Life Insurance For Veterans: Am I Eligible?

If you are a veteran, you may be eligible for life insurance through the Veterans Affairs Life Insurance (VALife) program. VALife is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It offers coverage of up to $40,000, with lesser amounts available in increments of $10,000. In addition to VALife, the Department of Veterans Affairs (VA) offers several other life insurance programs, including the Veterans' Group Life Insurance (VGLI) and the Servicemembers' Group Life Insurance (SGLI). These programs provide financial security for veterans, service members, and their spouses and dependent children.

Eligibility requirements for Servicemembers' Group Life Insurance (SGLI)

Servicemembers' Group Life Insurance (SGLI) is a low-cost group term life insurance program for eligible service members. If you meet certain criteria, you will be automatically enrolled in SGLI. After enrolment, you can change the level of coverage or even refuse coverage. You can also choose your beneficiaries and change them as needed.

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

• You are an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• You are a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• You are a cadet or midshipman of the U.S. military academies.
• You are a member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• You are a member of the Ready Reserve or National Guard, assigned to a unit, and are scheduled to perform at least 12 periods of inactive training per year.
• You are a volunteer in an Individual Ready Reserve (IRR) mobilisation category.

If you are in non-pay status with the Ready Reserve or National Guard, you may still be eligible for full-time SGLI coverage if you meet both of the following requirements:

• You are scheduled for 12 periods of inactive training for the year.
• You are drilling for points rather than pay. Note that you must pay your premiums directly.

SGLI offers a maximum of $400,000 to $500,000 of coverage, in $50,000 increments, for a service member. This benefit can help cover costs for the death of a service member, allowing their family to focus on their grief rather than financial worries.

Applying for Veterans' Group Life Insurance (VGLI)

Veterans' Group Life Insurance (VGLI) is a life insurance program that allows service members to convert their Servicemembers' Group Life Insurance (SGLI) coverage to a renewable term life insurance program after leaving the service. Here is a detailed guide on applying for VGLI:

Eligibility for VGLI:

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

• You had part-time SGLI as a member of the National Guard or Reserve and suffered an injury or disability while on duty that disqualified you for standard premium insurance rates.
• You had SGLI while in the military and are within 1 year and 120 days of being released from active duty 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) 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 placed on the Temporary Disability Retirement List (TDRL).

Benefits of VGLI:

VGLI offers several benefits to veterans:

• Term life insurance benefits ranging from $10,000 to $500,000, based on the amount of SGLI coverage you had when leaving the military.
• The ability to increase coverage by $25,000 every 5 years up to $500,000 until you turn 60.
• Low premium rates based on your age and coverage amount, which were further lowered as of April 1, 2021.
• No need for a qualifying health exam if you apply within 240 days of leaving the military.
• The option to convert your VGLI policy into a commercial policy at any time without providing proof of good health.

How to Apply for VGLI:

You can apply for VGLI in one of two ways:

• Online through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website.
• By mail or fax: Fill out the Application for Veterans' Group Life Insurance (SGLV 8714) and send it to the following address:

OSGLI

PO Box 41618

Philadelphia, PA 19176-9913

It is important to note that you must apply for VGLI within 1 year and 120 days of leaving the military. If you apply within 240 days, you only need to submit the application and the first month's premium. However, if you apply after 240 days, you will also need to provide evidence that you are in good health.

Financial coverage for traumatic injury

Traumatic Injury Financial Protection (TSGLI) provides short-term financial assistance to service members and veterans who have suffered a traumatic injury. TSGLI is an automatic feature of Servicemembers' Group Life Insurance (SGLI) and provides payments to those who suffer losses due to traumatic injuries that occur during their service. These losses include amputations, blindness, and paraplegia. All service members insured by SGLI are automatically covered by TSGLI.

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 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 at least seven full days from the date of the injury.

The amount of financial support provided by TSGLI ranges from $25,000 to $100,000. This insurance is designed to help with expenses connected to recovery and rehabilitation from a traumatic injury. It is important to note that TSGLI is not disability compensation and does not affect entitlement to disability benefits from the Department of Veterans Affairs or the Defense Department.

If you believe you are eligible for TSGLI, you can file a claim by completing the Application for TSGLI Benefits (SGLV 8600) and submitting it to your service branch. If your claim has been denied in the past, you may be able to file a new claim, especially if your type of care is now included in the expanded TSGLI benefits.

Service-connected disability coverage

Veterans Affairs Life Insurance (VALife) is a new guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. The program offers coverage of up to $40,000, with lesser amounts available in increments of $10,000. The coverage takes effect two years after enrollment, as long as premiums are paid during the two-year period.

VALife was introduced on January 1, 2023, and replaced the Service-Disabled Veterans Life Insurance (S-DVI) program, which stopped accepting new applications after December 31, 2022. However, veterans who already had S-DVI coverage were given the option to either apply for VALife or keep their existing S-DVI policy.

The premium (the amount paid for coverage) under S-DVI depended on the amount of insurance, the coverage plan requested, and whether payments were made monthly or annually. While S-DVI offered premium waivers for veterans who were totally disabled, VALife does not offer such waivers.

In addition to VALife, the Department of Veterans Affairs (VA) offers financial coverage in the event of a traumatic injury or service-connected disability through programs such as Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI). SGLI is a low-cost group term life insurance program for servicemembers, while VGLI allows veterans to convert their SGLI to a civilian program of lifetime renewable term coverage after separation from service.

Survivor benefits for wartime veterans

Survivors of wartime veterans may be eligible for a range of benefits, including:

VA Survivors Pension

The Department of Veterans Affairs (VA) offers monthly payments to qualified surviving spouses and unmarried dependent children of wartime veterans. To be eligible, survivors must meet certain income and net worth limits set by Congress. Surviving spouses must not have remarried after the veteran's death, and the deceased veteran must not have received a dishonorable discharge. Additionally, the veteran's service must meet specific requirements, including active duty and service during a covered wartime period.

Dependency and Indemnity Compensation (DIC)

DIC is a monthly benefit paid to the surviving spouse, children, or parents of a veteran who passed away on or after January 1, 1957. To be eligible, the veteran's death must meet certain criteria, such as occurring while on active duty or due to a service-connected disability. DIC payment rates are adjusted annually and can provide significant financial support to survivors.

Survivor Benefit Plan (SBP)

Survivors may receive a monthly payment or annuity if the deceased veteran opted into and paid for an SBP. This insurance plan is elected upon retirement from military service and provides coverage to beneficiaries, including the surviving spouse, former spouse, children, or a disabled dependent. The SBP is protected from inflation and receives annual cost-of-living adjustments.

Health Care Benefits

The Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) offers health insurance to eligible survivors, covering the cost of health care services and supplies. Survivors may also be eligible for specific health programs, such as the Spina Bifida Health Care Benefits Program for children of Vietnam veterans and certain Korean War veterans.

Education and Training Benefits

Survivors of veterans may be eligible for educational benefits through programs like the Fry Scholarship and Survivors' and Dependents' Educational Assistance (DEA). These programs provide financial assistance for college, vocational training, and other educational pursuits.

Home Loan Benefits

Surviving spouses who meet certain criteria may be eligible for a VA-guaranteed home loan to purchase, build, or improve a home or refinance a mortgage. VA loans typically do not require a down payment and offer other advantages over traditional home loans.

Burial Benefits

Eligible veterans and their spouses and dependents can be buried in national cemeteries maintained by the VA at no cost to the family. The VA provides burial benefits, including grave opening and closing, perpetual care, a government headstone or marker, a burial flag, and a Presidential Memorial Certificate.

Frequently asked questions