Veterans Group Life Insurance

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Veterans Group Life Insurance

Also called VGLI. Term life insurance offered by the Veterans Administration in the United States to former service members who purchased Servicemembers Group Life Insurance while they were in the military. Veterans who sign up for VGLI within 120 days of discharge are not required to submit evidence of good health to be eligible. Premiums are the same for both male and female veterans and are not higher for smokers. Likewise, veterans may not be excluded for mental problems such as post-traumatic stress disorder.
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To learn more about VGLI and the opportunity to increase coverage, visit http://goo.
In addition, VGLI is extended generally to reservists and National Guard members who decide to separate prior to reaching 20-year retirement.
VGLI has a reinstatement period of five years after a policy has lapsed.
VGLI proceeds are paid to the designated beneficiary or beneficiaries when a valid claim is established.
Any designation of beneficiary or beneficiaries for SGLI filed with a uniformed service is considered a designation for VGLI, but only for 60 days after the VGLI becomes effective.
Effective April 11, 2011, on the five-year anniversary of the VGLI coverage date and every five years after that date, a veteran has the option to increase the VGLI coverage by $5,000 increments up to a maximum of $400,000 with-out answering health questions.
An additional benefit of VGLI is that, by law, veterans who reach age 60 are guaranteed coverage as long as the premiums are paid, although not eligible for coverage increases.
Members of the Ready Reserves or National Guard may renew their VGLI as long as they remain in the Guard or Reserves.
100) Traumatic SGLI coverage is not available for FSGLI and VGLI policy holders.
106) Servicemembers who decline SGLI coverage or select less coverage than the maximum allowed must also be furnished with general information regarding the purpose and role of life insurance in financial planning, various types of life insurance policies, availability of commercial life insurance, and the relationship between SGLI and VGLI.
154) If the proceeds are to be paid in a lump sum, a personal interest bearing checking account, an Alliance account, will be opened for the SGLI or VGLI beneficiaries.
About 392,300 veterans are covered under VGLI policies with a total face value, or basic insurance amount, of about $37.