Military Life Insurance Ends At 70: Why The Cutoff?

Military life insurance is a complex topic, with many options and acronyms to decipher. Servicemembers' Group Life Insurance (SGLI) is a popular option for active-duty military members, offering low-cost term coverage with benefits for traumatic injuries and disabilities. Veterans' Group Life Insurance (VGLI) is another option, allowing former service members to maintain coverage after leaving the military by paying premiums. However, eligibility for VGLI ends at 70 years old, and the maximum coverage amount is limited to $500,000. Understanding these policies and their requirements is essential for military personnel and their families when making important decisions regarding their financial security and well-being.

Veterans can keep their life insurance after leaving the military

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) 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 can apply for VGLI through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website, by mail, or by fax. If you apply within 240 days of leaving the military, you won't need to prove you're in good health. After this period, you will need to submit evidence of good health. VGLI premium rates are based on your age and the amount of insurance coverage you want. You can increase your coverage by $25,000 a year after getting VGLI and then every 5 years after that, up to a total of $500,000, until you turn 60.

You can also convert your VGLI coverage to an individual insurance policy at standard premium rates without having to provide proof of good health. However, the conversion policy must be a permanent policy, such as a whole life policy, and you cannot convert to other types of policies, like term, variable life, or universal life insurance.

Veterans must be under 70 to qualify for coverage

SGLI is a low-cost term coverage option for active-duty service members. It is typically offered to active-duty members of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard. However, members of the Ready Reserve or National Guard who meet certain training requirements may also qualify for full-time SGLI coverage. Part-time coverage is also available for Reserve members who do not qualify for full-time coverage. Service members who are totally disabled at the time of discharge may be eligible for an SGLI extension, allowing them to keep their coverage for up to two years after discharge at no additional cost.

After leaving the military, veterans can apply for VGLI within 1 year and 120 days to continue their life insurance coverage. If they apply within 240 days, they won't need to prove they are in good health. Converting VGLI coverage to an individual insurance policy is also an option, and this can be done at standard premium rates without providing proof of good health. VGLI provides coverage ranging from $10,000 to $500,000, based on the amount of SGLI coverage the veteran had when they left the military.

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) benefits

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) provides short-term financial assistance to severely injured service members and veterans to assist them in their recovery from traumatic injuries. TSGLI is not only for combat injuries but provides insurance coverage for injuries incurred on or off duty.

To be eligible for TSGLI, you must meet the following requirements:

• You must be insured by SGLI when you experience a traumatic injury.
• You must incur a scheduled loss, and that loss must be a direct result of a traumatic injury.
• You must suffer a scheduled loss within 2 years (730 days) of the traumatic injury.
• You must survive for a period of not less than 7 full days from the date of the traumatic injury.
• Your injury cannot involve the use of an illegal drug or a controlled substance that was taken without the advice of a doctor.
• Your injury cannot be the result of medical or surgical treatment for an illness or disease.
• Your injury cannot occur while you are committing or trying to commit a felony.

The premium for TSGLI is a flat rate of $1 per month for most service members. If eligible, you may get $25,000 to $100,000 in short-term financial support to help in your recovery from a traumatic injury. To file a claim for TSGLI benefits, download and complete form SGLV 8600 Application for TSGLI Benefits. To file an appeal for a denial of TSGLI benefits, download and complete SGLV 8600A TSGLI Appeal Request Form.

Veterans' Group Life Insurance (VGLI) conversion to an individual insurance policy

Military life insurance, in the form of Servicemembers' Group Life Insurance (SGLI), is available to servicemembers of the Ready Reserve and National Guard, and those on active duty. When a servicemember leaves the military, their SGLI coverage ends, and they can apply for Veterans' Group Life Insurance (VGLI) within 1 year and 120 days of their release.

VGLI coverage can be kept for as long as the veteran continues to pay the premiums, and it can be converted to an individual insurance policy. The process for converting VGLI to an individual insurance policy is as follows:

• Choose a new insurance company from the Participating Companies listing.
• Apply at the local sales office of the chosen company.
• Obtain a letter from OSGLI confirming VGLI coverage (called a VGLI Conversion Notice) and give it to the agent who takes the application.
• Note that the conversion policy must be a permanent policy, such as a whole life policy. It cannot be converted to term, variable life, or universal life insurance.
• Also, supplementary policy benefits, like Accidental Death and Dismemberment or Waiver of Premium for Disability, are not considered part of the conversion policy.

The conversion to an individual policy can be made at standard premium rates, without providing proof of good health.

Eligibility for Servicemembers' Group Life Insurance (SGLI)

Servicemembers' Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. Service members who meet certain criteria are automatically enrolled in SGLI. After enrollment, you can change the level of coverage or even refuse coverage completely. You can also choose your beneficiaries and change them as needed.

You may be eligible for full-time SGLI coverage if you meet at least one of the following requirements:

• You're an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• You're a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• You're a cadet or midshipman of the U.S. military academies.
• You're a member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• You're a member of the Ready Reserve or National Guard, assigned to a unit, and scheduled to perform at least 12 periods of inactive training per year.
• If you're in nonpay status with the Ready Reserve or National Guard, you may be eligible if you're scheduled for 12 periods of inactive training for the year and you pay your premiums directly.

When you leave the military, you have the option to convert your SGLI coverage to a permanent, individual insurance policy (like whole life) within 120 days from your date of discharge without proof of good health. You can also apply for the Servicemembers' Group Life Insurance Disability Extension (SGLI-DE) if you meet certain disability requirements.

Frequently asked questions