Go Back  Airline Pilot Central Forums > Airline Pilot Forums > Major
Delta optional Life Insurance vs. SGLI >

Delta optional Life Insurance vs. SGLI

Notices
Major Legacy, National, and LCC

Delta optional Life Insurance vs. SGLI

Old 11-25-2014, 04:22 PM
  #1  
Gets Weekends Off
Thread Starter
 
Jetnfast's Avatar
 
Joined APC: Dec 2013
Position: 73N FO
Posts: 179
Default Delta optional Life Insurance vs. SGLI

Hey all,

I am a NH and future USAF Reservist (once off Terminal from AD) and taking care of the open enrollment for benefits. I am contemplating the "optional life insurance" above the normal $676,000 provided. SGLI covers $400,000 at $29 a month. From what I can tell the optional Delta Life Insurance pays out much better. A policy that costs $29/month is upwards of $1M+ in addition to the "free" $676,000 coverage. Overall, the combination of the included free coverage plus the optional life insurance policy seems like a better deal than included life insurance policy plus the $400,000 worth of SGLI for $29/month.

One thing I am unclear on is Delta's policy with Military involvement Lets say something were to happen while on orders, would the Delta insurance pay out regardless? How about if it was an SGLI payout due to an off duty or Delta accident? Would that be a case to keep the SGLI? Any Delta/Mil guys think this through?
Jetnfast is offline  
Old 11-25-2014, 05:25 PM
  #2  
Line Holder
 
Joined APC: Apr 2007
Posts: 82
Default SGLI is not a good deal, but

The best thing about SGLI is that it's an all risks policy. No reduced payouts for suicide, death in airplane crash, etc., like some other policies.

That being said, it's expensive. It's a government program, which means the insurance company that gets the contract gets it by greasing a lot of palms around DC. Then they sit back and rake the money in.

I do not work for Delta, so I don't know the details of their insurance. I would talk to someone in the benefits department and ask to see a copy of the actual policy. Maybe you could even talk to the actual company that underwrites the policy to get answers to your questions.
jagbn is offline  
Old 11-25-2014, 05:39 PM
  #3  
Gets Weekends Off
 
Joined APC: Dec 2008
Posts: 272
Default

Originally Posted by Jetnfast View Post
Hey all,

I am a NH and future USAF Reservist (once off Terminal from AD) and taking care of the open enrollment for benefits. I am contemplating the "optional life insurance" above the normal $676,000 provided. SGLI covers $400,000 at $29 a month. From what I can tell the optional Delta Life Insurance pays out much better. A policy that costs $29/month is upwards of $1M+ in addition to the "free" $676,000 coverage. Overall, the combination of the included free coverage plus the optional life insurance policy seems like a better deal than included life insurance policy plus the $400,000 worth of SGLI for $29/month.

One thing I am unclear on is Delta's policy with Military involvement Lets say something were to happen while on orders, would the Delta insurance pay out regardless? How about if it was an SGLI payout due to an off duty or Delta accident? Would that be a case to keep the SGLI? Any Delta/Mil guys think this through?
Please do not tie all your insurance to your jobs. Because the day you do not have those jobs due to furlough, military cutbacks or some other random event, you will find yourself without insurance. I would seek an outside insurance vendor that has no aviation clause or war clause and purchase from them. That is just me. I'm a little gun shy after the 2001 furlough.
daldude is offline  
Old 11-25-2014, 06:09 PM
  #4  
Line Holder
 
Joined APC: Oct 2007
Posts: 94
Default

If you are military looking for a good alternative to SGLI, look at AAFMAA. No war, aviation, or terrorism clauses and much cheaper.
Gnaw is offline  
Old 11-25-2014, 06:25 PM
  #5  
Straight QOL, homie
 
Purple Drank's Avatar
 
Joined APC: Feb 2012
Position: Record-Shattering Profit Facilitator
Posts: 4,202
Default

Originally Posted by Gnaw View Post
If you are military looking for a good alternative to SGLI, look at AAFMAA. No war, aviation, or terrorism clauses and much cheaper.
good stuff, thanks!
Purple Drank is offline  
Old 11-25-2014, 06:39 PM
  #6  
Gets Weekends Off
 
Joined APC: Feb 2008
Posts: 19,226
Default

Originally Posted by Jetnfast View Post
Hey all,

I am a NH and future USAF Reservist (once off Terminal from AD) and taking care of the open enrollment for benefits. I am contemplating the "optional life insurance" above the normal $676,000 provided. SGLI covers $400,000 at $29 a month. From what I can tell the optional Delta Life Insurance pays out much better. A policy that costs $29/month is upwards of $1M+ in addition to the "free" $676,000 coverage. Overall, the combination of the included free coverage plus the optional life insurance policy seems like a better deal than included life insurance policy plus the $400,000 worth of SGLI for $29/month.

One thing I am unclear on is Delta's policy with Military involvement Lets say something were to happen while on orders, would the Delta insurance pay out regardless? How about if it was an SGLI payout due to an off duty or Delta accident? Would that be a case to keep the SGLI? Any Delta/Mil guys think this through?
Do not give up your SGLI. The other policies will always have exclusions including combat death clauses, private or military flying, scuba as a small example. If something happens to you in the first two years of taking out a policy expect your family to have to battle to get paid. My son in law was talked into dropping his VGLI and picking up insurance with Armed Forces benefit association because it was cheaper. Despite assurances it was a rollover from SGLI they have refused to pay. It's now 3 years since his death and my daughter and granddaughter face at least another year of expensive litigation to get paid.
sailingfun is offline  
Old 11-25-2014, 07:31 PM
  #7  
Banned
 
Joined APC: Dec 2009
Position: Narrow/Left Wide/Right
Posts: 3,655
Smile

Originally Posted by Gnaw View Post
If you are military looking for a good alternative to SGLI, look at AAFMAA. No war, aviation, or terrorism clauses and much cheaper.
If your Navy or Coast Guard, the Navy Mutual Aid is also a good alternative to VGLI / SGLI as there are no exclusions.

Important to note that VGLI (for retirees) is very expensive insurance that is really only practical if you have a medical condition at time of retirement that would prohibit you from getting normal life insurance. VGLI has no medical exclusions or difference in policy prices so it covers the generally uninsurable.

If in good health, there are many more affordable policies if you are willing to submit to a minor medical exam.
full of luv is offline  
Old 11-25-2014, 09:25 PM
  #8  
Gets Weekends Off
 
Joined APC: Mar 2007
Position: Petting Zoo
Posts: 2,068
Default

Sailing,

Horrible story, hope it gets resolved soon.

I have policies with both AFMAA and Navy Mutual (they insure all military branches), both cover pilots/war. On paper they look great, but I don't know anyone who has actually made a claim, so can't speak to how they are when it actually matters.

Looking at VGLI, as a recently retired guy, rates really aren't bad, and I know they'll pay. However, rates get a bit crazy as you get older--they aren't locked. I was able to lock in pretty reasonable rates with above companies. I don't know if they'll pay or fight if I die, but I can only go with best judgement.
Sputnik is offline  
Old 11-25-2014, 09:43 PM
  #9  
Gets Weekends Off
 
Joined APC: Sep 2014
Posts: 4,905
Default

Originally Posted by sailingfun View Post
Do not give up your SGLI. The other policies will always have exclusions including combat death clauses, private or military flying, scuba as a small example. If something happens to you in the first two years of taking out a policy expect your family to have to battle to get paid. My son in law was talked into dropping his VGLI and picking up insurance with Armed Forces benefit association because it was cheaper. Despite assurances it was a rollover from SGLI they have refused to pay. It's now 3 years since his death and my daughter and granddaughter face at least another year of expensive litigation to get paid.

By having SOME SGLI, you also get some level of traumatic injury protection, for things like a lost limb. So consider having 100k of SGLI (it's not all or nothing)...which is what I carry to supplement the 800k I have with the previously mentioned AAFMAA (also have 600k for my wife them).
TED74 is offline  
Old 11-26-2014, 03:07 AM
  #10  
The Brown Dot +1
 
scambo1's Avatar
 
Joined APC: Jun 2009
Position: 777B
Posts: 7,775
Default

Originally Posted by Gnaw View Post
If you are military looking for a good alternative to SGLI, look at AAFMAA. No war, aviation, or terrorism clauses and much cheaper.
I would also say that based on their 30 year level term price, the DoD survivor benefit plan is a pricey paycut.
scambo1 is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Ferd149
Mergers and Acquisitions
117
11-08-2023 07:41 AM
Guard Dude
Delta
201720
04-06-2022 06:59 AM
Jetjok
Cargo
33
10-12-2012 07:11 AM
Quagmire
Major
253
04-16-2011 06:19 AM
Pilot Error
Major
886
10-20-2010 11:19 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices