VETERANS LIFE INSURANCE: WHAT YOU NEED TO KNOW
Most of the time, Vets don't even know that they have privileges and benefits waiting for them, one of which is Veterans’ life insurance. This offers financial security for retired service members, spouses, and children. Applying for this benefit may depend on what you qualify for. It also may vary depending on the options available. So, one life insurance policy will not be available for all. Understanding everything may be complicated since there are terms and conditions that require legal advice. However, we're breaking down Veteran life insurance options and who is eligible.
Veterans Life Insurance and Eligibility
Understanding the various types of life insurance and your eligibility is vital to knowing what you can apply for; the earlier you can file, the better. Here is the information service members should know to prepare for unforeseen events.
Servicemembers’ Group Life Insurance (SGLI)
The SGLI has low-cost coverage terms for qualified service members, and they are automatically enrolled in this program. You only need to meet one of these benefits to be qualified:
- an active member of the Space Force, Army, Navy, Coast Guard, Air Force, or Marines
- a commissioned member of the NOAA or USPHS
- a midshipman or cadet of the U.S. military academies
Additionally, you must be a member, midshipman, or cadet of the ROTC and have engaged in licensed exercises. To qualify you need to be a member of the National Guard or the Ready Reserve - assigned to a unit, on standby to complete 12 periods of inactive training per year and a volunteer in the IRR mobilization category.
The Benefits of SGLI
Veterans life insurance benefits under the SGLI are as follows:
- You will have $500,000 ($50,000 increments)
- 120 days of free coverage from the day you leave service, and, if disabled, an extension of up to 2 years of free coverage
You can also make changes to your benefits by choosing your level of coverage, refusing coverage, and changing your beneficiaries.
Traumatic Injury Protection (TSGLI)
The TSGLI offers short-term monetary support to help qualified service members recuperate from severe injuries. This kind of Veterans life insurance centers on service members with traumatic injury, and they must meet all of these requirements to be qualified:
- had suffered a traumatic injury before midnight on a set day you left the military
- had sustained a scheduled loss within two years
- survived for no less than seven full days from the time of the traumatic injury
- were an active-duty member, a National Guard member, Reservist, on funeral-honors duty, or 1-day muster duty.
Under the TSGLI, you can get $25,000 to $100,000 of financial support automatically covered if you have signed up for full-time SGLI. This will cover you even if you will incur an injury while you are off duty. To file a claim, fill out the form and fax, mail, or email it to Veterans Affairs.
Family Servicemembers' Group Life Insurance (FSGLI)
This insurance aims to provide coverage for the spouses and children of the service members. Some of the requirements for eligibility include that the service member is on active duty and must be a part of the Ready Reserve or the National Guard. Family service members can receive a maximum of $100,000 coverage for the spouse and $10,000 for each dependent child. If the service member is full-time on SGLI, the civilian spouse will be automatically insured under FSGLI to get the benefits. However, if you were wedded on or after January 2, 2013, you must ask your service member to sign up via the SGLI Online Enrollment System.
Options for Veterans Life Insurance
Once you've become a civilian, there will be a lot of worries since you will not be getting the same insurance as before. But don't worry because there are a lot of plans you can choose from before your 120 days until SGLI coverage expires. Here are some of the top insurance options you can choose from.
USBA's 20-Year Group Level Term Life Insurance Policy
They offer premiums created to stay at the same level for the next 20 years. A $100,000 of coverage starts at $7.33/month, the coverage available is $25,000 to $500,000, and the age bracket is from 18 to 54 years old.
Veterans' Group Life Insurance (VGLI)
The VGLI offers around $10,000 and $500,00 in term life insurance benefits, but it will depend on the SGLI coverage you had when you left service. Another note is that they only provide death benefits, and no cash value is built over time. It is the most affordable insurance.
Veteran Affairs Life Insurance (VALife)
It offers up to $40,000 in life insurance coverage. Its cash value will add up to two years after your application is approved, and the premium rates will vary depending on your age.Having Veteran’s life insurance after you leave service can be a lifesaver in many ways, so researching before leaving is vital. Also, remember to have a support group to make this process easier, as plenty of options exist for protecting you and your loved ones. Suggested reads: