Life Insurance And The Military: What's Covered?

Military personnel and their families have access to life insurance options through the Department of Veterans Affairs (VA) and private insurers. Servicemembers' Group Life Insurance (SGLI) is a VA program that provides low-cost group life insurance to all military members, with a maximum coverage of $500,000. SGLI includes Traumatic Injury Protection (TSGLI), which provides financial assistance for losses due to traumatic injuries, with coverage ranging from $25,000 to $100,000. After leaving the military, SGLI can be converted to Veterans' Group Life Insurance (VGLI), which offers similar benefits. Other VA life insurance programs include Family Servicemember's Group Life Insurance (FSGLI), Service Disabled Veteran Insurance (S-DVI), and Veterans' Mortgage Life Insurance (VMLI).

Servicemembers' Group Life Insurance (SGLI)

SGLI is a great option for military members as it is a low-cost life insurance program available to all military members. It is a group life insurance policy, which means that if you are in the military, you are eligible for the same SGLI premiums as everyone else, regardless of your age, gender, health, smoking status, high-risk factors such as your MOS or military career field, or other factors. This can be especially beneficial for those who are in an older age group or who have health conditions or other high-risk situations that would make life insurance more expensive to purchase on their own.

SGLI also includes Traumatic Injury Protection (TSGLI). This coverage 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. TSGLI is billed as part of the SGLI premium and is a flat rate of $1 per month.

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 in $50,000 increments or cancel it entirely.

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

Veterans' Group Life Insurance (VGLI)

Veterans Group Life Insurance (VGLI) is a group life insurance policy available for veterans from the U.S. Department of Veterans Affairs (VA). When you leave the military, you have up to one year and 120 days from your discharge to apply for a VGLI policy. This covers up to the amount of coverage that you carried with your Servicemembers' Group Life Insurance (SGLI) policy while enlisted and continues as lifetime renewable term coverage.

If you had SGLI while on active duty, you may be eligible for VGLI, which insures both active duty and reserve service veterans. Policyholders who held part-time SGLI coverage may be eligible for VGLI if they sustained an injury or disability that disqualifies them from standard premium life insurance rates.

You can get between $10,000 and $500,000 in term life insurance benefits with VGLI. The amount you’ll receive will be based on how much SGLI coverage you had when you left the military. You can also increase your coverage by $25,000 every five years up to $500,000 until you’re 60 years old.

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 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).

You’ll need to apply for VGLI 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. If you sign up after the 240-day period, you’ll need to submit evidence that you’re in good health.

Traumatic Injury Protection (TSGLI)

If you are signed up for full-time Servicemembers' Group Life Insurance (SGLI), you are automatically covered by TSGLI. Coverage applies to active-duty members, reservists, National Guard members, funeral honours duty, and one-day muster duty.

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 of the day you separate from the uniformed services.
• You must suffer a scheduled loss within two years (730 days) of the traumatic injury.
• You must survive for a period of not less than seven full days from the date of the traumatic injury.

The benefit amount ranges from $25,000 to $100,000 in short-term financial support to aid in your recovery. To receive TSGLI 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 as part of your SGLI premium.

Service-Disabled Veterans' Insurance (S-DVI)

Service-Disabled Veterans Insurance (S-DVI) is a life insurance coverage option offered by the U.S. Department of Veterans Affairs (VA) to veterans with service-connected disabilities. This program provides permanent and term life insurance plans with a maximum face value of $10,000.

To be eligible for S-DVI, veterans must meet specific criteria:

• Released from active duty without a dishonorable discharge on or after April 25, 1951.
• Rated for a service-connected disability, even if it is only a 0% rating.
• In good health, except for any service-related conditions.
• Application submitted within two years of receiving the disability rating from the VA.

It is important to note that the S-DVI program stopped accepting new applications after December 31, 2022. However, veterans who already had the plan were allowed to keep it. For those seeking new coverage after this date, the VA introduced a new program called Veterans Affairs Life Insurance (VALife), specifically for veterans with service-connected disabilities.

The premium rates for S-DVI are based on the veteran's age and amount of coverage they choose. Veterans who are totally disabled may be eligible for a waiver of the monthly premiums. Additionally, those who qualify for the premium waiver can obtain an additional policy of up to $30,000 if they pay the premiums.

Veterans' Mortgage Life Insurance (VMLI)

• They must have a severe disability caused or worsened by their military service.
• They must have received a Specially Adapted Housing (SAH) grant to buy, build, or modify a home to live more independently.
• They must hold the title to the home.
• They must have a mortgage on the home.
• They must 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. If a veteran already has an SAH grant, they can inquire about VMLI with their agent. The agent will assist in completing 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 based on the current mortgage balance, the remaining number of mortgage payments, and the desired amount of coverage. The VMLI Premium Calculator can be used to estimate the premium amount. To maintain VMLI coverage, veterans must notify the Department of Veterans Affairs of any changes to their mortgage, such as transferring to another lender, refinancing, or making other adjustments.

Frequently asked questions