Veterans Administration: Understanding Employee Life Insurance Benefits

is veterans administration employees life insurance free

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It offers up to $40,000 in coverage, with the option to choose lesser amounts in $10,000 increments. The full coverage amount takes effect two years after enrollment, provided that premiums are paid during the two-year period. While VALife is a low-cost insurance option, it is not free. The premium depends on the age of the veteran when they apply and the amount of coverage they choose. This premium rate is locked in and never increases as long as the policy is maintained.

Characteristics Values
Name of insurance Veterans Affairs Life Insurance (VALife)
Who is it for? Veterans with service-connected disabilities
Age limit Under 80
Coverage Up to $40,000 in whole life insurance coverage (in $10,000 increments)
Cost Depends on age and amount of coverage; locked in at the rate paid when enrolled
Payment options Monthly or annually
Application Online
Application deadline No time limit to apply after getting a disability rating
Waiting period Full coverage starts 2 years after application
Cash value Starts to add up 2 years after application approval
Loans No

shunins

Veterans Affairs Life Insurance (VALife)

Eligibility for VALife

To be eligible for VALife, you must have a VA service-connected disability rating and be aged 80 or younger. If you are aged 81 or older, you may still be eligible if you applied for VA disability compensation for a service-connected disability before you turned 81 and received a rating for that disability after turning 81. In this case, you must apply for VALife within two years of getting your disability rating.

Benefits of VALife

VALife offers up to $40,000 in whole life insurance coverage, with cash value starting to accumulate two years after your application is approved. The coverage amount can be chosen in increments of $10,000. VALife is a guaranteed acceptance policy, meaning that if you meet the eligibility requirements, your application will be automatically approved without the need to prove good health. You can keep your VALife coverage for life.

Premium Rates and Payment Options

Your premium rate for VALife will depend on your age when you apply and the amount of coverage you choose. The premium rate will never increase as long as you keep your policy, and you can choose to pay your premium either monthly or annually.

When Your Benefits Will Start

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

Applying for VALife

You can check your eligibility and apply for VALife online. If your application is approved, you will be notified by email, text, or both, and you can then access, download, and print a copy of your policy through the VA life insurance portal.

Who Gets the Life Insurance Payout?

You may want to see also

shunins

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 military service, and the option to extend free coverage for up to two years if the service member is totally disabled upon leaving the military. Part-time coverage is also available for reserve members who don't qualify for full-time coverage.

Service members can choose their level of coverage or decline it entirely. They can also select their beneficiaries and change them as needed. Changes to SGLI coverage can be made through the SGLI Online Enrollment System (SOES).

The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, with 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.

When service members leave the military, they can apply for Veterans' Group Life Insurance (VGLI) within one year and 120 days from their date of discharge, retaining the same coverage amount as their SGLI. They also have the option to convert their SGLI coverage to a permanent, individual insurance policy within 120 days of their discharge without proof of good health.

If a service member is totally disabled or has a specific severe condition upon discharge, they may be eligible for a free extension of their SGLI coverage for up to two years.

shunins

Veterans' Group Life Insurance (VGLI)

Veterans Group Life Insurance (VGLI) is a type of life insurance offered by the US government to veterans who had Servicemembers' Group Life Insurance (SGLI) while they were in the military. VGLI allows veterans to convert their SGLI to a civilian program of lifetime renewable term coverage after separation from service.

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 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) 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 provides term life insurance benefits ranging from $10,000 to $500,000, based on the amount of SGLI coverage you had 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 years old.

To receive VGLI benefits, you must apply within 1 year and 120 days of leaving the military. If you apply within 240 days, you won't need to prove you're in good health. After the 240-day period, you'll need to submit evidence of good health. You can apply for VGLI through the Office of Servicemembers' Group Life Insurance (OSGLI) using their website or by mail/fax.

VGLI premium rates are based on your age and the amount of insurance coverage you choose. You can choose your beneficiaries and change them as needed. Additionally, you have the option to convert your VGLI coverage to an individual insurance policy at standard premium rates without providing proof of good health.

shunins

Family Servicemembers' Group Life Insurance (FSGLI)

Family Servicemembers Group Life Insurance (FSGLI) is a type of life insurance offered by the US Department of Veterans Affairs. It provides coverage for the spouses and dependent children of service members who are insured under Servicemembers' Group Life Insurance (SGLI).

Eligibility for FSGLI

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

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

Spouses of service members covered under SGLI may qualify for FSGLI regardless of their own status (i.e. active duty, retired, or civilian). Dependent children of service members covered under SGLI are also eligible for FSGLI.

Coverage Amounts and Costs

FSGLI provides up to a maximum of $100,000 in coverage for spouses, which cannot exceed the service member's SGLI coverage. Dependent children are covered for $10,000 each, and this coverage is provided at no cost. The service member will pay a premium for spousal coverage, which increases as the spouse ages.

Applying for and Managing FSGLI Benefits

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

To make changes to FSGLI coverage, such as reducing or cancelling it, service members can submit these changes through SOES. It is important to keep beneficiary information up to date to ensure family members can file claims when needed.

Converting FSGLI Coverage to an Individual Policy

Spousal FSGLI coverage can be converted to a permanent, individual insurance policy within 120 days of the service member's separation from the military or their election to end SGLI coverage. After conversion, the spouse becomes solely responsible for all aspects of the policy, including premium payments. To convert FSGLI coverage, spouses must choose a company from the list of participating companies and apply at their local sales office.

shunins

Veterans' Mortgage Life Insurance (VMLI)

Veterans Mortgage Life Insurance (VMLI) is a program that provides mortgage protection insurance to the families of veterans with severe service-connected disabilities who have adapted their homes to accommodate their needs. This insurance is available to veterans who have received a Specially Adapted Housing (SAH) grant to buy, build, or modify a home to increase their independent living.

To be eligible for VMLI, veterans must meet several requirements, including having a severe disability caused or worsened by their service, holding the title to the home, having a mortgage on the home, and being under 70 years old. The insurance provides up to $200,000 in coverage, which is paid directly to the bank or lender holding the mortgage. The coverage amount equals the outstanding mortgage balance but does not exceed $200,000, and it decreases as the mortgage balance is paid down.

To apply for VMLI, veterans must first apply for an SAH grant. If approved for the grant, a loan guaranty agent will determine eligibility for VMLI. The application process involves completing the Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that VMLI must be applied for before the veteran's 70th birthday.

The VMLI premium is calculated based on the current mortgage balance, the remaining mortgage term, and the required coverage amount. The program offers peace of mind to eligible veterans and their families, ensuring that their adapted homes can be retained even in the face of tragedy.

For further information, veterans can contact the Department of Veterans Affairs and utilise the various support services available.

Frequently asked questions

No, VALife is not free for employees. However, it does provide low-cost coverage to veterans with service-connected disabilities. The premium you pay depends on your age and the amount of coverage you want, but it will never increase once you have locked it in by enrolling.

The maximum coverage under VALife is $40,000, with the option to get lesser coverage in increments of $10,000.

You are eligible for VALife if you are aged 80 or younger and have a VA service-connected disability rating. If you are aged 81 or older, you may still be eligible if you applied for VA disability compensation before you turned 81 and received a rating for that disability after turning 81. You must also apply for VALife within 2 years of getting this rating.

You can apply for VALife by accessing the VALife online application. The application will provide an immediate decision, although in rare cases an employee may need to review your application.

Yes, you can have other commercial policies or VA life insurance policies such as Veterans' Group Life Insurance or Veterans' Mortgage Life Insurance.

Written by
Reviewed by
Share this post
Print
Did this article help you?

Leave a comment