The Complete Guide to VGLI – Pros, Cons, and Rates Chart 2021

The Complete Guide to VGLI – Pros, Cons, and Rates Chart 2021

After leaving the military, one can keep their life insurance coverage as long as they continue to pay the premiums. Under VGLI, service members can convert their SGLI coverage into a renewable term policy. Both VGLI and SGLI are administered by the Office of Servicemembers’ Group Life Insurance.

In this article, we’ll cover the VGLI Rates Chart as well as the pros and cons you need to consider.

Related Article: Best Life Insurance Companies for Veterans

What Is Veterans Group Life Insurance (VGLI)?

Former military service members can continue their group life insurance policy through Veterans Group Life Insurance (VGLI).

The beneficiaries of this insurance receive cash upon the veteran’s death since it is a renewable term policy.

Eligibility Requirements for VGLI

VGLI is available if you have full-time SGLI coverage, and one of the following is true:

  • It is not possible to be released from active duty or active duty for training for less than 31 days by a call or order.
  • Separated from or released from a National Guard/Ready Reserve position.
    ANRG (Inactive National Guard) or IRR (Individual Ready Reserve).
    A portion of this group includes the Inactive Reserve Corps (IRC) of the United States Public Health Service.
  • List of temporarily disabled retirees (TDRL)

You are on part-time duty with SGLI but suffer an injury or disability, resulting in ineligibility for standard premiums. It includes travel to and from your duty assignment. Please keep these points in mind:

  • Applicants must submit VGLI applications within one year of release from service or placement in IRR/ING.
  • During the first 240 days of your stay, you won’t have to submit proof of good health.
  • Particularly for those with medical conditions that make commercial health insurance difficult to obtain, this can be a life-changing benefit.
  • After completing 240 days, it should meet proper health requirements.
  • Under the SGLI Disability Extension (SGLI-DE), you may be able to retain SGLI coverage for up to two years if you are disabled at the time of discharge.

There is no charge for this. Upon receiving the initial premium, you will be issued VGLI at the end of the SGLI-DE.

Related Article: Do Terminally Ill Veterans Qualify for Life Insurance?

What Does VGLI Cover?

A service member who separates from the military is covered by VGLI for the service-connected disability when they are separated.

Each bond has a face value of $10,000, with a total of $400,000.

You can convert your VGLI plan into an individual policy with any commercial company at any time.

VGLI can also be converted to a commercial policy. Additional coverage is available up to the current maximum of $400,000.

Under 60-year-olds are eligible for increased coverage. You can purchase an additional $25,000 coverage every five years, and extra coverage does not require medical underwriting.

Related Article: 7 Steps to Getting Life Insurance for Veterans

VGLI vs. Servicemembers’ Group Life Insurance (SGLI)

There are two essential differences between SGLI and VGLI:

  • Eligibility
  • Cost

The first question is, who is eligible for both programs? Active duty service members are covered by SGLI, whereas military veterans are covered by VGLI, with premiums based on the veteran’s age.

Another noteworthy difference is the cost. Group life insurance is a low-cost option. In the SGLI plan, everyone pays the same premiums no matter their health, gender, age, or other factors. The VGLI premium, however, is determined by their age.

There are 6 cents in premiums per thousand dollars of coverage for SGLI. The maximum range is $400,000 (full coverage comes out to $24 per month). The TSGLI program is also available to servicemembers for $1 a month. Additionally, service members injured on active duty can receive cash assistance through the Traumatic Servicemembers Group Life Insurance program.

VGLI Rates Chart: The Cost of VGLI

You can choose how much insurance coverage you want based on your age and VGLI premium rates from this VGLI Rates Chart.

Amount of Insurance Age 29 & Below Age 30-34 Age 35-39 Age 40-44 Age 45-49 Age 50-54
$400,000 $28.00 $36.00 $48.00 $64.00 $84.00 $132.00
$350,000 24.50 31.50 42.00 56.00 73.50 115.50
$300,000 21.00 37.00 36.00 48.00 63.00 99.00
$250,000 17.50 22.50 30.00 40.00 52.50 82.50
$200,000 14.00 18.00 24.00 32.00 42.00 66.00
$150,000 10.50 13.50 18.00 24.00 31.50 49.50
$100,000 7.00 9.00 12.00 16.00 21.00 33.00
$50,000 3.50 4.50 6.00 8.00 10.50 16.50
$10,000 0.70 0.90 1.20 1.60 2.10 3.30

With increasing value, the price rises. The cost of $100,000 of coverage is ten times higher than $10,000 of coverage. As of April 1, 2021, the following rates will be effective.

Advantages of VGLI

You cannot be denied VGLI coverage if you are an eligible veteran. In the first 240 days after leaving your military role, you will not be asked any health questions, have lab tests or undergo life insurance medical exams.

Aside from that, health is not a factor in premiums, nor are physical or mental issues. For example, smoking also Service or being overweight will not affect your premium. Death benefits from this coverage never decrease unless you request them to, and the policy also remains very active as long as you go to pay your premiums.

In contrast to many group life insurance programs offered by private employers, VGLI does not charge membership or enrollment fees.

Where VGLI Falls Short

You are only covered to the extent of the SGLI coverage you previously had.

Despite its convenience, guaranteed acceptance isn’t free. VGLI rates are affordable for younger veterans, but maintaining this insurance becomes quite expensive in later years because only age and coverage determine VGLI premiums.

As well as term life insurance, VGLI offers no permanent insurance. The policy provides a death benefit, but no investment value is built into the policy. VGLI may not always be available. VGLI applications are accepted for one year and 120 days after leaving the military, but the window closes after that.

Furthermore, VGLI’s death benefit cap is relatively low. So the death benefit might not be a problem for you, but if you need more than $400 000, then you’ll need to purchase additional coverage.

Related Article: Life Insurance Calculator for Veterans: What Does Life Insurance Cost?

How to Get VGLI

If you leave the military within one year and 120 days, you must apply for VGLI.
Afterward, you must provide evidence that you are in good health.

  • Before completing the application, you can log out, and it will save for 14 days. During that period, you can return to finish the application.
  • The first VGLI premium payment is due at the end of the application process. Therefore, we will also not consider your application complete until we receive your first VGLI premium payment.

Using the Prudential website or through eBenefits. Apply by mail or fax using this form

VGLI Rates Chart: Is VGLI Worth It for Veterans?

You cannot be turned down for VGLI if you are an eligible veteran. During the first 240 days after leaving the military, there are no health questions, lab tests, or life insurance medical exams.

Aside from that, health is not a factor in premiums, nor are physical or mental issues. Being overweight or using tobacco products won’t affect your premiums.

In contrast to many group life insurance programs offered by private employers, VGLI does not charge membership or enrollment fees.

In the marketplace, many rates are very competitive with those of VGLI. Thus, it makes sense to apply to military affinity companies like USAA, Navy Mutual, etc., which often offer competitive rates and are used to covering military personnel.

Using the insurance policies you choose to meet your insurance needs, you can develop a coherent plan based on the information at hand.

Don’t forget to secure VGLI coverage even if you are unsure about your eligibility since you can cancel it at any time. You may not receive coverage if you wait beyond 24 days after retirement.

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