Vgli Life Insurance: Is It A Good Option?

Veterans' Group Life Insurance (VGLI) is a type of life insurance offered to former members of the military. VGLI is a continuation of the Servicemembers' Group Life Insurance (SGLI) coverage offered to active military personnel, and it allows veterans to keep their term insurance for life as long as they pay the premiums. While VGLI offers guaranteed acceptance and no medical exam, its rates can get high for older veterans, and it may not be the most cost-effective solution in the long run. This paragraph introduces the topic of VGLI and its pros and cons as a life insurance option for veterans.

VGLI is good for those who can't qualify for regular life insurance

Veterans' Group Life Insurance (VGLI) is a good option for those who cannot qualify for regular life insurance. It is a type of group term life insurance offered to former military members. Unlike regular life insurance plans, VGLI does not require a medical exam if you enroll within 240 days of leaving the service. This makes it a viable option for those who may not be in the best health or have pre-existing medical conditions.

VGLI offers guaranteed acceptance without any health review, regardless of the severity of your health conditions. This is especially beneficial for those with medical conditions that may make them uninsurable under regular insurance plans. Additionally, VGLI does not exclude applicants for reasons related to mental health, PTSD, or TBI.

The premiums for VGLI are based on age and the amount of coverage, with rates increasing as you get older. While this can make VGLI expensive in the long run, it is affordable for younger veterans. For example, a $100,000 policy would cost $12 a month at age 35 but increase to $60 a month at age 55.

VGLI also offers flexibility in payment options, allowing you to pay premiums monthly, quarterly, semi-annually, or annually. There is a 5% discount if you choose to pay annually.

Another advantage of VGLI is that it can be kept for life as long as you continue to pay the premiums, whereas most private insurers' term life insurance policies do not offer such longevity.

In summary, VGLI is a good option for those who cannot qualify for regular life insurance due to medical conditions or other reasons. It offers guaranteed acceptance, no medical exam, flexible payment options, and the ability to keep the policy for life. However, it is important to consider the increasing premiums as you age and explore other options available to find the best value for your needs.

VGLI rates are affordable for younger veterans

Veterans' Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. While VGLI offers guaranteed acceptance without a medical exam within 240 days of leaving service, its rates can get high for older veterans.

VGLI rates are determined by the age and the value of the death benefit selected. The lowest prices are offered to applicants younger than 30, with rates increasing every five years until age 80, when they top out. For instance, a $100,000 policy would cost $12 a month at age 35 but $60 a month at age 55.

For example, a healthy 30-year-old would pay a total of $315,300 for a $500,000 VGLI policy by age 80. In contrast, the same policy with a whole life insurance provider would cost $151,800 over the same period.

VGLI is a good option for those who smoke or have pre-existing medical conditions, as rates are based purely on age and do not factor in health or smoking status. However, for healthy applicants seeking coverage for a set period, a regular term life insurance policy may offer better value.

VGLI offers guaranteed acceptance without a medical exam

This is especially beneficial for those who smoke or have pre-existing medical conditions, as VGLI rates are based purely on age and do not factor in health or smoking status. However, it is important to note that VGLI rates increase with age, and maintaining coverage can become expensive for older veterans.

If you apply for VGLI after the 240-day period, you will need to submit medical details and prove that you are in good health. VGLI is a valuable option for those who cannot medically qualify for a regular life insurance policy, offering a guaranteed acceptance plan without the need for a medical exam.

VGLI is a continuation of SGLI coverage offered to active military personnel

Veterans’ Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. It is a continuation of Servicemembers' Group Life Insurance (SGLI) coverage offered to active military personnel. This means that to qualify for VGLI, one must hold SGLI coverage at the time of discharge. Qualifying active-duty service members are automatically enrolled in SGLI, which offers low-cost term coverage to eligible service members.

VGLI allows those who have left the military to keep their term insurance for life as long as they continue to pay the premiums. The amount of coverage one can get with VGLI ranges from $10,000 to $500,000, which can be adjusted if one's needs change. The amount of VGLI coverage one is eligible for is based on how much SGLI coverage they had when they left the military.

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

• 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 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 is a good option for those who smoke or have pre-existing medical conditions, as rates are based purely on age and do not factor in health or smoking status. However, VGLI rates can get high for older veterans, and the coverage amount is relatively low compared to other options. Additionally, VGLI offers only term life insurance, so the policy has a death benefit but does not build any cash value.

VGLI rates are determined by age and coverage amount

Veterans' Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. Death benefits range from $10,000 to $500,000 and can be adjusted if your needs change.

VGLI premium rates are based on age and the amount of coverage selected. The lowest prices are offered to applicants younger than 30, with rates increasing every five years until age 80, when they top out. You can still keep coverage after 80, and the price stops increasing based on age.

Here's a table showing VGLI rates for $100,000, $300,000, and $500,000 of coverage. These rates are sourced from the U.S. Department of Veterans Affairs and are valid as of July 29, 2024:

| Coverage Amount | Monthly Premium |

|---|---|

| $100,000 | $45 |

| $300,000 | $135 |

| $500,000 | $225 |

Compared to term life insurance, VGLI rates are competitive for young veterans but become more expensive over time. While VGLI rates increase every five years, term life insurance rates remain constant for the duration of the policy.

For example, a healthy 30-year-old can secure a $500,000 whole life insurance policy for an annual cost of $3,036 with Corebridge Financial. If they live to 80, they will have spent a total of $151,800. On the other hand, a VGLI policy for the same coverage would cost $315,300 by age 80.

VGLI rates are advantageous for smokers and those with pre-existing medical conditions, as they are not penalized with higher rates. However, for healthy applicants seeking coverage for a fixed period, shopping for a regular term life insurance policy may offer better value.

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