Life Insurance And Military Death: What's Covered?

Life insurance is a necessity for military families, and there are several options available to service members and veterans. The US government provides Servicemembers' Group Life Insurance (SGLI) to active-duty members of the military, which offers a maximum coverage of $500,000 and includes Traumatic Injury Protection (TSGLI). SGLI coverage terminates 120 days after leaving active duty, but severely injured service members can receive free coverage for two years after leaving. Veterans can also apply for Veterans' Group Life Insurance (VGLI), which is renewable term coverage for up to the amount of their prior SGLI policy.

Servicemembers' Group Life Insurance (SGLI)

You are automatically insured under SGLI for the maximum amount of $500,000 unless you choose otherwise. The VA raised the maximum from $400,000 to $500,000 in March 2023. You can always make changes to the amount of your SGLI coverage or change your beneficiary (the person who gets the money if you die) by using the SGLI Online Enrollment System (SOES), which is available on the Defense Manpower Data Center website. You can reduce the insurance by $50,000 increments or cancel it entirely.

SGLI costs 6 cents per $1,000 of coverage. All SGLI participants must pay a $1 monthly charge for Traumatic Injury Protection (TSGLI), bringing the monthly premium to $31 for $500,000 worth of coverage. TSGLI provides protection against loss due to traumatic injuries and is designed to provide financial assistance to members so their loved ones can be with them during their recovery from their injuries. The coverage ranges from $25,000 to $100,000 depending on the nature of the injury.

When you get out of the military, your SGLI will stay in effect for 120 days after your discharge. After you get out, you can convert your SGLI to Veterans' Group Life Insurance (VGLI), a similar program, if you wish.

To qualify for SGLI coverage, you must meet qualifications under at least one of the following categories:

• Active-duty members of the Army, Air Force, Navy, Marines, Space Force, or Coast Guard
• Commissioned members of the U.S. Public Health Service (USPHS) or the National Oceanic and Atmospheric Administration (NOAA)
• Members, cadets, and midshipmen of the U.S. military academies, Reserve Officers Training Corps (ROTC), the Ready Reserve, or National Guard
• Volunteers in the Individual Ready Reserve (IRR) mobilization category

If you are considered non-pay status with the Ready Reserve or National Guard, there are two requirements for full-time SGLI coverage that you must meet. You must be drilling for points instead of pay and must be scheduled for 12 periods of inactive training during the year. In this case, you will also pay your premium directly to your SGLI policy rather than having it automatically deducted from your military pay.

Veterans' Group Life Insurance (VGLI)

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

• Had part-time SGLI coverage as a member of the National Guard or Reserve and suffered an injury or disability that disqualified them from standard premium insurance rates.
• Had SGLI coverage while in the military and are within one year and 120 days of being released from active duty.
• Are within one year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• Are within one year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING).
• Are within one year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

Veterans must apply for VGLI within one year and 120 days of leaving the military. If they apply within the first 240 days, they are not required to provide proof of good health. However, if they apply after this period, they must submit evidence of their health status. Applications can be made online, by mail, or by fax.

The VGLI policy can be converted into a commercial (civilian) policy at any time, without providing proof of good health. The conversion policy must be a permanent policy, such as whole life insurance, and supplementary benefits are not included in the conversion. VGLI premium rates are determined by the age of the veteran and the desired amount of insurance coverage.

Traumatic Injury Protection (TSGLI)

To be eligible for TSGLI, 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 separate from the uniformed services.
• You must suffer a scheduled loss within 2 years (730 days) of the traumatic injury.
• You must survive for a period of at least 7 full days from the date of the traumatic injury.

The amount of financial support provided by TSGLI ranges from $25,000 to $100,000. To receive payments, you will need to apply using the Application for TSGLI Benefits (SGLV 8600). You can fax, email, or mail the completed form to the VA. The premium for TSGLI is a flat rate of $1 per month, which is automatically deducted from your base pay.

TSGLI benefits have been expanded to include limb reconstruction surgeries, inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities, as well as care to help transition from an inpatient facility to living at home (therapeutic pass).

Veterans' Mortgage Life Insurance (VMLI)

VMLI offers up to $200,000 in mortgage life insurance, which is paid directly to the bank or lender that holds the mortgage. The coverage amount is determined by the outstanding mortgage balance and will 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. If the mortgage is fully paid off, the VMLI coverage will end. 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, the loan guaranty agent will determine eligibility for VMLI. The agent will then assist in completing the necessary forms, including the Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that VMLI must be applied for before the veteran's 70th birthday. The VMLI premium is calculated based on the current mortgage balance, the remaining number of mortgage payments, and the required VMLI coverage amount.

VMLI provides valuable financial protection for eligible disabled veterans and their families, ensuring that their loved ones will not be burdened by the mortgage in the event of their death. It is a beneficial option for those who have adapted their homes to accommodate their service-connected disabilities and require assistance in managing their mortgage obligations.

Service-Disabled Veterans Life Insurance (S-DVI)

The S-DVI program provides low-cost coverage to eligible service members, and the premium amount depends on factors such as the insurance amount, the chosen coverage plan, and the payment frequency (monthly or annually). The S-DVI policy includes a basic plan and a supplemental plan, with the former offering a premium waiver for totally disabled veterans under certain conditions. However, for the supplemental plan, premiums must be paid even if a waiver is granted for the basic plan.

It is important to note that the S-DVI program stopped accepting new applications after December 31, 2022. Veterans who already have S-DVI coverage can choose to retain it or apply for the new Veterans Affairs Life Insurance (VALife) program, which started accepting applications on January 1, 2023. If the application for VALife is submitted by December 31, 2025, the S-DVI coverage can be maintained during the two-year waiting period for VALife benefits. However, if the application is made on or after January 1, 2026, the S-DVI coverage will end upon approval of the VALife application.

Frequently asked questions