How Veterans Group Life Insurance Can Benefit You

The Veterans Group Life Insurance (VGLI) is post-separation insurance program that allows members of the Servicemember's Group Life Insurance to change their coverage into a renewable term insurance upon being discharge from the service. VGLI is managed by the Department of Veterans Affairs under the supervision of the Office of Servicemember's Group Life Insurance (OSGLI).

VGLI Coverage

The Veterans Group Life Insurance member can benefit up to a maximum amount of $400,000 of group life term insurance. The coverage begins on the 121st day after the member is released from service. VGLI does not cover disability and other types of insurance benefits. It solely provides life insurance and does not furnish cash or loans. The veteran can enjoy his or her coverage as long as he or she wants to maintain to pay his or her premium obligations.

Coverting VGLI to Individual Policy

A policyholder can covert his VGLI to an individual policy at standard premium rates. He needs to choose a commercial insurance company that participates in the program otherwise his application will not be honored. The member has the discretion as to how much amount he wants to convert as long as the amount does not exceed his existing VGLI coverage. Policies such as term, variable life and universal life are prohibited in the conversion policy. Likewise, accidental and dismemberment are not included in the insurance plan.

Benefits for Terminally Ill Members

The VGLI program offers an accelerated benefit option to its members who obtained a written medical findings of nine months or less to live. Terminally ill members can claim up to 50% of their VGLI coverage in a lump sum.

Beneficiary and Settlement

Any veteran with VGLI is given the privilege to name his insurance beneficiary. It can be an individual, organization, or any legal entity he wishes to give the benefits to. Furthermore, he can also remove and change the beneficiary anytime he wants by applying and filling up the Beneficiary Designation form to be submitted to the OSGLI.

Death Claims Processing

In the event of the policyholder's death, the beneficiary can claim the insurance funds by submitting the Claims for Death Benefits form to the OSGLI. The recipient should furnish a death certificate copy when filing the claim. The insurance proceed is given either by lump sum or installments and depends which one did the member state on the policy. If the policyholder did not specify the method of payment, the beneficiary is granted the right to choose how he wants to be paid.

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