Retired Military: What Life Insurance Benefits Are Available?

Military life insurance is a crucial benefit for service members, veterans, and their families, providing financial security and peace of mind. The US government offers various life insurance programs, including Servicemembers' Group Life Insurance (SGLI) and Veterans Group Life Insurance (VGLI). SGLI provides low-cost term coverage to active-duty members of the military, while VGLI allows veterans to maintain their life insurance coverage after leaving the military by paying premiums. Understanding these options is essential for retired military personnel to ensure they and their loved ones are protected financially in the event of death or traumatic injury.

Eligibility for Servicemembers' Group Life Insurance (SGLI)

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible military members. If you meet the eligibility criteria, you will be automatically insured under SGLI for a maximum of $500,000, unless you choose otherwise.

To be eligible for full-time SGLI coverage, you must 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 are 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 non-pay status with the Ready Reserve or National Guard, you may still 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. Note that you must pay your premiums directly in this case.

Applying for SGLI

If you qualify for SGLI, you will be automatically signed up through your service branch. Check with your unit's personnel office for more information. You can always make changes to the amount of your SGLI coverage or change your beneficiary using the SGLI Online Enrollment System (SOES), which is available on the Defense Manpower Data Center website. You can reduce the insurance in $50,000 increments or cancel it entirely.

Benefits of SGLI

SGLI provides a range of benefits, including:

• Coverage up to a maximum 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.
• Traumatic Injury Protection (TSGLI), which provides protection against financial loss due to traumatic injuries. This coverage ranges from $25,000 to $100,000 depending on the nature of the injury.

Veterans' Group Life Insurance (VGLI)

Veterans Group Life Insurance (VGLI) is a program that allows retired military personnel to maintain their life insurance coverage after leaving the armed forces for as long as they continue to pay the premiums. This is a valuable benefit for veterans who wish to ensure their loved ones are financially protected in the event of their death. Here is some detailed information about VGLI:

Eligibility:

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 you suffered an injury or disability while on duty that disqualified you from standard premium insurance rates.
• You had SGLI while on active duty in the military and are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You are within 1 year and 120 days of retiring or being discharged from the Ready Reserve or National Guard.
• You are within 1 year and 120 days of being assigned to the Individual Ready Reserve (IRR) or the Inactive National Guard (ING), including members of the US Public Health Service Inactive Reserve Corps (IRC).
• You are within 1 year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

Benefits:

VGLI provides term life insurance benefits ranging from $10,000 to $500,000. The benefit amount is determined by your SGLI coverage level when you left the military. You can increase your coverage by $25,000 every 5 years, up to a maximum of $500,000, until you reach the age of 60.

Application Process:

To apply for VGLI, you must do so within 1 year and 120 days of leaving the military. If you apply within 240 days, you are not required to provide proof of good health. However, if you apply after this period, you must submit evidence of good health. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) online or by mail/fax.

Premium Rates:

The premium rates for VGLI are based on your age and the desired amount of insurance coverage. As of April 1, 2021, the monthly premium rates vary depending on the coverage amount.

Beneficiaries:

You have the option to choose your beneficiaries, and you can modify them as needed. You can update your beneficiary information by accessing your policy online or by filling out and submitting a VGLI Beneficiary Designation form.

Conversion to Commercial Policy:

You can convert your VGLI policy into a commercial or civilian policy at any time. This conversion is done at standard premium rates, and you are not required to provide proof of good health. The new policy must be a permanent policy, such as whole life insurance, and not term, variable, or universal life insurance.

Contact Information:

For queries about VGLI or SGLI, you can contact the Office of Servicemembers' Group Life Insurance (OSGLI) at 800-419-1473 or via email to the Prudential Insurance Company.

Converting SGLI to a civilian policy

Military members can convert their Servicemembers Group Life Insurance (SGLI) to a civilian policy within 120 days of leaving the military. This is a good option for those who have a condition that would make buying a commercial life insurance policy more expensive, or who may be prevented from purchasing a commercial policy altogether.

To convert SGLI to a civilian policy, you must:

• Choose a new insurance company from the list of participating companies.
• Apply at the local sales office of your chosen company.
• Provide the agent with a copy of your separation document (Form DD-214 or NGB-22, or written Reservist orders along with a copy of your last Leave & Earnings Statement (LES)).

It is important to note that the conversion policy must be a permanent policy, such as a whole life policy. Other types of policies, such as term, variable life, or universal life insurance, are not allowed as conversion policies. Additionally, supplementary policy benefits, like Accidental Death and Dismemberment or Waiver of Premium for Disability, are not considered part of the conversion policy.

The cost of SGLI is 6 cents per $1,000 of coverage, with servicemembers able to purchase coverage in $50,000 increments up to a maximum of $400,000. On the other hand, VGLI premiums can be purchased in $10,000 increments and are based on age.

When deciding whether to convert SGLI to a civilian policy, it is important to consider the advantages and disadvantages of doing so. One advantage is that if you apply within 240 days of leaving active duty service, you will not be required to take a physical or make a statement of health. Additionally, if you apply for a civilian policy within 120 days of leaving the service, the premium rates will only be based on age and not other factors such as health, gender, or whether you are a smoker.

However, one disadvantage is that the maximum amount of life insurance coverage you can convert to a civilian policy is limited to the maximum amount of coverage you had under SGLI. Therefore, it is recommended to increase your SGLI coverage to the maximum limit allowed before separating from the military. Additionally, civilian life insurance premiums may be more expensive for some individuals, especially those who are young and in good health, so it is advisable to shop around and compare premiums before making a decision.

Applying for VGLI

Veterans' Group Life Insurance (VGLI) is a program that allows retired military personnel to maintain their life insurance coverage after leaving the military, provided they continue paying the premiums. The following paragraphs outline the process of applying for VGLI.

Eligibility for VGLI

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 you suffered an injury or disability while on duty that disqualified you from standard premium insurance rates.
• You had SGLI while you were in the military and are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or the Inactive National Guard (ING), including members of the US Public Health Service Inactive Reserve Corps (IRC).
• You are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

Life Insurance Benefits with VGLI

With VGLI, you can receive between $10,000 and $500,000 in term life insurance benefits. The benefit amount is based on your SGLI coverage when you left the military. You can increase your coverage by $25,000 every 5 years, up to a maximum of $500,000, until you turn 60 years old.

Application Process

To apply for VGLI, you must do so within 1 year and 120 days of leaving the military. There are two ways to apply:

• Online through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website.
• By mail or fax. Fill out the Application for Veterans' Group Life Insurance (SGLV 8714) and send it to the OSGLI address: OSGLI PO Box 41618 Philadelphia, PA 19176-9913.

If you apply within 240 days of leaving the military, you are not required to provide proof of good health. However, if you apply after this period, you must submit evidence of being in good health.

Premium Rates

The VGLI premium rates depend on your age and the desired insurance coverage amount. You can find the monthly premium rates on the official website, with rates updated as of April 1, 2021.

Beneficiary Designation

You can choose your beneficiaries and make changes as needed. To update your beneficiary information, you can either access your policy online through the Prudential Life Insurance Company of America or fill out a VGLI Beneficiary Designation form (SGLV 8721) and mail it to the OSGLI address.

Converting VGLI Policy

You can convert your VGLI policy into a commercial (civilian) policy at any time. Conversions are made at standard premium rates, and you don't need to provide proof of good health. To convert your policy, choose a new insurance company from the list of participating companies and apply at their local sales office. Then, obtain a VGLI Conversion Notice from OSGLI and provide it to the agent handling your application. It is important to note that the conversion policy must be a permanent policy, such as a whole life policy, and cannot be term, variable, or universal life insurance.

Assistance with Claims

If you have questions or need assistance with your VGLI claim, you can contact the Office of Servicemembers' Group Life Insurance (OSGLI) by calling 800-419-1473 or emailing the Prudential Insurance Company. Customer service professionals are available Monday through Friday, between 8:00 a.m. and 5:00 p.m. Eastern Time.

Updating VGLI beneficiaries

Veterans' Group Life Insurance (VGLI) is a way to keep your life insurance coverage after leaving military service. To continue coverage, you must pay your premiums. It is important to keep your beneficiary information up to date to make it easier for your family to file a claim and receive benefits quickly. Review your beneficiary information at least once a year and after significant life events, such as marriage, divorce, or the birth of a child.

The quickest way to update your VGLI beneficiary is to access your VGLI policy online. You can also download and complete the VGLI Beneficiary Designation/Change Form (SGLV 8721) and fax or mail it to the Office of Servicemembers' Group Life Insurance (OSGLI).

To update your beneficiary information online, find your policy through the Prudential Life Insurance Company of America. You can also access your policy through the VGLI Online Account website. After logging in, you can make changes to your beneficiary designation and coverage amount.

If you prefer to update your beneficiary information via mail, download and complete the VGLI Beneficiary Designation/Change Form (SGLV 8721). Mail the completed form to:

OSGLI

P.O. Box 41618

Philadelphia, PA 19176-9913

Remember to keep your beneficiary information current and to review it regularly to ensure your family can access the benefits without unnecessary delays.

Frequently asked questions