Retired Military: Free Life Insurance Benefits Explained

Military personnel have access to life insurance coverage through Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI). SGLI is a low-cost term coverage option for eligible active-duty service members, while VGLI allows former service members to maintain their life insurance coverage after leaving the military as long as they continue to pay the premiums. Both programs offer coverage amounts ranging from $10,000 to $500,000, with the ability to increase coverage over time. Understanding these insurance options is crucial for retired and retiring military personnel to ensure they have the necessary financial protection for themselves and their loved ones.

Veterans' Group Life Insurance (VGLI)

Veterans Group Life Insurance (VGLI) is a program that allows veterans to maintain their life insurance coverage after leaving the military, provided they continue paying the premiums. This program is available to both active-duty and reserve service veterans.

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

• They 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 them from standard premium insurance rates.
• They 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.
• They are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• They are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING), including members of the US Public Health Service Inactive Reserve Corps (IRC).
• They are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

The life insurance benefits offered by VGLI range from $10,000 to $500,000 in term life insurance. The benefit amount is based on the individual's SGLI coverage when they left the military. When signing up for VGLI, individuals can choose coverage up to the amount they had through SGLI and can increase it by $25,000 every 5 years until they reach $500,000 or turn 60 years old.

To obtain VGLI benefits, individuals must apply within 1 year and 120 days of leaving the military. If they apply within 240 days, they are not required to provide proof of good health. However, if they apply after this period, they must submit evidence of being in good health. Applications can be made through the Office of Servicemembers' Group Life Insurance (OSGLI) online or by mail/fax.

VGLI premium rates are determined by the individual's age and desired coverage amount. Beneficiaries can be chosen and updated as needed by accessing the policy online or by filling out and submitting a form.

Eligibility for VGLI

Veterans’ Group Life Insurance (VGLI) is a program that allows veterans to keep their life insurance coverage after leaving the military, as long as they continue to pay the premiums. The amount of coverage provided by VGLI ranges from $10,000 to $500,000 in term life insurance benefits, based on the amount of Servicemembers' Group Life Insurance (SGLI) coverage the veteran had when they left the military.

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

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

It is important to note that VGLI coverage must be applied for within 1 year and 120 days of leaving the military. If the application is made within 240 days of leaving the military, proof of good health is not required. However, if the application is made after the 240-day period, evidence of good health must be submitted.

VGLI premium rates are based on the age of the veteran and the amount of insurance coverage desired. Additionally, VGLI coverage can be converted to an individual insurance policy at standard premium rates without providing proof of good health.

Applying for VGLI

Veterans’ Group Life Insurance (VGLI) is a way for veterans to keep their life insurance coverage after leaving the military, provided they continue to pay the premiums. To apply for VGLI, you must meet at least one of the following eligibility 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 to 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).

If you meet any of these requirements, you can 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 this period, you will need to submit evidence of good health.

You can apply for VGLI in the following ways:

• Apply online through the Office of Servicemembers’ Group Life Insurance (OSGLI) using the Prudential website.
• Apply 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.

If you need assistance with your application, customer service professionals are available to help. You can call 800-419-1473, Monday through Friday, between 8:00 a.m. and 5:00 p.m. Eastern Time.

Premium rates for VGLI

Veterans’ Group Life Insurance (VGLI) is life insurance for retired military personnel. VGLI is only available to those who had a Servicemembers Group Life Insurance (SGLI) policy during their time in service.

VGLI premium rates are based on the insured person's age and the amount of insurance coverage they want. The more coverage, the higher the monthly premium rate. For example, a 30-year-old male in good health with $250,000 of coverage would pay a monthly premium of $66.65.

VGLI premium rates increase every five years as the policyholder enters a new age bracket. While VGLI rates are competitive for young veterans, they are average or high for healthy veterans and increase dramatically as the policyholder gets older. For instance, in a comparison of the cost of 50 years of coverage through VGLI against the cost of purchasing term or whole life insurance coverage for the same period through USAA, VGLI's rates were found to be 39% more expensive than whole life insurance over the course of 50 years.

Other factors that influence premium rates for most types of insurance, such as tobacco use and weight, are not included in the cost of VGLI. This means that VGLI rates are outstanding for overweight smokers with pre-existing medical conditions.

Servicemembers' Group Life Insurance (SGLI)

Eligibility

You may be eligible for full-time SGLI coverage if you 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 scheduled to perform at least 12 periods of inactive training per year.
• You are a volunteer in an Individual Ready Reserve (IRR) mobilization category.

If you are in nonpay status with the Ready Reserve or National Guard, you may 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.

Benefits

With SGLI, you can get benefits such as:

• Coverage up to the top limit of $500,000—in $50,000 increments.
• 120 days of free coverage from the date you left the military.
• Extension of free coverage for up to 2 years (if you are totally disabled) when you leave the military.
• Part-time coverage (if you are a Reserve member who doesn’t qualify for full-time coverage).

Cost

If you have SGLI coverage, you will pay a monthly premium that will be automatically taken out of your base pay. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage. The premium includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI).

Conversion to VGLI or an Individual Insurance Policy

When you leave the military, you can apply for Veterans' Group Life Insurance (VGLI) within 1 year and 120 days from your date of discharge for up to the amount of coverage you had through SGLI.

You also have the option to convert your SGLI coverage to a permanent, individual insurance policy (like whole life) within 120 days from your date of discharge without proof of good health.

Frequently asked questions