Veterans can purchase life insurance through several insurance companies, like USAA. Generally, group insurance is mainly gotten through employment; after you leave the job, you can lose your life insurance coverage. But with veterans’ group life insurance, you can keep your life insurance coverage after you leave the military as long as premiums are paid.
Veterans’ group life insurance is a post-separation life insurance program. This allows veterans to turn their service member’s group life insurance into renewable term life insurance. Veterans’ life insurance generally covers only veterans and their families, providing several coverage options for their specific needs. This means this insurance cannot be obtained by non-military members.
Who is Eligible for Veterans’ Group Life Insurance?
Veterans with a service member’s group life insurance coverage are eligible for veteran group life insurance upon release from service. It is one of the low-cost insurance programs created by the Department of Veterans Affairs to offer life insurance benefits for veterans and soldiers. However, you may be eligible for this insurance if you meet at least one of the following requirements:
- If you had a part-time Service Member’s group life insurance as one of the members of the National Guard. Or Reserve and you were disqualified for a standard insurance rate due to a disability or an injury you sustained while on duty.
- You had Service Member’s group insurance while you were in the military, and you are a year and 120 days close to retirement from active duty of 31 and above days period.
- If you are in a year and 120 days of assignment to the Individual Ready Reserve of a branch of service.
- You are within a year and 120 days of being placed on the Temporary Disability Retirement List.
Who Does Veterans’ Group Life Insurance Cover?
As previously stated, this insurance does not cover non-military members; instead, it covers:
- Former service members.
- Veterans.
After the end of the policy or the death of a policyholder, this life insurance pays out a death benefit to the families or beneficiaries.
Veterans’ Group Life Insurance Benefits
With this insurance, you can receive term life insurance benefits ranging from $10,000 to $500,000. The amount you receive will depend on the SGLI coverage you had at the time of your military retirement.
Keep in mind that when you leave the military, you can sign up through VGLI for coverage up to your SGLI amount. Also, you can increase your insurance coverage by $25,000 every 5 years until you’re 60 years old.
Veterans’ Group Life Insurance Cost
With this insurance, you can get between the ranges of $10,000 and $500,000 in term life insurance benefits. How much you would get on insurance will depend on how much SGLI coverage you had when you retired from the military.
However, keep in mind that when you leave the military. You can sign up through VGLI for coverage up to your SGLI amount. Also, you can increase your insurance coverage by $25,000 every 5 years until you’re 60 years old.
Reasons Veterans’ Group Life Insurance is the Right Choice
If you cancel your Veterans’ Group Life Insurance (VGLI) policy, it allows buying between $10,000. And $500,000 in term life insurance after leaving the military. You can apply for coverage within one year and 120 days, either online or through the Department of Veterans Affairs Form SGLV 8714. After 15 years, you can decide if it is no longer necessary. In some cases, VGLI may be able to help you and your family due to the following reasons:
You procrastinated
VGLI provides affordable life insurance coverage for healthy individuals, with no gaps in coverage. Applying for VGLI within 240 days of leaving the service requires no medical questions or reviews, allowing you to replace service members’ Group Life Insurance (SGLI) without medical questions.
Service came with a cost
VGLI provides coverage for veterans who have suffered physical and mental wear and tear while serving in the military, replacing SGLI without any medical questions. This is advantageous for those who are struggling to find affordable coverage in the marketplace. VGLI can be converted into a permanent life insurance policy without requiring health documentation.
You use tobacco
You might find it difficult to obtain affordable coverage because smokers usually pay significantly more for life insurance. If you smoke, the VGLI premiums may be competitive for you in the long run. And this is even though they rise every five years as you approach age 35, 40, etc.
Using coverage for a limited period
VGLI is affordable, but its premiums rise in five-year increments. A veteran under the age of 30 pays $35 per month, while those aged 55 to 59 pay $300 and those aged 65 to 69 pay $735. If you expect to need life insurance until the age of 50, VGLI may be a good option.
Necessary options
The VGLI application is a quick and affordable life insurance solution. If you find a more cost-effective solution or no longer require coverage, you can cancel your VGLI via the OSGLI website or by phone. Life insurance is an important part of your financial plan; therefore, consider your options and protect your loved ones.
How to Apply for Veterans’ Group Life Insurance
You should receive an application for VGLI from the SGLI office 45–60 days after your separation from service.
Also, you have sixteen months, or one year and 120 days, from the date of your separation from service to file a VGLI application. You are no longer qualified for VGLI after this. Furthermore, there are various requirements for applying after 240 days (eight months) or within 240 days (8 months) of your date of separation, as mentioned below.
- You only need to submit the application and the first month’s premium if you file a VGLI within 240 days of your separation from service.
- You are not required to present proof of your overall health.
- When submitting a VGLI application, you must include the first month’s premium payment. And proof of good health if the application is submitted between 240 days and 1 year and 120 days after separation from service.
- You can apply for VGLI online if you don’t receive an application in the mail.
Can Veterans Get Life Insurance at No Additional Cost?
If you were completely disabled upon discharge from active duty. You may be eligible for a free two-year extension of your current service members’ group life insurance. The Death Gratuity Open in a new tab is another option.
If an injury sustained or a disease worsened while on duty results in your death within 120 days of being inactive, your survivors will receive an immediate, tax-free payment of $100,000. In any other case, the VA does not offer free insurance (SGLI, VGLI, or VALife) to disabled veterans.