Life Insurance For Us Veterans: Who Qualifies?

Life insurance is a crucial consideration for veterans and their families. While it doesn't come free, it can offer financial security and peace of mind by covering costs in the event of a death or severe injury. In the US, the Department of Veteran Affairs offers various life insurance programs catering to veterans, service members, and their families. These include the Veterans Group Life Insurance (VGLI), Servicemembers' Group Life Insurance (SGLI), and Family Servicemembers' Group Life Insurance (FSGLI). Additionally, veterans with service-connected disabilities may be eligible for coverage through VALife, while those with severe disabilities can access mortgage protection insurance. It's important to note that eligibility requirements and coverage options vary, and veterans are advised to explore different plans to find one that suits their specific needs.

Veterans' Group Life Insurance (VGLI)

VGLI provides term life insurance benefits ranging from $10,000 to $500,000, based on the amount of SGLI coverage the veteran had when they left the military. Veterans can sign up for VGLI coverage up to the amount they had through SGLI and can increase their coverage by $25,000 every 5 years, up to a maximum of $500,000, until they turn 60 years old. To obtain these benefits, veterans must apply for VGLI within 1 year and 120 days of leaving the military. If they sign up within 240 days, they are not required to provide proof of good health; otherwise, they must submit evidence of their health.

The VGLI premium rates are determined by the age of the veteran and the desired amount of insurance coverage. VGLI allows veterans to choose their beneficiaries and modify them as necessary. Additionally, VGLI coverage can be converted to an individual insurance policy at standard premium rates without requiring proof of good health. However, the conversion policy must be a permanent policy, such as a whole life policy, and cannot be converted to term, variable, or universal life insurance.

Servicemembers' Group Life Insurance (SGLI)

SGLI offers a range of benefits, including coverage of up to $500,000 in $50,000 increments. It provides 120 days of free coverage from the date a Servicemember leaves the military and can be extended for up to two years if the member is totally disabled. Part-time coverage is also available for Reserve members who don't qualify for full-time coverage. Servicemembers can choose their level of coverage and beneficiaries, and they can make changes as needed. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, with an additional $1 per month for Traumatic Injury Protection coverage (TSGLI).

To access and manage SGLI benefits while serving, Servicemembers can use the SGLI Online Enrollment System (SOES). They can check their coverage, beneficiary information, and make any necessary updates. If Servicemembers need to make changes to their beneficiaries or coverage levels, they can submit these requests online through SOES.

When a Servicemember leaves the military, they have the option to apply for Veterans' Group Life Insurance (VGLI) within one year and 120 days from their discharge, for up to the amount of coverage they had through SGLI. They can also convert their SGLI policy into a civilian policy within 120 days of leaving the military. Additionally, if a Servicemember is disabled when they leave the military, they may be eligible for a free extension of their SGLI coverage for up to two years.

Family Servicemembers' Group Life Insurance (FSGLI)

Family Servicemembers Group Life Insurance (FSGLI) is a component of the Servicemembers' Group Life Insurance (SGLI) program. It provides coverage for spouses and children of Servicemembers insured under SGLI. Non-military spouses are covered automatically for $100,000 or the amount of the member's coverage, whichever is less. Military spouses must apply for coverage. Premiums for spouse coverage are based on the spouse's age and amount of coverage. Dependent children are covered for $10,000 each at no cost to the member.

To qualify for FSGLI, the Servicemember must be on active duty and covered by full-time SGLI, or they must be a member of the National Guard or Ready Reserve covered by full-time SGLI. The spouse of someone with SGLI coverage may qualify for FSGLI regardless of their own status (active duty, retired, or civilian).

Spouses can be signed up for FSGLI by the Servicemember through the SGLI Online Enrollment System (SOES). The Servicemember can log in to SOES using their CAC or DS Logon. If the spouse is signed up as a spouse in the Defense Enrollment Eligibility Reporting System (DEERS), the FSGLI premium will automatically be deducted from the Servicemember's pay. If the spouse is not signed up in DEERS, the Servicemember will be responsible for premiums and back payments. Servicemembers can also use SOES to reduce, decline, or restore FSGLI coverage.

Dependent children of Servicemembers covered under SGLI are automatically covered by FSGLI at no cost until the child is 18 years old. Coverage can be extended in some cases if the child is a full-time student between the ages of 18 and 22, or if the child becomes permanently and totally disabled before turning 18 and is no longer able to support themselves. In the latter case, coverage may be extended indefinitely.

Spousal FSGLI coverage can be converted to a permanent, individual insurance policy (such as whole life) within 120 days from the date of the Servicemember's separation from the military or written election to end spousal or SGLI coverage. The spouse becomes solely responsible for all aspects of the policy, including premium payments.

Traumatic Injury Protection (TSGLI)

TSGLI covers active-duty members, reservists, National Guard members, those on funeral-honours duty, or on one-day muster duty. To be eligible for payment, the following requirements must be met:

• The service member must be insured by SGLI at the time of the injury.
• The injury must result in a scheduled loss, such as amputations, blindness, or paraplegia, within 2 years (730 days) of the injury.
• The service member must survive for a period of at least 7 full days from the date of the injury.
• The injury must occur before midnight on the day the service member leaves the military.

The amount of short-term financial support provided by TSGLI ranges from $25,000 to $100,000. To receive payments, service members need to apply using the Application for TSGLI Benefits (SGLV 8600), which can be faxed, emailed, or mailed. The premium for TSGLI is a flat rate of $1 per month, deducted from the base pay of those with SGLI coverage.

On April 14, 2023, TSGLI benefits were expanded to include coverage for limb reconstruction surgeries, inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities, as well as care to support the transition from an inpatient facility to living at home (therapeutic pass).

Service-Disabled Veterans Life Insurance (S-DVI)

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. The elected coverage takes effect two years after enrollment, provided that premiums are paid during this period.

If you have S-DVI and choose to apply for VALife before December 31, 2025, you can keep your S-DVI coverage during the two-year waiting period for VALife benefits. Your S-DVI coverage will end when your full VALife coverage starts, and you will need to pay premiums for both policies during the waiting period.

If you apply for VALife on or after January 1, 2026, your S-DVI coverage will end the day your VALife application is approved. You will only need to pay VALife premiums during the two-year waiting period, but you will not have full coverage during this time. It is important to note that VALife does not offer premium waivers, so if you have a waiver for S-DVI premiums, it will not transfer to VALife.

The premium rates for S-DVI plans depend on the amount of insurance, the coverage plan requested, and whether payments are made monthly or annually. While supplemental S-DVI coverage requires the payment of premiums, the basic S-DVI policy provides a premium waiver for veterans who are totally disabled.

Frequently asked questions