Welcome to AmFi Life’s Insurance Advice Center, your go-to resource for expert guidance on navigating life insurance decisions.
Whether you’re a veteran, government employee, or first responder, we understand the unique challenges you face. Our goal is to provide clear, actionable advice to help you make informed choices about your life insurance coverage. From selecting the right beneficiaries to the differences between VGLI and private plans, we’ve got you covered. Explore our guides to ensure your loved ones’ financial security and gain peace of mind with AmFi’s comprehensive insurance solutions.
If you have a family, or plan to have a family, buy enough life insurance so that when combined with other sources of income, it will replace the income you now generate for them. Additionally, consider having enough to offset any additional expenses they will incur to replace the services you provide. Your family may also need extra money to make changes after you die, for example, they may want to relocate or your spouse may need to go back to school.
The DIME formula is a common method used to determine how much life insurance coverage is necessary. DIME stands for Debt, Income, Mortgage, and Education, which are the four main factors that are considered when calculating life insurance coverage.
Once you have these four figures, add them together. This will give you a rough estimate of the life insurance coverage that you need.
Life insurance comes in various forms, each designed to meet different needs. The main types are term life insurance, whole life insurance, and universal life insurance. Term life insurance provides coverage for a specific period, making it an affordable temporary option. Whole life insurance offers lifelong coverage with a savings component, providing consistent premiums and a cash value that grows over time. Universal life insurance also provides lifelong coverage and a cash growth component but with more flexibility in premiums and death benefits. Choosing the right type depends on your financial goals, budget, and the level of coverage you need to protect your family’s future.
Servicemembers’ Group Life Insurance (SGLI) provides coverage for active-duty members, who have 120 days post-discharge to convert to Veterans’ Group Life Insurance (VGLI) or a commercial policy like those from AmFi. Retired Reserve soldiers must also choose between these options. Note, you can’t convert to both. While VGLI is initially cost-effective, it lacks living benefits and becomes more expensive with age. In contrast, AmFi’s commercial policies offer fixed rates and long-term stability. If you choose VGLI first, you might switch to AmFi later based on your health. Choose AmFi for comprehensive, enduring protection for your family.
Servicemembers’ Group Life Insurance (SGLI) provides coverage for active-duty members. All active-duty members are automatically enrolled in SGLI unless they choose to opt out of it. The monthly premiums are automatically deducted from their paychecks. SGLI premiums are very cheap, sometimes even just one dollar per month or less, but the coverage amount they provide is relatively low. That is why active duty members may still benefit from having a commercial policy in addition to their SGLI coverage.
Upon leaving the service, you will lose SGLI but will have the opportunity to convert your SGLI policy into a Veterans’ Group Life Insurance (VGLI) or a commercial policy like those from AmFi. There are a few important things to note about this conversion process. The first is that the best time to initiate a SGLI conversion is within the first 120 days post-discharge. During that time, you can convert your policy to VGLI or a commercial policy without having to show proof of insurance or good health. The second thing to know is that, while you can initially only convert your SGLI policy to VGLI or a commercial policy, you can still sign up to have both types of insurance simultaneously. Again, the advantage of this would be to provide additional coverage beyond the relatively low amounts offered by SGLI and VGLI. Finally, while VGLI is initially cost-effective, it lacks living benefits and becomes more expensive with age. In contrast, AmFi’s universal life insurance policy offers fixed rates, long-term stability, and a cash growth savings component. Choose AmFi for comprehensive, enduring protection for your family.
Choosing a life insurance beneficiary is a crucial decision. Be specific when naming beneficiaries, using full names to avoid ambiguity. Prioritize those who rely on you financially, considering their current and future needs. Regularly update designations to reflect life changes like marriage, divorce, or childbirth. Consult a legal or financial expert to navigate complexities and ensure your choices support your estate planning goals.
Download our Buyer’s Guide for more information regarding life insurance.
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Disclaimer: American Fidelity Life Insurance Company makes available the information and services contained herein in furtherance of American Fidelity’s goal to inform and educate. While American Fidelity Life Insurance makes every effort to present accurate and reliable information on this site, American Fidelity Life Insurance does not endorse, approve or certify such information, nor does American Fidelity Life Insurance guarantee the accuracy, completeness, efficacy, or timeliness of such information. American Fidelity Life Insurance assumes no responsibility for consequences resulting from use of the information contained herein, or from use of the information obtained at linked sites, or in any respect for the content of such information. The products of American Fidelity Life Insurance, and their features, may not be available in all states.
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© 2023 American Fidelity Life Insurance
American Fidelity Life Insurance Company is committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone, and applying the relevant accessibility standards. We welcome your feedback on the accessibility of amfilife.com. Please let us know if you encounter accessibility barriers on our website.
Disclaimer: American Fidelity Life Insurance Company makes available the information and services contained herein in furtherance of American Fidelity’s goal to inform and educate. While American Fidelity Life Insurance makes every effort to present accurate and reliable information on this site, American Fidelity Life Insurance does not endorse, approve or certify such information, nor does American Fidelity Life Insurance guarantee the accuracy, completeness, efficacy, or timeliness of such information. American Fidelity Life Insurance assumes no responsibility for consequences resulting from use of the information contained herein, or from use of the information obtained at linked sites, or in any respect for the content of such information. The products of American Fidelity Life Insurance, and their features, may not be available in all states.
