Veterans Group Life Insurance (VGLI) is a life insurance program offered by the Department of Veterans Affairs (VA) for veterans who have served in the uniformed services. VGLI provides renewable term life insurance coverage to eligible veterans who are transitioning out of the military.
A Few Facts About Coverage
When you leave the service, your life insurance coverage through your Servicemembers’ Group Life Insurance (SGLI) will eventually end. However, you have the option of continuing your coverage with a Veteran’s Group Life Insurance Policy (VGLI). While the Department of Veterans Affairs (VA) oversees VGLI, the program is administered by the Office of Servicemembers' Group Life Insurance (OSGLI).
You can enroll for the same amount of coverage you had under your SGLI plan, or a lesser amount if you prefer, and you’ll have the opportunity to increase your coverage every five years. Coverage is offered in $10,000 increments with $500,000 being the maximum amount of coverage available under a VGLI policy. As long as you pay your premiums your policy will never expire, however, your premiums will increase as you get older.
With VGLI, you won’t be subject to a medical exam and no proof of good health is required to enroll in the plan. It’s important to note that you only have one year and 120 days to decide to convert your SGLI over to a VGLI.1 If you want to get an idea of how much your future VGLI premiums may cost, you can review this VGLI premium rate chart provided by the U.S. Department of Veterans Affairs.
Am I Eligible for VGLI?
You may be eligible for VGLI if you meet at least 1 of these requirements:
- Must have been insured under the Servicemembers’ Group Life Insurance (SGLI) program while in the military.
- Must apply for VGLI within one year and 120 days from separation from active duty or release from the Reserves or National Guard.
- Veterans who are totally disabled at the time of separation may be eligible for a waiver of the one year 120-day requirement.
- After the one year 120-day period, veterans may still be able to apply for VGLI, but they may be required to undergo a medical exam.
VGLI Coverage Options
You can enroll in two types of policies offered through VGLI:
- Renewable Term Life Insurance
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A term policy that allows the beneficiary to extend the coverage term for a set period of time without having to requalify for new coverage. - Convertible Term Life Insurance — A term policy that includes the option to convert to a permanent policy in the future without undergoing a medical exam or having to answer any health questions.
VGLI Benefits
With VGLI, you won’t have to worry about gaps in life insurance coverage as you transition out of the military. The program offers peace of mind and financial security to eligible veterans by providing flexible and affordable coverage options. VGLI offers low premiums, making it an affordable option for veterans seeking quality coverage. Another significant benefit is that VGLI doesn’t require a medical exam or consider health and tobacco use when qualifying for coverage. Whether you are looking for basic coverage or comprehensive protection, VGLI offers customizable options to fit your life and ensure that you and your loved ones are financially protected.
VGLI Limitations to Consider
While VGLI offers valuable benefits and flexibility, there are some limitations and considerations to keep in mind:
- Coverage limits up to $400,000
- Premiums may increase over time as the insured ages
- Once the insured reaches age 70, coverage cannot be renewed
- Limited time to convert SGLI to VGLI
- No cash value
VGLI Conversion Options
The conversion process typically involves transitioning from term life insurance coverage provided by VGLI to a permanent life insurance policy offered by a civilian insurer. You should research different insurance companies, compare policy options, and obtain quotes to find the best option for your needs. It’s important to review the terms and conditions of the civilian policy, including coverage limits, premium rates, and policy features to ensure it meets your financial goals and fits within your budget.
When to Convert VGLI to a Civilian Policy
Deciding to convert from VGLI to a civilian policy will depend on various factors ad individual circumstances. Some considerations include:
- Change in insurance needs
- Changes in health status
- Age
- Affordability
- Conversion deadline
- Policy features
If for any reason you decide that VGLI coverage isn’t for you, there are other options available through the VA. In addition, there are a wide variety of commercial life insurance policies and coverage options you can choose from.
For more information on life insurance, as well as tips on how to buy coverage that isn’t VGLI, visit the Protective Learning Center.
1. https://benefits.va.gov/INSURANCE/apply-for-VGLI.asp
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