Veterans’ Group Life Insurance (VGLI)
Veterans’ Group Life Insurance (VGLI) is life insurance offered exclusively to veterans. Post –separation, a veteran can convert his SGLI coverage to renewable term insurance. You can convert your SGLI coverage to VGLI upon your discharge from the military or within 485 days of discharge.
If you convert within 120 days of separation, you don’t have to show proof of health. However, if you wait longer to enroll in VGLI, you’ll need to show evidence of good health.
VGLI coverage is issued in multiples of $10,000 up to $400,000. However, your VGLI coverage amount can’t exceed the amount of SGLI you had at the time of separation from the military.
Monthly premium rates depend on your age and the amount of coverage you elect. Premiums can range from as low as $0.80 per month to a whopping $1,800 per month. That’s not a typo, folks. A veteran over the age of 75 would have to pay $1,800 per month for the maximum coverage under VGLI.
For this reason, many veterans don’t consider VGLI to be such a good deal, unless you plan on dying soon after you get out of the military. For a list of current premium rates, see the VGLI Premium Rates page on the VA’s website.
You can apply for VGLI coverage at the time of your military discharge through your unit or base personnel office, or online through Prudential.
Although VGLI may not be the best choice for most veterans, it’s a very valuable benefit for those who are medically discharged or retired from the military due to a potentially life-threatening condition, because most civilian life insurance plans won’t cover such pre-existing conditions.