VGLI Insurance: The Ultimate Guide

As a veteran, it’s important to have a comprehensive life insurance policy to protect your family from financial hardships in the event of your death. The Veterans’ Group Life Insurance (VGLI) policy is one of the best options available for veterans, offering low-cost coverage with a multitude of benefits.

What is VGLI Insurance?

Veterans’ Group Life Insurance (VGLI) is a life insurance policy designed specifically for veterans who have separated from service. VGLI is similar to the Service members’ Group Life Insurance (SGLI) policy that active-duty members have while serving, but with a few key differences. VGLI is a renewable term life insurance policy that allows veterans to continue their coverage they had with SGLI after leaving the military.

Unlike SGLI, VGLI offers coverage to eligible veterans, regardless of their health status. Premiums for VGLI are calculated based on your age, gender, and the amount of coverage you select.

Who is Eligible for VGLI Insurance?

To be eligible for VGLI insurance, you must meet the following criteria:

  1. Be a veteran who has separated from service
  2. Have been covered by SGLI while serving in the military
  3. Apply for VGLI within 1 year and 120 days after separation from service

If you meet these requirements, you can apply for VGLI coverage regardless of your current health status. This is a great benefit for veterans who may have pre-existing conditions or other health issues.

How does VGLI Insurance Work?

VGLI is a renewable term life insurance policy that allows you to continue the coverage you had with SGLI after you leave the military. The amount of coverage you can get with VGLI depends on the amount of coverage you had with SGLI when you separated from the military. You can get up to the same amount of coverage you had with SGLI, up to a maximum of $400,000.

When you enroll in VGLI, you pay a premium based on your age, gender, and the amount of coverage you select. Your premium may increase as you get older, but it will never increase beyond the maximum premium amount for your age group.

Once you are enrolled in VGLI, your coverage is renewable every 5 years. This means that you can continue your coverage as long as you pay your premiums on time. You can also increase your coverage amount at any time, up to the maximum amount allowed.

How much does VGLI Insurance Cost?

The cost of VGLI insurance depends on your age, gender, and the amount of coverage you select. The following table shows the monthly premium rates for VGLI coverage as of January 2022:

Age
Male Monthly Premium
Female Monthly Premium
29 and under
$16.00
$12.00
30-34
$20.00
$14.00
35-39
$25.00
$18.00
40-44
$32.00
$24.00
45-49
$43.00
$32.00
50-54
$63.00
$48.00
55-59
$98.00
$77.00
60-64
$163.00
$129.00
65-69
$283.00
$221.00
70-74
$487.00
$384.00
75 and over
$846.00
$666.00

It’s important to note that these rates are subject to change and may vary based on your individual circumstances.

What are the Benefits of VGLI Insurance?

There are many benefits to choosing VGLI insurance as your life insurance policy:

Low-Cost

VGLI offers low-cost coverage that is affordable for most veterans. Premiums for VGLI are generally much lower than those for private life insurance policies.

No Medical Exam Required

Unlike many private life insurance policies, VGLI does not require a medical exam to qualify for coverage. This means that veterans with pre-existing conditions or other health issues can still get coverage.

Guaranteed Coverage

If you qualify for VGLI coverage, you are guaranteed to be accepted, regardless of your health status. This is a great benefit for veterans who may have difficulty getting coverage through private insurers.

Portable Coverage

If you move or travel frequently, you can take your VGLI coverage with you. As long as you keep paying your premiums, your coverage will remain in effect no matter where you go.

Flexible Coverage

You can choose the amount of coverage that works best for your situation, up to the maximum amount allowed. You can also increase your coverage amount at any time, as long as you pay the additional premium.

No Termination Age

VGLI coverage does not have a termination age, which means you can continue your coverage for as long as you pay your premiums. This is a great benefit for veterans who may need coverage well into their retirement years.

FAQ About VGLI Insurance

What is the maximum amount of coverage I can get with VGLI?

The maximum amount of coverage you can get with VGLI is $400,000. This is the same amount of coverage that you were eligible for with SGLI.

What happens if I stop paying my premiums?

If you stop paying your premiums, your coverage will be terminated. You may be able to reinstate your coverage within 5 years if you pay all back premiums and interest. After 5 years, you will no longer be able to reinstate your coverage.

Can I convert my VGLI coverage to a private life insurance policy?

Yes, you can convert your VGLI coverage to a private life insurance policy at any time. This may be a good option if you want more coverage than is available with VGLI or if you want to switch to a policy with different benefits.

How do I enroll in VGLI coverage?

You can enroll in VGLI coverage by completing and submitting an application to the Veterans’ Administration (VA). You must apply for VGLI within 1 year and 120 days after your separation from service to be eligible for coverage.

Can I change my VGLI coverage amount after I enroll?

Yes, you can increase or decrease your VGLI coverage amount at any time. If you increase your coverage amount, your premium will also increase.

Is VGLI coverage available to my dependents?

No, VGLI coverage is only available to eligible veterans who have separated from service. Dependents are not eligible for VGLI coverage.

The Bottom Line

Veterans’ Group Life Insurance (VGLI) is an excellent option for veterans who want low-cost, guaranteed life insurance coverage with a multitude of benefits. If you meet the eligibility requirements for VGLI, it’s definitely worth considering as a way to protect your family from financial hardships in the event of your death.