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'Free' lunch offer may have you on the menu

  • Published
  • By 1st Lt. Sunil Patel
  • Base Legal Office
TYNDALL AIR FORCE BASE, Fla. --  Lately, many Tyndall Airmen have gone to promotional lunches in the local community that are often advertised on roadside signs that read, "Free meals for military members."

Once at these events, attendees are required to fill out contact information cards supplied by insurance agents in order to receive the free meal. Subsequently, these agents give presentations on life insurance options available to military members through various insurance companies. Airmen are told by the presenter that his life insurance policies are better than Servicemen's Group Life Insurance they receive from the Air Force. They are also told that they can save money each month by switching to their company's policy. Sadly, for many young Airmen, nothing could be further from the truth.

"I was told it was comparable to SGLI coverage of $400,000, plus an additional $25,000 for the savings plan," one Airman lamented. "However, I cannot see on my policy where any amount for $400,000 exists. The highest amount I see is $215,000 at age 70."

Truth be told, if this Airman died today, his family would only receive $28,000 compared to the $400,000 from SGLI. Countless others have been equally unlucky. With SGLI, an Airman normally pays $29 a month for coverage of $400,000; however, many Airmen have found themselves faced with monthly premiums of $100 to $200 a month for much less coverage.

To be fair, there are insurance agents who try to serve the military honestly. And the patently questionable morals and ethics exhibited by some insurance "predators" are regrettable. Even more sad is the fact some of the individuals who choose to take advantage of the military are affiliated with the service.

Airmen are encouraged to do some homework when looking for an insurance agent. Checking with the Better Business Bureau or speaking with other clients of an agency are good ways to start. Airmen must educate themselves about their financial options, so that they do not fall into the trap of those who pose as thoughtful, compassionate and understanding insurance agents or financial planners.

To shield oneself from unscrupulous tactics, it is recommended that Airmen follow the guidelines below before making any financially-altering decisions:

1. Never be rushed into making a decision. Don't deprive yourself of the opportunity to think things over or confer with experts or family. Take the time to do research and make the right decision.

2. Make sure you get copies of all contracts and pertinent documents. On many occasions, Airmen have never received copies of the life insurance policies for which they are paying premiums. Know the penalties for withdrawing money from a life insurance policy or an annuity plan or canceling any type of insurance policy.

3. Do not be impressed with smooth-talking agents who claim to be looking out for your interests. Don't be fooled. Find out the facts. Ask to see their licenses. Demand straight answers.

Do research on the company you are dealing with. Beware of claims of "free services," "guaranteed returns," or "additional savings accounts." Insurance agents/brokers are in business to earn money - nothing else. There is always a catch.

4. If it sounds too good to be true, it probably is. Such agents usually appeal to human weakness for "bargains." The more attractive a product appears, the more wary and suspicious you should be.

5. Know the difference between term-life insurance and whole life insurance. SGLI is like term-life insurance, for as long as one is active duty his beneficiary will receive the same amount upon one's death. I a whole-life policy, beneficiaries receive an amount based on how long one has held the insurance.

6. Before signing such life insurance policies, seek the advice of the Military Personnel Flight at 283-2276, the Base Legal Office at 283-4681, or the Airman and Family Readiness Flight at 283-4204. Use the services of the professionals you have at your disposal on base. Find out in detail what your SGLI provides you.

Look out and educate yourself. Make informed choices for you and your family. Don't get served a "free" lunch when you, in fact, are the one on the menu.