Insurance After New Rating

[Inthewind]

For a "new" disabled Vet (within 2 years) this is a no brainer: Get the insurance, at least the first 10,000 worth.

Reasons:

The insurance is whole life, not term, that builds up cash value. What this means:

You can get the insurance, and your premiums will be paid (for the first 10k of a disabled Vet whose waiver of premiums is approved). If you die, your family gets 10,000. If you live, and you need money, you can "cash in" the life insurance policy, or, better yet, "borrow" on your policy.

Bottom line. The 20 pay life will have a cash value of 10,000 in 20 years. This means you can apply for the insurance, and, if you live 20 years, you would have $10,000 in a "bank account" (the insurance policy) that you can collect, if you see fit to do just that.

You are throwing money away not getting your 10,000 life insurance if you have a new disability (and you are eligible for waiver of premiums)

relpats,

If a vet is SC'd at total P&T or 100 percent P&T

they can get the first 10K of the life insurance, with waiver of any premiums.

I think it needs to be said that unless you are TDIU, you have to pay any premiums for any policy you get, even the first $10K.

Unless someone knows something I don't.

Edited November 16, 2012 by Inthewind

[john999]

If you are under 50 years old and have a disability that won't kill you eventually you can often get very cheap term life via Select Quote. When I was 50 I got $250,000 worth for about $700 a year and I was 30% at the time for mental. Now if you have had a heart attack you won't be able to get that rate most likely. The idea of life insurance is to replace your potential earnings if you die early. It is not to just bury you. I got the 10,000 from the VA because it is a gift. It is actually better to save the premiums rather than give them to some insurance company. You are betting you are going to die and they are betting you won't. I don't like that bet if you are under 70 years old.

[Inthewind]

I think it needs to be said that unless you are TDIU, you have to pay any premiums for any policy you get, even the first $10K.

Unless someone knows something I don't.

Well, I guess I take that back. The information I received on the phone was just contradicted by a letter I received telling me that my premiums are waived. Weird.

So, now I'm wondering if I can get the additional $20K?

Edited November 19, 2012 by Inthewind

[broncovet]

Sollnvictus

Thank you for making my day with your compliments.

In the wind:

The VA pays for premiums (when approved for "waiver of premium") ONLY on the first 10,000 of life insurance. You can get the supplemental SDVI BUT you have to pay those premiums. You also will likely need to be within 2 years of getting a "new" disability to get the SVDI.

The VA has different criteria for TDIU than life insurance does for waiver of premiums.

John...

Often disabled Veterans can not get private life insurance. Yes you can apply but when you tell them you are disabled, it is highly likely they will decline to insure you. That is the prime reason for VA life insurance. There are some "high risk" life insurance companies who insure anyone, BUT those policies are expensive AND they often have a limited benefit for the first 2 years. In other words, if you were on your death bed and got that "non qualify" no health questions insurance, it would be in force, but the benefit amount for the first two years would be to return the premiums paid and no more.

[carlie]

No you don't have to have IU status for the waiver of the first 10K -

you need the status of 100 percent P& T or TDIU P&T.

Permanent and Total is the key - I believe.

I think it needs to be said that unless you are TDIU, you have to pay any premiums for any policy you get, even the first $10K.

Unless someone knows something I don't.