One minute, you're cruising along in life, and the next, an unexpected event -- a car accident, a house fire, an illness -- can derail your plans and finances. While no one likes to think about worst-case scenarios, a solid protection plan ensures that you, your loved ones and your possessions are covered, no matter what life throws your way. That's where insurance comes in.
Insurance is about more than just meeting legal requirements -- it's about ensuring that when life throws a curveball, you and your family can recover without financial ruin. Military families, in particular, have unique needs and opportunities when it comes to insurance, from Servicemembers' Group Life Insurance and Veterans' Group Life Insurance to specialized homeowners and auto policies.
Too often, people treat insurance as an afterthought, only reviewing policies when forced to. But here's the reality: Insurance isn't a set-it-and-forget-it deal. As your life evolves, so do your coverage needs. The key to staying protected is making insurance reviews a regular part of your financial routine -- because the last thing you want is to find out you're uninsured or underinsured when it's too late.
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Step 1: Insure Your Life and Health. Your Family's Future Depends on It.
If anyone relies on your income, life insurance isn't optional -- it's essential. Whether you're single with debts, married with kids or supporting aging parents, life insurance provides financial security when you no longer can.
Types of Life Insurance
- Term life insurance: Covers you for a set period (for example, 10, 20 or 30 years) and is generally the most affordable option.
- Whole life and universal life insurance: These permanent policies last your entire life and can build cash value, but they typically come with higher premiums.
Let the purpose of the coverage guide your choice. For example, insurance for temporary purposes such as paying off debts or covering costs associated with kids is likely best met with term coverage. On the other hand, permanent goals such as estate planning might best be covered by a permanent policy. Maintaining a mix of group/employer coverage and individually owned policies provides flexibility and can help ensure continuity of coverage in the event you change jobs.
Health Insurance
While this can be an afterthought -- in a positive way -- for those currently serving in the military, the coverage choices and potential pitfalls associated with health insurance are fodder for a standalone article. Review your policy when you're:
- Getting married or divorced
- Having children or adopting
- Buying a home
- Leaving the military or transitioning careers
- Experiencing a major health change
For military families, Servicemembers' Group Life Insurance (SGLI) provides affordable coverage while on active duty, but transitioning service members should explore Veterans' Group Life Insurance (VGLI) or private options before they separate. Don't let a coverage gap leave your family vulnerable. And furthermore, don't miss out on a potential opportunity to save money over the long haul with a commercial policy.
Step 2: Protect Your Income. Disability Insurance Is a Must.
You're more likely to become disabled than to die prematurely, yet many overlook disability insurance. If an injury or illness prevents you from working, this coverage replaces a portion of your income so you can keep paying the bills.
Types of Disability Insurance
- Short-term disability: Covers lost wages for a few months.
- Long-term disability: Provides income replacement for years, even up to retirement age.
Review your policy when you're starting a new job or business, leaving the military or experiencing a health change that affects your ability to work. If you rely on your paycheck to support your family, disability insurance isn't just a smart move -- it's a financial lifeline.
Step 3: Safeguard Your Home and Belongings
Your home is one of your biggest investments, and protecting it is non-negotiable. Whether you own or rent, you need coverage that shields you from disasters, theft and liability.
Types of Property Insurance
- Homeowners insurance: Can cover your house and belongings against fire, theft, natural disasters, and liability claims.
- Renters insurance: Protects your personal property and provides liability coverage.
- Flood insurance: Not included in standard homeowners policies but important for those in flood-prone areas.
Review your policy when you're buying a new home, renovating or making major upgrades (kitchens, additions, pools), moving to a new duty station or acquiring high-value items (jewelry, collectibles, electronics).
Step 4: Ensure You're Covered on the Road.
Auto insurance isn't just about fixing dents; it's about protecting yourself from massive financial liability. A serious accident could leave you with lawsuits, medical bills and vehicle costs that could take years to recover from.
Key Auto Insurance Coverages
- Liability coverage: Pays for injuries and damage you cause to others.
- Collision coverage: Covers repairs to your own vehicle after an accident.
- Comprehensive coverage: Protects against theft, vandalism, weather damage and more.
Review your policy when you're adding or removing drivers, buying a new vehicle or moving to a different state (insurance requirements and costs vary).
If you're stationed overseas, make sure you have international coverage. And if you're driving less, consider adjusting your policy or explore a pay-as-you-drive-type policy to save money.
Step 5: Reassess Insurance Needs After Major Life Changes
Life doesn't stay the same, and neither should your insurance coverage. Set a reminder to review your policies at least once a year or any time you experience a major life event. Here's a quick checklist of moments that should trigger an insurance review:
- Getting married or divorced
- Having a child
- Buying a home or moving
- Changing jobs or leaving the military
- Paying off debts or taking on new financial responsibilities
- Experiencing a significant health change
A little time spent reviewing and updating your coverage today can prevent a world of stress tomorrow. So take control, make sure your insurance matches your life and rest easy knowing that whatever happens, you -- and the people who depend on you -- are protected.
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