Burial Benefits >>
Benefit
Programs (continued)
Life
Insurance
Servicemembers'
Group Life Insurance | Family
Servicemembers' Group Life Insurance
Veterans'
Group Life Insurance | Accelerated
Death Benefits for SGLI and VGLI
Service-Disabled
Veterans Insurance | Veterans'
Mortgage Life Insurance | Insurance
Dividends
Miscellaneous
Insurance Information
There
are currently eight VA life insurance programs. Only four of these
programs are currently open to new issues. Two of those open to
new issues, the Service-Disabled Veterans Insurance and Veterans'
Mortgage Life Insurance programs, are specifically designed for
disabled veterans. The other two "open" programs, Servicemembers'
Group Life Insurance (SGLI) and Veterans' Group Life Insurance
(VGLI) are administered by the Office of Servicemembers' Group
Life Insurance (290 W. Mt. Pleasant Ave., Livingston, NJ 07039-2747,
phone 1-800-419-1473) under the supervision of VA.
Servicemembers'
Group Life Insurance
The
following are automatically insured for $250,000 under SGLI: active-duty
members of the Army, Navy, Air Force, Marines and Coast Guard;
commissioned members of the National Oceanic and Atmospheric Administration
and the Public Health Service; cadets or midshipmen of the service
academies; members, cadets and midshipmen of the ROTC while engaged
in authorized training; members of the Ready Reserves; and members
who volunteer for assignment to a mobilization category in the
Individual Ready Reserve. Individuals may elect to be covered
for a lesser amount or not to be covered at all. Part-time coverage
may be provided to members of the Reserves who do not qualify
for full-time coverage. Premiums are deducted automatically from
an individual's pay or are collected by the individual's service
branch. At the time of separation from service, SGLI can be converted to either VGLI or a commercial permanent plan through participating companies. SGLI coverage continues for 120 days after separation at no charge.
Family Servicemembers' Group Life Insurance
Family Servicemembers' Group Life Insurance (FSGLI) is essentially
a rider to SGLI coverage and provides up to a maximum of $100,000
of life insurance coverage for spouses, not to exceed the amount
of SGLI the insured member has in force, and $10,000 for dependent
children of members insured under the SGLI program. FSGLI is a
servicemembers' benefit, and the member is the beneficiary of
the policy. If a servicemember drops his or her SGLI coverage
or leaves the military, the spouse's policy can be converted to
a private life insurance policy within 120 days.
Veterans'
Group Life Insurance
SGLI
may be converted to Veterans' Group Life Insurance (VGLI), which
provides renewable five-year term coverage. VGLI is available
to: (a) individuals with full-time SGLI coverage upon release
from active duty or the reserves; (b) individuals with part-time
SGLI coverage who incur a disability or aggravate a pre-existing
disability during a reserve period which renders them uninsurable
at standard premium rates; and (c) members of the Individual Ready
Reserve and Inactive National Guard.
Individuals
who separate from service with SGLI coverage can convert to VGLI
by submitting the premium within 120 days of separating. After
121 days, the individual may be granted VGLI provided an initial
premium and evidence of insurability are submitted within one
year after termination of SGLI coverage. Servicemembers who are
totally disabled at the time of separation are eligible for the
SGLI Disability Extension of up to one year. The extension of
coverage is free and continues for one year from separation or
until the veteran is no longer disabled, whichever comes first.
At the end of the one-year Disability Extension, the SGLI is automatically
converted to VGLI without evidence of good health. VGLI is convertible
at any time to a permanent plan policy with any of the commercial
insurance companies that participate in the program.
Accelerated
Death Benefits for SGLI and VGLI
A
member insured under SGLI or VGLI program, if terminally ill (prognosis
of nine months or less to live), may apply for up to 50 percent
of the coverage amount in advance. Servicemembers with FSGLI coverage
may also elect to receive up to 50 percent of their spouse's coverage
if the spouse becomes terminally ill.
Service-Disabled
Veterans Insurance
A
veteran who has a service-connected disability but is otherwise
in good health may apply to VA for up to $10,000 in life insurance
coverage within two years from the date of the award of service
connection. The veteran should be in good health except for the
service-connected disabilities. This insurance is limited to veterans
who left service after April 24, 1951. Veterans who are totally
disabled may apply for a waiver of premiums. For those veterans
who are eligible for this waiver, additional supplemental coverage
of up to $20,000 is available, however, premiums cannot be waived
on the additional insurance.
Veterans'
Mortgage Life Insurance
VMLI
is available to severely disabled veterans who receive a Specially
Adapted Housing grant. Maximum coverage is $90,000. Protection
is issued automatically provided that the veteran submits an application
or other information required to establish a premium and does
not decline coverage. Coverage automatically terminates when the
mortgage is satisfied. If a mortgage is disposed of through sale
of the property, VMLI may be obtained on the mortgage of another
home.
Insurance
Dividends
Active
government life insurance policies beginning with the letters
V, RS, W, J, JR, JS or K, automatically pay dividends annually
on the policy anniversary date. Policyholders do not need to apply
for these dividends, but may select from a number of options for
how they should be handled. VA insurance dividends, and interest
on dividends left on deposit or credit with VA, are not taxable.
For more information, visit the VA Life Insurance Program Web
page (http://www.insurance.va.gov) or
contact the VA Insurance Center at 1-800-669-8477. Many policyholders may access their own policy information online at the VA Insurance Web site above.
Policyholders
with National Service Life Insurance, Veterans Special Life Insurance
and Veterans Reopened Insurance can use their dividends to purchase
additional paid-up coverage only at the time the dividend is issued.
Persistent
rumors about special SGLI or VGLI dividends and dividends for
holders of lapsed policies are not true.
Miscellaneous
Insurance Information
Reinstating
Lapsed Insurance. Lapsed term policies may be reinstated within
five years from the date of lapse. Contact the VA Insurance Center
for details. A five-year term policy that is not lapsed at the
end of the term period is automatically renewed for an additional
five-year period. Lapsed permanent plan policies may be reinstated
within certain time limits and with certain health requirements.
Reinstated policies require repayment of all back premiums, plus
interest.
Converting
Term Policies. A term policy that is in force may be converted
to a permanent plan. Upon reaching renewal at age 70 or older,
National Service Life Insurance term policies on total disability
premium waiver are automatically converted to permanent insurance,
which provides cash and loan values and higher dividends.
Cash
Value for Term Capped Policies. Since Sept. 11, 2000, policyholders
of National Service Life Insurance and Veterans Special Life Insurance
whose term policies are capped at renewal age 70, have cash values
associated with their policies. Policyholders who voluntarily
cancel their policies may either take the cash value or use it
to purchase paid-up insurance.
Modified
Life Policy. A "modified life at age 65" plan is available
to National Service Life Insurance policyholders. The premium
rates for this plan remain the same throughout the premium-payment
period, while the face value reduces by 50 percent at age 65.
The reduced amount may be replaced with a "special ordinary life
policy." A "modified life at age 70" plan also is available.
Disability
Provisions. National Service Life Insurance policyholders
who become totally disabled before age 65 should consult VA about
premium waivers.
Borrowing
on Policies. Policyholders may borrow up to 94 percent of
the cash surrender value of their insurance and continue the insurance
in force by payment of premiums. Interest on policy loans is compounded
annually. The current interest rate may be obtained by calling
toll-free 1-800-669-8477.
For
additional information about government life insurance, call the
VA Insurance Center in Philadelphia toll-free, 1-800-669-8477.
Specialists are available between the hours of 8:30 a.m. and 6
p.m., Eastern Time, to discuss premium payments, insurance dividends,
address changes, policy loans, naming beneficiaries and reporting
the death of the insured. After hours, a caller may leave a recorded
message, which will be answered on the next workday, or may use
the Interactive Voice Response system.
If
the insurance policy number is not known, send whatever information
is available, such as the veteran's VA file number, date of birth,
social security number, military serial number or military service
branch and dates of service to:
Department
of Veterans Affairs
Regional Office and Insurance Center
Box 42954
Philadelphia, PA 19101
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