Retired Military Life Insurance: Understanding Your Options

Retirement from the military is an exciting time. After years of service, you can finally enjoy the fruits of your labor and focus on your family and personal goals. However, it also comes with its own set of challenges, especially when it comes to life insurance. As you transition to civilian life, it’s important to understand what options are available to you and how they can provide financial security for your loved ones in the future. In this article, we’ll explore various types of retired military life insurance policies and answer some common questions about them.

Types of Retired Military Life Insurance Policies

There are several types of life insurance policies available to retired military personnel. Here are some of the most popular ones:

It’s important to note that these policies have different eligibility requirements, premiums, and coverage amounts. Let’s take a closer look at each one:

Service Members’ Group Life Insurance (SGLI)

SGLI is a life insurance policy that’s available to all military personnel on active duty, in the reserves, or in the National Guard. It provides coverage in the event of the service member’s death, whether it’s due to a military-related cause or not. The coverage amount is up to $400,000, and the premium is based on the service member’s age and health status. The premium is deducted from the service member’s pay.

When a service member retires from the military, they have the option to convert their SGLI policy to VGLI within 120 days of retirement. They can also choose to keep their SGLI coverage for up to two years and pay the premium directly to the Department of Veterans Affairs (VA).

FAQ:

What happens to my SGLI coverage when I retire from the military?

You can either convert your SGLI policy to VGLI within 120 days of retirement, or you can keep your SGLI coverage for up to two years and pay the premiums directly to the VA.

Can I increase my SGLI coverage?

Yes, you can increase your SGLI coverage in increments of $50,000 up to $400,000. You’ll need to complete a form and provide evidence of good health.

What happens if I become totally disabled?

If you become totally disabled and can no longer work, you can apply for a waiver of your SGLI premiums. This means you won’t have to pay the premiums, but you’ll still be covered by the policy.

Veterans’ Group Life Insurance (VGLI)

VGLI is a renewable term life insurance policy that’s available to military personnel who retire from the military and convert their SGLI policy within 120 days of retirement. The coverage amount is based on the service member’s SGLI coverage amount, and the premium is based on the service member’s age and the amount of coverage. The premium is paid directly to the VA.

VGLI is a good option for retired military personnel who want to continue their life insurance coverage after leaving the military. The policy is renewable every five years, and the premium is adjusted based on the service member’s age.

FAQ:

How much does VGLI cost?

The premium for VGLI is based on your age and the amount of coverage you choose. You can use the VA’s VGLI premium calculator to get an estimate of your costs.

Can I increase my VGLI coverage?

Yes, you can increase your VGLI coverage in increments of $10,000 up to the maximum amount of coverage available to you.

Can I cancel my VGLI coverage?

Yes, you can cancel your VGLI coverage at any time. However, you won’t be able to get it back once you cancel it.

Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI is a life insurance policy that’s available to military personnel’s spouses and dependent children. It provides coverage in the event of the service member’s death, and the coverage amount is up to $100,000 for the service member’s spouse and up to $10,000 for each dependent child. The premium is based on the service member’s age and the amount of coverage.

FSGLI is a good option for military families who want to ensure that their loved ones are financially protected in the event of the service member’s death.

FAQ:

Do I have to have SGLI coverage to be eligible for FSGLI?

Yes, you must have SGLI coverage to be eligible for FSGLI.

Can I increase my FSGLI coverage?

Yes, you can increase your FSGLI coverage in increments of $10,000 up to the maximum amount of coverage available to you.

What happens if I divorce or my children are no longer dependents?

You’ll need to notify your branch of service to update your FSGLI coverage. You may be able to decrease your coverage or remove your ex-spouse or non-dependent child from your coverage.

Retired Servicemen’s Family Protection Plan (RSFPP)

RSFPP is a life insurance policy that’s available to retired military personnel and their families. It provides coverage in the event of the retiree’s death and the coverage amount is based on the retiree’s retirement pay. The premium is based on the retiree’s age and the amount of coverage.

RSFPP is a good option for retired military personnel who want to ensure that their loved ones are financially protected in the event of their death.

FAQ:

How much coverage can I get with RSFPP?

The coverage amount is based on your retirement pay, and the maximum coverage amount is $100,000.

Can I increase my RSFPP coverage?

No, you can’t increase your RSFPP coverage. However, you can purchase additional life insurance coverage from a private insurer.

What happens if I die after my coverage ends?

If you die after your RSFPP coverage ends, your beneficiaries won’t receive any death benefits from the policy.

Conclusion

Retired military personnel have several options when it comes to life insurance coverage. It’s important to understand the eligibility requirements, premiums, and coverage amounts for each policy before making a decision. Whether you choose to convert your SGLI policy to VGLI, purchase FSGLI coverage for your family, or enroll in RSFPP, you can rest assured that your loved ones will be financially protected in the event of your death.