The National Association of Insurance Commissioners (NAIC) recognizes that military personnel have special insurance considerations to make. They released a brief that discusses many of the insurance issues faced by military members and their families, and here are some of the main points.
Life insurance policies often contain exclusions for deaths that occur as a result of an act of war. If you’re not careful, that could mean that your life insurance company denies your family’s claim and simply returns premiums and interest to them in lieu of a death benefit. That’s why you need to make sure that your policy is designed for service members and does not contain any exclusion that will conflict with your duties as a member of the military.
If you live alone and you’re deployed, your home will generally be vacant until you return. Some home insurance policies will deny claims if their vacancy clause becomes effective due to the length of the deployment. Take a look at your policy to see how long your home must be empty in order for it to be triggered and, if it is too short a period of time, talk to your agent about a special endorsement.
If your vehicle won’t be used while you’re deployed you may need to talk to your agent about suspending insurance coverage so that you can avoid premium payments. Your ability to do so will depend on the state you live in and the insurance company you are with. If you plan to suspend comprehensive coverage while away, make sure that your vehicle is parked in a monitored location so you don’t need to worry about theft or vandalism—both of which would not be covered when you suspend your policy.
When you’re deployed you may not be able to write checks in order to renew your insurance policies and coming home to lapsed policies could create even larger problems. Putting all your policies on automatic bank draft can ensure that your property stays covered while you’re away.