Accessing Life Insurance Benefits For Deceased Veterans

The death of a loved one can be a difficult time, and the last thing you want to worry about is insurance. The US Department of Veterans Affairs (VA) offers life insurance to veterans and their families, including the Veterans Affairs Life Insurance (VALife) program, which provides low-cost coverage to veterans with service-connected disabilities. Here's a guide to help you navigate the process of obtaining life insurance for a deceased veteran and ensuring their loved ones are taken care of.

Veterans Affairs Life Insurance (VALife)

Eligibility for VALife

If you are 80 or younger, you are eligible for VALife if you have a VA service-connected disability rating, even if your rating is 0%. There is no time limit to apply after getting your disability rating.

If you are 81 or older, you may still be eligible for VALife if you meet the following requirements:

• Before turning 81, you applied for VA disability compensation for a service-connected disability.
• After turning 81, you received a rating for that same disability.
• You apply for VALife within two years of getting your disability rating.

Benefits of VALife

VALife offers the following benefits:

• Up to $40,000 in whole life insurance coverage, with the option to choose lower coverage in $10,000 increments.
• Cash value that starts to accumulate two years after your application is approved.
• Guaranteed acceptance, meaning that if you meet the eligibility requirements, your application will be automatically approved without the need to prove good health.
• The ability to keep your coverage for the rest of your life.
• Fixed premium rates that will never increase as long as you keep your VALife policy.

When Your Benefits Will Start

Your full life insurance coverage starts two years after you apply, as long as you pay the premiums during those two years. If you die during the two-year waiting period, your beneficiaries will receive the total amount you paid in premiums, plus interest. If you die after the waiting period, your beneficiaries will receive the full coverage amount of your policy.

How Much You'll Pay for VALife

Your premium depends on your age when you apply and the amount of coverage you want. If more than six months have passed since your last birthday, you will be considered one year older when determining your premium rate. VALife does not offer premium waivers or loans.

How to Apply for VALife

You can check your eligibility and apply for VALife online. When applying, you will need to submit your first premium payment. Once your application is approved, you will be notified by email, text, or both, and you can access, download, and print a copy of your policy through the VA life insurance portal.

Servicemembers' Group Life Insurance (SGLI)

SGLI offers benefits such as coverage up to $500,000 in $50,000 increments, 120 days of free coverage from the date of leaving the military, and the option to extend free coverage for up to 2 years if the Servicemember is totally disabled upon leaving the military. Part-time coverage is also available for Reserve members who do not qualify for full-time coverage.

The cost of SGLI is affordable, with a monthly premium that is automatically deducted from the Servicemember's base pay. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, including an additional $1 per month for Traumatic Injury Protection coverage (TSGLI). For example, for $500,000 in coverage, the monthly premium is $30, plus $1 for TSGLI, totaling a monthly deduction of $31.

To access and manage SGLI benefits, Servicemembers can utilize the SGLI Online Enrollment System (SOES). This system allows them to select their desired level of coverage, choose their beneficiaries, and make any necessary updates to their information. It is important to keep beneficiary information up to date to ensure a smooth process for family members filing claims in their time of need.

When transitioning out of military service, Servicemembers have options to continue their life insurance coverage. They can apply for Veterans' Group Life Insurance (VGLI) within 1 year and 120 days from their date of discharge, maintaining the same coverage amount they had through SGLI. Alternatively, they can choose to convert their SGLI coverage to a permanent, individual insurance policy within 120 days of their discharge without needing to provide proof of good health.

Veterans' Group Life Insurance (VGLI)

Eligibility

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

• 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).
• 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 from standard premium insurance rates.

Benefits

With VGLI, you can receive between $10,000 and $500,000 in term life insurance benefits, based on your SGLI coverage when you left the military. You can increase your coverage by $25,000 per year after getting VGLI and then every 5 years until you reach a total of $500,000, up until you turn 60 years old.

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 of leaving the military, you don't need to prove you're in good health. However, if you apply after this 240-day period, you will need to submit evidence of good health.

You can apply for VGLI in the following ways:

• Online through the Office of Servicemembers' Group Life Insurance (OSGLI), using the Prudential website.
• By mail or fax. Fill out the Application for Veterans' Group Life Insurance (SGLV 8714).

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 vary depending on the coverage amount.

Beneficiaries

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

Converting VGLI Coverage

You can convert your VGLI coverage to an individual insurance policy by choosing a new insurance company from the list of participating companies and applying at their local sales office. You will need to provide a VGLI Conversion Notice letter from OSGLI to the agent taking your application. It's important to note that the conversion policy must be a permanent policy, such as a whole life policy, and supplementary policy benefits are not included in the conversion.

Family Servicemembers' Group Life Insurance (FSGLI)

If you are the civilian spouse of a service member with full-time SGLI, you will be automatically insured under FSGLI, with the premium automatically deducted from your service member's pay. If you are a military spouse married on or after January 2, 2013, you will need your service member to sign you up online through the SGLI Online Enrollment System (SOES). The service member can log in with their CAC or DS Logon and select 'Manage my SGLI' to sign up.

The premium for spousal coverage will increase as the spouse ages, and the service member is responsible for these payments. The service member can reduce, turn down, or cancel spousal coverage by submitting changes online through SOES.

Dependent children are automatically covered and this coverage cannot be turned down, reduced, or cancelled. Coverage lasts until the child is 18 years old, but may be extended if the child is a full-time student between 18 and 22 years old, or if they become permanently and totally disabled before turning 18 and are no longer able to support themselves.

Spousal FSGLI coverage can be converted to a permanent, individual insurance policy (e.g. whole life) within 120 days from the date of the service member's separation from the military, written election to end spousal SGLI coverage, or written election to end their SGLI coverage. To convert FSGLI coverage, the spouse must choose a company from the list of participating companies, apply at their local sales office, and provide a copy of the most recent Leave and Earnings Statement (LES) showing the deduction for spousal SGLI, along with proof of coverage.

To file a claim for death benefits under FSGLI, complete form SGLV 8283A, Claim for Family Coverage Death Benefits, and contact your Branch of Service Casualty Assistance Office for assistance in submitting the form to the Office of Servicemembers Group Life Insurance (OSGLI).

Service-Disabled Veterans Life Insurance (S-DVI)

The basic S-DVI policy offers a premium waiver for veterans who are totally disabled. However, for those with supplemental S-DVI coverage, premiums must be paid even if they have a waiver for basic S-DVI premiums. It's important to note that supplemental S-DVI also stopped accepting new applications after December 31, 2022.

If you are an existing S-DVI policyholder, you have two options: you can either apply for the new VALife program or choose to keep your existing S-DVI coverage. If you apply for VALife before December 31, 2025, you can retain your S-DVI coverage during the 2-year waiting period for VALife benefits. However, you will need to pay premiums for both policies during this period. On the other hand, if you apply for VALife on or after January 1, 2026, your S-DVI coverage will end once your VALife application is approved, and you will only need to pay VALife premiums during the waiting period. It's important to note that VALife does not offer premium waivers.

For any queries or further information, you can contact the VA Life Insurance Center at 800-669-8477 (TTY: 711).

Frequently asked questions