Explore Old Military Life Insurance: Get Paid?

Military life insurance is a crucial aspect of financial planning for service members and their families. The U.S. government offers various life insurance options for active-duty military personnel and veterans, providing valuable coverage in case of unforeseen events. One prominent example is the Servicemembers' Group Life Insurance (SGLI) program, which offers low-cost term coverage to eligible service members. SGLI provides a maximum coverage of $500,000 and includes 120 days of free coverage after leaving the military. Additionally, the Veterans' Group Life Insurance (VGLI) program allows individuals to maintain their life insurance coverage after transitioning out of military service. Understanding these programs and their eligibility requirements is essential for those seeking financial security for themselves and their loved ones.

Servicemembers' Group Life Insurance (SGLI)

Eligibility

To be eligible for full-time SGLI coverage, an individual must meet at least one of the following requirements:

• Active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard
• Commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the US Public Health Service (USPHS)
• Cadet or midshipman of the US military academies or the Reserve Officers Training Corps (ROTC)
• Member of the Ready Reserve or National Guard, assigned to a unit and scheduled for at least 12 periods of inactive training per year
• Volunteer in the Individual Ready Reserve (IRR) mobilisation category

For those in non-pay status with the Ready Reserve or National Guard, eligibility for full-time SGLI coverage requires meeting both of the following requirements:

• Scheduled for 12 periods of inactive training for the year
• Drilling for points rather than pay

Benefits

SGLI provides a range of benefits to eligible service members, including:

• Coverage up to $500,000 in $50,000 increments
• 120 days of free coverage after leaving the military
• Extension of free coverage for up to 2 years for those who are totally disabled when they leave the military
• Part-time coverage for Reserve members who do not qualify for full-time coverage
• Traumatic Injury Protection (TSGLI) benefits, providing payments for certain losses during active duty, such as blindness or amputation
• Ability to choose the level of coverage, beneficiaries, and make changes as needed

Cost

The basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, with an additional $1 per month for TSGLI coverage. The monthly premium is automatically deducted from the base pay of service members.

Applying for SGLI

Eligible service members are automatically signed up for SGLI through their service branch. To check eligibility and manage coverage, individuals can refer to their unit's personnel office. Changes to beneficiaries or coverage levels can be made through the SGLI Online Enrollment System (SOES).

Veterans' Group Life Insurance (VGLI)

To be eligible for VGLI, you must meet at least one of the following requirements:

• You had part-time Servicemembers' Group Life Insurance (SGLI) as a member of the National Guard or Reserve, and you suffered an injury or disability while on duty that disqualified you from standard premium insurance rates.
• You had SGLI while in the military and are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) of a branch of service or the Inactive National Guard (ING). This includes members of the United States Public Health Service Inactive Reserve Corps (IRC).
• You are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

With VGLI, you can receive between $10,000 and $500,000 in term life insurance benefits, based on your previous SGLI coverage. You can increase your coverage by $25,000 every 5 years, up to $500,000, until you turn 60.

To obtain VGLI benefits, you must apply within 1 year and 120 days of leaving the military. If you apply within 240 days, you won't need to prove you're in good health; otherwise, you must submit evidence of good health. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) online or by mail/fax.

VGLI premium rates are based on your age and desired coverage amount. You can choose your beneficiaries and modify them as needed. Additionally, you can convert your VGLI policy into a commercial (civilian) policy at any time without providing proof of good health.

Traumatic Injury Protection Under SGLI (TSGLI)

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) is a rider under Servicemembers' Group Life Insurance (SGLI). TSGLI provides short-term financial assistance to service members and veterans who have suffered a qualifying traumatic injury. This insurance covers active-duty members, reservists, National Guard members, funeral honours duty, and one-day muster duty.

To be eligible for TSGLI, you must meet the following requirements:

• You must be insured by SGLI when the injury occurs.
• Your injury must cause a loss that is covered by the policy.
• You must have suffered the traumatic injury while in service.
• You must suffer a covered loss within two years (730 days) of the traumatic injury.
• You must survive for a period of not less than seven full days from the date of the traumatic injury.

TSGLI benefits can range from $25,000 to $100,000 in short-term financial support to help with recovery from a traumatic injury. This includes expenses connected to recovery and rehabilitation, such as limb reconstruction surgeries, inpatient hospital care, and care to help transition from an inpatient facility to living at home.

If you are signed up for full-time SGLI, you are automatically covered by TSGLI. The premium for TSGLI is $1 per month, billed as part of the SGLI premium. To receive TSGLI benefit payments, you will need to apply by filling out the "Application for TSGLI Benefits" form.

Service-Disabled Veterans' Insurance (S-DVI)

Service-Disabled Veterans Insurance (S-DVI) is a life insurance policy offered by the Department of Veterans Affairs (VA) to veterans with service-connected disabilities. The program offers a variety of permanent and term life insurance plans with a maximum face value of $10,000. Veterans who are totally disabled may be eligible for a waiver of the monthly premiums.

To qualify for S-DVI, veterans must meet the following criteria:

• Released from active duty without a dishonorable discharge on or after April 25, 1951.
• Rated for a service-connected disability
• Good health status, except for any service-related conditions
• Application within two years of receiving the disability rating

It is important to note that the S-DVI program stopped accepting new applications after December 31, 2022. However, beneficiaries who already had the plan were allowed to keep it. As of January 1, 2023, the VA introduced a new program called Veterans Affairs Life Insurance (VALife) for veterans with service-connected disabilities.

Veterans who are eligible for the premium waiver under the S-DVI program can also apply for supplemental coverage of up to $30,000. However, they must be under 65 years of age and apply for the supplemental coverage within one year of receiving the approved premium waiver.

In conclusion, S-DVI provides valuable life insurance coverage for eligible veterans with service-connected disabilities. While the program is no longer accepting new applications, existing beneficiaries can retain their coverage, and the VA now offers the VALife program as an alternative for veterans seeking life insurance protection.

Veterans' Mortgage Life Insurance (VMLI)

• They must have a severe disability that the Department of Veterans Affairs recognises as being caused or exacerbated by their military service.
• They must have received a Specially Adapted Housing (SAH) grant to modify their home to accommodate their disability, such as by installing ramps or widening doorways.
• They must hold the title to their home.
• They must have a mortgage on the home.
• They must be under 70 years old.

The VMLI program offers up to $200,000 in mortgage life insurance, which is paid directly to the bank or lender that holds the mortgage. The coverage amount is determined by the outstanding balance on the mortgage and decreases as the loan is paid off. VMLI does not have any loan or cash value, and it does not pay dividends. Veterans can apply for VMLI by filling out a Veterans' Mortgage Life Insurance Statement (VA Form 29-8636) and must do so before their 70th birthday. The VMLI premium is based on the current mortgage balance, the number of remaining payments, and the desired coverage amount.

Frequently asked questions