What is Veterans Group Life Insurance (VGLI)?
For those who have previously served in the military and would like to maintain their group life coverage, Veterans Group Life Insurance (VGLI) is available.1. This renewable-term policy provides financial benefits to the veteran’s beneficiaries upon their death.
A Brief Overview of Veterans Group Life Insurance (VGLI)
An ex-service member carries over their Servicemembers’ Group Life Insurance (SGLI) policy, a term life insurance provided to military personnel while on active duty, by choosing Veterans Group Life Insurance (VGLI). After they become veterans, they have one year and one hundred and twenty days to use this choice.
Veterans group life insurance offers many benefits that are not available in the market for individual life insurance. Age is the sole element for determining premium rates; other variables that may raise the cost of private insurance plans include gender, employment status, tobacco usage, and leisure activities. Furthermore, the insurance is in effect for as long as the policyholder pays the premiums; it does not expire at a certain age, like 65.
VGLI provides life insurance payouts ranging from $10,000 to $400,000, based on the veteran’s SGLI coverage at their service discharge. The maximum coverage a veteran may initially be eligible for is the same as their servicemembers’ group life insurance policy allows.
Veterans may choose to reduce their coverage in $10,000 increments. Every five years, coverage may also increase by $25,000 following enrollment. However, until the veteran is 60, the maximum compensation is restricted to $400,000.
Qualifications for Group Life Insurance for Veterans
Veteran applicants must meet certain qualifying conditions to be considered for VGLI. In addition to having SGLI insurance, the candidate has to be within a year and a half from:
- being freed from training, active duty, or an order to service in fewer than thirty-one days
- being relieved of duty from the National Guard or the Ready Reserves by retirement
- Possessing an appointment to the Inactive National Guard (ING) or the Individual Ready Reserves (IRR), this section also includes members of the US Public Health Service Inactive Reserve Corps (IRC).
- Being added to the list of temporary disabled retirees (TDRL)
Even if a veteran had part-time Servicemembers’ Group Life Insurance (while serving in the National Guard or Reserves) and experienced an injury or disability while on duty—including direct travel to and from assignment—that rendered them ineligible for regular premium insurance rates, they can still apply for VGLI coverage.
VGLI’s Health Requirements
A health checkup or test is optional for veterans who request to convert their SGLI to VGLI during the first 240 days after their service. Stated differently, the policy’s approval does not rely on one’s bodily or mental well-being. They must provide proof of their excellent health if they enroll after the first 240 days.
Particular Points to Remember
One of the main advantages of VGLI is its very cheap premium rates, which were further reduced as of April 1, 2021. However, like with most life insurance policies, every veteran must evaluate several plans to determine the best situation.
After you leave the military, you may change your existing SGLI coverage into a civilian one within 120 days. For former service veterans, several commercial insurance companies provide specialized plans.
VGLI insurance may also be changed into commercial individual coverage. But the conversion policy has to be permanent, like a whole-life policy and must be provided by a particular set of carriers.
Conclusion
- For former service members, Veterans Group Life Insurance (VGLI) is a term insurance that carries over the group coverage they enjoyed while on active duty.
- Veterans may use this option for one year and 120 days from the day they leave the military.
- Depending on the veteran’s coverage level when they were discharged from the service, VGLI provides life insurance payouts ranging from $10,000 to $400,000.
- Low rates and the absence of a qualifying health test are two further advantages of VGLI (provided coverage is chosen within a particular period).
