Why do defense contractors need life insurance?
Life insurance for defense contractors is necessary to protect your family in the worst-case scenario. Every individual has their own unique primary reason he or she has life insurance on themselves but some of the most common reasons individual state they have life insurance are to leave an inheritance, to pay off debts and other expenses, to add more financial stability to their financial plan, to bring peace of mind, you’re planning on starting a family, your job is high risk, you support your family financially, among many other reasons. Life insurance for defense contractors is a vital part of any strong financial plan that is set up for success and succession.
What does a defense contractor do?
Defense contractors provide contracting services to governments’ defense departments, armed forces, and like. Exactly what those services are can vary a lot, same as contractors for any other public agency. Basically, though, there will be some tasks that the government (in this case the defense department or military) needs done, and for whatever reason they don’t want to have their own staff do it or hire staff to do it, so they contract it out to private companies to do on their behalf.
This can include of course include combat or combat-esque roles (usually providing security to government installations, transport, etc). Meanwhile, many companies produce weapons, aircraft, vehicles, radar and scanning equipment, and much else, for the government. Other contracts may be for much more mundane functions, even cleaning the floors. Someone has to do it, and sometimes it’s cheaper to contract out a cleaning company to do it rather than hire in-house cleaners.
What Are Private Military Contractors?
Governments worldwide employ thousands of defense contractors every year. In 2017, the U.S. Department of Defense (DoD) deployed 23,525 contractors in Afghanistan and 4,485 contractors in Iraq. In addition to security services, these professionals were hired in IT, logistics, medical and administrative roles. Some were U.S. citizens; others were third-country nationals and host country nationals.
Private military contractors (PMCs), also known as defense contractors, provide armed combat or security services to the government and private organizations. Contrary to popular belief, they are not mercenaries. A mercenary is defined as an individual who works only for monetary gain. He or she takes part in armed conflicts or serves in another country’s armed forces for money.
Although PMCs are considered modern-day mercenaries, they have a different legal status and job responsibilities. In general, those who choose this career path are veterans of elite U.S. military units or former soldiers. They’re not necessarily motivated by personal gain — some simply enjoy the thrill and excitement that come with this job or want to serve the greater good and defend their country. These professionals are employed on a contract basis by private military and security companies.
Demographics of Defense Contractors
The top 10 defense contractors in 2020 are Lockheed Martin Corporation, Boeing Company, General Dynamics Corporation, Raytheon Company, Northrop Grumman, United Technologies Corporation, Aribus, Thales Group, Leonardo, and BAE Systems Plc.
Another reason why life insurance for defense contractors is essential is due to the nature of their position. iCasualties, a site that collects basic data on soldier and contractor casualties, combined with demographic information from obituaries and news articles on 238 contractors who perished in Iraq between 2006 and 2016.
It can be learned that the contractors in our sample are predominantly white man in their 40s who chose contracting as a second career. Most are veterans with significant military experience. Among those contractors who were previously deployed as service members, many are former officers and about half of them are Special Forces veterans. They are more likely to have a college degree than their active-duty counterparts, but less likely than their fellow veterans in the general population.
What you can do
If you have any questions regarding your financial situation or what type of life insurance policy is correct for you and your family please reach out to a financial profession to get tailored advice to your unique situation.