Veteran Life Insurance: Everything You Need to Know

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If you’re a veteran, you may have questions about life insurance. Whether you’re just starting your career or planning for retirement, it’s important to have a plan in place to protect your loved ones. In this article, we’ll cover everything you need to know about veteran life insurance, including the different types of policies available, how they work, and who is eligible.

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What is Veteran Life Insurance?

Before we delve into the details of veteran life insurance, let’s define what it is. Simply put, veteran life insurance is a type of policy that is designed specifically for those who have served in the military.

There are several different types of veteran life insurance policies available, including:

Type of Policy
Description
Service Members’ Group Life Insurance (SGLI)
Low-cost term life insurance available to all military members
Veterans’ Group Life Insurance (VGLI)
Renewable term life insurance available to veterans who have separated from the military
Service-Disabled Veterans’ Life Insurance (S-DVI)
Permanent life insurance available to veterans who have a service-connected disability
Family Servicemembers’ Group Life Insurance (FSGLI)
Term life insurance available to the spouse and dependent children of military members

Service Members’ Group Life Insurance (SGLI)

SGLI is a low-cost term life insurance policy that is available to all military members, including active duty, National Guard, and Reservists. The policy provides coverage of up to $400,000, and the premium is deducted from the service member’s pay.

One of the benefits of SGLI is that it does not require a medical exam, making it easy to obtain coverage quickly. However, it’s important to note that SGLI coverage ends when the service member separates from the military.

Veterans’ Group Life Insurance (VGLI)

After separating from the military, veterans may be eligible for VGLI, which is a renewable term life insurance policy. Veterans have up to one year and 120 days from their separation date to apply for VGLI.

VGLI coverage amounts range from $10,000 to a maximum of the amount of SGLI the veteran had at the time of separation. The premium for VGLI is based on the veteran’s age and the amount of coverage they select.

Service-Disabled Veterans’ Life Insurance (S-DVI)

S-DVI is a permanent life insurance policy that is available to veterans who have a service-connected disability. The coverage amount ranges from $10,000 up to $400,000, and the premium is based on the veteran’s age, gender, and smoking status.

To be eligible for S-DVI, veterans must have received a disability rating from the Department of Veterans Affairs (VA) and be in good health, except for the service-connected disability.

Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI is a term policy that is available to the spouse and dependent children of military members who are covered under SGLI. The spouse can be insured for up to $100,000, and the dependent children can be insured for up to $10,000 each.

The premium for FSGLI is based on the amount of coverage selected and the age of the spouse and children.

Why is Veteran Life Insurance Important?

Life insurance is an important part of any financial plan, and veteran life insurance is no exception. Here are a few reasons why veteran life insurance is important:

  • Provides financial protection for your loved ones in the event of your death
  • Can be used to pay for final expenses, such as funeral costs
  • Can be used to pay off debts, such as a mortgage or car loan
  • Can provide income replacement for your family

Without life insurance, your loved ones may be left with financial burdens that can be difficult to manage. By having a life insurance policy in place, you can help ensure that your loved ones are taken care of financially.

How to Determine Your Life Insurance Needs

Before purchasing a veteran life insurance policy, it’s important to determine how much coverage you need. Here are a few factors to consider when calculating your life insurance needs:

  • Your current and future financial obligations, such as a mortgage or college tuition
  • Your income and how much your family would need to replace it
  • Your family’s lifestyle and how much they would need to maintain it

Once you have determined how much coverage you need, you can select a policy that fits your budget and provides adequate protection for your loved ones.

FAQs About Veteran Life Insurance

What happens to my life insurance when I leave the military?

If you have SGLI, your coverage will end 120 days after you separate from the military. However, you may be eligible for VGLI, which is a renewable term policy that allows you to continue your coverage.

How much life insurance can I get through SGLI?

The maximum coverage amount for SGLI is $400,000.

How do I apply for VGLI?

You can apply for VGLI online or by mail. You must apply within one year and 120 days of your separation from the military.

What is the cost of S-DVI?

The cost of S-DVI varies based on the veteran’s age, gender, and smoking status. The premium can be paid annually, semi-annually, or quarterly.

Can I change my FSGLI coverage amount?

Yes, you can change your FSGLI coverage amount at any time. You must complete a new form and submit it to your personnel office.

Conclusion

Veteran life insurance is an important part of any financial plan. By understanding the different types of policies available and how they work, you can select a policy that provides adequate protection for your loved ones. If you have any questions about veteran life insurance, be sure to speak with a qualified insurance professional.

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