Setting Up Life Insurance Benefits For Veterans

If you are a US veteran, you may be eligible for free life insurance benefits through the Veterans Affairs Life Insurance (VALife) program. VALife is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. The program offers coverage of up to $40,000, with lesser amounts available in increments of $10,000. To be eligible for VALife, you must have a service-connected disability, and the coverage takes effect two years after enrollment as long as premiums are paid during the two-year period. In addition to VALife, the US Department of Veterans Affairs offers several other life insurance programs, including Servicemembers' Group Life Insurance (SGLI), Veterans' Group Life Insurance (VGLI), and Family Servicemembers' Group Life Insurance (FSGLI). Each program has different eligibility requirements and benefits, so be sure to review the details of each program to determine which one is right for you.

Servicemembers' Group Life Insurance (SGLI)

The insurance costs 6 cents per $1,000 of coverage, with an additional $1 monthly charge for Traumatic Injury Protection (TSGLI), which provides coverage for traumatic injuries. This brings the monthly premium to $31 for $500,000 worth of coverage. You are automatically insured for the maximum amount of $500,000 unless you choose otherwise. You can reduce the insurance by $50,000 increments or cancel it entirely.

When you leave the military, your SGLI will stay in effect for 120 days after your discharge. After leaving, you can convert your SGLI to a Veterans' Group Life Insurance (VGLI) policy, a similar program. VGLI rates are based on age and do not feature the same flat premiums as the SGLI program.

You can make changes to 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.

Veterans' Group Life Insurance (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 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 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).

VGLI provides term life insurance benefits ranging from $10,000 to $500,000, based on your previous SGLI coverage amount. When leaving the military, you can sign up for VGLI coverage up to the amount you had through SGLI and increase it by $25,000 every 5 years up to $500,000 until you turn 60.

To obtain these benefits, you must apply for VGLI within 1 year and 120 days of leaving the military. If you apply within 240 days, you don't need to prove you're in 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 with form SGLV 8714.

VGLI premium rates are determined by your age and desired coverage amount. You can choose your beneficiaries and modify them as needed, either by accessing your policy online or by filling out form SGLV 8721. Additionally, you can convert your VGLI policy into a commercial policy at any time without providing proof of good health.

Family Servicemembers' Group Life Insurance (FSGLI)

Non-military spouses are covered automatically for $100,000 or the amount of the member's coverage, whichever is less. Military spouses must apply for coverage. Premiums for spouse coverage are based on the spouse's age and amount of coverage. Dependent children are covered for $10,000 each at no cost to the member.

To qualify for FSGLI, you must be the spouse or dependent child of a Servicemember (Active Duty or Ready Reserve) who has full-time SGLI coverage. A "dependent child" includes any unmarried child in one of the following categories:

• A natural child of the Servicemember
• A legally adopted child
• A stepchild who is a member of the Servicemember's household
• A child between the ages of 18 and 23 who is a full-time student, or a child who became permanently incapable of self-support before age 18

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. To access SOES, go to Benefits, Life Insurance SOES- SGLI Online Enrollment System. Your service member can log in with their CAC or DS Logon as soon as they receive notice that they can start using SOES.

If you are a military spouse and you were married on or after 2 January 2013, you won't be automatically covered. You'll need your service member to sign you up online through SOES.

Your service member will pay a premium for your coverage, which will increase as you age. Coverage for a spouse can be up to a maximum of $100,000, not exceeding the service member's SGLI coverage.

Dependent children get free coverage and it can be extended in some cases. Coverage lasts until the child is 18 years old. But, if the child is a full-time student between 18 and 22 years old, or if the child becomes permanently and totally disabled before turning 18 and is no longer able to support themselves, coverage may be extended.

Traumatic Injury Protection Life Insurance (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 of 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.

TSGLI benefits have been expanded to include:

• Limb reconstruction surgeries.
• Inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities.
• Care to help transition from an inpatient facility to living at home (therapeutic pass).

The premium for TSGLI is a flat rate of $1 per month for most service members. To apply for TSGLI benefits, complete and file form SGLV 8600. If your application for benefits is denied, you can file an appeal using form SGLV 8600A.

Veterans' Mortgage Life Insurance (VMLI)

• You have a severe disability caused or made worse by your service.
• You received a Specially Adapted Housing (SAH) grant to buy, build, or modify a home to live more independently. Modifications may include installing ramps or widening doorways.
• You have the title of the home.
• You have a mortgage on the home.
• You are 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 your mortgage. The amount of coverage will be equal to the amount still owed on the mortgage but 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 paid off, the VMLI coverage will end. Additionally, VMLI does not offer loan or cash value, nor does it pay dividends.

To apply for VMLI, you must first apply for an SAH grant. If you receive the grant, your loan guaranty agent will inform you of your eligibility for VMLI. If you already have an SAH grant, you can ask your agent about VMLI. They will assist you in completing a Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). Remember, you must apply for VMLI before your 70th birthday. The cost of VMLI will depend on the current balance of your mortgage loan, the number of remaining mortgage payments, and the amount of VMLI coverage required.

Frequently asked questions