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Both the Servicemembers' Group Life Insurance or SGLI, and the Veterans' Group Life Insurance or VGLI are programs offered by the federal government to men and women serving at any branch of the US Military. These programs are supervised by the Department of Veterans Affairs. Each program offers different life insurance benefits to its covered members.
SGLI Benefits
SGLI is a low cost type of life insurance that caters to the need of individuals on active military duty, members of the service academies, National Guard, Commissioned Corps of the National Oceanic and Atmospheric Administration, Reserved Officer Training Corps, and the Public Health Service. The benefits offered by this program to each service member are:
- A minimum amount of $50,000 to a maximum amount of $400,000 coverage.
- SGLI Disability Extension - A program that allows a member who became completely disabled at discharge to retain his or her SGLI coverage without payment for up to 2 years.
- SGLI Traumatic Injury Protection - A program that financially assists members who were badly injured due to traumatic accidents. They can avail from $25,000 to $100,000 of financial aid. Injuries covered by this program include amputation of the foot or hand, permanent loss of eyesight, speech, or hearing, total paralysis of limbs, second degree to severe burns.
- Family SGLI - A program offers to the spouses and family members of the service member insured under SGLI. A beneficiary can claim up to a maximum amount of $100,000 coverage.
- Accelerated Benefits Option - Dying members are given the right to receive a portion of their death benefits before their death.
- Financial Counseling Service - Each member can enjoy financial advice free of charge from professional financial advisors through the FinanfialPoint program.
- Option to convert his or her SGLI policy to a commercial insurance policy.
- Conversion of SGLI policy to VGLI policy.
VGLI Benefits
VGLI is a group term life insurance program offered to military members who were discharged or released from the service. SGLI policyholders are allowed to convert their policy to VGLI if they want to after they are relieved from the military duty. The benefits a member can get from this program are the following:
- Up to a maximum amount of $400,000 insurance coverage which will be released in portions of $10,000.
- Accelerated benefits for terminally-ill members or covered dependents who get medical findings that they only have 9 months or less to live. They can claim up to 50% of their death insurance coverage in lump sum. The other 50% will be entrusted to the insured's beneficiary.
- Retention of coverage as long as the member wants provided that he or she pays the premium continually.
- Personalized free financial counseling assistance from certified financial planners to a member or beneficiary after their claim is resolved. A claimant can ask questions and advice without paying a single cent for the service.
- Conversion of the policy to an individual insurance policy with participating insurance companies.
- Benefit proceeds are exempted from taxation including installment or delayed interests.
