Dependants' Coverage Under Veterans Group Life Insurance Explained

Veterans' Group Life Insurance (VGLI) is a program that allows veterans to buy term life insurance when they leave the military. The coverage amount ranges from $10,000 to $500,000, and the maximum coverage is the same as the Servicemembers' Group Life Insurance (SGLI) coverage held at the end of their service. VGLI provides an easy way to ensure there is no gap in life insurance coverage, even if the veteran later switches to a more cost-effective option. Spouses and dependent children can also be added to the veteran's coverage.

Eligibility for VGLI

Veterans' Group Life Insurance (VGLI) is a program that allows veterans to buy term life insurance when they leave the military. The maximum coverage is the same as the Servicemembers' Group Life Insurance (SGLI) coverage carried at the end of their service. 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 suffered an injury or disability while on duty that disqualified you for standard premium insurance rates.
• You had SGLI while you were in the military and you're within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You're within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You're 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're within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

It's 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 won't need to prove you're in good health. After the 240-day period, you will need to submit evidence of good health. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) online or by mail/fax using Form SGLV 8714.

VGLI provides an opportunity for veterans to ensure they have life insurance coverage without any medical questions or review. The coverage amount ranges from $10,000 to $500,000, and the premium rates are based on age and desired coverage. Additionally, VGLI allows for beneficiary updates, and coverage can be converted to an individual insurance policy at standard premium rates without health requirements.

VGLI vs. whole life insurance

Veterans' Group Life Insurance (VGLI) is a life insurance program that allows service members to convert their Servicemembers' Group Life Insurance (SGLI) coverage to term life insurance that is renewable every five years. Members with full-time SGLI coverage are eligible for VGLI when they leave the service.

VGLI coverage is issued in multiples of $10,000 up to a maximum of $500,000. However, a service member's VGLI coverage amount can't be more than the SGLI they had when they left the service. The amount of coverage one is eligible for is based on how much SGLI coverage they had when they exited the military.

VGLI premium rates are based on the age of the insured person and the amount of insurance coverage they want. The premium rates as of April 1, 2021, can be found on the official website.

VGLI is different from whole life insurance coverage, which is a permanent policy. VGLI is term-based and renewable every five years. Whole life insurance also accumulates cash value over time, whereas VGLI does not.

One of the benefits of VGLI is that it allows service members to continue their life insurance coverage after leaving the military, as long as they continue to pay the premiums. VGLI is also convertible to an individual insurance policy at standard premium rates without providing proof of good health.

In contrast, whole life insurance typically offers more comprehensive coverage and includes investment components. Whole life insurance policies also have level premiums, meaning the premiums remain the same throughout the life of the policy.

Both VGLI and whole life insurance have their advantages and disadvantages. VGLI may be more affordable and accessible for those transitioning out of the military, while whole life insurance may offer more long-term stability and investment opportunities.

Ultimately, the decision between VGLI and whole life insurance depends on an individual's specific needs, financial situation, and long-term goals. It is always recommended to carefully review the terms, conditions, and limitations of any insurance policy before making a decision.

Applying for VGLI

Veterans' Group Life Insurance (VGLI) allows veterans to convert their SGLI to a civilian program of lifetime renewable term coverage after leaving the service. To apply for VGLI, you must do so within 1 year and 120 days of leaving the military. If you sign up within 240 days of leaving the military, you won't need to prove you're in good health. After the 240-day period, you will need to submit evidence of being in good health.

You can apply for VGLI in one of the following ways:

• Apply through the Office of Servicemembers' Group Life Insurance (OSGLI), using the Prudential website. You can apply online through OSGLI. Customer service professionals are available to assist you from Monday to Friday, between 8:00 a.m. and 5:00 p.m. Eastern Time. You can also call the Office of Servicemembers' Group Life Insurance (OSGLI) at 800-419-1473 or email the Prudential Insurance Company if you have any questions.
• Apply by mail or fax. Fill out the Application for Veterans' Group Life Insurance (SGLV 8714). You can download the form and mail it to the following address: OSGLI PO Box 41618 Philadelphia, PA 19176-9913.

To reinstate a VGLI policy that has expired, you'll need to fill out an Application for Reinstatement of VGLI Coverage (SGLV 180).

VGLI premiums

Veterans' Group Life Insurance (VGLI) is a form of life insurance that veterans can apply for within 1 year and 120 days of leaving the military. VGLI premium rates are based on the age of the veteran and the amount of insurance coverage desired. For example, a 65-year-old veteran seeking $500,000 in coverage would pay approximately $700 per month in 2024.

Veterans can increase their VGLI coverage by $25,000 every 5 years, up to a maximum of $500,000, until they turn 60 years old. The application process for VGLI involves either applying online or by mail/fax, and proof of good health is required if applying after 240 days of leaving the military.

It is important to note that VGLI rates are subject to change. While they decreased by an average of seven percent across all age groups in April 2021, veterans should stay updated with the latest premium rates to make informed decisions about their insurance coverage.

Converting VGLI to an individual insurance policy

Veterans' Group Life Insurance (VGLI) allows veterans to convert their Servicemembers' Group Life Insurance (SGLI) to a civilian program of lifetime renewable term coverage after separation from service.

• Choose a new insurance company: Select a company from the list of participating companies.
• Apply at the local sales office: Visit the local sales office of your chosen company and submit your application.
• Obtain a VGLI Conversion Notice: Get a letter from the Office of Servicemembers' Group Life Insurance (OSGLI) verifying your VGLI coverage. Provide a copy of this notice to the agent who takes your application.
• Standard premium rates and no health requirements: You'll be able to convert at standard premium rates, and you won't need to provide proof of good health.
• Permanent policy requirement: The conversion policy must be a permanent policy, such as a whole life policy. You cannot convert to other types of policies, like term, variable life, or universal life insurance.
• Supplementary policy benefits: Supplementary benefits, such as Accidental Death and Dismemberment or Waiver of Premium for Disability, are not included in the conversion policy.

Frequently asked questions