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VGLI - Frequently Asked Questions
Who Can You Contact With Questions About VGLI?
What Does VGLI Provide?
Accessing Your VGLI Policy Information Online
How
Much Life Insurance Do I Really Need?
Who
Is Eligible For VGLI?
How Do You Apply For VGLI?
When Does Your Coverage Begin?
How Long Can You Keep Your VGLI Coverage?
How Much Does VGLI Cost?
How Do You Pay Premiums?
What Happens If You Don't Pay Premiums On Time?
How Do You Name A Beneficiary?
How
Do You Convert VGLI To An Individual Policy?
How
Does A Beneficiary File A Death Claim?
How Are The Proceeds Paid?
What Are Alliance Accounts?
What Is Beneficiary Financial Counseling Service?
Can A Beneficiary Assign The Proceeds To Another
Person?
Can
A Terminally Ill Policyholder Receive Part of the Proceeds While
Still Living?
Are VGLI Proceeds Taxable?
Frequently
used forms
If you are unable to obtain the information you need on this site,
you should contact the Office of Servicemembers' Group Life Insurance
(OSGLI). The OSGLI administers the SGLI and VGLI programs including
the processing and payment of claims. Follow this link for OSGLI contact information.
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Like
SGLI, VGLI provides a maximum of $400,000 of group term life insurance
for veterans. VGLI provides for life insurance only and does not
provide for disability or other supplementary benefits. VGLI has
no cash, loan, paid-up or extended insurance values and does not
pay dividends.
You can view information about your VGLI policy on this site.
Follow this link to Access
VGLI Policy Information Online.
Assessing your life insurance needs and options can difficult.
We can help you assess your life insurance needs and options.
Follow this link to use our helpful
decision-making tools.
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You are eligible for VGLI if you are:
- A SGLI
insured who is being released from active duty or active duty
for training under a call or order to duty that does not specify
a period of less than 31 days, or
- A member
of the Ready Reserves insured under SGLI who is being separated
or released from drilling assignment, or
- A member
assigned to the Individual Ready Reserve (IRR) or to the Inactive
National Guard (ING) of a branch of service, or
- A member
of the Public Health Service (PHS) or Inactive Reserve Corps
(IRC), or
- A member
who had part-time SGLI and who, while performing duty (or traveling
directly to or from duty), suffered an injury or disability
which renders him/her uninsurable at standard premium rates.
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Within approximately
45 to 60 days following your separation from service, you should
receive an application from OSGLI.
You
have one year and 120 days from your date of separation from service
to apply for VGLI. After this, you are no longer eligible
for VGLI. There are different criteria for applying within
120 days from your date of separation or after 120 days from your
date of separation as noted below:
If
you submit a VGLI application within 120 days following separation
from service...
- You
do not need to provide proof of good health.
- Enclose
the first month's premium with your application.
If
you submit a VGLI application between 120 days after separation
from service and one year and 120 days after separation from service...
- You
need to provide proof of good health. (Your application may
be disapproved if you are not in good health.)
- Enclose
the first month's premium with your application.
If
you do not receive an application from OSGLI in the mail, you
may apply for VGLI using a form SGLV 8714, Application for VGLI. If you use this form, you need to enclose a copy of
your DD 214 or other equivalent proof of service.
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Your
VGLI coverage will begin on the 121st day after your separation
from service. If you receive an extension of SGLI for 2 years due
to disability, VGLI coverage begins on the day following the end
of the 2-year period. If you apply for VGLI after the 120-day
period, your VGLI coverage will begin on the date your VGLI application,
premium and proof of good health are received by OSGLI. For more
detailed information, see the SGLI
Handbook.
You
can keep your VGLI coverage for your lifetime, as long as you
continue paying premiums.
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VGLI premium rates are based on age. There are several
age brackets of premium rates. If you pay your premium on an other
than monthly basis, you receive a discount. To see specific premium
rates, refer to the current VGLI
Premium Rate Table.
VGLI premiums decreased effective July 1, 2008. Follow this link for more information about the premium rate decrease.
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You may pay VGLI premiums directly to OSGLI by: check or
money order, allotment from military retirement pay, automatic
deduction from VA Disability Compensation Benefits (DFB), or using your debit or credit card on the web or at OSGLI's toll-free number. Your
first premium must be sent with your application directly to OSGLI,
even if you choose to pay by allotment or by DFB. After your application
has been approved, subsequent premiums will be due monthly beginning
the month after the insurance becomes effective. If you choose
to pay premiums directly, you will receive premium statements
either monthly, quarterly, semi-annually or annually.
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If you don't pay your premium when it is due or within a grace
period of 60 days, your VGLI coverage will lapse. If VGLI lapses
due to your failure to pay the premiums on time, you will receive
a notification of the lapse and a reinstatement form. You may
apply to reinstate your coverage at any time within 5 years of
the date of the unpaid premium. If you apply for reinstatement
within 6 months from the date of lapse, you need only to provide
evidence that your are in the same state of health on the date
of reinstatement as you were on the date of lapse. Otherwise,
you will need to provide proof of good health.
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When you apply for VGLI, you can name any person, firm,
corporation or legal entity as the beneficiary of your VGLI. To
change a beneficiary, complete, sign and submit to OSGLI: form
SGLV 8721, Beneficiary Designation - Veterans' Group Life Insurance.
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You may, at any time, convert your VGLI coverage to an individual
policy of life insurance with a commercial company that participates
in the program. You may convert up to the amount of VGLI coverage
you have. Follow this link to our Conversion
Page to view information on how to convert to an individual
policy with a list of participating companies. You will be issued
an individual policy at the company's standard premium rate regardless
of your health. No disability or other supplemental benefits will
be provided on converted policies.
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The
beneficiary files a claim for VGLI proceeds by submitting a form
SGLV 8283, Claim for Death Benefits, to the OSGLI. The
beneficiary should include a copy of the death certificate with
the claim.
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The proceeds are paid to the beneficiary either
in one lump sum or in 36 equal installments, according to how
the insured specified that they were to be paid. If the insured
specified that the proceeds were to be paid in one lump sum or
did not specify a method of payment, the beneficiary may choose
to receive either 36 equal installments or one lump sum. However,
if the insured specified that the proceeds were to be paid in
36 equal installments, the beneficiary may not choose to be paid
in one lump sum.
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An Alliance Account is an interest bearing draft account with an account book similar to a checking account. An Alliance account is opened for SGLI and VGLI beneficiaries. Insurance
proceeds are deposited in the beneficiary’s name and the
beneficiary can write drafts for any amount up to the full amount of
the proceeds. This gives the beneficiary time to make important
financial decisions, while their funds are secure and earn continuous
interest.
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Beneficiary Financial Counseling Services (BFCS) is
an extra benefit offered to beneficiaries of Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance policies. As a beneficiary, you can take advantage of free professional financial advice. Counseling services are provided by FinancialPoint®. For more information, please visit our Beneficiary Financial Counseling page. To take advantage of the free BFCS benefit, beneficiaries may contact FinancialPoint® toll free at (866) 476-5764 or by email at BFCS@FinancialPoint.com
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A beneficiary may not assign or transfer VGLI proceeds to another
person. In addition, VGLI proceeds are not subject to claims of
creditors of the insured or creditors of the beneficiary.
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The
SGLI and VGLI programs offer an accelerated benefits option to
terminally ill policyholders. A policyholder is considered to be terminally
ill if he or she has a written medical prognosis of 9 months or
less to live. All terminally ill policyholders will be eligible to
take up to 50% of their SGLI or VGLI coverage in a lump sum. Many
commercial life insurance companies offer accelerated benefits
in their policies. Accelerated benefits, paid prior to death,
are, of course, not available for payment to survivors. A policyholder
must submit SGLV 8284, Servicemember/Veteran
Accelerated Benefit Option Form.
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VGLI proceeds
are exempt from taxation. Any installment interest or delayed
settlement interest that a beneficiary receives in addition to
the proceed is also exempt from taxation and does not need to
be reported to the IRS.
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If
you need a VGLI form, it may be available for download from this
site. Go to the forms download page
and follow the instructions on that page. Once you have downloaded
the form that you need, complete it by following the directions
contained on the form. The following are frequently used VGLI
forms:
SGLV 8283, Claim for Death Benefits
SGLV 8714, Application for Veterans' Group Life Insurance
SGLV 8721, Beneficiary Designation - Veterans Group Life Insurance
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