MBA Term 90 compared to SGLI/VGLI
Please consider the following comparison with SGLI/VGLI:
- MBA Term 90 premiums are the same as SGLI premiums.
- MBA Term 90 offers spouses coverage up to $250,000; SGLI limits spouse coverage to $100,000, not to exceed the member’s coverage.
- MBA Term 90 provides child coverage at no additional cost up to $12,500; SGLI offers $10,000. Additional child coverage is available through MBA.
- MBA Term 90 coverage is portable when the service member separates or retires from the military with no further underwriting or increase in premium at that time. VGLI premiums are substantially higher than MBA Term 90 premiums at all ages and coverage levels.
- Family SGLI (and family coverage) terminates when the service member quits or dies. MBA spouses can become members in their own right, protecting coverage for the family in the event the sponsoring service member terminates membership, for whatever reason.
- MBA Term 90 offers several premium payment options, including credit card, electronic fund transfer and billing schedule. SGLI automatically deducts the premium from the member’s military pay.
- MBA members can apply for an increase in coverage up to a maximum of $500,000 at any time; VGLI limits the maximum to the amount of coverage under SGLI.
- Service members who are totally disabled at the time of separation or retirement may not qualify for coverage under VGLI if they have serious health problems. MBA membership and coverage remain active regardless of health at the time of separation or retirement.
- MBA Term 90 continues and pays a legitimate death benefit under any circumstances not considered contestable. The SGLI insurance terminates or the benefit is not payable in cases of misconduct, e.g. confinement, AWOL, desertion or conscientious objection.
- MBA offers additional benefits to its members, including a Scholarship Program for dependents, a US Bank VISA credit card, Hertz discount car rental program and a new MBA Benefits Program that includes roadside assistance, legal and chiropractic referrals, alternative medicine, pharmacy, vision and telecounseling services.
- This MBA-sponsored product as an alternative or supplement to the SGLI coverage is clearly a favorable option for the young service members the regulation proposes to protect. However, this regulation would severely inhibit MBA from marketing the MBA Term 90 Plan to active duty military personnel, many of whom are being placed in harm’s way.
