Maximize Va Life Insurance: Strategies To Boost Your Coverage

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It offers low-cost coverage of up to $40,000 to veterans with service-connected disabilities, with no time limit to apply after receiving a disability rating. The premium depends on the veteran's age and coverage amount, with rates locked in at enrollment. Veterans' Group Life Insurance (VGLI) is another option, allowing veterans to maintain coverage after leaving the military by paying premiums. VGLI offers $10,000 to $500,000 in term life insurance benefits, with the ability to increase coverage by $25,000 every 5 years up to $500,000 until the age of 60.

Veterans' Group Life Insurance (VGLI)

Eligibility for VGLI

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

• You had part-time 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 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).

VGLI Benefits

With VGLI, you can get between $10,000 and $500,000 in term life insurance benefits, based on your SGLI coverage amount when you left the military. You can also increase your coverage by $25,000 every 5 years, up to $500,000, until you turn 60.

Applying for VGLI

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 don't need to provide proof of good health; otherwise, you must submit evidence of good health. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail/fax by filling out the Application for Veterans' Group Life Insurance (SGLV 8714).

VGLI Premium Rates

VGLI premium rates are based on your age and the amount of insurance coverage you want. As of April 1, 2021, the monthly premium rates range from $21.10 for $10,000 in coverage for an 18-year-old to $442.00 for $40,000 in coverage for a 95-year-old.

Choosing and Updating Beneficiaries

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

Converting VGLI to a Commercial Policy

You can convert your VGLI policy into a commercial (civilian) policy at any time and at standard premium rates without providing proof of good health. The conversion policy must be a permanent policy, such as a whole life policy, and cannot be converted to term, variable, or universal life insurance.

Servicemembers' Group Life Insurance (SGLI)

• Ready Reserve and National Guard members scheduled to perform at least 12 periods of inactive training per year
• Members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service
• Cadets and midshipmen of the U.S. military academies
• ROTC members

SGLI is a low-cost group term life insurance program for Servicemembers, with coverage of up to $500,000. The cost of SGLI is 6 cents per $1,000 of coverage, or $31 per month for $500,000 worth of coverage, including Traumatic Injury Protection (TSGLI). TSGLI provides protection against financial losses due to traumatic injuries, with coverage ranging from $25,000 to $100,000 depending on the nature of the injury.

You can make changes to your SGLI coverage or beneficiary at any time using the SGLI Online Enrollment System (SOES), available on the Defense Manpower Data Center website. You can reduce coverage in $50,000 increments or cancel it entirely.

When you leave the military, your SGLI coverage will stay in effect for 120 days after your discharge (or up to 2 years if you are totally disabled at separation). After leaving the service, you can convert your SGLI to Veterans' Group Life Insurance (VGLI), a similar program with premiums based on age.

Veterans Affairs Life Insurance (VALife)

VALife is available to veterans aged 80 or younger with a VA service-connected disability rating. There is no time limit to apply after receiving a disability rating. Veterans aged 81 or older may also be eligible if they applied for VA disability compensation for a service-connected disability before turning 81 and received a rating for that disability after turning 81. In this case, they must apply for VALife within two years of receiving their disability rating.

The premium rates for VALife depend on the age of the veteran when they apply and the amount of coverage they choose. The rates are locked in at the time of enrollment and do not increase over time. Premiums can be paid monthly or annually, with a 2.5% discount offered for annual payments. The mode of payment can be selected based on the veteran's preference, including deductions from VA compensation, military retirement pay, or checking account, or through e-billing via pay.gov.

VALife does not offer premium waivers or loans. However, it allows veterans to hold other commercial policies or VA life insurance policies in addition to this program.

Family Servicemembers' Group Life Insurance (FSGLI)

Eligibility

You may be eligible for FSGLI if you are the spouse or dependent child of a servicemember who meets one of the following requirements:

• The servicemember is on active duty and covered by full-time SGLI.
• The servicemember is a member of the National Guard or Ready Reserve covered by full-time SGLI.

Coverage

• Spouses of servicemembers are covered for up to a maximum of $100,000 or the amount of the servicemember's coverage (whichever is less). Military spouses must apply for coverage, while non-military spouses are covered automatically.
• Dependent children of servicemembers are covered for $10,000 each at no cost to the member.

Applying for Benefits

If you are covered under full-time SGLI and your spouse is not automatically covered, use the SGLI Online Enrollment System (SOES) to apply for coverage for them.

Contact

For questions about FSGLI, contact the Office of Servicemembers' Group Life Insurance (OSGLI) at their toll-free telephone number: 1-800-419-1473.

Service-Disabled Veterans Life Insurance (S-DVI)

The premium, or the amount you pay for your coverage, depends on the amount of insurance you have, the coverage plan you requested, and whether you pay once a month or annually. In some cases, the basic S-DVI policy provides a premium waiver for veterans who are totally disabled. However, if you have supplemental S-DVI coverage, you will need to pay premiums for this additional insurance even if you have a waiver for your basic S-DVI premiums.

If you have S-DVI and wish to switch to the new VALife program, you have two options:

• Apply for VALife by December 31, 2025: You can maintain your S-DVI coverage during the 2-year waiting period for VALife benefits. Once your full VALife coverage starts, your S-DVI coverage, including any premium waivers, will end. During the waiting period, you must pay premiums for both policies.
• Apply for VALife on or after January 1, 2026: Your S-DVI coverage, including premium waivers, will end when your VALife application is approved. During the 2-year waiting period, you only need to pay VALife premiums, but you won't have full coverage.

Note that VALife does not offer premium waivers, so if you have a waiver for S-DVI, it will not transfer to VALife.

Frequently asked questions