Term Life Insurance for Veterans: A Guide to Eligibility and Coverage

Veterans who served in the military may be eligible for term life insurance through the Department of Veterans Affairs (VA).

The VA offers a range of life insurance options, including Service-Disabled Veterans Insurance (SDVI) and Veterans' Group Life Insurance (VGLI).

To be eligible for VA life insurance, a veteran must have served during a qualifying period, which includes wartime and peacetime service.

Veterans must also meet certain health requirements and pay premiums to maintain their coverage.

As a veteran, you're likely eligible for various life insurance options. You can choose from Veterans' Group Life insurance, Veterans' Affairs Life Insurance, or purchase a private policy.

To be eligible for VGLI, you must meet one of the following qualifications: You had part-time SGLI as a member of the National Guard or Reserve, and suffered a disability on duty that would disqualify you for standard insurance rates. You had SGLI while in the military and you're within one year and 120 days of being released from active duty. You're within one year and 120 days of assignment to the Individual Ready Reserve (IRR) or a branch of service, or to the Inactive National Guard (ING). You're within one year and 120 days of being put on the temporary disability retirement list (TDRL).

You can also choose to let your SGLI expire and buy private life insurance, which is a good option if you don't have bad health problems and can get a civilian policy that's cheaper than VGLI.

The basic S-DVI program, also known as RH Insurance, offers life insurance for veterans of up to $10,000.

You'll have to continue paying premiums as you transition from SGLI to VGLI to keep the coverage active.

If you're a veteran, you're likely familiar with the automatic enrollment in SGLI, a group life insurance plan.

All military service members are automatically enrolled in SGLI, a group life insurance plan, which can be converted into VGLI up to one year and four months after you leave the military.

As a veteran, you're likely familiar with Servicemembers' Group Life Insurance (SGLI), but what happens when you transition out of the military? One option is to convert to Veterans' Group Life Insurance (VGLI), which retains the ability to receive up to 50% of your life insurance proceeds early if you're diagnosed with a terminal illness.

You can purchase coverage in increments of $10,000 with a maximum of $40,000 through VA Life, but keep in mind there's a two-year waiting period before the coverage becomes active.

Here are the eligibility requirements for VA Life:

It's worth noting that VGLI premiums increase as you get older, and the maximum coverage limit is $500,000.

One of the benefits of converting SGLI to VGLI is that you retain the ability to receive up to 50% of your life insurance proceeds early if you get diagnosed with a terminal illness or otherwise have a life expectancy of nine months or fewer.

Term life insurance can provide a lump sum death benefit, tax-free, equal to the value of your policy, giving your family peace of mind.

A 35-year-old male in excellent health can get $500,000 in coverage for a 20-year term for just $20.72 per month.

You can choose a life insurance term based on when you and your family most need that financial protection, such as until your kids reach financial independence or you pay your mortgage off.

Experts recommend buying a policy 5 to 10 times your annual salary, but you can determine what policy size and payout amount is right for you and your family.

Term life insurance policies come in terms as short as 10 years, increasing by 5-year increments up to 30 years, giving you flexibility to choose the right coverage for your needs.

Coverage limits can be a crucial factor in determining the right life insurance policy for you.

For example, VGLI coverage limits are capped at $500,000, and premiums increase as you get older. Veterans with pre-existing conditions should consider converting to VGLI within 240 days from release to have life insurance coverage while comparing civilian policy options.

VA Life coverage, on the other hand, has a maximum limit of $40,000, which can be purchased in increments of $10,000. However, there's a two-year waiting period before the coverage becomes active.

To give you a better idea, here are the eligibility criteria for VA Life coverage:

It's worth noting that VA Life has replaced S-DVI, but if you already have an S-DVI policy, you can keep it.

As a veteran, you have multiple options for life insurance, and private life insurance is one of them. You can buy a private life insurance policy through an insurer or an independent broker who works with multiple insurance companies.

If you're considering buying a private policy, you'll want to start shopping around before your existing coverage expires, as the application process can take up to four to six weeks on average.

Some insurance companies partner with the military to offer civilian life insurance policies to veterans, which can be a great option if you have health concerns that would raise your rates if you applied directly with a private insurer.

You have 120 days from the day you leave active duty to convert your SGLI policy to a private life insurance policy with a participating provider, and you won't need a medical exam to convert your policy.

This option is worth considering if you know you want a private policy but have health concerns that would make it more expensive to apply directly with a private insurer.

Here are some key benefits of converting your SGLI policy to a private policy:

However, you have a shorter window to compare quotes for your new policy than veterans with VGLI, so you'll want to get quotes right after or even before leaving active duty.

Private term life insurance offers benefits up to several million dollars and competitive pricing, but isn't always available or affordable for veterans with complex medical conditions.

For example, the American Armed Forces Mutual Aid Association (AAFMAA) offers term life policies up to $800,000 and whole life policies up to $1 million to veterans.

Private insurance providers do charge a lot more each month than VGLI, but the VGLI $400,000 cap on coverage may not be enough for many veterans, making private options a good choice for those who need more coverage.

You can convert your Veterans' Group Life Insurance (VGLI) into a civilian policy with participating insurers at any time, giving you ample opportunity to compare policies. However, you have more limited policy options for conversion than you would with a private policy.

To convert VGLI, you'll need to convert it into a permanent life insurance policy, which is much more expensive than other options like term life insurance. Depending on your age, health, and lifestyle factors, you may be able to get a cheaper policy elsewhere.

You have one year and 120 days to apply for VGLI or 120 days to convert your SGLI policy to an individual civilian life insurance policy after you leave the military. After 120 days, you can choose any insurer you wish.

Transitioning to civilian life can be a challenging experience for many veterans, but having a safety net can make a big difference. This is where term life insurance comes in, providing peace of mind during a time of uncertainty.

Veterans have one year and 120 days to apply for Veterans' Group Life Insurance after leaving the military. This allows them to secure a life insurance policy quickly, providing protection for their loved ones.

Applying for life insurance through the VA website is a straightforward process, and veterans can choose from a list of participating companies. Haven Life offers competitive rates and a digital-first experience, making it easier to apply and manage their policy.

Having a life insurance policy provides a sense of security and relief, knowing that their loved ones will be taken care of in the event of their passing.

You can convert VGLI into a civilian policy with participating insurers at any time, giving you ample opportunity to compare policies. However, you have more limited policy options for conversion than you would with a private policy.

You'd need to convert your VGLI into a permanent life insurance policy, which are much more expensive than other options like term life insurance. These policies can be pricey, so it's worth exploring other options.

You may be able to get a cheaper policy elsewhere, depending on your age, health, and lifestyle factors. For example, Haven Life offers competitive rates and a digital-first experience.

You can choose any insurer you wish after 120 days of leaving the military, but before that, you'll need to apply through the VA website and sign on with a list of participating companies.

Here are some participating companies that can convert your VGLI into a commercial life insurance policy:

Keep in mind that not all participating companies offer conversion in all 50 states or overseas.

As a veteran, it's essential to consider your individual needs and circumstances when choosing a term life insurance policy. You need to assess your financial situation, family responsibilities, and future goals.

You can't be turned down for VGLI, which is a great option for eligible veterans. However, it's crucial to understand the benefits and limitations of this policy to make an informed decision.

Here are some key factors to consider when planning for term life insurance:

By carefully considering these factors, you can make an informed decision about the right term life insurance policy for your needs and provide financial protection for your loved ones.

VGLI offers several benefits to eligible veterans, including no health questions, lab tests, or medical exams, as long as they enroll within 240 days of leaving the military. This means that veterans with pre-existing conditions can still get coverage without being penalized.

You can't be turned down for VGLI, and there are no membership or enrollment fees. This makes it a convenient option for many veterans.

Here are some key pros of VGLI:

However, VGLI also has some downsides. For one, your coverage is linked to how much SGLI coverage you had, and you can only increase it by up to $25,000 every five years.

As a veteran, you're likely aware of the importance of life insurance in securing your loved ones' financial future. However, choosing the right policy can be overwhelming, especially considering your unique circumstances.

You need to assess your individual needs as a veteran, parent, and caregiver. This involves considering your financial responsibilities, such as mortgage payments, childcare costs, and education expenses.

Term life insurance can provide a safety net to help ensure your loved ones are cared for in the event of your passing. If you pass away, life insurance will pay your beneficiary a lump sum benefit (usually tax-free), which can help cover short-term costs like funeral and burial expenses, and long-term costs like mortgage payments or setting up a college fund.

The length of your term life insurance policy should align with your individual circumstances. For example, if you have a new mortgage with a 30-year term, consider getting an equivalent policy to ensure your family has the means to pay off the house should something happen to you.

You can choose a life insurance term based on when you and your family most need that financial protection. For example, you might want life insurance until your kids reach financial independence or you pay your mortgage off. At Haven Life, policies come in terms as short as 10 years, increasing by 5-year increments up to 30 years.

Here are some factors to consider when choosing a term life insurance policy:

By considering these factors, you can make an informed decision about your life insurance needs and ensure your loved ones are protected in the event of your passing.