You will be redirected to the page you want to view in  seconds.

2012 Military Times Insurance Guide: VGLI may serve as life insurance ‘bridge'

Jan. 21, 2012 - 11:57AM   |   Last Updated: Jan. 21, 2012 - 11:57AM  |  
  • Filed Under

When you leave the military, your Servicemembers' Group Life Insurance coverage remains in effect for 120 days.

During that time, you can apply for a Veterans Affairs Department program called Veterans' Group Life Insurance program without having to get a medical exam. Once those 120 days are up, you have up to another year to enroll in VGLI, but you must have a medical exam.

VGLI is a good option for troops who may not be able to get life insurance elsewhere because of a physical condition caused by military service, for example.

"We encourage people leaving the service to take VGLI if they have medical issues," said Lisa Milman, vice president of marketing and sales for Army and Air Force Mutual Aid Association.

But VGLI can be costly. The premiums start at $32 a month for $400,000 of life insurance for veterans up to age 29 but increase at age 30 and every five years thereafter, up to $1,800 a month for those 75 and older.

VGLI can be bought in increments of $10,000. For example, a 65-year-old pays $150 a month for $100,000 of VGLI.

VGLI is often used as a kind of life insurance "bridge" by people leaving the military until they get settled in their civilian lives.

June Walbert, a financial planner for USAA, said it's a good idea to start checking into commercial life insurance policies about six months before you leave the service or retire.

"The six-month time frame is prudent, because if something goes awry, you can still apply for VGLI in the window," she said. It won't hurt to apply for VGLI if you haven't had time to set up another life insurance policy. You can always cancel it later.

"You don't want to remove VGLI from the table if you're not sure it's not the best or the only option you have," Walbert said.

Answers by RallyPoint

Join trending discussions in the military's #1 professional community. See what members like yourself have to say from across the DoD.

More In Pay & Benefits

Start your day with a roundup of top defense news.

VA Home Loan

Search By:

Product Options:
Zip Code:

News for your in-box

Sign up now for free Military Times E-Reports. Choose from Money and Education. Subscribers: log in for premium e-newsletters.

This Week's Army Times

This Week's Army Times

CrossFit vs. unit PT
Troops will do the training plans in a $2.5 million study

Subscribe for Print or Digital delivery today!

MilitaryTimes Green Trusted Classifieds Looking to buy, sell and connect on Military Times?
Browse expanded listings across hundreds of military installations.
Faces of valorHonoring those who fought and died in Operations Iraqi Freedom and Enduring Freedom.
hall of valorThe Hall of Valor is a searchable database of valor award citations collected by Doug Sterner, a Vietnam veteran and Military Times contributing editor, and by Military Times staff.

All you need to know about your military benefits.

Benefits handbook

Guard & Reserve All you need to know about the Guard & Reserve.

guard and reserve handbook