Orlando Harmon
Veterans' Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. It is an extension of Servicemembers' Group Life Insurance (SGLI), which covers active military personnel. VGLI allows veterans to continue their SGLI coverage after leaving the military, providing comprehensive lifelong coverage as long as premiums are paid. The amount of coverage depends on the SGLI policy during active service, with the option to increase coverage over time. VGLI offers death benefits ranging from $10,000 to $500,000, with no membership fees. It is important to note that VGLI premiums increase with age and differ from whole life insurance policies, which accumulate cash value.
| Characteristics | Values |
|---|---|
| Type of Insurance | Term life insurance |
| Provider | Prudential |
| Eligibility | Former military service members who had SGLI during active service |
| Application Period | Within 1 year and 120 days of leaving the military |
| Medical Exam Required | Not required if applied within 240 days of leaving the military |
| Coverage Amount | $10,000 to $500,000 |
| Premium Rates | Based on age and coverage amount |
| Premium Payment | Monthly |
| Coverage Exclusions | Fewer exclusions compared to traditional life insurance; covers deaths related to pre-existing conditions, acts of war, and acts of terrorism |
| Coverage Limit | Maximum coverage of $400,000 to 500,000 until age 60 |
| Coverage Increase | Can increase coverage by $25,000 every 5 years until age 60 |
| Accelerated Death Benefit | Yes, access to a portion of the death benefit if terminally ill |
| Membership Fees | None |
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What You'll Learn
VGLI is a type of group term life insurance for former military members
Veterans’ Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. It is an extension of Servicemembers’ Group Life Insurance (SGLI), which covers active military personnel. VGLI allows veterans to continue their SGLI coverage after leaving the military, providing them with term life insurance benefits.
To be eligible for VGLI, individuals must have had SGLI coverage during their active military service and apply for VGLI within a specific time frame after leaving the military. The application deadline is typically within one year and 120 days of discharge or separation from service. If individuals apply within the first 240 days, they are not required to provide proof of good health. However, if they apply after this period, they must meet certain health requirements to qualify for VGLI coverage.
The amount of VGLI coverage depends on the SGLI coverage held during military service. VGLI offers death benefits ranging from $10,000 to $500,000, which can be adjusted over time. The premiums for VGLI increase as the insured individual ages and are based on the age and desired coverage amount. While VGLI does not accumulate cash value, it can be converted into a civilian whole life insurance policy, allowing access to a cash value account that grows based on a fixed rate of interest.
VGLI provides comprehensive coverage with relatively few exclusions. It covers deaths related to pre-existing conditions, acts of war, and acts of terrorism. Additionally, VGLI includes an accelerated death benefit feature, allowing individuals to access a portion of their policy's payout if they become terminally ill with a prognosis of nine months or less to live. VGLI also has no membership or enrollment fees, similar to many group life insurance programs offered by private employers.
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VGLI offers $10,000 to $500,000 in death benefits
Veterans’ Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. It allows them to continue their Servicemembers' Group Life Insurance (SGLI) coverage after they separate from service. VGLI offers $10,000 to $500,000 in death benefits, which can be adjusted if needs change. The amount of the death benefit is based on the level of SGLI coverage the policyholder had while in the military.
To be eligible for VGLI, applicants must apply within 1 year and 120 days of leaving the military, and they must have had SGLI coverage at the time of discharge. If applicants sign up within 240 days of leaving the military, they are not required to provide proof of good health. After this period, they must submit evidence of good health and meet certain requirements to qualify for coverage.
The monthly premiums for VGLI are based on the policyholder's age and the death benefit amount. The rates change for each age range every five years. For example, at age 30, the policyholder would pay $45 per month for $500,000 of coverage, which would increase to $165 per month by age 50 for the same death benefit.
VGLI is a good option for those who smoke or have a medical condition that could prevent them from qualifying for affordable life insurance coverage. However, if the applicant is healthy and seeking coverage for 10 to 30 years, they may be able to get more coverage for a lower price with a regular term life insurance policy.
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VGLI premiums increase with age
Veterans’ Group Life Insurance (VGLI) is a type of group term life insurance offered to former members of the military. It allows veterans to continue their Servicemembers' Group Life Insurance (SGLI) coverage after they separate from service. VGLI is a valuable option for those who may not qualify for affordable life insurance coverage due to smoking or medical conditions.
While VGLI rates are affordable for younger veterans, they increase with age. This means that maintaining coverage can become expensive in later years, with premiums for older veterans being high compared to standard term life rates. The monthly premiums for VGLI are based on age bands and the death benefit amount, with rates changing for each age range every five years. For example, a $100,000 policy costs $12 a month at age 35, but the same coverage costs $60 a month at age 55.
The increasing premiums with age are a notable difference between VGLI and whole life insurance. Whole life insurance premiums are typically higher at younger ages but remain level for the duration of the policy. In contrast, VGLI premiums increase until a certain age is reached, at which point the coverage ends. This information is essential for veterans considering VGLI to make informed decisions about their coverage options.
It is worth noting that VGLI offers only term life insurance, which means it provides death benefits without building any cash value. Veterans seeking to build cash value may consider other types of life insurance, such as whole life policies, which offer permanent coverage and level premiums throughout the life of the policy. However, permanent life insurance is generally more expensive than term life insurance.
While VGLI premiums increase with age, it is important to consider the eligibility requirements and unique benefits of VGLI. Veterans must apply for VGLI within one year and 120 days of leaving the military to be eligible. Additionally, VGLI offers guaranteed acceptance without a medical exam within the first 240 days of leaving service, making it a suitable option for those with pre-existing health conditions. VGLI also allows veterans to increase their coverage amount periodically, providing flexibility to meet changing needs.
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VGLI coverage can be converted to a whole life insurance policy
Veterans’ Group Life Insurance (VGLI) is a form of term life insurance that allows individuals to continue their Servicemembers' Group Life Insurance (SGLI) coverage after they separate from military service. VGLI provides the option to maintain life insurance coverage after leaving the military, as long as the required premiums are paid.
Now, let's focus on the conversion aspect:
To convert VGLI to a whole life insurance policy, individuals need to take a few steps:
- Choose a new insurance company for the individual policy.
- Apply at the local sales office of the chosen company.
- Obtain a letter from the Office of Servicemembers' Group Life Insurance (OSGLI) confirming VGLI coverage, known as a VGLI Conversion Notice.
- Provide the VGLI Conversion Notice to the agent handling the application.
It is important to note that the conversion policy must be a permanent policy, and VGLI coverage cannot be converted to other types of policies, such as term, variable, or universal life insurance. Additionally, supplementary policy benefits are not considered part of the conversion.
By converting VGLI coverage to a whole life insurance policy, individuals can benefit from the permanent nature of the coverage, the accumulation of cash value, and the ability to borrow against that value. However, it is always recommended to carefully review the features and costs of different insurance options to make an informed decision that best suits one's needs.
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VGLI eligibility requirements
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.
To qualify for VGLI, you must meet at least one of the following requirements:
- You had Servicemembers’ Group Life Insurance (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).
- You had part-time Servicemembers’ Group Life Insurance (SGLI) as a member of the National Guard or Reserve, and you suffered an injury or disability while on duty.
If you sign up for VGLI within 240 days of leaving the military, you won’t need to prove you’re in good health. If you sign up after the 240-day period, you’ll need to submit evidence that you’re in good health.
VGLI has no membership or enrollment fees, and you can increase your coverage beyond your original SGLI limit. However, premiums for older veterans can be high compared to standard term life rates, as VGLI rates increase significantly as you age.
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Frequently asked questions
VGLI stands for Veterans' Group Life Insurance. It is a type of group term life insurance offered to former members of the military.
The amount of VGLI coverage you can get depends on how much SGLI coverage you had during your period of service. The maximum coverage limit is $400,000 to $500,000, with death benefits ranging from $10,000 to $500,000.
To qualify for VGLI, you must have participated in the Servicemembers' Group Life Insurance (SGLI) program while in service, and you must apply within 1 year and 120 days of leaving the military. If you sign up within 240 days, you won't need to prove you're in good health.
VGLI offers comprehensive lifelong coverage with no membership fees and an accelerated death benefit feature. It also allows you to convert to a whole life insurance policy at any time, which provides access to a cash value account.
