Do you know this?

[broncovet 3,560]

"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 October 16, 2020 by broncovet

[broncovet 3,560]

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. 

[deedub75 56]

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.