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broncovet

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"If" you are disabled by VA and "do not" have the 10,000 VA life insurance, at no cost to you,  you should get it ASAP, if eligible.  Follow the links to see if you are eligible:

https://www.va.gov/life-insurance/

Also, if you have your 10,000 VA life insurance, its also like a bank account you can draw on.  As an example, if you have had the 10,000 life insurance for 10 years, you could withdraw (that is get a "loan" from your life insurance proceeds) for $1000 or more.  Yes, you would pay interest on the loan, "but" you would never have to pay it back (the amount borrowed, plus interest, would be deducted from the 10,000 upon your death. ) 

Bottom line:  If you dont have it, get it, and if you do have it, and need money, consider the consequences of borrowing on your life insurance.  It may be a relatively painless way to get money you need NOW vs, after you are gone.  Also, lets say you borrow 1000, 2000, or even 5000 from your life insurance policy, AND you "come into money" 2 years down the road, you can pay it back and restore your family's full life insurance proceeds. 

"Unless" there was a compelling reason, I would not recommend "cashing in" your life insurance policy.  (A compelling reason may be that you have cancer and not long to live, and you want to use the money). 

Instead of "cashing in" leave your options open by borrowing the max from your policy.   You have the option of paying it back or not..at your discretion, in your time. 

VA life insurance sends me a notice each year, around my birthday, as to how much I could borrow, or cash in the policy for.  The cash value of the policy grows each year.  After about 20 years, you can cash it in for the full face value, about 10,000. 

You can likely do the same with "other than VA" whole life insurance policies, too:  Borrow, or cash it in. 

In a nutshell whole life insurance is "owned" insurance, while  term insurance is "rented" insurance.  Like a car, if you own it you can sell it, or get a loan on it.  But you cant get a loan on your rented apartment. 

Edited by broncovet
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I wish we could get more than $10,000 but I appreciated the free insurance. 

Thanks to your posts about this in the past, I finally applied for it a few months ago when I got some new granted claims and qualified for it again. I could have had it years ago in 2015 when I hit 100% but I was still working at the time and I didn't read the fine print. 

I just new scars granted at 0% and the VA sent me another letter about applying for it but I already have it.  

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Allow me to explain.  As I mentioned, you get the first 10,000 free, when you meet the eligibility criteria.  And, yes, you can buy more insurance "beyond" the 10,000.  But there is controversy if the VA life insurance is any cheaper than life insurance available on the private market.  

I found a price comparison to be cheaper than some, more than others.  IT is true, that some people in poor health are not eligible for many life insurance policies.  But, you can always get something called "guaranteed Issue" life insurance, even if you expect to die in the next week.  But, it wont do you any good because in the first 2 years, those "guaranteed issue" policies ONLY return your premiums, they dont pay the face amount in the first 2 years.  So, If you buy a guarnteed issue policy and die six months later, you are ony returned your premiums.  

The free 10,000 is a "no brainer". But,  Beyond the first no cost 10,000, my advice is to shop all companies and buy the one best for you..from among quality companies.  There are many.  If VA comes out on top, (lower cost for the amount of insurance), then go for it.  But dont feel bad if you have the free 10,000 and additional policies from private companies for more.  

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its also my understanding, that you need to have this insurance in place already before you can apply for the waiver. so like for me i am only 90% right now so i would need to get the insurance before my 2 year countdown runs out. if i get my 100% any time after that because of increases in SC i would be eligible for the waiver.

but if i knew i was going to get a new SC to bump me to 100% or was counting on it to, i could theoretically wait to get the insurance and apply for the waiver all at the same time.

am i understanding this correctly? 

my questions are the different tiers and levels of insurance. i have no idea what to choose?!?!?! should dont we get financial counseling someplace to help us with this?

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