What should I do with my SGLI policy?
Having a life insurance policy is a smart financial decision regardless of whether you’re in the military or part of civilian life. But when military service ends, should you convert your Servicemembers’ Group Life Insurance (SGLI) to a Veterans’ Group Life Insurance (VGLI) policy? It depends.
Is VGLI Policy Right for You?
The process of transferring a life insurance policy from SGLI to VGLI essentially means changing the policy from one that covers active-duty military personnel to one that covers veterans. While you can convert your SGLI policy into a VGLI policy, it’s not necessarily the right choice for all transitioning servicemembers. Here are the main factors to consider when determining whether a VGLI policy is right for you.
Your Health and Lifestyle
The main advantage of converting from SGLI to VGLI is that you can apply for VGLI without a health review. VGLI doesn't exclude for pre-existing conditions, which can make it a good option for people with health issues. Many private life insurance companies will deny coverage for people who have health conditions or risky lifestyle habits (tobacco use, motorcycle riding, etc.) If you’re concerned about being denied life insurance coverage due to your health and/or lifestyle choices, then converting to VGLI could be a smart choice for you.
The Cost
VGLI is typically more expensive than SGLI, and you may find cheaper coverage through a private life insurance company. If you’re in good health, you’re likely to qualify for the same amount of coverage at a cheaper rate. Get an instant online quote on term life insurance from us or call our office to learn more about other options that may be available to you.
The Timing
You can apply for VGLI without a health review within 240 days of leaving the military. If you apply after the 240-day period, you will need to answer questions about your health. In total, there is a period of 1 year and 120 days to convert SGLI to VGLI after leaving the military.
The Coverage Amount
Whatever amount of coverage you have on your SGLI policy when you left the military is the maximum amount of VGLI coverage that you’re able to get. You have the option to convert to VGLI with a lower coverage amount, but not a higher coverage amount.
Your Health and Lifestyle
The main advantage of converting from SGLI to VGLI is that you can apply for VGLI without a health review. VGLI doesn't exclude for pre-existing conditions, which can make it a good option for people with health issues. Many private life insurance companies will deny coverage for people who have health conditions or risky lifestyle habits (tobacco use, motorcycle riding, etc.) If you’re concerned about being denied life insurance coverage due to your health and/or lifestyle choices, then converting to VGLI could be a smart choice for you.
The Cost
VGLI is typically more expensive than SGLI, and you may find cheaper coverage through a private life insurance company. If you’re in good health, you’re likely to qualify for the same amount of coverage at a cheaper rate. Get an instant online quote on term life insurance from us or call our office to learn more about other options that may be available to you.
The Timing
You can apply for VGLI without a health review within 240 days of leaving the military. If you apply after the 240-day period, you will need to answer questions about your health. In total, there is a period of 1 year and 120 days to convert SGLI to VGLI after leaving the military.
The Coverage Amount
Whatever amount of coverage you have on your SGLI policy when you left the military is the maximum amount of VGLI coverage that you’re able to get. You have the option to convert to VGLI with a lower coverage amount, but not a higher coverage amount.
Have More Questions?
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