Insurance

What Types of Life Insurance are Available for Retirees?

The Veterans Administration (VA), https://www.va.gov/benefits/insurance, as part of their mission to serve servicemembers, veterans, and their families, provides valuable life insurance benefits to give you the peace of mind that comes with knowing your family is protected. VA’s life insurance programs were developed to provide financial security for your family given the extraordinary risks involved in military service.

Let’s start with the “most senior” (oldest) retirees and work down to the newest retirees:

The National Service Life Insurance (NSLI) program, https://www.benefits.va.gov/insurance/nsli/asp ,created on October 8, 1940, manages the insurance needs of World War II service personnel. Over 22 million NSLI policies were issued from 1940 until the program was closed to new issues on April 25, 1951. Policies were issued under a variety of permanent plans and as renewable term insurance.

As of 2020 there are about 950,000 policies still in force and the average age of policyholders is 81 years. Annual dividends are paid on these policies. The maximum face amount of a policy is $10,000. However, this limit does not include paid-up additional insurance which can be purchased with the annual dividends. Certain disability benefits are available under these policies for policyholders who become totally disabled before their 65th birthday.  For more information, call 1-800-669-8477.

Veterans Group Life Insurance (VGLI), https://www.va.gov/life-insurance/options-eligibility/vgli/, allows you to keep your life insurance coverage after you leave the military for as long as you continue to pay the premiums. You must apply for VGLI,  within 1 year and 120 days from your discharge for up to the amount of coverage you had through SGLI.

You can also convert your SGLI policy into a civilian policy within 120 days from the date you left the military. For more information, call 1-800-419-1473.

NOTE:  Due to COVID-19 and to help Veterans who may need more time to apply after separating from service, the VA is extending the period to apply for VGLI.

If you're applying for VGLI between June 11, 2020, and June 11, 2021, you can:

• Apply without needing to have a health review to provide proof of good health for up to 330 days after you separate from service. This was increased by 90 days, from the standard period of 240 days.

• Apply with a health review to provide proof of good health for up to 1 year and 210 days after you separate from service. This was increased by 90 days, from the standard period of 1 year and 120 days.

Servicemembers Group Life Insurance (SGLI), ), https://www.va.gov/life-insurance/options-eligibility/sgli/, is a low-cost term coverage to eligible service members and ends when you leave the military (See VGLI above). For more information, call 1-800-419-1473.

Family SGLI, also known as Family Servicemembers’ Group Life Insurance (FSGLI), https://www.va.gov/life-insurance/options-eligibility/fsgli/, offers coverage for the spouse and dependent children of service members covered under full-time SGLI and ends when you leave the military but may be converted to individual commercial insurance policies.  For more information, call 1-800-669-8477.