Do Retired Veterans Have Life Insurance?

Retired veterans often inquire about the availability of life insurance coverage after their military service concludes. While automatic life insurance generally ceases upon separation from service, several government-sponsored options are available to help veterans secure financial protection for their loved ones. These programs provide continued coverage or new opportunities for those who qualify.

Understanding Veterans’ Life Insurance Programs

Upon separation from military service, life insurance coverage held during active duty does not automatically continue. Servicemembers’ Group Life Insurance (SGLI) provides affordable term life insurance to active-duty military personnel. This coverage serves as a foundation for options available after leaving service, with the maximum coverage amount increasing to $500,000 as of March 1, 2023.

Veterans’ Group Life Insurance (VGLI) allows individuals to continue their life insurance coverage after leaving the military. VGLI is a renewable term life insurance policy, converting SGLI coverage into post-service insurance. This program is available to those who had SGLI while in service and meet specific application timelines after separation.

In addition to VGLI, Veterans Affairs Life Insurance (VALife) is designed for veterans with service-connected disabilities. Unlike VGLI, which is a conversion option, VALife is a standalone whole life insurance program. It provides guaranteed acceptance coverage to eligible veterans, regardless of when they separated from service.

VALife offers a distinct benefit by not requiring medical exams or health questions for enrollment, which is particularly beneficial for veterans with disabilities. If a veteran meets the eligibility criteria, their application for VALife will be approved. The program ensures service-disabled veterans can obtain life insurance coverage that might otherwise be difficult to secure through private insurers.

Eligibility and Application for Veterans’ Life Insurance

Eligibility for Veterans’ Group Life Insurance (VGLI) requires that an individual had Servicemembers’ Group Life Insurance (SGLI) while in the military. Application for VGLI must occur within one year and 120 days of separation from service. If the application is submitted within 240 days of separation, no proof of good health is required.

If a veteran applies for VGLI after the 240-day window but within the full one year and 120-day period, they will need to provide evidence of good health. The application process for VGLI can be completed online through the Office of Servicemembers’ Group Life Insurance (OSGLI) website, or by mailing or faxing the Application for Veterans’ Group Life Insurance (SGLV 8714).

For Veterans Affairs Life Insurance (VALife), eligibility is tied to having a service-connected disability rating, even a 0% rating. Veterans aged 80 or younger with a service-connected disability can apply for VALife at any time, with no application deadline. For veterans aged 81 or older, specific conditions apply: they must have applied for VA disability compensation before turning 81, received a disability rating after turning 81, and then apply for VALife within two years of receiving notification of that disability rating.

The application for VALife is primarily an online process, often resulting in an immediate decision regarding approval. Applicants are required to submit their first premium payment at the time of application.

Coverage Amounts and Premiums

Veterans’ Group Life Insurance (VGLI) offers coverage in increments of $10,000, ranging from a minimum of $10,000 up to a maximum of $500,000. The specific amount of coverage a veteran can obtain is based on the amount of SGLI they held at the time of their separation from service. Policyholders have the option to increase their VGLI coverage by $25,000 on their one-year anniversary and every five years thereafter, up to the $500,000 maximum, until they reach age 60.

VGLI premiums are determined by the veteran’s age and the selected coverage amount. These premiums are structured to increase every five years as the policyholder ages, which can lead to higher costs over time.

Veterans Affairs Life Insurance (VALife) provides coverage amounts up to $40,000, available in $10,000 increments. VALife has a two-year waiting period: the full coverage amount takes effect only after two years of continuous premium payments. If the insured veteran passes away within this two-year period, beneficiaries will receive the total amount of premiums paid, plus interest.

VALife premiums are level, meaning they are fixed at the rate determined by the veteran’s age at the time of application and the chosen coverage amount. Unlike VGLI, VALife premiums do not increase as the policyholder ages, providing a consistent cost for the duration of the policy.

Managing Your Policy and Claims

For Veterans’ Group Life Insurance (VGLI), policyholders can update their beneficiary information through an online account or by submitting the SGLV 8721 form via mail or fax. Premium payments for VGLI can be made through automatic deductions from a bank account, known as VGLI Auto Pay, or through other online payment options.

For Veterans Affairs Life Insurance (VALife), beneficiaries can be updated by completing VA Form 29-336 and submitting it through a secure online upload portal. The initial premium payment for VALife is due at the time of application, and subsequent payments can be managed on a monthly or annual basis.

The process for filing a claim upon the death of the insured veteran is initiated by the named beneficiary. The beneficiary will need to provide specific documents, such as a death certificate and the policy number, to the relevant insurance office. For VALife policies, the average time to process and pay out a death claim is between two to five business days.