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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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5 minutes ago, GBArmy said:

Blah I guess it kinda begs the question -why would you want to wait. You have 2 years to apply for the benefit. If/when you get to 100% s-c, you apply for the waiver. Why not just get the insurance while the window of a new disability is open? The only reason I would think is if it is about the premiums you have to pay for before you get the 100% and the waver.

no i dont want to wait. i was just making sure i was understanding it correctly. what time frame i 'actually' had to figure this out. again my real question was "which insurance do i pick?" i have no idea and there is very lil info an any of the plans they offer to explain what the differences are. especially if i plan on getting a waiver, if the only difference is premiums does it even matter what plan i pick. its so confusing!

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I have the insurance (10,000 free) and have had it since 2007.  While I can "not" promise it will be the same today, here is how it went down with me:

Since I had a "new" disability, I appllied for, and got the 10,000 in insurance "and also" got the waiver of premiums at about the same time.  Now, at that time I was "NOT" 100 percent, but only 40 percent and "still got the waiver" at 40 percent.  A possible reason is I was "on pension", and "pension assumes" you cant work, but does not require service connection to get it. 

As with "all" insurance in my state (Insurance is regulated by the individual states), you have a "30 day" free look,  This means you can apply for life insurance, get the policy, read it over, and return the policy, if requested, for a full refund.  The idea is you wont get to actually read "the insurance policy" until the policy is issued and the company sends you a written policy, before deciding if you want to keep it. 

So, you can "apply for the insurance, and the waiver", and, if the waiver is not granted in 30 days, you can return the policy and get a refund of all premiums paid. (in the first 30 days). 

For that reason, the risk to you is zero.  If the insurance company "failed" to send you a refund in the first 30 days, you can contact your state insurance commissioner, and it would nearly always be returned to you. 

Im not sure its mandantory to send money, because they can take it out of your comp check.  But, if you wanted "immediate" coverage, you have to send in money.  Coverage is not "binding" until the insurance company gets consideration (money).  Remember its an "application for insurance", and they do have rules, and not everyone qualifies.

Some insurance policies require a physical, I did not have to get a physical.  Its the insurance companies discretion. 

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2 hours ago, blahsaysme2u said:

no i dont want to wait. i was just making sure i was understanding it correctly. what time frame i 'actually' had to figure this out. again my real question was "which insurance do i pick?" i have no idea and there is very lil info an any of the plans they offer to explain what the differences are. especially if i plan on getting a waiver, if the only difference is premiums does it even matter what plan i pick. its so confusing!

I can’t remember which one I picked but when they approved my application and waiver, they switched the policy to the 20 payment life. They said it was the most advantageous to me with the waiver. 

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1 hour ago, deedub75 said:

I can’t remember which one I picked but when they approved my application and waiver, they switched the policy to the 20 payment life. They said it was the most advantageous to me with the waiver. 

interesting. i wonder why? again i cant find any explanation of the different plans other than the premiums costs and this:

https://www.benefits.va.gov/INSURANCE/forms/VAP29-9.pdf

1 hour ago, broncovet said:

I have the insurance (10,000 free) and have had it since 2007.  While I can "not" promise it will be the same today, here is how it went down with me:

Since I had a "new" disability, I appllied for, and got the 10,000 in insurance "and also" got the waiver of premiums at about the same time.  Now, at that time I was "NOT" 100 percent, but only 40 percent and "still got the waiver" at 40 percent.  A possible reason is I was "on pension", and "pension assumes" you cant work, but does not require service connection to get it. 

As with "all" insurance in my state (Insurance is regulated by the individual states), you have a "30 day" free look,  This means you can apply for life insurance, get the policy, read it over, and return the policy, if requested, for a full refund.  The idea is you wont get to actually read "the insurance policy" until the policy is issued and the company sends you a written policy, before deciding if you want to keep it. 

So, you can "apply for the insurance, and the waiver", and, if the waiver is not granted in 30 days, you can return the policy and get a refund of all premiums paid. (in the first 30 days). 

For that reason, the risk to you is zero.  If the insurance company "failed" to send you a refund in the first 30 days, you can contact your state insurance commissioner, and it would nearly always be returned to you. 

Im not sure its mandantory to send money, because they can take it out of your comp check.  But, if you wanted "immediate" coverage, you have to send in money.  Coverage is not "binding" until the insurance company gets consideration (money).  Remember its an "application for insurance", and they do have rules, and not everyone qualifies.

Some insurance policies require a physical, I did not have to get a physical.  Its the insurance companies discretion. 

@broncovetthanks for your input. i am pretty confident on the way to apply. seems like there should be more info on the individual plans to help you decide before you purchase, which one you want?

 

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You are limited when you purchase the "free" life insurance.  My idea was to maximize the value of the free insurance and to select the plan with the highest premium as it would build cash faster.  Higher premium per 1000 dollars face insurance generally means it builds cash value faster.  I settled on the 20 payment life as it was the highest premium/ fastest cash building available at the time. 

The 20 payment life means you "pay" for 20 years, then the policy "matures" and no more payments need to be made.  In other words, you own the insurance after 20 years, like buying a home and financing it 20 years.  (Well except for the premiums are waived). 

Mine has built up cash value, they send me a letter each year.  I could cash it in for the full 10,000 dollars after 20 years.  That is the idea anyway. 

I would have chosen 10 pay life, if it was available, to pay it up in 10 years and build cash faster. 

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The 20 year life matures the fastest and that’s the advantage for the waiver. Even without the waiver it’s cheaper in the long run.

You don’t necessarily have to be 100% to get the waiver. It’s says in the pamphlet that the percentage of your disability does not determine if they will approve your application. 

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