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Most officers will fly in service aircraft and
sometimes will receive training in these aircraft.
Aviation exclusion clauses may not cover you in such
training situations.
Review your insurance regularly.
Review the
beneficiary clause after the following changes in
family relationships:
You marry or divorce.
Your spouse dies.
Children are born, adopted, or die.
Your parents die or change their marital status.
Your brothers or sisters die or change their
marital status.
Your spouse’s relatives have a change of status.
The following two examples show what could
occur if insurance beneficiaries are ignored:
An ensign, educated at considerable sacrifice
on the part of his family, marries a woman from a
distant town.
After twins are born he makes his
insurance payable in one lump sum to his wife, if
living; otherwise, to his children in monthly
installments. Some time later all of them are in an
auto accident. He dies first, then his children, and
then his wife. His insurance goes to his wife’s estate
and thence to his wife’s relatives. His own family,
who had worked so hard to give him a chance in life,
gets NOTHING.
A lieutenant has a life insurance policy payable
to her husband in installments covering a 20-year
period. The lieutenant dies. After receiving about
one-fourth of the installments, her husband dies too.
Their only child, a son, is not named in the policy.
Their child was born after the policy was taken out,
and the lieutenant failed to change the beneficiary
clause. The remaining proceeds, therefore, go to her
husband’s estate. Since her husband has no will, an
administrator is appointed, which costs money.
Moreover, the husband remarried after the
lieutenant’s death; therefore, the second wife is
entitled to a share in her estate. So the lieutenant’s
son receives a greatly reduced share of her insurance
proceeds. Fortunately for the son, no other children
are involved.
Do not forget your insurance policies. Examine
them once a year. Examine them after any change of
status. Talk them over with the insurance and benefits
officer aboard your ship or station. Make sure you
include complete commercial insurance information
in your Record of Emergency Data (NAVPERS
1070/602).
For example, many credit unions and
automobile clubs provide automatic insurance
coverage for their members.
Include this type of
information in your Record of Emergency Data.
OTHER FORMS OF INSURANCE
You should also consider other forms of
insurance, such as automobile and personal liability
insurance.
The present trend of court awards for
damages is toward higher and higher sums of money.
Awards of several hundred thousand dollars are not
uncommon for injuries caused by accidents occurring
on the street or on one’s premises. Many officers find
they should provide for personal property and real
estate insurance, fidelity bonds, and burglary
insurance. See your insurance and benefits officer for
more information.
SURVIVOR BENEFITS
Dependents of service members who die while on
active duty receive certain benefits.
You should
consider these benefits in connection with planning
your insurance program. Bring them to the attention
of your dependents.
DEATH GRATUITY PAY
The amount of death gratuity equals 6 months’
basic pay plus special and incentive pay at the rate to
which the deceased member was entitled on the date
of death. The payment is limited to a maximum of
$6,000.
Under current law, the survivors of all
members are eligible for the maximum amount. The
computation of death gratuity does not include
allowances such as basic allowance for subsistence or
quarters, station per diem allowances, and clothing
allowances. The disbursing officer who carries the
pay record of the deceased upon receipt of the
commanding officer’s certification of death and
determination of eligible survivor authorizes payment
of the death gratuity. To ensure immediate payment,
be sure your Record of Emergency Data is current.
DEPENDENCY AND INDEMNITY
COMPENSATION
The Department of Veterans Affairs (VA) pays
dependency and indemnity compensation to spouses,
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