TSP is the government\u2019s version of a 401(k)-retirement plan. Your contributions \u2013 up to a maximum of $23,000 annually \u2013 are taken out of your monthly pay and deposited into a Roth or traditional TSP account, depending on your elections. Up to 4% of your contributions may also be matched by the federal government if you are enrolled in the Blended Retirement System (BRS).\n\n\n\nNote: Your retirement plan depends on when you joined the military. If you joined before January 1, 2006, you were enrolled in the legacy High-3 system. If you joined after January 1, 2018, you were enrolled in the Blended Retirement System. If you joined the military between January 1, 2006, and December 31, 2017, you were given the option to choose between the two retirement plans \u2013 enrollment decisions had to be made by December 31, 2018.\n\n\n\nUnder the legacy High-3 system, there are no matching contributions for your TSP account. If you are enrolled in BRS, it\u2019s important that you contribute at least as much is required to earn the matching funds or you are missing out on an additional 1\u20134% of your paycheck that is funded by the federal government \u2013 essentially free money. With compound interest and time, even a 1% match can grow into a significant nest egg for your retirement.\n\n\n\nIf you are approaching your military retirement and have not started contributing to a TSP account, you still have time. You can open a TSP account when you have at least two months left on active duty and it will stay open even after you retire provided there is a balance of at least $200. While you cannot contribute your monthly pay to your TSP account after retirement (unless you work for the federal government), you can still actively manage the fund allocations within the account through TSP.gov and you can contribute to the account in other ways. To fund your TSP post-military service, you can roll over future 401(k) accounts (both Roth and traditional) or traditional IRAs into the TSP to take advantage of low fees.\n\n\n\nWhen you reach 59 \u00bd years old, you can start withdrawing funds from your TSP account without penalty to fund your retirement goals\n\n\n\n\nAge-based in-service withdrawals: You may make a lump-sum withdrawal of at least $1,000 while still in the service if you are at least 59 \u00bd years old. You will be required to pay 20% federal income tax on the taxable portion of your age-based withdrawal unless you are rolling the funds over into a different retirement account.\n\n\n\nLump-sum, installment, and annuity withdrawals: Withdrawals from your TSP account that must occur after separation from the military. These are not penalized, but you may be required to pay taxes.\n\n\n\n\nWhen you reach age 73, the IRS requires you to withdraw a specific amount of money from tax-deferred retirement accounts each year. Traditional TSP withdrawals will act as your required minimum distribution (RMD) \u2013 provided you receive a withdrawal in at least the amount required by law. If you withdraw less than your RMD amount, TSP will mail you an additional sum of money (a supplementary payment) to make up for the difference. You will not have to pay taxes on earnings withdrawn from Roth TSP accounts, but you will pay taxes on earnings withdrawn from traditional accounts, so allocate your funds accordingly when you can still contribute to TSP.\n\n\n\nNote: If you close your TSP account, you will not be allowed to reopen it unless you rejoin the military or get another position with the federal government. TSP has low fees compared to other retirement accounts; keeping yours open after you leave the service will allow your money to continue to grow without being encumbered by the higher fees you might find if you roll your funds over to a new 401(k) or IRA.\n\n\n\nMilitary Retirement Pay\n\n\n\nYour retirement pension depends on when you joined the military. Again, if you joined before January 1, 2006, you were enrolled in the legacy High-3 system. If you joined after January 1, 2018, you were enrolled in the Blended Retirement System. If you joined the military between January 1, 2006, and December 31, 2017, you were given the option to choose between the two retirement plans \u2013 enrollment decisions had to be made by December 31, 2018.\n\n\n\n\nLegacy High-3: If you serve for at least 20 years, you qualify for a lifetime monthly annuity payment that is calculated at 2.5% times the number of years of service times the average of your highest 36 months of basic pay. TSP contributions are not matched by the government under this system.\n\n\n\nBlended Retirement System: If you serve for at least 20 years, you qualify for a lifetime monthly annuity payment that is calculated at 2% times the number of years of service times the average of your highest 36 months of basic pay. TSP contributions are matched by the government.\n\n\n\n\nWhen considering your long-term retirement needs, your military pension is a significant portion of the income you will use to fund your goals. While most civilians will need to fund their retirement expenses with only Social Security income and the investments they have made within a 401(k) or IRA, military retirees are able to factor in their monthly pension for life, and can significantly reduce the amount of savings required to self-fund their retirement needs.\n\n\n\nDisability Compensation\n\n\n\nIf you have a service-connected illness or injury, you may be eligible for disability compensation from the Department of Veterans Affairs. To get a disability rating \u2013 which then determines your level of eligibility \u2013 you must first file a disability claim. You will need to submit your DD 214, evidence of your illness or injury (like test results, medical opinions, or X-rays), and service treatment records. Once you receive a disability rating, provided it is at least 10%, you will begin receiving monthly payments.\n\n\n\n\nIf you have a 10\u201320% disability rating, your payment amount is based solely on your rating.\n\n\n\nIf you have a 30\u2013100% disability rating, your payment amount is based on your rating and number of dependents (parents, spouse, and children).\n\n\n\nLearn more about disability compensation rates here.\n\n\n\n\nYou may also be eligible for benefits at the state and federal level that come with having a disability rating (some even starting at a 0% rating) such as VA loan funding fee waivers, college tuition benefits, and property tax reductions. Benefits vary by state and are dependent on disability rating requirements.As a Veterans Service Organization (VSO), Navy Mutual is authorized to represent and assist veterans and their beneficiaries in applying for and contesting benefit claims before the U.S. Department of Veteran Affairs (VA). We can help guide veterans of any branch of the U.S. uniformed services through the claims process and provide formal representation. Contact our Veterans Services team to learn more.\n\n\n\nSurvivor Benefit Plan and Life Insurance\n\n\n\nThe Survivor Benefit Plan (SBP) is a government-subsidized program in which a retiree pays a set percentage of their retired pay to the Survivor Benefit Plan to ensure that their loved one(s) (typically a spouse or child) continue to receive a portion of their military pension after their passing. A retiree can choose their level of coverage or decide not to participate in the program entirely, and this decision must be made prior to leaving active duty.\n\n\n\nWhile the Survivor Benefit Plan is an important way of securing a portion of your retirement as a benefit for your family, permanent life insurance can help fill any gaps. For example, a retiree who designates their child as a beneficiary may outlive their child\u2019s eligibility (children can only receive SBP benefits until age 18, or 22 if they are enrolled full-time in school, unless the child has a disability that was diagnosed while they were still eligible). If a retiree wishes to provide a guaranteed death benefit to their child(ren) after their passing, they should consider purchasing a permanent life insurance policy.\n\n\n\nNote: Keep in mind that the Servicemembers\u2019 Group Life Insurance (SGLI) provided to servicemembers for the duration of their military service ends 120 days after separation. When transitioning out of the military, veterans have one year and 120 days to convert their SGLI to Veterans\u2019 Group Life Insurance (VGLI). In order to be eligible for guaranteed coverage without a medical exam through VGLI, a veteran must apply within 240 days of separation. VGLI premiums increase every five years, so while it may be affordable at young ages, a fixed-premium commercial policy may be less expensive over time if purchased while you are young and healthy.\n\n\n\nPermanent life insurance policies also have riders that allow early access to the death benefit if the insured develops a chronic or terminal illness and needs funding to help pay for long-term care or other costs associated with their disease. This is an important consideration when it comes to retirement planning, as a majority of the population will need some level of long-term care at some point in their lives \u2013 and long-term care is expensive. Having access to a life insurance policy that can help alleviate the cost can secure your retirement and your family\u2019s financial future.\n\n\n\nRetirement Planning\n\n\n\nMilitary retirement pay and disability compensation payments are paid monthly through the end of your life and should be factored into your income in retirement. Annuities too, could provide another source of income that would be paid out monthly for the remainder of your life. You may also be eligible to receive Social Security benefits and, eventually, will be required to take distributions from your TSP and any other retirement accounts that you have. Rounding out your retirement planning with Survivor Benefit Plan participation and a permanent life insurance policy to cover any long-term care costs during retirement will help secure the savings you built up during your working years.\n\n\n\nPlanning for what comes next is easy with Navy Mutual. Our VSO representatives are here to help guide you through any VA claims questions our expert life insurance advice ensures you never have to make decisions in the dark. Schedule a consultation, request a quote, or call us at 800-628-6011 to start planning your future today.\n\n\n\nThis content was originally published by Navy Mutual.\nThe post Retirement Planning for Current Active Duty Military appeared first on Sandboxx.", "date_published": "2024-02-01T09:28:56-05:00", "date_modified": "2024-01-05T10:43:18-05:00", "authors": [ { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" } ], "author": { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" }, "image": "https://www.sandboxx.us/wp-content/uploads/2024/01/MicrosoftTeams-image-1-1.webp", "tags": [ "Finance", "Military Family", "Milspouse" ], "summary": "No matter how far off your military retirement is, there are programs and benefits you can learn about now and actions you can take that will make your life easier when it does come time to separate. Preparing for retirement head on and with a plan is one of the most important tasks you can set for yourself during your working years." }, { "id": "https://www.sandboxx.us/?p=98110", "url": "https://www.sandboxx.us/blog/understanding-family-sgli/", "title": "Understanding Family SGLI: Is It Enough?", "content_html": "![\"\"](\"https://www.sandboxx.us/wp-content/uploads/2024/01/220809-N-AS200-7433C-980x490-1.webp\")
SPONSORED BY NAVY MUTUAL
\n\n\n\n\n\n\n\nUpon joining the military, a servicemember is automatically provided with $500,000 of Servicemembers\u2019 Group Life Insurance (SGLI) coverage unless they opt out of the program or decide to decrease their coverage amount. This provides peace of mind to their loved ones, ensuring that they would be taken care of should anything happen during the servicemember\u2019s term of military service.
\n\n\n\nFamily SGLI, or FSGLI, extends a military member\u2019s SGLI coverage to their spouse and dependent children. Spouses are eligible for up to $100,000 of coverage, not to exceed the servicemember\u2019s coverage if they opted for less than the full coverage amount; children can each obtain $10,000 of coverage.
\n\n\n\nFSGLI coverage is not mandatory, but it is automatic once a servicemember\u2019s family is registered with the Defense Enrollment Eligibility Reporting System (DEERS). While child coverage is free of charge, spouse coverage does require a premium payment that is based on the spouse\u2019s age and the coverage amount chosen. This amount is typically deducted automatically from a servicemember\u2019s pay.
\n\n\n\nNote: Spouses can expect their premiums to range from $4.50 per month to $45.00 per month, depending on their age.
\n\n\n\nFor a child, FSGLI coverage lasts until they turn 18 years old. However, if the child is a full-time student between 18 and 22 years old or if the child becomes completely and permanently disabled before reaching their 18th birthday, coverage may be extended.
\n\n\n\nSpousal FSGLI coverage typically lasts until 120 days after their servicemember leaves active duty. However, other circumstances may cause FSGLI coverage to terminate, including divorce, the death of the sponsoring servicemember, written notice to end FSGLI coverage, and written notice to end the sponsoring servicemember\u2019s SGLI coverage. Spouses are able to convert their coverage to permanent individual coverage within 120 days of one of the aforementioned events. More information can be found here.
\n\n\n\nThe downside of FSGLI coverage for children is that, for the most part, it expires when a child turns 18 years old and \u2013 unlike spousal coverage \u2013 it is not convertible to any other type of policy.
There are three reasons why you may want to consider purchasing additional life insurance coverage for your children:
The appropriate coverage amount depends on an individual family\u2019s needs. However, $100,000 is a relatively low amount when it comes to life insurance coverage. Life insurance policies for employed military spouses should cover the loss of their income (for each year before their retirement) if they were to suddenly pass away. Policies for stay-at-home parents typically need to cover all future childcare expenses and any other household expenses that would arise without their presence. Both employed and stay-at-home spouses should have enough coverage to pay off their personal debts and cover their funeral arrangements. The $100,000 provided by FSGLI may not be enough to pay for all of those costs.
\n\n\n\nRemember, too, that FSGLI coverage does not continue beyond 120 days after a servicemember separates from active duty \u2013 and while the policies can be converted to permanent coverage, this may come with significant expense. Purchasing coverage outside of what is offered through FSGLI can ensure that a spouse\u2019s coverage needs are met while their servicemember is on active duty and afterward.
\n\n\n\nRegardless of whether term or permanent coverage is chosen, premiums are rarely more affordable than they are now \u2013 when a spouse is young and healthy. Locking in coverage while their servicemember is still on active duty allows a spouse to enjoy cheaper premiums than they would if they waited until their servicemember separates and provides the peace of mind that comes with having extra coverage.
Navy Mutual\u2019s term and permanent policies are available to military spouses and offer up to $1.5 million in coverage; we also cover dependent children. If you are interested in learning more about what we have to offer, call 888-300-9331 or get a quote online.
This content was originally published by Navy Mutual.
\nThe post Understanding Family SGLI: Is It Enough? appeared first on Sandboxx.
\n", "content_text": "SPONSORED BY NAVY MUTUAL\n\n\n\n\n\n\n\nUpon joining the military, a servicemember is automatically provided with $500,000 of Servicemembers\u2019 Group Life Insurance (SGLI) coverage unless they opt out of the program or decide to decrease their coverage amount. This provides peace of mind to their loved ones, ensuring that they would be taken care of should anything happen during the servicemember\u2019s term of military service.\n\n\n\nFamily SGLI, or FSGLI, extends a military member\u2019s SGLI coverage to their spouse and dependent children. Spouses are eligible for up to $100,000 of coverage, not to exceed the servicemember\u2019s coverage if they opted for less than the full coverage amount; children can each obtain $10,000 of coverage.\n\n\n\nFSGLI coverage is not mandatory, but it is automatic once a servicemember\u2019s family is registered with the Defense Enrollment Eligibility Reporting System (DEERS). While child coverage is free of charge, spouse coverage does require a premium payment that is based on the spouse\u2019s age and the coverage amount chosen. This amount is typically deducted automatically from a servicemember\u2019s pay.\n\n\n\nNote: Spouses can expect their premiums to range from $4.50 per month to $45.00 per month, depending on their age.\n\n\n\nFor a child, FSGLI coverage lasts until they turn 18 years old. However, if the child is a full-time student between 18 and 22 years old or if the child becomes completely and permanently disabled before reaching their 18th birthday, coverage may be extended.\n\n\n\nSpousal FSGLI coverage typically lasts until 120 days after their servicemember leaves active duty. However, other circumstances may cause FSGLI coverage to terminate, including divorce, the death of the sponsoring servicemember, written notice to end FSGLI coverage, and written notice to end the sponsoring servicemember\u2019s SGLI coverage. Spouses are able to convert their coverage to permanent individual coverage within 120 days of one of the aforementioned events. More information can be found here.\n\n\n\nDoes FSGLI offer enough coverage to children?\n\n\n\nThe downside of FSGLI coverage for children is that, for the most part, it expires when a child turns 18 years old and \u2013 unlike spousal coverage \u2013 it is not convertible to any other type of policy.There are three reasons why you may want to consider purchasing additional life insurance coverage for your children:\n\n\n\n\nGuaranteed Insurability: Because most life insurance policies for children are permanent policies, you protect their future insurability when you purchase one. This means that if something happens when they are older that would prevent them from obtaining new coverage (e.g., they develop a medical condition), they already have coverage in place.\n\n\n\nAffordability: Life insurance is typically most affordable for young, healthy people. Furthermore, initial life insurance coverage needs for children are low because they do not yet have dependents relying on their income. Health, age, and level of coverage combine to make children\u2019s life insurance affordable for many families. Premiums for permanent policies are typically level, meaning they do not increase as your child ages, and those premiums will almost never be lower than they are right now.\n\n\n\nCash Value: Most permanent insurance policies include an element separate from the death benefit called \u201ccash value.\u201d This cash value can be borrowed against for various financial needs, like education expenses or mortgage payments, or is available upon the termination of the policy. By purchasing a permanent insurance policy when your child is young, the cash value of the policy has the ability to grow and earn interest for a significant period of time.\n\n\n\n\nDoes FSGLI offer enough coverage to military spouses?\n\n\n\nThe appropriate coverage amount depends on an individual family\u2019s needs. However, $100,000 is a relatively low amount when it comes to life insurance coverage. Life insurance policies for employed military spouses should cover the loss of their income (for each year before their retirement) if they were to suddenly pass away. Policies for stay-at-home parents typically need to cover all future childcare expenses and any other household expenses that would arise without their presence. Both employed and stay-at-home spouses should have enough coverage to pay off their personal debts and cover their funeral arrangements. The $100,000 provided by FSGLI may not be enough to pay for all of those costs.\n\n\n\nRemember, too, that FSGLI coverage does not continue beyond 120 days after a servicemember separates from active duty \u2013 and while the policies can be converted to permanent coverage, this may come with significant expense. Purchasing coverage outside of what is offered through FSGLI can ensure that a spouse\u2019s coverage needs are met while their servicemember is on active duty and afterward.\n\n\n\nRegardless of whether term or permanent coverage is chosen, premiums are rarely more affordable than they are now \u2013 when a spouse is young and healthy. Locking in coverage while their servicemember is still on active duty allows a spouse to enjoy cheaper premiums than they would if they waited until their servicemember separates and provides the peace of mind that comes with having extra coverage.Navy Mutual\u2019s term and permanent policies are available to military spouses and offer up to $1.5 million in coverage; we also cover dependent children. If you are interested in learning more about what we have to offer, call 888-300-9331 or get a quote online.\n\n\n\nThis content was originally published by Navy Mutual.\nThe post Understanding Family SGLI: Is It Enough? appeared first on Sandboxx.", "date_published": "2024-01-15T07:30:00-05:00", "date_modified": "2024-01-05T10:43:31-05:00", "authors": [ { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" } ], "author": { "name": "Navy Mutual", "url": "https://www.sandboxx.us/author/navy-mutual/", "avatar": "https://secure.gravatar.com/avatar/?s=512&d=mm&r=g" }, "image": "https://www.sandboxx.us/wp-content/uploads/2024/01/220809-N-AS200-7433C-980x490-1.webp", "tags": [ "Finance", "Military Family", "Milspouse" ], "summary": "Upon joining the military, a servicemember is automatically provided with $500,000 of Servicemembers\u2019 Group Life Insurance (SGLI) coverage unless they opt out of the program or decide to decrease their coverage amount. " } ] }