Is VGLI Worth It? A Simple Guide for Veterans
VGLI is easy to get. But the price goes up as you age. Here is how to tell if it's the right choice for you.
When you leave the military, you can turn your SGLI into VGLI. Many veterans do this without thinking twice. That can be a smart move. But it is not always the cheapest one.
What is VGLI?
VGLI stands for Veterans' Group Life Insurance. It lets you keep life insurance after you leave the service. You can keep it for life, as long as you pay.
The good parts
If you apply within 240 days of leaving, you don't have to answer health questions. That is a big deal if you have health problems. You can get up to the amount of SGLI you had, up to $500,000.
Don't miss the deadline
You must sign up for VGLI within 1 year and 120 days after you leave. After that, it's gone. Then your only VA choice is VALife, and only if you have a VA rating. VALife pays $40,000 at most and makes you wait 2 years for full coverage.
The catch
The price is based on your age. Every 5 years, it goes up. When you are young, it can be cheap. When you are older, it can cost a lot more.
When VGLI may be a good fit
VGLI can be a good choice if you have serious health problems. Other companies may charge you more or say no. In that case, VGLI's "no health questions" window is very helpful.
When you may find better
If you are fairly healthy, you may get a plan with a price that never goes up. Over many years, that can cost less than VGLI. Some veterans keep VGLI for now and add another plan. You can have both.
Don't drop coverage too soon
Never cancel VGLI before a new plan is approved and in place. You don't want a gap where you have no coverage at all.
Want to know which is better for you? I can compare VGLI to other plans side by side. The call is free, and if VGLI is your best choice, I'll tell you.
Have a question about your own plan? Let's talk. It's free.
For information only. Not a contract or offer of insurance. Coverage is subject to underwriting and state availability. Plans and prices vary by state and company.