How Do You Pay Premiums? VGLI premiums can be directly paid to OSGLI in the form of a money order, automatic deduction from Disability Compensation Benefits offered by VA, from military retirement pay, or through a check. Payments can also be done with a credit or debit card. OSGLIs toll free number can called to make payments toward premiums. The first premium must be paid along with the application form that must be submitted to OSGLI directly. This must be done even if you choose to pay the premiums through a DFB or through allotments. After your application has been approved, subsequent premiums will be due monthly beginning the month after the insurance becomes effective.