4 Things you Should Understand about Veteran Life Insurance Policy

Veteran life insurance policies are designed to provide financial protection to service members
and their families. These policies come in various types and have different terms and
conditions. It is important to understand what these policies entail before opting for one. In this
blog post, we will discuss the four things you should know about veteran life insurance policies.

1. Types of Veteran Life Insurance Policies:-

There are two main types of veteran life insurance policies: Service members’ Group Life
Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI). SGLI is a life insurance policy
offered to active duty members, members of the Selected Reserve, and National Guard
members. VGLI is a life insurance policy available to those who are no longer on active duty but
who were insured under SGLI.

2. Coverage Amount:-

The amount of coverage available under SGLI is limited to $400,000. The amount of coverage
available under VGLI is based on the amount of coverage the service member had under SGLI,
up to a maximum of $400,000. The coverage amount for both policies may be less than
$400,000 depending on the service member’s situation.

3. Premiums:-

The premium for SGLI is deducted automatically from the service member’s pay. The premium
for VGLI is based on the service member’s age and the amount of coverage requested. The
premium for VGLI can be higher than the premium for SGLI, especially for older service
members.

4. Conversion Options:-

Service members who are leaving the military can convert their SGLI policy to a VGLI policy
within one year and 120 days after separation from the military. After that time, service
members can still convert their SGLI policy to a commercial policy, but they may have to
undergo a medical exam and may not be able to get coverage for pre-existing conditions.

In conclusion, veteran life insurance policies offer valuable benefits to service members and
their families. However, it is important to understand the terms and conditions of the policy
before opting for one. By understanding the coverage amount, premium, and conversion
options available, service members can make informed decisions about their life insurance
needs

.