Term Life Insurance For Veterans
As an active duty member of the military, your needs are taken care of by the government, including access to affordable life insurance- not just for yourself, but for your family.
But as you make the transition to civilian life you will have to work out a new life insurance policy.
The military offers life insurance benefits for veterans the same as active duty military, but as soon as you are no longer in service, you might want to consider buying term life insurance for veterans.
Quick NavigationHow to Apply for Life Insurance for Veterans
What Life Insurance Does The Va Offer
The Department of Veterans Affairs offers several life insurance plans to cover active servicemembers and their families, disabled veterans, and veterans. Life insurance overage offered by the VA includes:
- Servicemembers Group Life Insurance : For active service members, no health requirements to obtain coverage, it is automatic. Coverage is $25 a month for $400,000 of coverage.
- Veterans Group Life Insurance : You can convert your SGLI policy when you end service to a VGLI policy. This is a renewable term policy, premiums increase every five years at renewal.;
- Family Servicemembers Group Life Insurance : This is life insurance provided to spouses of active duty service members. This coverage can be converted within 120 days of separation.
- Service-Disabled Veterans Insurance : For those who have received a VA service-connected rating in the last two years and are in otherwise good health.
- Veterans Mortgage Life Insurance: This coverage is available for severely disabled veterans who have a Specifically Adapted Housing grant.
Best Children’s Rider: Military Benefit Association
;Military Benefit Association
Children are covered for free up to $12,500 with the military Term Insurance to Age 90 Plan. Optional add-ons even allow children to become members in their own right starting at age 25.
Is underwritten by MetLife Inc.
Has been in business since the 1950s
Eligible children may be covered at no additional cost
Offers coverage for policyholders up to age 90
No whole life insurance plans are available
Founded in 1957, MBA offers 10- and 20-year term life insurance for veterans as an alternative to or supplement for existing VGLI coverage. The company’s life insurance policies are underwritten by MetLife, Inc., which has received an A rating from AM Best. As an added benefit to senior veterans, MBA offers an additional term life insurance plan that provides coverage up to age 90.
Aside from the veteran, family members can obtain policies. Spouses are eligible for $1 million in coverage. All policies come with free coverage for each dependent child for up to $12,500 per dependent. And, as an optional add on, customers can apply for $10,000, $20,000, or $25,000 of additional term coverage for each unmarried child under 21 years old . Beyond that, eligible children can become MBA members starting at age 25.
Instant online quotes are available on the company’s website. Interested customers can also call the company and speak with a sales agent Monday through Thursday, 8 a.m. to 7 p.m. EST, and Friday, 8 a.m. to 4 p.m. EST.
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Health Requirements For Vgli
Veterans who apply to convert their SGLI to VGLI within the first 240 days after completing their service are not subject to any sort of health review or exam. Approval of the policy is not contingent upon being in good physical or mental health, in other words. If they sign up after the initial 240-day period, they need to submit evidence that they’re in good health.
To help veterans who may need more time to apply after separating from service, the VA extended the period;to apply for VGLI.
Until Dec. 11, 2021, you can:
- Apply without needing to have a health review to provide proof of;good health;for up to;330 days;after you separate from service. The VA has increased this by 90 days, from the standard period of 240 days.
- Apply with a health review to provide proof of good health;for up to;one year and 210 days;after you separate from service. The VA has increased this by 90 days, from the standard period of one year and 120 days.
Does The Department Of Veterans Affairs Offer Life Insurance
Yes, it does. If you took advantage of the life insurance offered to you through Servicemembers Group Life Insurance while you were an active servicemember or a member of the reserves, you are eligible for Veterans Group Life Insurance at the same benefits level. In other words, if your coverage was $400,000 then, you can continue that level of coverage as a veteran. As long as you are an;eligible veteran, you cannot be turned down for VGLI, even if you have physical or mental health issues.
VGLI is a term life insurance policy, which means it covers you for a set period of time and then ends. If you die during that term, the people you chose as your beneficiaries will receive the death benefit, a payout in the amount of the coverage you selected. Here are two things to keep in mind about all term life policies: they may be more affordable than whole life insurance when you are young, but become more expensive as you get older; also, they do not build cash value over time, so, unlike whole life, you cannot borrow money from them.
One important benefit of a VGLI veterans life insurance policy is that you may be eligible for early benefits from the policy if you become terminally ill. Utilizing this benefit requires a signed doctors statement that you have nine months or less to live.
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Veterans Life Insurance Riders
If you become totally disabled or terminally ill and have VA coverage, you may qualify for additional benefit options with your veterans life insurance. Your spouse could also qualify if they have a terminal illness.
Waiver of premium rider: If you become totally disabled, a waiver of premium rider means you will no longer have to pay your life insurance premiums. Typically, premium payments can only be waived up to one year before filing a claim.
To qualify, applicants must meet all of the following requirements:
; You have Service-Disabled Veterans Life Insurance coverage
; Your disability prevents you from working
; You became totally disabled before age 65
; Your total disability lasts longer than six months.
There can be exceptions to these eligibility rules.
Accelerated death benefit: For terminally ill policyholders, an accelerated death benefit may be available. With an accelerated death benefit, you can receive up to 50% of your veterans life insurance coverage paid in $5,000 increments before death.
To qualify, you must meet all of the following requirements:
; You must have a VGLI insurance policy
; You or your spouse must have a written letter from your doctors stating you have less than nine months to live
Prudential Veterans Group Life Insurance
Best for lifetime coverage
Prudential Veterans Group Life Insurance is a flexible provider with no exclusions for mental health, PTSD, or a traumatic brain injury all conditions that other life insurance companies frequently deny. Regardless of health or employment status, Prudential guarantees lifetime coverage as long as you maintain your policy. Enrollment is limited to one year and 120 days after you leave the military, and there is no medical exam if you apply within 240 days of departure.;
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How Often You Can Expect Reexamination
VA can reduce your disability benefits if it deems your condition has improved. To ensure your disability rating accurately reflects your current condition, VA may reexamine you periodically. The frequency of reexamination depends on whether VA thinks your condition is likely to improve.
VA will typically reexamine two to five years after your initial examination. This reexamination will determine if your service-connected condition still warrants the same disability rating. If VA believes your condition is static it is unlikely you will be reexamined.
Tips For Veterans Looking For Life Insurance
When you are looking for life insurance as a veteran, it is important to start before you separate. This will help you to avoid the pressure of meeting that 120-day deadline so do you have ample time to review your different options and compare based on your current medical situation and disability level what the military options are versus private insurance options.
You might find cheaper coverage in the private sector and you might prefer having a different plan than those which are available through the VA.
Some military members want a whole life insurance policy that builds cash value so that they can borrow against it if necessary later.
People who are younger and healthier might sign significantly lower options for a 20 or 30-year term policy after they leave the military through a private insurer.
In any case, shop online and talk with independent life insurance agents to figure out what the offers are that you might receive. Look over the insurance providers listed above who specialize in military base policies so that you might be able to convert your coverage, not just for yourself, but also for your spouse and children.
Give us a call today to begin finding the best life insurance for veterans, or use our online quoting engine to compare life insurance rates instantly!
4225 Executive Square, Suite 600, La Jolla, CA 92037
What Does Life Insurance For Veterans Typically Exclude
Life insurance is no different than other types of insurance where it has noted exclusions. Suicide as a cause of death is commonly excluded from all life insurance policies. VGLI does not exclude for PTSD, TBI, or suicide, though that may not be the case for other providers. Be sure to read through the policy terms and take advantage of the free look period that allows you to read every line of the contract obligation-free.
Best For Disabled Veterans: United Services Automobile Association
The company offers life insurance plans that cater to disabled veterans. It also has high ratings and online quotes.
Has been in business since the 1920s
Customers can add their children to their policies
Policies for disabled veterans
Medical checkup is required to rate the policy
With the highest rating available from AM Best of A++ , USAA has been in business since 1922 and offers a variety of life insurance policies for active military and veterans, including term, whole, and universal life.
Online quotes are available but you must create an account first. Otherwise, interested customers can reach out to the company over the phone Monday through Friday, 8:30 a.m. to 11 p.m. EST, and Saturday, 9 a.m. to 6 p.m. EST.
You can also apply to get a policy in the company’s mobile app, with the process taking about 20 minutes. At that point, a free medical exam is required and will be scheduled at a time that works for you. This appointment can be done at your home or wherever you choose. Within a couple of weeks, USAA will review your eligibility and determine your premium.
Read the full;USAA Life Insurance review.
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Vgli Rates Vs Private Life Insurance Rates
To compare the costs of VGLI to those of a private policy, we pulled numbers for a healthy nonsmoking, 30-year-old male with no family history of disease. When you get a term life insurance policy, the rate stays the same for the length of the entire policy. For a private $400,000, 30-year term policy, he would pay $35.77 a month .
Hereâs a look at the monthly costs of VGLI vs. private life insurance policy over 30 years:
Methodology: Sample private monthly premium rates based on a 30-year old male non-smoker in Columbus, Ohio, who qualifies for a preferred best rate class, obtaining a 30-year, $400,000 term life insurance policy. Calculation is based on a composite of policies from AIG, Banner, Brighthouse, Lincoln, Mutual of Omaha, Pacific Life, Principal, Protective, Prudential, SBLI, and Transamerica and may vary by carrier, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 11/9/2020.
If you’re a 30-year-old in good health when you apply for a private policy, you will pay nearly six times less for the same amount of coverage provided by the VGLI policy. Over 30 years, you will pay more than $44,000 in total for VGLI premiums, whereas you would pay closer to $12,900 in total for private term life insurance premiums.
As this illustrates, a term life insurance policy from a private life insurance company can be a lot more affordable if you’re healthy.
Understanding Veterans Group Life Insurance
By opting for Veterans Group Life Insurance , an ex-service person is technically carrying over their Servicemembers’ Group Life Insurance policy, a type of term life insurance offered to members of the military during active service. They have one year and 120 days from the date they become veterans to exercise this option.
Veterans Group Life Insurance;offers many benefits not available in the private life insurance market. Premium rates are age-based only and do not consider gender, tobacco use, job, or recreational activitiesall factors that can increase premiums with private insurance policies. In addition, the policy does not terminate at a certain age ; it remains in force for as long as the policyholder pays the premiums.
VGLI offers $10,000 to $400,000 in life insurance benefits, based on the amount of SGLI coverage the veteran had upon leaving the military. The maximum amount of coverage a veteran may initially qualify for is the same amount of coverage they had under their Servicemembers Group Life Insurance.
Veterans may opt for lower levels of coverage, reducing them in $10,000 increments. Coverage can also be increased after enrollment by $25,000 every five years. However, the maximum benefit is capped at $400,000 until the veteran reaches 60.
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Va Benefits For Vietnam Veterans
Vietnam Veterans may be eligible for a wide-variety of benefits available to all U.S. military Veterans. VA benefits include disability compensation, pension, education and training, health care, home loans, insurance, vocational rehabilitation and employment, and burial. See our Veterans page for an overview of the benefits available to all Veterans.
How To Apply For Life Insurance For Veterans
When it comes to finding the best term life insurance for veterans, it is important to compare all of your life insurance options to weigh which ones are right for you.
The easiest way to do this is to work with an independent life insurance agent who can compare life insurance rates from the best companies on the market all at once.
Our agents will discuss your personal needs for life insurance coverage, your financial situation, and your health, in order to understand what the best life insurance policy is for you.
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Va Must Notify You Before It Reduces Or Takes Away Your Disability Benefits
If VA sees fit to reduce or sever your benefits, it must first provide you with notice and time to submit arguments or evidence as to why your rating should not be reduced or severed. If VA fails to issue you this notice before reducing or taking away your benefits, you can argue the reduction or severance was improper.
Leaving The Military: Consider Converting Your Current Life Insurance
Unless you declined Servicemembers Group Life Insurance since joining the military, you have coverage. Its offered by the VA. Active-duty members, National Guard and reserve members can obtain up to $400,000 of life insurance. You can buy additional, affordable coverage for your spouse and each dependent child.
When you leave the military, you may want to convert your Servicemembers Group Life Insurance into a Veterans Group Life Insurance policy. To maintain your familys financial health and peace of mind with affordable coverage, heres what you need to know:
Questions? Military OneSource can help you navigate the ins and outs of life insurance while youre in the military or your options for a year after your service. Call us at 800-342-9647.
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How Much Does Life Insurance For Veterans Cost
The cost of life insurance for veterans varies from company to company. Premium payments will typically depend on your age, medical history, coverage goals, and history of smoking. If you choose to go with a private company, the rates also vary between term and whole life insurance plans. The best plan for you may depend on what coverage you need and how much youre willing to pay in premiums.
How Much Will I Receive In Monthly Compensation As A Surviving Spouse
As of December 2020, the fixed monthly benefit amount for DIC is $1,357.56.
If your children are under age 18 and live in your household, you are eligible for an additional benefit for each child as of December 2020 the per-child benefit is $336.32 per month.; This benefit is generally available for a period of two years from when you start receiving benefits or until the child turns 18.; If one or more of your children is disabled, you can continue to receive benefits on their behalf even beyond age 18.
You can also receive additional compensation if you are homebound and need assistance carrying out activities of daily living .