SGLI Stops 120 Days After You Separate - What Next

  • Published
  • By Master Sgt. Margaret Kelly
  • 185ARW
01/14/08 --  The Servicemembers' Group Life Insurance (SGLI) plan is the life insurance plan most military members have while serving in an active capacity in the military. However, SGLI stops 120 days after a member separates or retires. Those separating or retiring can elect Veterans' Group Life Insurance (VGLI).

VGLI is a program of post-separation insurance which allows service members to convert their SGLI coverage to renewable term insurance. Members with full-time SGLI coverage are eligible for VGLI upon release from service.

There is no medical under writing requirement if a member opts for VGLI within 120 days of separation. If done after 120 days, but within 1 year and 120 days of separation, proof of good health is required (and you could be disapproved if NOT in good health).

To convert SGLI to VGLI, an eligible member must submit an SGLV 8714, Application for Veterans' Group Life Insurance to the Office of Servicemembers' Group Life Insurance with the required premium.

In a nutshell - VGLI is great - if you are NOT in good health and you are UNABLE to meet the underwriting requirements from commercial insurance companies. In addition, VGLI is a renewable term plan that will last for life, although at significantly high premiums that increase every five years.

Here's the important thing to remember: If you are in good health, you should shop around and compare VGLI prices to other companies.

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