VGLI vs. Private Life Insurance: A Comparison Guide

VGLI vs. Private Life Insurance: A Comparison Guide

The best way to decide whether to obtain coverage under Veterans Group Life Insurance (VGLI) or another insurance plan is to determine whether (VGLI) will meet your life insurance needs.

People who meet the VGLI eligibility criteria should consider VGLI as part of their insurance portfolio. Generally, health reviews determine eligibility for insurance coverage, and the health review can be complex for people with certain medical conditions.

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

What Is the Veterans Group Life Insurance (VGLI)?

Soldiers can convert their Servicemembers Group Life Insurance (SGLI) coverage to renewable term insurance through ‘Veterans’ Group Life Insurance (VGLI).
A service member can convert SGLI coverage to renewable term insurance by taking out VGLI.

VGLI Eligibility

After leaving the military, full-time SGLI coverage can be converted to a lifetime renewable term policy as part of the Veterans Group Life Insurance Program (VGLI).
Your application for coverage has a 240-day deadline. Should you fail to pay the premiums, the VGLI may be retained. Former SGLI beneficiaries.
The following are the eligibility requirements for VGLI.

  • When you were a part-time member of the National Guard or Reserve, you were injured while on duty — including direct travel to and from duty — so you were not eligible for standard premiums.
  • Approximately one year and one hundred twenty days have passed since you were assigned to a branch of service or the Inactive National Guard (ING). Members of the U.S. Public Health Service Inactive Reserve Corps (IRC).

VGLI Benefits

Convert SGLI Coverage to renewable term insurance through Veterans ‘Veterans’ Group Military Life Insurance (VGLI).

As soon as a member is discharged from SGLI, the VGLI becomes available. Veterans Affairs created this program to provide low-cost coverage for veterans and soldiers with military service-related risks or disabilities that prevent them from obtaining insurance from private companies.

In VGLI, you can increase your coverage every five years by $25,000 until you turn 60. You do not need to be healthy.

Related Article: How to Apply for Veterans Burial Allowance

No Medical Exam if Done During Certain Period

VGLI is generally unavailable after 120 days of discharge. Applications submitted after that date will not be considered. Veterans will be eligible for 90 days following the COVID-19 pandemic, and enrolling within 330 days will not require medical examinations.

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

More Affordable

VGLI policies have a maximum of $400,000, and this might not be enough for your family. The policy will remain in force when you separate, and the price will stay the same throughout the policy term.
VGLI rates increase as people age. Young people can afford VGLI, but the cost can rise over the years. VGLI has some benefits that may make it attractive to some veterans.

Ease of Use

VGLI offers a variety of payment options. Premiums are payable monthly, quarterly, semi-annually, and annually. Discounts are available on some plans. Below is a table of options, as well as the discounts they offer.

Frequency of premium payment Methods of premium payment available Annual Premium Discount Rate
Monthly Allotment from Military pay

Deduction from VA compensation Payments

No discount
Check

Deductions from checking accounts and credit cards on demand.

Quarterly Check 2.50% Discount
Deduction from checking account or credit card on demand
Semi-annually Check 3.75% discount
Deductions from checking accounts and credit cards on demand
Annually Check 5.00% discount
Withdrawals from checking or credit card accounts on demand

By 2022, retired military members will receive an increase of $59 per month for every $1,000 of pension they receive.

VGLI Rates and Coverage

If you continue to pay your VGLI premiums after leaving the military, you may still be able to maintain your VA life insurance policy.

VGLI rates are determined by the amount of your death benefit and your age. It is possible to purchase coverage up to $400,000. Rates increase every five years until you are 80, with applicants under 30 offered the lowest prices. You will still be able to get coverage after that point, but your price will not increase.

VGLI Rates by Age

Age 29 and below

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 28.00
390,000 27.30
380,000 26.60
370,000 25.90
360,000 25.20
350,000 24.50
340,000 23.80
330,000 23.10
320,000 22.40
310,000 21.70
300,000 21.00
290,000 20.30
280,000 19.60
270,000 18.90
260,000 18.20
250,000 17.50
240,000 16.80
230,000 16.10
220,000 15.40
210,000 14.70
200,000 14.00
190,000 13.30
180,000 12.60
170,000 11.90
160,000 11.20
150,000 10.50
140,000 9.80
130,000 9.10
120,000 8.40
110,000 7.70
100,000 7.00
90,000 6.30
80,000 5.60
70,000 4.90
60,000 4.20
50,000 3.50
40,000 2.80
30,000 2.10
20,000 1.40
10,000 0.70

Age 30 – 34

Coverage amount in US $ Monthly Premium rate in the US $
400,000 36.00
390,000 35.10
380,000 34.20
370,000 33.30
360,000 32.40
350,000 31.50
340,000 30.60
330,000 29.70
320,000 28.80
310,00 27.9
300,000 27.00
290,000 26.10
280,000 25.20
270,000 24.30
260,000 23.40
250,000 22.50
240,000 21.60
230,000 20.70
220,000 19.80
210,000 18.90
200,000 18.00
190,000 17.10
180,000 16.20
170,000 15.30
160,000 14.40
150,000 13.50
140,000 12.60
130,000 11.70
120,000 10.80
110,000 9.90
100,000 9.00
90,000 8.10
80,000 7.20
70,000 6.30
60,000 5.40
50,000 4.50
40,000 3.60
30,000 2.70
20,000 1.80
10,000 .90

Age 35 to 39

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 48.00
390,000 46.80
380,000 45.60
370,000 44.40
360,000 43.20
350,000 42.00
340,000 40.80
330,000 39.60
320,000 38.40
310,000 37.20
300,000 36.00
290,000 34.80
280,000 33.60
270,000 32.40
260,000 31.20
250,000 30.00
240,000 28.80
230,000 27.60
220,000 26.40
210,000 25.20
200,000 24.00
190,000 22.80
180,000 21.60
170,000 20.40
160,000 19.20
150,000 18.00
140,000 16.80
130,000 15.60
120,000 14.40
110,000 13.20
100,000 12.00
90,000 10.80
80,000 9.60
70,000 8.40
60,000 7.20
50,000 6.00
40,000 4.80
30,000 3.60
20,000 2.40
10,000 1.20

Age 40-44

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 64.00
390,000 62.40
380,000 60.80
370,000 59.20
360,000 57.60
350,000 56.00
340,000 54.40
330,000 52.80
320,000 51.20
310,000 49.60
300,000 48.00
290,000 46.40
280,000 44.80
270,000 43.20
260,000 41.60
250,000 40.00
240,000 38.40
230,000 36.80
220,000 35.20
210,000 33.60
200,000 32.00
190,000 30.40
180,000 28.80
170,000 27.20
160,000 25.60
150,000 24.00
140,000 22.40
130,000 20.80
120,000 19.20
110,000 17.60
100,000 16.00
90,000 14.40
80,000 12.80
70,000 11.20
60,000 9.60
50,000 8.00
40,000 6.40
30,000 4.80
20,000 3.20
10,000 1.60

Age 45-49

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 84.00
390,000 81.90
380,000 79.80
370,000 77.70
360,000 75.60
350,000 73.50
340,000 71.40
330,000 69.30
320,000 67.20
310,000 65.10
300,000 63.00
290,000 60.90
280,000 58.80
270,000 56.70
260,000 54.60
250,000 52.50
240,000 50.40
230,000 48.30
220,000 46.20
210,000 44.10
200,000 42.00
190,000 39.90
180,000 37.80
170,000 35.70
160,000 33.60
150,000 31.50
140,000 29.40
130,000 27.30
120,000 25.20
110,000 23.10
100,000 21.00
90,000 18.90
80,000 16.80
70,000 14.70
60,000 12.60
50,000 10.50
40,000 8.40
30,000 6.30
20,000 4.20
10,000 2.10

Age 50 – 54

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 132.00
390,000 128.70
380,000 125.40
370,000 122.10
360,000 118.80
350,000 115.50
340,000 112.20
330,000 108.90
320,000 105.60
310,000 102.30
300,000 99.00
290,000 95.70
280,000 92.40
270,000 89.10
260,000 85.80
250,000 82.50
240,000 79.20
230,000 75.90
220,000 72.60
210,000 69.30
200,000 66.00
190,000 62.70
180,000 59.40
170,000 56.10
160,000 52.80
150,000 49.50
140,000 46.20
130,000 42.90
120,000 39.60
110,000 36.30
100,000 33.00
90,000 29.70
80,000 26.40
70,000 23.10
60,000 19.80
50,000 16.50
40,000 13.20
30,000 9.90
20,000 6.60
10,000 3.30

Age 55-59

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 240.00
390,000 234.00
380,000 228.00
370,000 222.00
360,000 216.00
350,000 210.00
340,000 204.00
330,000 198.00
320,000 192.00
310,000 186.00
300,000 180.00
290,000 174.00
280,000 168.00
270,000 162.00
260,000 156.00
250,000 150.00
240,000 144.00
230,000 138.00
220,000 132.00
210,000 126.00
200,000 120.00
190,000 114.00
180,000 108.00
170,000 102.00
160,000 96.00
150,000 90.00
140,000 84.00
130,000 78.00
120,000 72.00
110,000 66.00
100,000 60.00
90,000 54.00
80,000 48.00
70,000 42.00
60,000 36.00
50,000 30.00
40,000 24.00
30,000 18.00
20,000 12.00
10,000 6.00

Age 60 – 64

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 396.00
390,000 386.10
380,000 376.20
370,000 366.30
360,000 356.40
350,000 346.50
340,000 336.60
330,000 326.70
320,000 316.80
310,000 306.90
300,000 297.00
290,000 287.10
280,000 277.20
270,000 267.30
260,000 257.40
250,000 247.50
240,000 237.60
230,000 227.70
220,000 217.80
210,000 207.90
200,000 198.00
190,000 188.10
180,000 178.20
170,000 168.30
160,000 158.40
150,000 148.50
140,000 138.60
130,000 128.70
120,000 118.80
110,000 108.90
100,000 99.00
90,000 89.10
80,000 79.20
70,000 69.30
60,000 59.40
50,000 49.50
40,000 39.60
30,000 29.70
20,000 19.80
10,000 9.90

Age 65 to 69

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 588.00
390,000 573.30
380,000 558.60
370,000 543.90
360,000 529.20
350,000 514.50
340,000 499.80
330,000 485.10
320,000 470.40
310,000 455.70
300,000 441.00
290,000 426.30
280,000 411.60
270,000 396.90
260,000 382.20
250,000 367.50
240,000 352.80
230,000 338.10
220,000 323.40
210,000 308.70
200,000 294.00
190,000 279.30
180,000 264.60
170,000 249.90
160,000 235.20
150,000 220.50
140,000 205.80
130,000 191.10
120,000 176.40
110,000 161.70
100,000 147.00
90,000 132.30
80,000 117.60
70,000 102.90
60,000 88.20
50,000 73.50
40,000 58.80
30,000 44.10
20,000 29.40
10,000 14.70

Age 70 – 74

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 904.00
390,000 881.40
380,000 858.80
370,000 836.20
360,000 813.60
350,000 791.00
340,000 768.40
330,000 745.80
320,000 723.20
310,000 700.60
300,000 678.00
290,000 655.40
280,000 632.80
270,000 610.20
260,000 587.60
250,000 565.00
240,000 542.40
230,000 519.80
220,000 497.20
210,000 474.60
200,000 452.00
190,000 429.40
180,000 406.80
170,000 384.20
160,000 361.60
150,000 339.00
140,000 316.40
130,000 293.80
120,000 271.20
110,000 248.60
100,000 226.00
90,000 203.40
80,000 180.80
70,000 158.20
60,000 135.60
50,000 113.00
40,000 90.40
30,000 67.80
20,000 45.20
10,000 22.60

Age 75-79

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 1,712.00
390,000 1,669.20
380,000 1,626.40
370,000 1,583.60
360,000 1,540.80
350,000 1,498.00
340,000 1,455.20
330,000 1412.40
320,000 1,369.60
310,000 1,326.80
300,000 1,284.00
290,000 1,241.20
280,000 1,198.40
270,000 1,155.60
260,000 1,112.80
250,000 1,070.00
240,000 1,027.20
230,000 984.40
220,000 941.60
210,000 898.80
200,000 856.00
190,000 813.20
180,000 770.40
170,000 727.60
160,000 684.80
150,000 642.00
140,000 599.20
130,000 556.40
120,000 513.60
110,000 470.80
100,000 428.00
90,000 385.20
80,000 342.40
70,000 299.60
60,000 256.80
50,000 214.00
40,000 171.20
30,000 128.40
20,000 85.60
10,000 42.80

Age 80 and over

Coverage amount (in U.S. $) Monthly premium rate (in U.S. $)
400,000 1,800.00
390,000 1,755.00
380,000 1,710.00
370,000 1,665.00
360,000 1,620.00
350,000 1,575.00
340,000 1,530.00
330,000 1,485.00
320,000 1,440.00
310,000 1,395.00
300,000 1,350.00
290,000 1,305.00
280,000 1,260.00
270,000 1,215.00
260,000 1,170.00
250,000 1,125.00
240,000 1,080.00
230,000 1,035.00
220,000 990.00
210,000 945.00
200,000 900.00
190,000 855.00
180,000 810.00
170,000 765.00
160,000 720.00
150,000 675.00
140,000 630.00
130,000 585.00
120,000 540.00
110,000 495.00
100,000 450.00
90,000 405.00
80,000 360.00
70,000 315.00
60,000 270.00
50,000 225.00
40,000 180.00
30,000 135.00
20,000 90.00
10,000 45.00

What VGLI Covers

In the event of separation from service, Veterans Group Life Insurance (VGLI) becomes a renewable term insurance protection policy.

Your needs will be met, whether for you or as a supplement to other coverage. If you qualify for VGLI coverage, you don’t have to undergo a health review for 240 days, regardless of how severe your health issues are.

Private Life Insurance Options

A service-disabled veterans’ life insurance policy (S-DVI)

Service-Disabled Veterans’ Insurance (SDVI) provides life insurance coverage for veterans with service-connected disabilities. SDVI coverage requires you to receive a VA rating for your newly rated disability within the past two years, unless you are completely disabled, in which case you qualify for free coverage.

Veterans’ Mortgage Life Insurance (VMLI)

Veterans with disabilities who qualify for V.A. Mortgage Life Insurance (VMLI) may be eligible for V.A. Specially Adapted Housing (SAH) grants. Life insurance coverage is available based on your needs under VMLI policies.

Private Insurance Benefits

Veteran’sVeteran’s privately insured health benefits include:

  • Treatment of diseases and injuries.
  • Prevention of future health problems.
  • Improving your ability to function and enhance your quality of life.

Affordable Options

Affordable options include:

  • VGLI coverage can become too expensive so that you can switch to a different provider. Young, healthy individuals may benefit from this approach.
  • Some insurers also offer term life insurance rates that are fixed for up to 40 years. If you need more coverage than VGLI offers, term life insurance is typically the cheapest non-group life insurance choice.
  • If you want to build cash value with other kinds of life insurance, such as whole life, you may be able to lock in relatively low rates.
  • Permanent life insurance is more expensive than term life insurance, but it provides lifetime coverage at a fixed price.
  • The VGLI policy can also be converted into an individual permanent life insurance policy through a participating insurer at standard premium rates without proof of good health.

VGLI offers affordable life insurance solutions for those who have left the military. The purpose of this insurance option is to provide affordable coverage to those serving in the armed forces who otherwise would not be eligible for the standard premium rates in the civilian marketplace, especially if they suffer injury or disability.

VGLI coverage cannot be converted to commercial coverage through the participating insurer’s list without proving your health, but you can convert it to other benefits, such as cash value. VGLI policies offered by the armed forces may be a good option for service members who want to protect themselves and their families at an affordable rate.

Covers Only What You Need

The coverage amount of your VGLI life insurance policy will remain the same. You may wish to extend your VGLI policy by $25,000 every five years if your SGLI policy death benefit decreases and you want to have more coverage. VGLI policies are term life insurance, but they renew each year and remain in force for the duration of the policy.

Fewer Limits on Coverage

VGLI is distributed in increments of $10,000 up to the amount of SGLI in effect at the time of separation.

The policy’s limits determine the company’s coverage for a covered claim.

Private Insurance Rates and Coverage

Consumers can recover from a car accident or the loss of a family income-producing adult if they have insurance coverage. The insured pays a premium to the insurer in exchange for this coverage. Several factors determine the cost of the policy and the coverage it provides.

Life Insurance Rates

As large reinsurance companies will likely raise rates, customers will see their life insurance premiums rise in 2022. Premium increases may increase profitability for insurers, but they may also impact demand for policies when awareness of insurance is high.

Although higher premiums may increase profitability for insurers, they could also impact demand when awareness about insurance is at its peak.

Reinsurers are expected to raise premiums between 20% and 40% to cover higher losses due to increased claims.

Several companies have already applied for permission to raise charges with India’s Insurance Regulatory and Development Authority (IRDAI), while others are negotiating with global reinsurers.

When you leave the military, you must have $100,000 in SGLI to be eligible for VGLI. However, coverage is limited to $400,000 until the age of 60. Then you can continue to pay your premiums and maintain your coverage as soon as you reach that age.

Private Insurance Coverage

A private health insurance plan is provided by a private organization instead of a government organization. Companies or brokers do not offer private health insurance plans.

The Affordable Care Act requires that specific private health plans provide essential coverage. Catastrophic and short-term insurance plans offer different benefits. Under the Affordable Care Act, personal health insurance options may not include short-term goals and devastating coverage, providing various benefits.

Types of Private Insurance

The various private insurance plans are another difference between public and private insurance.

  • Health insurance plans sponsored by employers
  • Become a member of the catastrophic plan if you qualify
  • Choose short-term coverage when switching plans

Related Article: 11 Steps to Locate a Lost Life Insurance Policy

Choosing the Right Life Insurance for You

Choosing the right life insurance policy can be challenging, but it is essential to make the right choice. Each period of insurance is different, and you can tailor term life insurance to suit your needs.

Even though you have a limited budget, you need many life insurances. Because the policy pays, if you die during the term, the death benefit per thousand is lower than for permanent policies.

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

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