Veterans Group Life Insurance (VGLI): Understanding, Eligibility, and Financial Benefits”
AB
Summary:
Veterans group life insurance (VGLI) is a crucial term policy for former members of the military, allowing them to seamlessly continue the group life coverage initiated during active service. Offering benefits such as low premiums, no health exam requirements within specific time frames, and coverage ranging from $10,000 to $400,000, VGLI stands as a valuable option for veterans. This comprehensive guide explores eligibility criteria, health requirements, special considerations, and additional FAQs to provide a thorough understanding of VGLI.
Compare Life Insurance Providers
Compare multiple vetted providers. Discover your best option.
What is veterans group life insurance (VGLI)?
Veterans group life insurance (VGLI) plays a vital role for those transitioning from active military service. This term policy enables former service members to maintain the group life coverage they had during their time in the armed forces. The key aspect is the continuation of the Servicemembers’ Group Life Insurance (SGLI) policy, a term life insurance offering during active military duty.
Benefits of VGLI
VGLI offers distinct advantages not commonly found in private life insurance policies. The premium rates are solely age-based, eliminating considerations for gender, tobacco use, occupation, or recreational activities. This is a significant departure from private insurance policies where such factors can significantly increase premiums. Moreover, unlike certain private policies that may terminate at a specified age, VGLI remains in force as long as the policyholder pays the premiums.
The coverage amount provided by VGLI ranges from $10,000 to $400,000, determined by the amount of SGLI coverage the veteran had upon leaving the military. Veterans have the flexibility to choose lower coverage levels, decreasing them in $10,000 increments. Conversely, they can increase coverage after enrollment by $25,000 every five years. However, it’s important to note that the maximum benefit is capped at $400,000 until the veteran reaches the age of 60.
Eligibility for veterans group life insurance
To be eligible for VGLI, veterans must meet specific criteria within one year and 120 days from certain events. These events include being released from active duty, training, or duty orders of 31 days or less. Additionally, eligibility extends to veterans separated by retirement or release from the Ready Reserves or National Guard, those with assignments in the Individual Ready Reserves (IRR) or Inactive National Guard (ING), and individuals placed on the Temporary Disability Retirement List (TDRL).
Furthermore, veterans who had part-time Servicemembers’ Group Life Insurance (as a member of the National Guard or Reserves) and suffered an injury or disability while on duty, including direct travel to and from duty, can still apply for VGLI coverage even if disqualified for standard premium insurance rates.
Health requirements for VGLI
For veterans applying to convert their SGLI to VGLI within the first 240 days after completing their service, no health review or exam is required. The approval of the policy is not contingent upon being in good physical or mental health during this initial period. However, for those applying after the initial 240 days, evidence of good health is necessary.
Special considerations
One of the notable advantages of VGLI is its relatively low premiums, a feature that was further enhanced as of April 1, 2021. However, as with any type of life insurance, it’s crucial for each veteran to compare potential plans to determine the best fit for their unique circumstances.
Importantly, within 120 days of leaving service, veterans have the option to convert their current SGLI policy into a civilian one. Various commercial insurance carriers have specialized policies for ex-members of the armed forces. It’s essential for veterans to explore these options to ensure they find the most suitable coverage.
Moreover, veterans can convert a VGLI policy to a commercial individual policy, but there are specific conditions. The conversion policy must be a permanent one, such as a whole life policy, and offered by a select group of carriers.
Frequently asked questions
Can veterans apply for VGLI coverage after leaving service?
Yes, veterans have one year and 120 days from the date they become veterans to apply for VGLI coverage.
Is VGLI only for veterans with full-time service?
No, veterans with part-time Servicemembers’ Group Life Insurance (as a member of the National Guard or Reserves) can also apply for VGLI coverage, provided they meet certain criteria.
Can veterans increase their VGLI coverage after enrollment?
Yes, veterans can increase their VGLI coverage by $25,000 every five years after enrollment, with a maximum benefit capped at $400,000 until reaching the age of 60.
Are VGLI premiums solely age-based?
Yes, VGLI premiums are determined solely based on age, unlike private insurance policies that may consider factors like gender, tobacco use, job, or recreational activities.
Is evidence of good health required for VGLI approval?
Veterans applying to convert SGLI to VGLI within the first 240 days after completing service are not subject to health reviews or exams. After this period, evidence of good health is required.
Can VGLI coverage be converted to a commercial individual policy?
Yes, veterans can convert a VGLI policy to a commercial individual policy, provided it’s a permanent policy like a whole life policy and offered by specific carriers.
Key takeaways
- VGLI allows veterans to continue group life coverage with unique benefits.
- Eligibility is based on specific timelines related to military service events.
- Health requirements vary depending on the timing of the application.
- Veterans can explore commercial insurance options for additional choices.
- Age-based premium rates provide a transparent and fair pricing structure.
- Flexible coverage options allow veterans to tailor their insurance to their evolving needs.
Share this post: