What Is VGLI
Veterans Group Life Insurance (VGLI) is a renewable term life insurance program available to service members and veterans after they leave active duty. It allows you to convert your SGLI coverage into civilian life insurance without a new medical exam, provided you apply within 120 days of separation from service.
For grieving families, VGLI matters because it determines whether life insurance benefits are available to help cover funeral costs, medical bills, and other immediate expenses after a veteran's death. If your loved one separated from service and elected VGLI coverage, the beneficiary designation on file will receive the death benefit, typically within 30 to 60 days of claim submission.
Coverage Amounts and Costs
VGLI coverage ranges from $10,000 to $400,000 in $10,000 increments. The cost depends on the veteran's age at the time of conversion. A 40-year-old converting $250,000 in coverage might pay around $35 to $45 monthly, while a 60-year-old with the same coverage could pay $150 to $200 monthly. Premiums increase every five years as the veteran ages.
Many families discover VGLI policies during the estate settlement phase. If your veteran had VGLI but you were unaware of it, contact the Department of Veterans Affairs (VA) at 1-800-419-1473 or check your loved one's discharge papers (DD Form 214) for evidence of the policy.
VGLI in the Bereavement Process
When a veteran with VGLI dies, the beneficiary must file a claim with the VA. You'll need the veteran's discharge papers, death certificate, and proof of your relationship. The VA processes claims through its Veterans Group Life Insurance office and typically issues payment by check or electronic transfer.
Many families find that processing VGLI claims becomes one of several estate tasks to manage during the acute grief period. Some people handle this themselves within weeks of the death, while others, especially those experiencing complicated grief, may take months to organize documents and file. There is no time limit for filing a VGLI claim, so you can take the time you need. Grief counseling or support groups can provide emotional support while you work through these practical steps.
Common Questions
- Is there a deadline to claim VGLI benefits? No, there is no time limit to file a claim. However, it's best to submit within a few months to avoid complications with estate settlement.
- Will VGLI benefits be taxed? No, life insurance proceeds are generally not subject to federal income tax. However, any interest earned on the payout before you receive it may be taxable.
- What if the veteran let the policy lapse? If premiums were not paid, the policy terminates and no death benefit is available. The VA will not reinstate a lapsed VGLI policy under any circumstances.
Related Concepts
- SGLI (Servicemembers Group Life Insurance), the military predecessor to VGLI
- Life Insurance Proceeds, how death benefits are distributed and managed
- Beneficiary Designation, who receives the insurance payout