Veterans's Group Life Insurance

Veterans’ Group Life Insurance (VGLI) allows you to convert your Servicemembers’ Group Life Insurance (SGLI) to renewable term life insurance. You may take out a VGLI policy in multiples of $10,000, up to $400,000. However, you may not exceed the value of the SGLI you carried in the service. You must apply for VGLI within one year and 120 days after separation. If you apply within the first 120 days after separation, you do not need to make any statement of health, but if you wait you must provide ‘evidence of good health’. The rates are based on age groups and are quite reasonable. For a 29 year old the annual premium rate for $50,000 of coverage is $45.60, for a 39 year old it is $79.80 (numbers effective July 1, 2008). However, you should carefully evaluate your own financial situation prior to choosing a life insurance policy. The VA provides a simple insurance calculator which will help with your decision. If you have dependents, a mortgage, or other financial responsibilities you should consult a financial planner before you choose an insurance policy.

If you are still in the service and do not have the maximum SGLI coverage, you might want to increase your SGLI by filing a new Form SGLV 8285 so you can have a higher coverage from VGLI after your discharge.

VGLI is convertable to a permanent policy with participating companies. Whole Life is an example of a permanent policy, while Term, Variable Life, and Universal Life are examples of policies that are not allowed. You should consult with a financial planner prior to conversion.

Eligibility

You are eligible for VGLI if you are:

• An SGLI insured who is being released from active duty or active duty for training under a call or order to duty that does not specify a period of less than 31 days, or
• A member of the Ready Reserves insured under SGLI who is being separated or released from drilling assignment, or
• A member assigned to the Individual Ready Reserve (IRR) or to the Inactive National Guard (ING) of a branch of service, or
• A member of the Public Health Service (PHS) or Inactive Reserve Corps (IRC), or
• A member who had part-time SGLI and who, while performing duty (or traveling directly to or from duty), suffered an injury or disability which renders him/her uninsurable at standard premium rates.

Applying for VGLI

45 to 60 days following your separation from service, you should receive an application from OSGLI (Office of Servicemembers' Group Life Insurance).

Applying within 120 days following separation from service:

• You do not need to provide proof of good health.
• you must enclose the first month's premium with your application.

Applying between 120 days and one year and 120 days after separation from service:

• You need to provide proof of good health. (Your application may be disapproved if you are not in good health.)
• you must enclose the first month's premium with your application.

If you do not receive an application from OSGLI in the mail, you may apply for VGLI using a Form SGLV 8714, Application for VGLI. If you use this form, you need to enclose a copy of your DD 214 or other equivalent proof of service.

You can choose automatic payments via credit card, debit card, checking account, etc. However, you must provide the first premium payment with the application, and will receive premium notices you must pay for the first few months, until the automatic payments kick in.

Beneficiaries

When you make your initial application for VGLI you will name your beneficiaries. To change a beneficiary, submit the Form SGLV 8721 Beneficiary Designation to OSGLI.

Claims

To make a claim, the beneficiary would submit Form SGLV 8283, Claim for Death Benefits and a copy of the Death Certificate to the OSGLI. The claim will be paid as a lump sum or 36 equal payments as the beneficiary chooses. (If the insured specified 36 payments in the policy, it cannot be paid as a lump sum). The proceeds are deposited into an interest bearing draft account that the beneficiary can draw against. All proceeds from VGLI (principal and interest) is tax free.

Beneficiary Financial Counseling Services (BFCS) is an extra benefit offered to beneficiaries. Counseling services are provided by FinancialPoint®. To take advantage of the free BFCS benefit, contact FinancialPoint® toll free at (866) 476-5764 or by email at BFCS@FinancialPoint.com

Accelerated Benefits Option for the Terminally Ill

If the insured is terminally ill (that is, has a written prognosis of less than 9 months to live) the insured can withdraw up to 50% of the face amount of the policy in a lump sum. Any money taken as accelerated benefits will not be available to the beneficiary. To apply for accelerated benefits, submit Form SGLV 8284 Accelerated Benefits Option to OSGLI.

The VA’s Life Insurance Programs for Veterans and Servicemembers Handbook has additional information about all VA insurance programs.