Things to know
- Active-duty military, ready reserve and National Guard members who have Servicemembers' Group Life Insurance, or SGLI, can transition to VGLI when they separate or retire.
- VGLI's coverage limit is $500,000. Coverage begins at the same amount as SGLI but can be increased until the policyholder turns 60.
- There's a time limit for applying for VGLI.
Do military retirees have other options for life insurance?
Retirees and those who separate have two options for life insurance: VGLI, administered by the Department of Veterans Affairs, or policies through private insurers. To be eligible for VGLI, you must have had SGLI while on active duty or while you served in the Guard or Reserves.
What are the benefits of VGLI?
VGLI offers several benefits to eligible veterans. One advantage is the seamless transition from SGLI to VGLI, meaning coverage is continuous. If you decide to transition to VGLI, you won’t need a life insurance medical exam.
Are there downsides to VGLI?
While VGLI offers veterans an easy option, the $500,000 coverage limit may not be enough for those with significant financial obligations. Some veterans may need to consider other life insurance options, including term or permanent life insurance policies from private insurers.
VGLI premiums increase with age, unlike many level term policies. Depending on age and coverage amount, some private policies may be more cost effective.
VGLI is relatively affordable but may not offer all the features of private insurance policies, like options for disability coverage or insurance coverage for children.
How does military life insurance work?
Military life insurance includes SGLI for those on active duty and VGLI for those who have separated or retired.
SGLI and VGLI are offered at a relatively low cost, with premiums fixed for SGLI. VGLI premiums increase with age. No medical exam is required for SGLI, and if you apply for VGLI within 240 days of separation or retirement, you'll be covered regardless of health.
After 240 days, you may have to submit evidence of good health to be approved. After 1 year and 120 days, you're no longer eligible.
Do retired military get life insurance?
If you had SGLI when on active duty or serving in the Reserves, you're eligible to transition to VGLI when you retire or separate. You have 1 year and 120 days after you leave the military to transition to VGLI, unless you're disabled, in which case you may be eligible for a two-year extension.
How much life insurance does VGLI provide?
VGLI provides coverage up to $500,000. If you choose to transition from SGLI to VGLI when you separate or retire, your beginning coverage amount will be the same amount as your SGLI coverage. It can be increased in $25,000 increments until you turn 60.
Do military spouses get life insurance?
Term life insurance for spouses and dependents is available through Family Servicemembers' Group Life Insurance, or FSGLI.
Spouses and dependents of those on active duty and members of the National Guard or ready Reserve are eligible, provided their spouses are covered by SGLI.
VGLI FAQ
Active duty servicemembers, those on Ready Reserve and National Guard Members are eligible for SGLI.
It's also available to those in the Commissioned Corps of NOAA and the Public Health Service, cadets and midshipmen, and those in Reserve Officer Training Corps, or ROTC.
When they separate or retire, they become eligible for VGLI, provided they were covered by SGLI while serving.
Payouts to beneficiaries from military life insurance, including VGLI, are generally not taxable.
Anyone eligible for SGLI can get VGLI when they separate or retire, as long as they were covered by SGLI while serving.
You should pick the longest term that fits your budget and your family's financial needs.