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VA Life Insurance Overview

VA Life Insurance

The Department of Veterans Affairs offers several types of life insurance for qualifying military members and their families.

There are options for active duty service members, family members, and veterans. VA life insurance options also exist for military members and their families in the National Guard and the Reserve.

VA Life Insurance and Your Financial Needs

When choosing any life insurance option, whether through SGLI or a commercial provider, it’s important to determine your actual amount of financial need should your family need to file a claim. SGLI covers up to $500 thousand for the servicemember.

Does that amount sound like a lot to you?

It might at first. But when calculating your family’s needs for insurance purposes, you’ll want to add up how much it takes to completely pay off a mortgage, student loans, credit card debt, and to provide for future needs like college funds for children.

Part of those calculations can include determining your overall life expectancy, for which you can use an online calculator. Don’t skip this important step.

Signing Up For VA Life Insurance

In some cases, enrollment is automatic; in others (such as VSGLI) you have a limited time to apply when you leave the military or there are other qualifying events.

These requirements may be subject to change due to legislation, alterations in the program you seek, etc. Contact the VA directly to learn how to sign up for the program you need if you aren’t sure.

Related: 5 Types of Life Insurance

Servicemembers Group Life Insurance (SGLI)

SGLI is for service members only. Family members are covered under a similar option called Family Group Life Insurance.

SGLI offers benefits such as the following:


 

 

Who Qualifies for Servicemembers’ Group Life Insurance (SGLI)

You may be eligible for full-time SGLI coverage if you meet at least 1 of the following VA requirements.

SGLI: NonPay Status in the Ready Reserve or National Guard

You may be eligible for full-time SGLI coverage if you are scheduled for 12 periods of inactive training for the year and you drill for points.

Those covered by SGLI under these circumstances are required to submit premium payments directly.

Family Servicemembers Group Life Insurance (FSGLI)

FSGLI offers up to 100,000 of coverage “not to exceed your service member’s SGLI coverage,” according to VA.gov. Children get $10,000 of free coverage.

Who Qualifies for Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI is for spouses and dependent children of qualifying service members. To get FSGLI, at least one of the following must apply:

If you are married to someone eligible for SGLI coverage, you qualify “no matter if your own status is active duty, retired, or civilian,” according to VA.gov.

Servicemembers Group Life Insurance Traumatic Injury Protection (TSGLI)

This insurance is meant as “short-term financial support to help eligible service members recover from a severe injury” according to the VA.

Were you injured while covered by SGLI? You may be able to file a TSGLI claim or appeal a past rejected claim. You may qualify for $25,000 to $100,000 offered as short-term financial aid to help you in the recovery phase from what the VA describes as a traumatic injury.

If you are eligible, you may use this benefit regardless if the injury happened on duty or off.

Who Qualifies for TSGLI?

If you were insured by SGLI and had an injury the VA defines as traumatic, you may be eligible for TSGLI. All the following must apply to qualify:

Some applicants may qualify for retroactive TSGLI if the injury happened between October 7, 2001, and November 30, 2005, and meet the TSGLI qualifications above.

Veterans’ Group Life Insurance (VGLI)

You may qualify for coverage between $10,000 and $500,000 in term life insurance benefits. Your coverage is based on how much SGLI coverage you had when you left the military. VA rules allow you to increase your VGLI coverage every 5 years until you reach a $500 thousand cap. These increases are possible until you reach age 60.

Who Qualifies for VGLI

This coverage is for veterans who are of the following:

Other circumstances may also apply.

You must apply for VGLI 1 year and 120 days after leaving the military or you will be required to prove you are in good health. You have 240 days after leaving the military to qualify for this benefit.

Veterans Affairs Life Insurance (VALife)

VA Life is described as “guaranteed acceptance” whole life insurance for disabled veterans. Those who meet program requirements are “automatically approved.” This plan offers:

VA.gov says this plan does not require proof that the applicant is in good health. This program is unique because full life insurance coverage starts 2 years after you apply for VALife.

Premiums must be paid during the first two years with the following caveats:

Those covered by VALife who die during the 2-year waiting period should know the VA offers to “pay your beneficiaries the total amount you paid in premiums, plus interest.”

VA.gov adds, “If you die after the 2-year waiting period, we’ll pay your beneficiaries the full coverage amount of your policy.”

Who Qualifies For VALife

If you are 80 or younger, you qualify if you have any VA disability rating, including 0%. This means you must submit a VA claim to receive a rating. There is no time limit to apply once you have gotten a VA disability rating.

If you’re age 81 or older, you may qualify if you meet all the following:

Service-Disabled Veterans Life Insurance (S-DVI)

S-DVI was a VA life insurance program for those with VA-rated service-connected disabilities.VA.gov says this program “stopped taking new applications after December 31, 2022,” but those already enrolled may keep their coverage.

Who Qualified for S-DVI

The Department of Veterans Affairs removed its qualifying criteria from the official site, encouraging those who need similar coverage to apply for VALife (see above).

Read more: VALife Insurance Program

Veterans’ Mortgage Life Insurance (VMLI)

VMLI is a mortgage protection insurance offered to qualifying families of veterans “with severe service-connected disabilities” who adapted a house to make it more accessible.

This program offers insurance coverage up to a $200,000 cap.

This policy is paid directly to the lender when it is needed. VA.gov advises that these funds are never paid to a family member or survivor. The amount of coverage is equal to the amount of your mortgage but has no loan value or cash-out options.

You may be required to apply for and be approved to receive a VA Specially Adapted Housing Grant in order to receive approval for VMLI.

Learn more: VA Adapted Housing Grants: An Overview

Who Qualifies For VMLI

All of the following requirements apply. Applicants must be under age 70.

Related: Calculate Your Life Insurance Needs

 

>> Getting affordable life insurance coverage with no medical exam or labs required is easy.  Get a no-obligation, free consultation to determine your eligibility.

 

 

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