VGLI is a program of post-separation insurance which allows service members to convert their SGLI coverage to renewable term insurance. Members with full-time SGLI coverage are eligible for VGLI upon release from service.
VGLI coverage is issued in multiples of $10,000 up to a maximum of $400,000. However, a service member's VGLI coverage amount cannot exceed the amount of SGLI they had in force at the time of separation from service.
VGLI has several attractive options. You can apply for VGLI up to 1 year and 120 days after separation. No medical exam is required but after 120 days you will have to answer health questions. VGLI does not exclude Veterans for reasons related to mental health. VGLI does not exclude Veterans for reasons related to Post Traumatic Stress Disorder.
However, VGLI comes costs. VGLI premium rates are the same for smokers and non smokers; healthy and not-so-healthy. As a result, premiums are considerably higher across the board.
Rates are banded. That is, every 5 years you will receive an age-based premium increase. For example, a 49 year old who buys $200,000 worth of coverage will pay a monthly premium of $44. The following year when that individual becomes 50 years old, the premium jumps to $72 a month.
So, for those separating who don't smoke and are in good health, there are much better Life Insurance options available. Shop around.
After you leave the service, maintaining adequate Life Insurance protection for your family is essential.
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