What Is Veterans Group Life Insurance (VGLI)?
If you're a former member of the armed forces, you might want to keep the group life insurance you had during active service. That's where Veterans Group Life Insurance (VGLI) comes in—it's a renewable term policy that pays cash to your beneficiaries when you die. I’ll explain it directly: this is essentially an extension of what you had before, tailored for veterans like you.
Understanding Veterans Group Life Insurance (VGLI)
When you opt for VGLI, you're basically carrying over your Servicemembers' Group Life Insurance (SGLI) from active duty. You get one year and 120 days from the day you leave service to make this switch. Here's what stands out: premiums are only based on your age, not on things like gender, smoking, your job, or hobbies that private insurers might penalize you for. Plus, the policy doesn't expire at a certain age—keep paying, and it stays in force.
Coverage ranges from $10,000 to $400,000, matching what you had under SGLI when you left. You can start with that max amount, then reduce it in $10,000 steps if needed. After enrolling, you can bump it up by $25,000 every five years, but it caps at $400,000 until you're 60. These are the straightforward details you need to know.
Eligibility for Veterans Group Life Insurance
- You must have had SGLI and be within one year and 120 days from release from active duty, training, or short orders.
- This includes separation by retirement or release from Ready Reserves or National Guard.
- It covers assignment to Individual Ready Reserves (IRR) or Inactive National Guard (ING), including Public Health Service Inactive Reserve Corps.
- Placement on the Temporary Disability Retirement List (TDRL) qualifies you.
- Even if you had part-time SGLI as National Guard or Reserves and got injured on duty, disqualifying you from standard rates, you can still apply.
Health Requirements for VGLI
Apply within the first 240 days after leaving service, and you skip any health review or exam—your approval isn't based on being in good health. If you wait longer, you'll need to provide evidence of good health. This setup makes VGLI practical for many veterans right out of service.
Special Considerations
VGLI has low premiums, recently reduced further as of April 1, 2021, but you should compare it with other options to fit your situation. Within 120 days of leaving, you can convert SGLI directly to a civilian policy from certain carriers. You can also switch VGLI to a permanent commercial policy like whole life, but only from a select group of insurers. These are key points to consider as you decide.
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