Understanding Service Life Insurance: Duration And Benefits

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible military members. SGLI coverage can last for up to 120 days after discharge from the military, after which individuals can convert their SGLI to Veterans' Group Life Insurance (VGLI), which offers continued coverage as long as premiums are paid.

SGLI coverage lasts 120 days after discharge from the military

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all military members. SGLI coverage lasts 120 days after discharge from the military. This means that if you are a service member, your SGLI coverage will remain in effect for 120 days after you leave the military. During this time, you are still insured under the SGLI policy, which offers a maximum coverage amount of $500,000.

It is important to note that you have the option to make changes to your SGLI coverage at any time, including during the 120-day period after discharge. You can reduce the coverage, cancel it entirely, or change your beneficiary (the person who receives the insurance money in the event of your death). These changes can be made through the SGLI Online Enrollment System (SOES) on the Defense Manpower Data Center website.

After you are discharged from the military, you may also choose to convert your SGLI coverage to Veterans' Group Life Insurance (VGLI), a similar program that allows you to maintain life insurance coverage after leaving the military. To be eligible for VGLI, you must apply within 1 year and 120 days of your discharge date. This option allows you to continue life insurance coverage for as long as you pay the premiums.

Additionally, if you become totally disabled or unable to work due to specific conditions, you may be eligible for a free extension of your SGLI coverage for up to 2 years after your discharge. This extension is known as the Servicemembers' Group Life Insurance Disability Extension (SGLI-DE), and it provides continued coverage during a period of disability.

In summary, SGLI coverage provides peace of mind and financial protection to service members, and it lasts for 120 days after discharge from the military. This gives former service members time to make decisions about their future insurance needs and make any necessary adjustments to their coverage.

SGLI can be converted to VGLI after discharge

Servicemembers' Group Life Insurance (SGLI) is a low-cost group life insurance program for active service members. Veterans' Group Life Insurance (VGLI), on the other hand, is a similar low-cost group life insurance program for military veterans.

SGLI offers eligible service members coverage of up to $500,000, in $50,000 increments, at a monthly premium of 6 cents per $1,000 of insurance coverage. This premium includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI).

When service members leave the military, they can apply to convert their SGLI coverage to VGLI within 1 year and 120 days from their date of discharge. The application process can be completed online or via postal mail. The online application will instantly evaluate the application and provide a response. The postal mail option involves mailing the application form, the first month's premium, and a copy of the DD 214 or other proof of service to the Office of Servicemembers' Group Life Insurance (OSGLI).

It is important to note that the maximum amount of life insurance coverage that can be converted from SGLI to VGLI is limited to the maximum amount of coverage the service member had under SGLI. Therefore, it is advisable to increase SGLI coverage to the maximum limit allowed before discharge.

VGLI premiums are purchased in $10,000 increments and are based on the veteran's age, which means premiums can increase rapidly as the veteran ages. For this reason, it is recommended to shop around and compare life insurance premiums before electing to purchase VGLI.

VGLI has some advantages over civilian life insurance policies. Firstly, if the application is submitted within 240 days of discharge, the veteran is not required to provide evidence of good health. Secondly, VGLI premium rates are based solely on age, not health, gender, or other factors. Therefore, if a veteran has health factors that may affect their life insurance eligibility, VGLI is a good option.

However, VGLI may be more expensive than traditional term life insurance policies, so it is important to consider individual circumstances and explore the options available outside of the VGLI program before making a decision.

VGLI coverage lasts as long as premiums are paid

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all military members. When you leave the military, your SGLI coverage will stay in effect for 120 days. After that, you can convert your SGLI to Veterans' Group Life Insurance (VGLI), a similar program that allows you to keep your life insurance coverage for as long as you continue to pay the premiums.

VGLI is a great option for former service members who want to maintain their life insurance coverage. To be eligible for VGLI, you must meet at least one of the following requirements:

• 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) or the Inactive National Guard (ING).
• You're within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).
• 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.

It's important to note that VGLI premium rates are based on your age and the amount of insurance coverage you want. The coverage amount can range from $10,000 to $500,000, depending on how much SGLI coverage you had when you left the military. If you had the maximum SGLI coverage, you can maintain that same level of coverage with VGLI.

To sign up for VGLI, you must apply within 1 year and 120 days of leaving the military. If you apply within 240 days, you won't need to provide proof of good health. However, if you apply after this period, you'll need to submit evidence of your health.

In conclusion, VGLI provides former service members with the valuable option to continue their life insurance coverage as long as they pay the required premiums. It's a flexible and customizable program that takes into account the unique needs and circumstances of those who have served our country.

SGLI costs 6 cents per $1,000 of coverage

Servicemembers' Group Life Insurance (SGLI) is a low-cost term insurance policy for eligible service members. SGLI costs 6 cents per $1,000 of coverage, which is a very affordable rate compared to many private life insurance options. This means that the maximum coverage of $400,000 will cost $24 per month.

The SGLI rate changed in July 2019, decreasing from 7 cents per $1,000 of coverage to the current rate of 6 cents. This change made SGLI even more affordable, reducing the cost of the maximum coverage by $4 per month.

In addition to the basic SGLI premium, there is also a $1 per month charge for Traumatic Injury Protection (TSGLI) coverage, which provides financial assistance for service members who experience a severe or traumatic injury, including injuries that occur on or off duty. With the TSGLI premium included, the total monthly premium deduction for $400,000 worth of coverage is $25.

SGLI is a group life insurance policy, which means that military members are eligible for the same premiums regardless of their age, gender, health, smoking status, or other factors. In contrast, individual life insurance plans purchased on the open market typically have rates based on these individualized factors. As a result, SGLI can be an excellent and cost-effective option, especially for those who may face higher rates in the private market due to their age or health conditions.

SGLI provides important financial protection for service members and their families, and the low cost of 6 cents per $1,000 of coverage makes it an attractive choice for those seeking life insurance coverage during their military service.

SGLI includes Traumatic Injury Protection (TSGLI)

Servicemembers' Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. SGLI includes Traumatic Injury Protection (TSGLI), which provides short-term financial support to service members with qualifying injuries to help cover expenses related to their recovery and rehabilitation. This coverage is available to those who were insured by SGLI when they experienced a traumatic injury and meet certain other requirements.

TSGLI provides automatic traumatic injury coverage to all service members under the SGLI program, offering a layer of protection for severe injuries incurred on or off duty. It is not limited to combat injuries. The insurance covers active-duty members, reservists, National Guard members, those on funeral honours duty, and one-day muster duty.

To be eligible for TSGLI benefits, individuals must meet specific criteria. Firstly, they must have been insured by SGLI when they experienced the traumatic injury. Additionally, they must have incurred a scheduled loss that is a direct result of the traumatic injury. The injury must have occurred before midnight on the day of their separation from the military, and the scheduled loss must have taken place within two years (730 days) of the injury. Moreover, the individual must have survived for at least seven full days from the date of the traumatic injury.

TSGLI benefits can provide financial assistance ranging from $25,000 to $100,000. The premium for TSGLI is a flat rate of $1 per month, automatically deducted from the base pay of most service members. To receive benefits, eligible individuals need to submit an application form, and in the case of a denial, they can appeal the decision using the TSGLI Appeal Request Form.

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