Whole Life Insurance For Veterans

What Is The Time Limit To Convert Sgli Coverage To An Individual Policy

Conversion is the process of switching your SGLI coverage to a private insurer without having to take a medical exam or answer health questions. In order to benefit from conversion, you must do so within specific timelines:

• 120 days after your date of separation to convert your SGLI to a private plan without a medical exam or health questions. The participating private insurer may ask you to answer health questions to get a better rate, but the VA states that you are not obliged to answer those health questions.
• You can convert a VGLI to an individual policy at any time.

Benefits You Can Get With Valife

You can get these benefits:

• Up to $40,000 in whole life insurance coverage , and
• Cash value that starts to add up 2 years after we approve your application

VALife is guaranteed acceptance whole life insurance. This means that if you meet the eligibility requirements for VALife, well automatically approve your application. You wont need to prove youre in good health. And you can keep your coverage for the rest of your life.

Guaranteed Issue Flagship Whole Life

Flagship Whole Life typically requires medical underwriting. However, for servicemembers who are within 120 days of separation and who were covered by SGLI while in the service, we offer up to $400,000 of Guaranteed Issue Flagship Whole Life coverage without underwriting meaning that the insured does not need to undergo a medical exam to obtain coverage. A servicemembers spouse and/or children may also be eligible for Guaranteed Issue coverage provided that Family SGLI was in place prior to the military members separation.

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Is Life Insurance More Expensive For Military Members

The VA offers lower rates on life insurance for veterans and active service members than private insurers do. Depending on the policy you buy through an insurance agency, you may pay higher rates than civilians, especially for standard whole and term life insurance policies. This is because most service people are considered higher risk than civilians. In some cases, you may not qualify at all.

Insurance Plans Offered By Private Insurance Companies

Although SGLI and VGLI life insurance options are offered to eligible servicemembers, the coverage may not meet all of the veterans’ needs. Choosing a plan with a private insurance company may offer more of the benefits you desire. It all depends on what youre looking for in a life insurance policy.

Aflac offers various term and whole life insurance options with a variety of benefits that may be available for Veterans.

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May I Surrender A Whole Life Policy For Its Cash Value

Generally, in a traditional whole life policy, yes. Over time, the policy accumulates a cash value, which is similar to building equity in a home. When a policy is surrendered, the owner is entitled to at least a portion of the cash value. The actual amount that the owner receives will depend whether there are any outstanding loans or unpaid premiums that can be deducted from the cash value.

Simplified Life Insurance Cost

This insurance policy allows people to qualify without having to appear for a medical examination. While the policy provider might ask some health questions, you would not be required to give a medical exam to prove that you are in good health. This policy can be pretty helpful for Veterans suffering from mental and physical conditions.

The death benefit offered ranges from $5000 to $100,000. Premiums for this policy are generally higher as more risk is involved.

A $100,000 coverage might cost you $52 monthly.

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Life Insurance For Military Members

Many people are surprised to learn there are several options when it comes to life insurance for military members. Depending on where you buy your policy and the type you choose, your rates can vary widely. Our guide breaks down what active military personnel and veterans need to know about finding the coverage that meets their needs

Rates Table For Retired Military

VGLI rates as provided by the Department of Veterans Affairs . Rate illustration valid as of 2/08/2022. Term life insurance rates methodology: Sample monthly premiums are for 40-year-old male non-smokers with a Preferred health rating buying a 30-year term life insurance policy Life insurance averages are based on a composite of policies offered by Policygenius from AIG, Banner, Brighthouse, Lincoln, Mutual of Omaha, Pacific Life, Protective, Prudential, SBLI, and Transamerica and may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 8/1/2022.

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Sending Your Claim To Va Insurance

There are 3 ways to send your claim form and documents to the Insurance Center:

1. File claim electronically online – This is the fastest and most secure way to send your claim.or,2. Upload Your Documents using our secure web page – This is a fast and secure way to send your claim.or,3. Mail your documents to the following address:

Department of Veterans Affairs

Best For Senior Veterans: American Armed Forces Mutual Aid Association

AAFMAA

• AM Best Rating: Not rated

AAFMAA offers life insurance policies tailored especially to senior veterans. It has several policies to choose from and covers veterans up to age 84.

• Offers a cheaper alternative to VGLI

• Offers no medical exam insurance policies

• Has been in business for more than 140 years

• Coverage not available in all states

Founded in 1879 when the War Department realized there was a need to take care of soldiers after Custer’s Last Stand, AAFMAA offers term-life insurance and whole life insurance, specifically for veterans, with coverage available nationwide .

In addition, the company offers no medical exam life insurance policies, including ANNUITYLife, Wealth Builder Life, and the Senior Survivor Plan, all of which are designed for older veterans and their spouses.

Instant online quotes are available on AAFMAA’s website, without having to speak with an agent. Otherwise, interested customers can speak to an insurance sales representative over the phone, Monday through Friday from 8:30 a.m. to 5:30 p.m. EST.

The company’s Level Term I plan offers coverage up to age 49 and its Level Term II offers options ranging from five to 30 years of term life coverage.

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When To Convert Sgli Into Private Life Insurance

Some insurance companies partner with the military to offer civilian life insurance policies to veterans. Service members with SGLI have 120 days from the day they leave active duty to convert their policy to a private life insurance policy with a participating provider.

These providers dont require a medical exam to convert your policy, so youll be approved for the same amount of SGLI coverage you had at a predetermined rate. If you know you want a private insurance policy but have health concerns that will raise your rates, this is worth considering. However, you have a shorter window to compare quotes for your new policy than veterans with VGLI.

Term Life Insurance For Retired Military

After your separation from the military, you can convert your SGLI into Veterans Group Life Insurance a lifetime renewable term coverage policy. You start with the same coverage you had through SGLI, and, if you desire, you can increase it every five years by $25,000, up to the maximum of $400,000. In order to guarantee your previous benefits, you must submit your application within one year and 120 days of your separation from the military. If you do so later than that, you may have to pass a medical exam, and coverage amounts may be recalculated.

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Veterans Life Insurance Riders

If you become totally disabled or terminally ill and have VA coverage, you may qualify for additional benefit options with your veterans life insurance. Your spouse could also qualify if they have a terminal illness.

Waiver of premium rider: If you become totally disabled, a waiver of premium rider means you will no longer have to pay your life insurance premiums. Typically, premium payments can only be waived up to one year before filing a claim.

To qualify, applicants must meet all of the following requirements:

• You have Service-Disabled Veterans Life Insurance coverage
• Your disability prevents you from working
• You became totally disabled before age 65
• Your total disability lasts longer than six months.

There can be exceptions to these eligibility rules.

Accelerated death benefit: For terminally ill policyholders, an accelerated death benefit may be available. With an accelerated death benefit, you can receive up to 50% of your veterans life insurance coverage paid in $5,000 increments before death.

To qualify, you must meet all of the following requirements:

• You must have a VGLI insurance policy
• You or your spouse must have a written letter from your doctors stating you have less than nine months to live

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Single Premium Whole Life Insurance

Single premium whole life is a limited payment whole life insurance plan with one relatively large premium payment due at issue. The policy is fully paid up and no further premiums are required. Due to the single premium payment the policy will have an immediate cash value and loan value which could be significant depending on the amount of the single premium payment. Since a substantial single premium payment could be involved, this type of plan may be viewed more as an investment-oriented type of whole life insurance product.

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Life Insurance Rates For Retired Military

The average retirement age for active duty enlisted retirees is 42 and the average age that officers retire is 46. To compare the costs of VGLI to those of a private policy, we pulled numbers for a nonsmoking, 40-year-old male in good health with no family history of disease. When you get a term life insurance policy, the rate stays the same for the length of the entire policy . VGLI max coverage is $400,000, so we compared that to a private $400,000, 30-year term policy.

Can I Get More Life Insurance Coverage If I Need It

If you carry the basic S-DVI coverage and become totally disabled and unable to work, you can apply to get up to $30,000 more in coverage. This is called supplemental S-DVI coverage.

You may be able to get $30,000 of supplemental coverage if you qualify for a premiums waiver, and you meet both of these requirements.

Both of these must be true:

• You apply for the coverage by December 31, 2022, or within 1 year from the date you get notice of the grant of waiver , and
• Youre younger than age 65

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Best For Living Benefits: Prudential

Prudential

• Worse than average customer satisfaction

• Expensive term coverage

Prudential was established in 1875 and has an AM Best financial stability rating of A+. The company receives fewer complaints than expected, according to the NAIC, but doesn’t do as well as the aforementioned companies on this list.

We chose Prudential as the best for living benefit because most policies include its Living Needs Benefit rider free of charge, which lets you access the death benefit if youre diagnosed with a terminal illness, are confined to a nursing home, or require an organ transplant.

Prudential offers a range of policies, including universal life, indexed universal life, variable life, and term, as well as optional riders such as an accidental death benefit rider and a waiver of premium for disability. However, the company did not do well in the 2021 J.D. Power U.S. Individual Life Insurance Studyit ranked 15th out of 21 companies. And it’s term policies are relatively expensive.

You can get a civilian Prudential quote online for term coverage or contact one of their agents to get the best rates for SGLI or VGLI conversion options.

Navy Federal Investment Services

Navy Federal Investment Services provides tailored financial plans for our members’ individual needs. If you’d like to learn more about Navy Federal Investment Services or our individual Financial Advisors, please check us out on FINRA’s BrokerCheck.

877-221-8108 – 1007 Electric Avenue, Vienna, VA 22180

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When To Choose Vgli Over Private Life Insurance For Veterans

There are certain instances when it makes sense to get VGLI instead of private coverage. The biggest reason why someone might choose VGLI is if you have medical conditions that make it hard to qualify for traditional life insurance. This isnt just limited to PTSD, but other disabilities and medical conditions as well, including those you might have gotten from combat. Mental health conditions, neurological conditions, and heart conditions can all affect your ability to get insured.

If you are 60 years or older and applying for life insurance, youll find that a private life policy is very expensive. Even VGLI premiums can get very costly the older you are. But, if you are an older individual looking for lower coverage amounts to cover final expenses, VGLI rates might be more affordable.

Every veteran has a unique health history and life insurance needs, and the best provider for one person may not be the best for another. Others may be better off staying on a VGLI policy. You can find the right life insurance policy by working with an independent broker like Policygenius.

Other Life Insurance Options For Veterans

Is VGLI term life insurance the best life insurance for veterans? That depends on a few thingsthe ages of your children and other dependents, whether the maximum $400,000 payout would be enough to help protect your familys future, and how much money you can afford to pay monthly for life insurance.

If you think you need more life insurance coverage than a basic VGLI term life policy offers, you have several options. You can choose an individual term life insurance policy from another insurance company. You can add coverage to your VGLI policy. Or you can convert your term life policy to whole life policy.

Lets talk about the add-ons first.

• Accidental death and dismemberment : This policy pays a death benefit if your family loses you to a covered accident.
• Burial insurance: This add-on coverage pays a small benefit to cover the expenses of burial, cremation, or funeral services, which can cost as much as $10,000 or more.

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Understanding Life Insurance For Veterans

Life insurance is a valuable tool to ensure your familys financial future in the event something happens to you. Having the right policy in place is important for everyone. It can be even more important to people in high-risk jobs, like active and retired military. Before we get into the options for life insurance for service members, lets cover some basics.

Life insurance is an agreement in which you make regular payments, called premiums, and an insurance company pays your chosen entities a tax-free lump sum of money when you pass. It sounds pretty simple, but there are a lot of opportunities to customize coverage, and that can get confusing quickly. Retired service members have even more options. Here are some terms and ideas you should become familiar with before you make a decision.

Life Insurance For Veterans With Disabilities

The VA offers Service-Disabled Veterans Life Insurance, or S-DVI, policies to former military personnel with disabilities connected to their service. Rates are based on your age, and coverage amounts are low the maximum amount is $10,000 with the possibility to buy $30,000 of supplemental coverage if you’re totally disabled and unable to work.

Veterans with disabilities can also apply for a two-year extension of SGLI benefits. And if you suffer a terminal illness, you may receive up to half of your life insurance benefit to pay for treatment and final expenses.

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Who Is Eligible For Service

Veterans with a service-connected disability must meet the following four requirements to qualify for S-DVI:

If your service-connected disability was confirmed more than two years ago, you may not qualify for S-DVI. The Disabled Veterans Life Insurance Act of 2017 was introduced to extend the filling and enrollment eligibility date from two years to 10 years after the VA determines that a disability is service-connected, but it has not yet passed.

If you are eligible, you can enroll in S-DVI disabled veterans life insurance through the VA by mail, phone, or the VA website.

Will The Scheduled Premiums For Whole Life Insurance Change Over Time

Generally, in a traditional whole life policy, the scheduled premium payments remain level. Premiums are generally the same every year the insured is alive. The premium payment consists of both life insurance protection and savings. These two elements vary over the life of the insured, but the total scheduled premium payment remains the same for the life of the traditional whole life policy.

Some traditional whole life policies however provide for a modified premium payment schedule where the required premium payments may be lower in the early years and then increase to a higher amount which will then remain level for duration of the policy. Be sure to check the data page or specifications page of your policy to determine the amount of your premium payments and the period for which they are required to be paid.

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