Life Insurance For Army Personnel: What You Need To Know

Life insurance is a crucial consideration for military personnel and their families, offering financial security in the event of injury, disability, or death. The US government provides Servicemembers' Group Life Insurance (SGLI), a low-cost option for active-duty members, covering up to $500,000, with a free 120-day extension after leaving the military. SGLI includes Traumatic Injury Protection, aiding recovery with financial support for injuries like blindness or amputation. Veterans can transition to Veterans' Group Life Insurance (VGLI), maintaining coverage by paying premiums. VGLI offers term life insurance of up to $500,000, with the option to increase coverage every five years until the age of 60.

Servicemembers' Group Life Insurance (SGLI)

SGLI participants are automatically insured for the maximum amount unless they choose otherwise. The current basic premium rate is 6 cents per $1,000 of insurance coverage, or $30 per month for the maximum coverage of $500,000. This premium includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI), bringing the total monthly premium for maximum coverage to $31. TSGLI provides protection against financial loss due to traumatic injuries, with coverage ranging from $25,000 to $100,000 depending on the nature of the injury.

SGLI participants can make changes to their coverage amount or beneficiary at any time using the SGLI Online Enrollment System (SOES). When a service member leaves the military, their SGLI coverage remains in effect for 120 days. They can also choose to convert their SGLI policy to a Veterans' Group Life Insurance (VGLI) policy or a civilian policy within this 120-day period. If a service member is totally disabled at the time of discharge, they may be eligible for a free SGLI extension for up to two years.

Veterans' Group Life Insurance (VGLI)

• Veterans must have had part-time Servicemembers' Group Life Insurance (SGLI) as a member of the National Guard or Reserve and have suffered an injury or disability that disqualified them from standard premium insurance rates while on duty, including direct travel to and from duty.
• Veterans must have had SGLI coverage while in the military and apply for VGLI within one year and 120 days of being released from active duty for 31 or more days.
• Veterans must apply within one year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• Veterans must apply within one year and 120 days of assignment to the Individual Ready Reserve (IRR) or the Inactive National Guard (ING), including members of the United States Public Health Service Inactive Reserve Corps (IRC).
• Veterans must apply within one year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

The amount of coverage provided by VGLI ranges from $10,000 to $500,000 in term life insurance benefits, based on the SGLI coverage the veteran had when they left the military. Veterans can increase their coverage by $25,000 every five years, up to a maximum of $500,000, until they reach the age of 60. To obtain VGLI benefits, veterans must apply within one year and 120 days of leaving the military. If they apply within 240 days, they are not required to provide proof of good health; otherwise, they must submit evidence of their health status.

VGLI premium rates are determined by the age of the veteran and the desired amount of insurance coverage. Beneficiaries can be chosen or updated as needed, and policies can be converted into commercial (civilian) policies at standard premium rates without providing proof of good health.

Traumatic Injury Protection (TSGLI)

TSGLI provides $25,000 to $100,000 in short-term financial support to aid in your recovery from a traumatic injury. Recovering from such an injury can take time, and TSGLI helps cover you financially during this period.

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

• You must be insured by SGLI when you experience a traumatic injury.
• You must incur a scheduled loss, and that loss must be a direct result of a traumatic injury.
• You must suffer the traumatic injury before midnight on the day you leave the military.
• You must suffer a scheduled loss within two years (730 days) of the traumatic injury.
• You must survive for a period of no less than seven full days from the date of the traumatic injury.

TSGLI benefits have been expanded to include:

• Limb reconstruction surgeries.
• Inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities.
• Care to help transition from an inpatient facility to living at home (therapeutic pass).

The premium for TSGLI is a flat rate of $1 per month for most service members. To receive TSGLI payments, you will need to apply using the Application for TSGLI Benefits (SGLV 8600). Once completed, you can fax, email, or mail it to the VA.

Service-Disabled Veterans' Life Insurance (S-DVI)

Service-Disabled Veterans Life Insurance (S-DVI) is a life insurance coverage option offered by the Department of Veterans Affairs (VA) to veterans with a service-connected disability. This program provides low-cost coverage to eligible service members and has specific requirements that must be met to qualify.

To be eligible 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, with the exception of service-related conditions.
• Application within two years of receiving a disability rating.

It is important to note that the S-DVI program stopped accepting new applications after December 31, 2022. However, if you already have S-DVI coverage, you can choose to keep it or apply for the new Veterans Affairs Life Insurance (VALife) program. VALife is specifically designed for veterans with service-connected disabilities and has been accepting applications since January 1, 2023.

The cost of S-DVI premiums depends on factors such as the amount of insurance coverage, the coverage plan, and whether payments are made monthly or annually. In some cases, veterans who are totally disabled may be eligible for a premium waiver for the basic S-DVI policy. However, if you have supplemental S-DVI coverage, you will need to pay premiums even with a waiver for the basic policy.

Veterans' Mortgage Life Insurance (VMLI)

• Have a severe disability caused or worsened by their service
• Have received a Specially Adapted Housing (SAH) grant to buy, build, or make changes to a home to live more independently
• Hold the title of the home
• Have a mortgage on the home
• Be under 70 years old

VMLI provides up to $200,000 in mortgage life insurance, which is paid directly to the bank or lender that holds the mortgage. The amount of coverage equals the outstanding mortgage amount but does not exceed $200,000. It is important to note that VMLI is a decreasing-term insurance, meaning that the coverage amount decreases as the mortgage balance is paid off. Additionally, VMLI does not have any loan or cash value, and it does not pay dividends.

To apply for VMLI, veterans must first apply for an SAH grant. If approved for the grant, a loan guaranty agent will determine eligibility for VMLI. The next step is to complete the Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that veterans must apply for VMLI before their 70th birthday. The VMLI premium is calculated based on the current mortgage balance, the remaining number of mortgage payments, and the required coverage amount.

VMLI provides valuable protection for eligible disabled veterans and their families, ensuring that their homes are secure even in the face of tragedy.

Frequently asked questions