Trans World Assurance Educates Families About the Dangers of the Financial Red Zone

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When a family's financial obligations and accumulated debt exceed their income, they are in a financially vulnerable time that Trans World Assurance calls the "Red Zone." Trans World Assurance recently added a new section to their website with illustrations of how the Red Zone works and how families can help protect themselves.

The Red Zone
After getting married, buying a house, and having children, the debt and financial obligations of a family increase dramatically. A family's needs can cost much more than the amount of money the family has available. Trans World Assurance calls this financially vulnerable time the "Red Zone". During this time, if something unexpected were to happen, many families would not be prepared to deal with the financial dangers of the Red Zone. Trans World Assurance recently created a new section at to illustrate these dangers.

The Red Zone For Military Members
After signing up for Servicemembers' Group Life Insurance (SGLI) and Thrift Savings Plan (TSP), many military members believe they are immune to the Red Zone, but often times, this is a false sense of security. After leaving the military, many military members find themselves even more vulnerable to the Red Zone because they are no longer covered by SGLI, and they do not have access to the funds in the TSP.

SGLI is a military life insurance program provided by the government, but the coverage is only available to members while they are in the service. SGLI coverage may convert to VGLI coverage after leaving the service, but because VGLI can be an expensive option, most members do not opt to convert to VGLI. The TSP, a savings vehicle designed to provide members with retirement funds, is also available to all military members, but as a retirement vehicle, TSP funds shouldn't be accessed until after the age of 59 1/2.

The financial requirements and accumulated debt of many military members will most likely peak at a time when they are no longer covered by SGLI and have no access to TSP funds. Trans World Assurance highly recommends both the SGLI and the TSP, but relying solely on these 2 programs can leave military members financially vulnerable. In the new Red Zone section at, Trans World Assurance created a set of illustrations showing how a military member with SGLI and the TSP could still be left vulnerable to the dangers of the Red Zone.

Red Zone Protection
Trans World Assurance recommends that families protect themselves from the Red Zone with a flexible plan such as a cash value life insurance policy. These plans offer a variety of benefits, including:

  • Accumulating cash values
  • Income tax favored growth of cash values
  • Lifelong income options
  • Tax free access to cash values through policy loans
  • Income tax free and probate free death benefits for beneficiaries

At, Trans World Assurance recently added an illustration showing how families can help protect themselves from the Red Zone.


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Robert Johnson
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