Service-Disabled Veterans' Group Life Insurance (S-Dvi)

[Carl the Engineer]

OK, bear with me. I have been offered the S-DVI again as I incurred another SC disability recently. And now I am receiving a VA disability check. And this insurance can be taken out automatically. Which is a biggie for me, as I am usually late (never have not payed) for every payment except direct withdrawls. Someday everything I have will be direct withdrawl.

So, with that said, what are any pitfalls if any, of this insurance, excluding cost. I know there are better deals out there, however, that is not my question.

Do they have any exclusions, i.e., suicide, get killed at work, etc, etc.?

Do they pay fast or is it another VA nitemare?

Any experience?

And what did you choose and why? Which plan?

Thanks,

Hamslice

I currently have $10,000.00 through work for me and my wife each. Only for the next 9 years..

[broncovet]

Get the VA insurance, and here is why:

1. You wont be able to later...as I think you have to have a "new" disability (rated within the past year) to get SDVI. However, you could "cancel" the insurance later, so it leaves you more options by getting it now.

2. While there are cheaper insurance than SDVI, you have to pass underwriting for these. Almost all, if not all the insurance companies will ask if you are getting some kind of disability...then when they find out, you wont get the insurance. If you dont tell the insurance company you are disabled, then the company may issue the policy. But, when your family goes to collect, they will investigate and find out you were disabled at the time of application and your familys claim for insurance benefits will be denied. You will "think" you have insurance when you really dont. Dont do this.

3. You probably wont miss the 30 or so dollars a month this policy costs, depending on your age and how much life insurance you get if its taken out of your compensation automatically. If you do need the money, then you can cancel the policy later, if necessary.

4. The SDVI will build cash value over time, so it creates an emergency fund for you. I have about almost 2000 dollars in cash value in SDVI life insurance. A 10,000 SDVI life policy will be worth about 10,000 in cash surrender value in about 20 years. YOu would not have to die to get that 10,000 dollars, just surrender (or, better yet, borrow against) after 20 years.

5. Life insurance avoids probate and is paid to the widow at death, giving her often much needed cash.

6. The VA life insurance is far and above the best managed part of the VA. The VA issued my life policy in 3 weeks...not years, and no appeals were required.

7. And the most important reason: Its the right thing to do to take care of your spouse and family when you die. You should also have a trusted financial adviser lined up to advise your spouse when you pass, because the average widow is broke after 2 years regardless of the life insurance amount.

[broncovet]

I will add that I looked at the VA's stastics, a few years ago, and found that VA life insurance had far and above the best customer service rating in the VA. Nothing else was even close. I think the VA likes to "average" the customer service numbers for VA life insurance with its other departments to "raise" the average to make themselves look better.

Many years ago I delivered death claim checks to widows for the same major insurance company that underwrites VA life insurance. After you deliver a death claim check to a widow, you understand the value of life insurance first hand.

[john999]

I would take the insurance. I just wish we could get a lot more at a reasonable price. If you are young and have dependents you need a whole lot of insurance. I also wish DIC was much more.

[Stretch]

If you have new connection, you can then bump up your insurance by 20,000 (that is 30,000 total). You have to pay premium on the extra 20,000 though.

I did this. Barry Haydt discusses this in Hadit/SVR archives on insurance.

http://svr-radio.com/archives.html

[Carl the Engineer]

Thanks for the replies,

I will get it going.

Hamslice