When you begin planning your retirement or transition out of the military, you should be aware that your Servicemembers’ Group Life Insurance (SGLI) will end 120 days after your separation. As a retiring or transitioning veteran, you can convert your SGLI to Veterans’ Group Life Insurance (VGLI).
With VGLI, you can get between $10,000 and $500,000 in term life insurance benefits. The amount you’ll get will match the amount of SGLI coverage you had when you left the military.
It’s important to note that on October 17, 2022 the Supporting Families of the Fallen Act was signed into law. The legislation increased insurance coverage from $400,000 to $500,000 for Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI).
While this is good news for service members and veterans alike, you may need more life insurance than what is available to you via VGLI and you may want to take the time to get quotes from a number of providers.
For example, USBA offers you more policy options and a higher maximum coverage.
USBA is a not-for-profit Association founded in 1959 to meet the needs of active-duty military personnel who, at that time, had difficulty finding adequate life insurance coverage that would cover combat-related deaths. For more than 60 years, USBA has provided group life insurance to military personnel, National Guard and Reserve members, Veterans and their families.
5 Things to Consider When Planning for your Post Transition Coverage
- You need coverage for your entire family. Did you know that VGLI only covers you when you separate from the military? With group life insurance from USBA, you can secure your family’s financial future with coverage for you, your spouse and eligible children, too.
- You need more coverage than VGLI offers. If the VGLI maximum coverage amount isn’t sufficient for your family situation, USBA policies offer protection up to $750,000.¹ If you need help determining the amount of life insurance you and your family need, use our handy Life Insurance Coverage Estimator.
- You’re healthy and lead a healthy lifestyle. While VGLI rates are one-size-fits-all, if you’re healthy and lead a healthy lifestyle, you may qualify for USBA preferred life insurance rates which provide substantial savings over our standard rates. These rates are available in coverage amounts from $100,000 to $500,000.
- You want more predictable rates. When you convert your coverage to VGLI, be prepared for premium increases every five years. USBA offers 15- and 20-Year Group Level Term policies. Although not guaranteed, your monthly cost is expected to remain level for the first 15 and 20 years respectively. USBA also offers Group Whole Life Insurance options. With Group Whole Life Insurance, your premium rate is guaranteed, and your benefit will never change, provided premiums are paid when due.
- You want more choices. USBA offers a choice of eight group life insurance policies, including both Term Life and Whole Life, so you can choose the option that best fits your needs.
Don’t wait until your SGLI is about to end. Let the professionals at USBA help you find the right insurance policy for you and your family. To learn more about USBA’s coverage options please visit their website for more details, or call a USBA Product Specialist at 877-297-9235.
The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.
¹ The overall maximum coverage for each Member/Associate Member is $650,000 under all USBA-sponsored Group Life Insurance policies, with the option for those ages 69 and below, if approved, to add up to an additional $100,000 of Traditional Whole Life (G-10648-0), for a maximum of $750,000.