VGLI: Veterans’ Group Life Insurance Overview
What Is VGLI Coverage?
VGLI is short for Veterans’ Group Life Insurance. It’s a renewable term life insurance policy that the VA offers to recently separated servicemembers and veterans. It allows you to continue the life insurance coverage you had while in uniform under the Servicemembers’ Group Life Insurance (SGLI) program.
Unlike most commercial life insurance policies, VGLI does not require a health screening if you apply within 240 days of separation from service. VGLI coverage does not expire or decrease at a certain age. As long as the premiums are paid, your coverage continues.
VGLI allows you to increase your benefit over time. You can also convert your VGLI term life policy into a commercial permanent life insurance policy without proving you are healthy. VGLI can be used as primary life insurance coverage or a supplemental policy.
>> Getting affordable life insurance coverage with no medical exam or labs required is easy. Get a no-obligation, free consultation to determine your eligibility.
Who Is Eligible for VGLI?
To be eligible for VGLI, at least one of the following must apply. You:
- You had SGLI while you were in the military and are within 1 year and 120 days of being released from an active-duty status of 31 or more days.
- Retired or were released from the Ready Reserves or National Guard within the last 1 year and 120 days.
- Were assigned to the Individual Ready Reserves (IRR) of a branch of service, to the Inactive National Guard (ING) or the United States Public Health Service Inactive Reserve Corps (IRC) within the last 1 year and 120 days.
- Were put on the Temporary Disability Retirement List (TDRL) within the last 1 year and 120 days.
- Were a member of the National Guard or Reserves with part-time Servicemembers’ Group Life Insurance (SGLI), suffered an injury or disability while on duty, and now you can’t qualify for standard premium insurance rates.
What Does VGLI Include?
- VA.gov says VGLI coverage includes “between $10,000 and $500,000 in term life insurance benefits. The amount you’ll get will be based on how much SGLI coverage you had when you left the military.”
- VA.gov also notes, “When you leave the military, you can sign up through VGLI for coverage up to the amount you had through SGLI. If you have less than the maximum coverage, you can increase your coverage by $25,000 1 year after getting VGLI and then every 5 years after that. You can increase your coverage up to a total of $500,000 until you’re 60 years old.”
- VGLI policyholders who become 100% disabled may be eligible to have their monthly premiums waived.
- VGLI policyholders or spouses who become terminally ill may be able to receive up to half of the face value of their policy in $5,000 increments before death.
- There are no suicide or “war” clause claim exclusions.
How Much Does VGLI Cost?
The cost of a VGLI policy depends on how much coverage you need and your age.
- Your physical health, gender, job, mental health (including PTSD and TBI), tobacco use, and recreational activities are not used to determine the cost of your policy like typical commercial life insurance companies do.
- There are no enrollment or membership fees.
- You can make automatic premium payments through your military retirement pay, VA compensation payments, or bank account. You can also use a credit card online or by phone.
- You can pay your premiums monthly, quarterly, or annually. You can get a 5% discount on your premium cost if you pay annually. Smaller discounts are available for quarterly and semi-annual payments.
- There is a 60-day grace period after a missed payment before a VGLI policy is suspended. You have up to five years from the date of the lapsed payment to reapply to have the policy reinstated.
How Do Servicemembers and Veterans Sign Up for VGLI?
- You can apply online through OSGLI or eBenefits
- You can fax or mail an Application for Veterans’ Group Life Insurance (SGLV 8714) to OSGLI using the contact information on the form.
How Do Servicemembers and Veterans Make Changes to Their VGLI Policy?
You can access your policy online to change or update your beneficiaries or fill out the VGLI Beneficiary Designation form (SGLV 8721) and fax or mail it to OSGLI.
In order to apply:
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- For a policy waiver due to total disability, fill out the Claim for Disability Insurance (VA Form 29-357) and mail it to the address on the form.
- For accelerated policy benefits for a terminally ill policyholder or spouse, fill out the Claim for Accelerated Benefits (SGLV 8284), have the attending doctor sign it, and mail it to the address on the form. You can also fax it to the number on the form.
- To have a VGLI policy reinstated, fill out and return the Reinstatement Application received from OSGLI when the policy lapsed. If you are applying within six months of a missed payment, you only have to prove that your health status hasn’t changed since the missed payment. You are eligible for reinstatement up to five years after a payment lapse if you meet VGLI’s good health requirements.
Can VGLI Be Converted to Something Else?
Yes, VGLI can be converted to a commercial permanent life insurance policy, like a whole life policy, with one of the commercial insurance companies that has an agreement with the VA. You are not required to provide proof of good health to get the new policy, but the company may ask health questions to determine your premium costs.
To convert a VGLI policy to a commercial permanent life insurance policy, you must contact the company directly and submit a VGLI Conversion Notice that you get from the Office of Servicemembers’ Group Life Insurance (OSGLI). You can convert a VGLI policy to a commercial permanent policy anytime. However, it cannot be converted back to a VGLI renewable term policy later.
>> Getting affordable life insurance coverage with no medical exam or labs required is easy. Get a no-obligation, free consultation to determine your eligibility.
RELATED:
- Does Your Life Insurance Match Your Life?
- SGLI Servicemembers Group Life Insurance
- Service-Disabled Veterans Insurance (S-DVI) Overview
- Largest VA Budget Proposal Passes House
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
