Military Life Insurance: Who Qualifies And How To Apply

Military life insurance is a benefit offered to active-duty members of the military and can be provided through the Department of Veterans Affairs (VA) Servicemembers' Group Life Insurance (SGLI) program. This program offers low-cost term coverage with a maximum coverage amount of $500,000, which has recently been increased from $400,000. Service members can determine their specific amount of coverage, with options available in $50,000 increments. SGLI has a standard coverage rate of six cents for every $1,000 in coverage, and premiums can be deducted from military pay. As part of the SGLI coverage, service members may be eligible for Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) benefits, which provide payments for certain losses during active duty, such as blindness or amputation. Additionally, totally disabled service members at the time of discharge may be eligible for a Servicemembers' Group Life Insurance Disability Extension, allowing them to keep their life insurance coverage for up to two years after discharge at no additional cost.

Servicemembers' Group Life Insurance (SGLI)

If you are an active-duty member of the military, you are likely eligible for SGLI. Specifically, you may qualify 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 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 if you meet these requirements, you will need to pay your premiums directly.

In addition to the benefits outlined above, SGLI offers 120 days of free coverage from the date you leave the military, as well as an extension of free coverage for up to 2 years if you are totally disabled when you leave the military. Part-time coverage is also available for Reserve members who don't qualify for full-time coverage.

You can make changes to your SGLI coverage, such as choosing your level of coverage or refusing coverage, through the SGLI Online Enrollment System (SOES). You can also choose your beneficiaries (the people you pick to get the money from your life insurance policy if you die) and change them as needed.

Veterans' Group Life Insurance (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 suffered an injury or disability while on duty that disqualified you for standard premium insurance rates.
• You had SGLI while serving 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). This includes members of the United States 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).

Benefits

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 $500,000, until you turn 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 for VGLI through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail/fax.

Premium Rates

The VGLI premium rates are based on your age and the desired amount of insurance coverage.

Beneficiaries

You can choose and update your beneficiaries as needed. To update your beneficiary information, you can access your policy online or fill out and submit a VGLI Beneficiary Designation form.

Conversion to Commercial Policy

You can convert your VGLI policy into a commercial (civilian) policy at any time without providing proof of good health. You will need to choose a new insurance company and apply at their local sales office.

Traumatic Injury Protection (TSGLI)

TSGLI provides $25,000 to $100,000 in short-term financial support to help in your recovery from a traumatic injury. To receive TSGLI payments, you will need to apply using the Application for TSGLI Benefits (SGLV 8600). Once complete, you can fax, email, or mail it to the VA.

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 have suffered the traumatic injury before midnight of the day that 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 not less than seven full days from the date of the traumatic injury (the 7-day period begins on the date and time of the injury and ends 168 full hours later).

The premium for TSGLI is a flat rate of $1 per month for most service members. This is included in the SGLI premium.

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

Service-Disabled Veterans Life Insurance (S-DVI) is a life insurance coverage option offered by the U.S. Department of Veterans Affairs (VA) for veterans with a service-connected disability. To qualify for an S-DVI policy, veterans must meet several criteria:

• They must have been released from active duty without a dishonorable discharge on or after April 25, 1951.
• They must be rated for a service-connected disability.
• They must be in good health, except for any service-related conditions.
• They must apply within two years of receiving their disability rating.

The S-DVI program stopped accepting new applications after December 31, 2022, but existing policyholders can retain their coverage. The premium rates for S-DVI plans depend on the amount of insurance, the coverage plan, and whether payments are made monthly or annually. In certain cases, veterans who are totally disabled may be eligible for a premium waiver for the basic S-DVI policy.

As an alternative, veterans with service-connected disabilities can apply for the Veterans Affairs Life Insurance (VALife) program, which began accepting applications on January 1, 2023. Those who already have S-DVI coverage can choose to apply for VALife or keep their existing policy. However, it is important to note that VALife does not offer premium waivers, and the waiver for S-DVI premiums will not transfer to VALife.

Veterans' Mortgage Life Insurance (VMLI)

• They must have a severe disability that was caused or made worse 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 of 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 coverage amount is determined by the outstanding mortgage balance and decreases as the loan is paid off. VMLI does not have any loan or cash value, and it does not pay dividends. The premium for VMLI is based on the current mortgage balance, the number of remaining payments, and the coverage amount.

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 application process involves filling out a Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that VMLI applications must be submitted before the veteran's 70th birthday.

Frequently asked questions