There’s a peace of mind that comes with knowing your loved ones will be cared for. The Veterans Administration offers a number of life insurance programs to servicemembers at lower costs. These programs are designed to provide financial assistance to servicemembers’ payable in the event of death or, in some cases, traumatic injury.
Servicemembers Group Life Insurance (SGLI) provides low cost group life insurance to servicemembers, including commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration, cadets and midshipmen of the service academies.
Members are automatically insured under SGLI for the maximum amount of $400,000. If they wish, members can request reductions in $50,000 increments or coverage may be canceled entirely.
Included in SGLI coverage is Traumatic Injury Protection, which is designed to provide financial support to members who have suffered traumatic injuries. Depending upon the injury, coverage ranges from $25,000 – $100,000.
Effective July of 2014, SGLI monthly premium rate is 7 cents per $1,000 of insurance. This means, for example, a premium increase from $26 to $28 a month for Servicemembers with the maximum $400,000 of life insurance. All Servicemembers will continue to pay an additional $1 for TSGLI coverage.
IRR members are charged a premium of $1.00 for $400,000 insurance for 1-day call-ups, but note that rates are subject to change based on the experience of the program.
Conversion from SGLI to Veterans Group Life Insurance is possible when you are released from active duty, active duty for training, or when you separate from the Ready Reserve. It can also be converted to a commercial policy at the end of the 120-SGLI extension period.
Other military life insurance programs include:
— Family Servicemember’s Group Life Insurance (FSGLI)
— Service Disabled Veteran Insurance (S-DVI)
— Traumatic Injury Protection (TSGLI)
— Veterans Group Life Insurance (VGLI)
— Veterans’ Mortgage Life Insurance (VMLI)