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Maine.gov > PFR Home > Insurance Regulation > Consumer Information > All Brochures > Life Insurance Information For Military Personnel

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Life Insurance Information For Military Personnel

The state departments of insurance are here to protect your consumer rights. If you feel:

  • the terms of any policy you receive are not what you agreed to,
  • you have purchased additional unnecessary insurance,
  • you have been charged for a policy that you did not authorize,
  • the policy was misrepresented as a savings or investment plan

Please contact the insurance department in your state of residence or where the policy was sold immediately.
To contact your state insurance department, please see the list of phone numbers below.

If you have Internet access, you may contact your state department of insurance at: https://eapps.naic.org/cis/fileComplaintMap.do

When you call or login, it will be beneficial to know the name of the insurance company and who sold you the policy.
For more detailed information about what military personnel should know when considering the purchase of life insurance: www.naic.org/consumer_military_insurance.htm

Servicemembers' Group Life Insurance (SGLI)

SGLI is a program of low cost group term life insurance automatically available to all servicemembers on active duty, active duty for training or inactive duty for training and members of the Reserves. As of September 1, 2005, this policy is automatically activated for the current maximum coverage amount of $400,000, unless soldier opts out in writing. A servicemember can elect lower coverage or no coverage by completing the VA Form SGLV-8286. Coverage is available for spouses; dependent children are automatically insured for $10,000. In addition, there is an elected coverage option for up to $100,000 for spouses. When released from active duty or the Reserve, members with full-time SGLI coverage can convert their coverage to Veterans Group Life Insurance (VGLI) or to an individual commercial life insurance policy at standard rates without having to provide proof of good health. For more information, call toll free 1-800-419-1473 or go to the Department of Veterans Affairs at their website,http://www.benefits.va.gov/Insurance/.

Types of Life Insurance

Term Insurance- Life insurance providing coverage at a specified premium for a specified length of time. This type of insurance does not build up cash value and the premium normally increases after the specified time period.
Permanent Insurance- Permanent insurance provides long-term financial protection including both a death benefit and in some cases a cash savings.

  • Universal Life policies offer a flexible premium life insurance policy under which the policy owner may change the death benefit from time to time (with satisfactory evidence of insurability for increases) and vary the amount or timing of premium payments.
  • Variable Life policies allow the money that remains after payment of premiums to be invested in vehicles of your choosing. Variable life insurance does have the option of a minimum guaranteed death benefit, however, variable life insurance can be expensive and risky, depending on the type of investments made.
  • Whole Life policies provide lifetime protection at a level premium. Premiums must generally be paid for as long as the policy is in force.

Free Look Period:

It is important to review the policy immediately upon receipt. In most states, a minimum 10 day “free look” period is provided, during which time you may return the policy for cancellation and a full refund of any premium(s) paid should you decide you do not want it. If you decide to cancel the policy, remember to cancel the allotment from your paycheck. If you are going to be deployed, inform the person with your power of attorney to look for the policy.

Before you sign on the dotted line, ask:

  • Do I need more life insurance?
  • Are there any war exclusions to the policy? (SGLI does not contain this exclusion.)
  • Can I afford this policy? It may be very costly if you cancel during the first few years of a policy.
  • Am I feeling pressured to buy this policy?
  • Are there any exclusions on the policy for travel on any non-commercial aircraft?

Red Flags:

Be wary of life insurance products that are sold as or with savings or investment products.
If in doubt, ask if it is life insurance.
Agents selling on the base without authorization from your base solicitations officer or the Department of Defense.
Agents selling without a valid license from a state insurance department.
Non-military, ex-military personnel or former military personnel acting as investment or financial advisors in a group or classroom setting.
Pressure to rush through the application process, to complete an allotment form or to authorize withdrawal of funds from your bank account for the purchase of a life insurance policy.
Delays in receiving a copy of the contract.

Factors to Consider in Purchasing Additional Life Insurance:

Outstanding Debt
  Credit Cards
  Loans (Mortgage, Car, Student, Equity)
Expenses
  Monthly Expenses
  Medical Expenses
  Estate Taxes
  Cost of living
  Inflation
Beneficiaries
  Spouse (employed, retirement)
  Children (day-care, college tuition)
  Other Family Support (siblings, parents)

State Departments of Insurance

Alaska . . . . . . . . . . . . 907-269-7900
Alabama . . . . . . . . . . .334-241-4141
Arkansas . . . . . . . . . . 501-371-2600
American Samoa . . . . 684-633-4116
Arizona . . . . . . . . . . . .602-912-8444
California . . . . . . . . . . 213-897-8921
Colorado . . . . . . . . . . 303-894-7499
Connecticut . . . . . . . . .860-297-3800
District of Columbia . . 202-442-7812
Delaware . . . . . . . . . . 302-739-4251
Florida . . . . . . . . . . . . 850-413-3131
Georgia . . . . . . . . . . . .404-656-2070
Guam . . . . . . . . . . . . . 671-475-1843
Hawaii . . . . . . . . . . . . 808-586-2790
Iowa . . . . . . . . . . . . . .515-281-6348
Idaho . . . . . . . . . . . . . 208-334-4250
Illinois. . . . . . . . . . . . . 312-814-2420
Indiana . . . . . . . . . . . . 317-232-2395
Kansas . . . . . . . . . . . . 785-296-3071
Kentucky . . . . . . . . . . 502-564-6034
Louisiana . . . . . . . . . . 225-342-8640
Massachusetts . . . . . . .617-521-7777
Maryland . . . . . . . . . . 410-468-2244
Maine . . . . . . . . . . . . .207-624-8475
Michigan . . . . . . . . . . .517-373-0220
Minnesota . . . . . . . . . .651-296-5769
Missouri . . . . . . . . . . . 573-751-4126
Mississippi . . . . . . . . . 601-359-2453
Montana . . . . . . . . . . .406-444-2040
North Carolina . . . . . . 919-733- 2032
North Dakota . . . . . . . 701-328-2440
Nebraska . . . . . . . . . . 402-471-2201
New Hampshire . . . . . 603-271-2261
New Jersey . . . . . . . . .609-292-5316
New Mexico . . . . . . . .505-827-4549
Nevada . . . . . . . . . . . .775-687-4270
New York . . . . . . . . . 518-474-4567
Ohio . . . . . . . . . . . . . .614-644-2658
Oklahoma . . . . . . . . . .405-522-4969
Oregon . . . . . . . . . . . .503-947-7980
Pennsylvania . . . . . . . .717-787-2317
Puerto Rico . . . . . . . . .787-722-8686
Rhode Island . . . . . . . .401-222-5466
South Carolina . . . . . . .803-737-6180
South Dakota . . . . . . . 605-773-3563
Tennessee . . . . . . . . . .615-741-2218
Texas . . . . . . . . . . . . .512-463-6169
Utah. . . . . . . . . . . . . . 801-538-3800
Virginia . . . . . . . . . . . 804-371-9691
Virgin Islands . . . . . . . 340-774-7166
Vermont . . . . . . . . . . .802-828-3301
Washington . . . . . . . . 360-725-7080
Wisconsin . . . . . . . . . .608-266-0103
West Virginia . . . . . . . 304-558-3386
Wyoming. . . . . . . . . . 307-777-7401
NAIC
National Association of Insurance Commissioners
2301 McGee Street, Suite 800
Kansas City, MO 64108-2662

 


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Last Updated: August 6, 2014