VA Disabled Life Insurance: Understanding Your Options

When you are a veteran with a disability, planning for your financial future can be a challenge. One area you may need to consider is life insurance. VA disabled life insurance is a great option for veterans to consider, but there are many factors to think about before making a decision. In this article, we will discuss what VA disabled life insurance is, how it works, and how to determine if it’s the right choice for you.

What is VA Disabled Life Insurance?

VA disabled life insurance, also known as Servicemembers’ Group Life Insurance (SGLI), is a life insurance policy available to active duty service members, veterans, and their families. SGLI provides low-cost term life insurance coverage for up to $400,000 with no medical exam required.

For disabled veterans, there are several options under VA disabled life insurance. Veterans’ Group Life Insurance (VGLI) is available to service members who are transitioning to civilian life. It is a great option for veterans who are not in good health or cannot obtain life insurance on the open market due to a disability.

Another option is Family Servicemembers’ Group Life Insurance (FSGLI) for spouses and dependent children of service members. FSGLI coverage is available in increments of $10,000 up to $100,000 for spouses and $10,000 for dependent children.

How Does It Work?

VA disabled life insurance works similarly to regular life insurance. The policyholder pays a premium to the insurer, who agrees to pay out a death benefit if the policyholder passes away while the policy is in effect.

For SGLI coverage, the premium is very low and is deducted from the service member’s pay. For VGLI and FSGLI coverage, the premium is determined based on the age and gender of the policyholder as well as the amount of coverage desired.

When it comes to VA disabled life insurance, one important factor to keep in mind is that the premium rates for VGLI and FSGLI are based on the age of the policyholder at the time of conversion. This means that rates will increase every five years, so it’s important to consider the long-term cost when deciding whether or not to convert.

Is VA Disabled Life Insurance Right for You?

VA disabled life insurance is an excellent option for many veterans, but it’s not right for everyone. Here are some things to consider when determining if VA disabled life insurance is the right choice for you:

Do You Have Dependents?

If you have dependents who rely on you financially, life insurance is an important consideration. VA disabled life insurance can provide a safety net for your loved ones in case something happens to you.

Are You in Good Health?

If you are in good health, you may be able to obtain life insurance on the open market at a lower rate than VA disabled life insurance. However, if you have a disability or health condition, VA disabled life insurance may be your best option.

Are You Looking for a Low-Cost Option?

For disabled veterans, VA disabled life insurance is an affordable option that does not require a medical exam. If cost is a primary concern, VA disabled life insurance may be the best choice for you.

FAQ

VA disabled life insurance is a great option for many veterans and their families. By understanding what VA disabled life insurance is, how it works, and whether it’s the right choice for you, you can make an informed decision about your financial future.