Did you know that VA has been offering life insurance for more than 50 years to protect our nation’s heroes?
Veterans’ Group Life Insurance (VGLI) was launched in 1974 through a partnership between VA and Prudential’s Office of Servicemembers’ Group Life Insurance (OSGLI), ensuring separating service members could keep their life insurance in civilian life. Today, 455,000 Veterans are insured under this group policy, supervised by VA, for $97 billion in coverage. These milestones are significant achievements in VA’s history of providing earned benefits.
VGLI is renewable group term insurance that allows separating service members with existing Servicemembers’ Group Life Insurance (SGLI) coverage the option to convert and keep this protection.
Veterans have one year and 120 days from date of separation to apply for VGLI; but if they apply within the first 240 days following separation, they do not have to answer any health questions. VGLI is available in amounts ranging from $10,000 to $500,000, not to exceed the amount of SGLI coverage at the time of separation. VGLI coverage can be increased by $25,000 on the first coverage anniversary and every five years thereafter—up to $500,000—until age 60.
The VGLI program history includes several impactful initiatives:
- May 1974: Program launched.
- October 1992: Provision for renewal.
- July 2008: Premium Reduction for ages 30 to 64.
- April 2011: Buy-up option of $25,000 became available.
- November 2012: “No Health” application period extended to 240 days.
- April 2021: Premium reduction for all ages.
- March 2023: Coverage increased from $400,000 to $500,000.
VGLI is supervised by VA and is administered by OSGLI.
Veterans can apply for VGLI. Applying is seamless; during the application, Veterans are guided through each step of the process, from retrieving data automatically if available to presenting medical questions, if necessary, which can be completed online. Applications are evaluated instantly; the Veteran is informed that coverage is approved pending receipt of payment and, if required, proof of SGLI coverage.
VA provides a range of life insurance benefits to service members and Veterans. In addition to VGLI, VA’s newest life insurance program—Veterans Affairs Life Insurance or VALife—offers guaranteed acceptance, whole life insurance for Veterans aged 80 or under with any level of service-connected disability (0-100%) and no time limit to apply. Veterans aged 81 or over may qualify if they meet certain criteria and apply within a certain timeframe. The VALife application and eligibility decision process is completely automated and online. Apply, receive an instant decision, and enroll in VALife online.
You can learn more about VGLI and VALife by visiting the program websites: VGLI and VALife.
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Why is my coverage so expensive?? I am a100% disabled veteran and have been paying premiums since 1996. 28 years.
Greetings,
Veterans’ Group Life Insurance (VGLI) is renewable group term insurance. The most important feature of term insurance is that it provides maximum coverage at minimum cost during the younger ages when most people require larger amounts of coverage. Term insurance is ideal for younger individuals who have significant financial responsibilities, such as a mortgage or educational costs, but who have little disposable income to use for insurance premiums. However, since premiums increase at five-year intervals, it can become quite costly as Veterans age. The premiums increase because the risk of death at an older age is higher than what it was at a policyholder’s younger age. As a result, if not converted to a permanent plan of insurance, term insurance coverage does become very expensive at older ages, due to the much higher risk of mortality. Term insurance is not intended to be used as a form of lifetime insurance protection, but rather to provide maximum coverage during periods of highest financial need, with the expectation of reducing coverage at older ages as financial need decreases.
VGLI Premium Reductions
VA diligently strives to lower the premiums in the program, whenever those costs can be deceased without jeopardizing its financial strength. In the past 25 years, there have been five premium reductions in the VGLI program designed to benefit our insureds. The most recent reduction occurred In April 2021, where premiums were reduced for all age brackets in the program. Reductions ranged from 2% to 13%.
VGLI Discounts
There are several premium payment options available to VGLI policyholders. Payments may be paid monthly, quarterly, semi-annually, or annually. Policyholders who elect other than a monthly payment receive a premium discount, based on the option chosen. A quarterly payment provides a 2.5% discount; a semi-annual discount provides a 3.75% discount; an annual payment provides a 5% discount.
To contact the Office of Servicemembers Group Life Insurance (OSGLI) with questions regarding your policy, please call 1-800-419-1473 or send an email to osgli.osgli@prudential.com.
Thank you for your service!