The Veterans Group Life Insurance (VGLI) program provides life insurance to military veterans. Premiums are determined by age rather than health or gender. Although no physical examination is required, insurance becomes more expensive as you grow older.
Servicemembers can obtain low-cost term life insurance through Servicemembers Group Life Insurance (SGLI), which is simple to obtain and maintain while serving in the military. However, when military personnel leaves the service, their life insurance needs may change. VGLI is one option available to military veterans.
What is Veterans’ Group Life Insurance?
VGLI is a life insurance program that allows service members to convert their SGLI coverage to a renewable term life insurance policy.
When eligible members with full-time SGLI coverage leave the military, they are suitable for VGLI. However, you can only buy VGLI coverage for the same amount that your SGLI policy was before you left the service. So, before you leave the service, examine your requirements.
If you had an SGLI policy when you left the military, you could only apply for a VGLI policy.
How Much VGLI Coverage Can I Get?
The coverage for VGLI is offered in $10,000 increments up to a maximum of $400,000. The amount of SGLI coverage a service member has at the time of separation from the military cannot exceed the amount of SGLI coverage they had at the time of separation. Take your last point into account before quitting the military.
Once you’ve joined VGLI, you’ll be able to increase your coverage by $25,000 one year after your approval and once every five years after that, up to the legal maximum of $400,000, until you reach the age of 60.
What Do VGLI Premiums Cost?
Premium rates for VGLI are determined by your age rather than your medical history. Men and women also pay the same price for VGLI.
Smokers’ premiums aren’t raised, and you won’t be turned down for mental health issues or other conditions like Post Traumatic Stress Disorder (PSTD), Traumatic Brain Injury (TBI), or other illnesses or injuries sustained while serving in the military.
VGLI Physical Conditions
If a veteran applies for VGLI within 240 days of their military separation date, no medical examination is required.
Veterans who apply for VGLI coverage after the 240-day term must provide proof of good health before their application is approved.
Is VGLI a Good Investment?
Life insurance is a complex subject. Unfortunately, there is no such thing as a one-size-fits-all life insurance policy that is suitable for everyone. You must first assess your life insurance requirements before shopping for the best rate.
30 + years as a Financial Planner. Securities (Series 1,7, and 65) and Insurance Licensed. Retirement Planning including the actual planning of where your income will come from as well as a discussion of products to get you there. The market has been volatile since Covid broke out and many people are not comfortable with this. If you are retired we will look at your total income and tax situation. If you are still working we have some more time to plan.