Understanding Veteran Life Insurance: What You Need to Know

Veteran life insurance policies are designed to provide financial protection to service members and their families. These policies come in various types and have different terms and conditions. It is important to understand what these policies entail before opting for one. In this blog post, we will discuss the four things you should know about veteran life insurance policies.

Types of Veteran Life Insurance Policies

There are two main types of veteran life insurance policies: Service members’ Group Life

Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI). SGLI is a life insurance policy

offered to active duty members, members of the Selected Reserve, and National Guard

members. VGLI is a life insurance policy available to those who are no longer on active duty but who were insured under SGLI.

Coverage Amount

The amount of coverage available under SGLI is limited to $400,000. The amount of coverage available under VGLI is based on the amount of coverage the service member had under SGLI, up to a maximum of $400,000. The coverage amount for both policies may be less than $400,000 depending on the service member's situation.

Premiums

The premium for SGLI is deducted automatically from the service member's pay. The premium for VGLI is based on the service member's age and the amount of coverage requested. The premium for VGLI can be higher than the premium for SGLI, especially for older service members.

Conversion Options

Service members who are leaving the military can convert their SGLI policy to a VGLI policy

within one year and 120 days after separation from the military. After that time, the service

members can still convert their SGLI policy to a commercial policy, but they may have to

undergo a medical exam and may not be able to get coverage for pre-existing conditions.

Veteran life insurance policies offer valuable benefits to service members and

their families. However, it is important to understand the terms and conditions of the policy

before opting for one. By understanding the coverage amount, premium, and conversion

options available, service members can make informed decisions about their life insurance

needs.

Discuss this and many other situations with one of MyFederalRetirement.US Specialists.