Veterans Group Life Insurance (VGLI)
Army National Guard: Retired
Benefit Fact Sheet
Summary:
Veterans' Group Life Insurance (VGLI) is a post-separation life insurance program that allows Soldiers to convert their Servicemember's Group Life Insurance (SGLI) coverage to renewable term insurance. Members with SGLI coverage are eligible for VGLI upon release from service. It is one of a number of low cost insurance programs developed by the Department of Veterans Affairs to provide insurance benefits for Soldiers and Veterans who may not otherwise be eligible to receive insurance benefits from private companies due to risks involved in military service, or a service connected disability. Effective April 11, 2011, Soldiers who are insured under VGLI who are under age 60 and have less than $400,000 in coverage can purchase up to $25,000 of additional coverage on each five year anniversary of their coverage, up to the maximum $400,000. There is no medical underwriting required for the additional coverage.
Eligibility:
Army retirees enrolled in SGLI at the time of their separation from service are eligible for conversion to VGLI if they meet one of the following criteria:
- An SGLI insured Soldier 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 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.
Benefit Highlights:
Separating Soldiers may convert all or part of their SGLI coverage to term insurance under the Veterans' Group Life Insurance (VGLI) program. Soldiers have 120 days following separation to apply for VGLI. After the 120-day period, Soldiers may still apply for up to 1 year, but must submit evidence of good health. VGLI coverage is available in increments of $10,000 up to a maximum of $400,000 but cannot exceed the amount of SGLI in effect at the time of release/retirement. However, a Soldier who has less than $400,000 in coverage may purchase up to $25,000 of additional coverage on each five year anniversary of their coverage, up to the maximum. Soldiers must request the additional coverage during the 120-day period prior to each five-year anniversary date AND be less than 60 years of age. Soldiers may apply for VGLI by completing SGLV- 8714, Application for Veterans' Group Life Insurance. Monthly premiums are shown on the following table:
|
Soldier's Age |
<29 |
30-34 |
35-39 |
40-44 |
45-49 |
50-54 |
55-59 |
60-64 |
65-69 |
70-74 |
>75 |
|
Premium per $10,000 of Insurance |
$.0.80 |
$1.00 |
$1.30 |
$1.70 |
$2.20 |
$3.60 |
$6.70 |
$10.80 |
$15.00 |
$22.50 |
$45.00 |
Converting SGLI / FSGLI to a Commercial Insurance Policy:
Retiring Soldiers who choose not to convert their SGLI coverage to VGLI are eligible to convert it to an individual policy of life insurance with a commercial company that participates in the program. This option is also available for spouses covered under Family SGLI (FSGLI). In both cases, this conversion must take place within 120 days following the Soldier's release from active duty. Conversion is at standard premium rates, without having to provide proof of good health. The conversion policy must be a permanent policy, such as a whole life policy. In order to convert VGLI coverage, the policyholder must:
- select a company from the Participating Companies listing,
- apply to a local sales office of the company selected,
- obtain a letter from OSGLI verifying coverage (VGLI Conversion Notice), and
- give a copy of that notice to the agent who takes the application.
Additional Information:
For more information, please visit the Veterans Group Life Insurance webpage maintained by the Department of Veterans Affairs:
http://www.benefits.va.gov/insurance/vgli.asp
Document Review Date: 10 December 2012