If you’re an member of the military who is on active duty, you’re already covered by Serviceman’s Group Life Insurance (SGLI); but if you plan to retire from the military at some point in the future, you will no longer enjoy the coverage under this federal program.
However, there are other options available to former service members and there is a federal program which operates as a sort of veterans life insurance company which you can purchase life insurance from at a very affordable price.
This insurance is VGLI, or Veteran’s Group Life Insurance. Once you retire or separate from the service, you will only retain your SGLI life insurance coverage for 120 days afterwards.
While there are other options available to military veterans looking for a life insurance policy once they leave the service, Veteran’s Group Life Insurance offers veterans a way to continue being covered seamlessly.
What this veterans life insurance company offers is renewable group term life insurance.
You can purchase one of these term life insurance policies no matter what state your health is in as long as you buy the policy before your Serviceman’s Group Life Insurance coverage expires.
For veterans with serious preexisting health conditions or disabling injuries or illnesses, VGLI policies may be the only way to purchase life insurance – and to be sure, this presents the most affordable life insurance coverage available to these veterans.
VGLI policies may be purchased in amounts of up to $400,000 as long as the total value of the policy does not exceed the amount of the veteran’s coverage under the Serviceman’s Group Life Insurance plan.
However, veterans should note that any SGLI life insurance coverage for their spouse and children may not be converted into a new policy under the Veteran’s Group Life Insurance Plan, so it may be advisable to look for a new life insurance policy elsewhere to cover your family if you’re married and/or have dependent children.
The Veteran’s Group Life Insurance program is not the only way to convert your life insurance to a new policy with a veterans life insurance company. Your SGLI coverage may also be converted to a policy provided by a private insurance company – but this new policy may only be a whole life insurance policy; conversion to private term life insurance and universal life insurance is not offered.
If you don’t choose to convert your Serviceman’s Group Life Insurance Coverage to a Veteran’s Group Life Insurance policy within 120 days after leaving the service, you may still be able to purchase VGLI coverage.
However, your health will now be evaluated as part of offering you a policy and if you are already in good health, you might be able to get a better deal from a private insurer than you can from this veterans life insurance company, so it may be a good idea to shop around just as you would for any other private insurance policy.