Available Life Insurance Options
Multiple types of life insurance for veterans are available for those who qualify. Eligibility guidelines for veterans life insurance coverage programs depend on how long the applicant has been serving in the military, while other programs are for members of a specific military branch. Because there are so many types of VA life insurance, it is important that applicants check through all of the available plans so they can find one that provides the coverage that they need. A unique veterans life insurance application will be required to apply for coverage through each different program. To learn more about veterans life insurance coverage options, please review the following topics:
- Servicemembers Group Life Insurance
- Veterans Group Life Insurance
- Traumatic Injury Protection Program
- Service-Disabled Veterans Insurance
- Veterans' Mortgage Life Insurance
Servicemembers Group Life Insurance
Servicemembers Group Life Insurance (SGLI) is an insurance program that offers affordable life insurance coverage to members of the armed forces who meet all of the eligibility requirements. SGLI is one of the types of VA life insurance in which veterans are automatically enrolled if they are part of certain branches of the military. When applying for SGLI life insurance, the most important documentation applicants will want to have on hand is anything that proves they are an active part of the armed forces.
SGLI life insurance is one of the most straightforward types of life insurance for veterans, in terms of coverage. Military members are automatically enrolled into the program, but they can choose to opt out if they want to get different coverage. Coverage lasts for 120 days starting from the date of separation. Coverage for SGLI can be extended for up to two years if the applicant is considered totally disabled once the plan runs out.
Military members who choose to accept SGLI life insurance will have to pay a monthly premium, which is automatically taken out of their monthly pay. The total cost of the premium depends on how much coverage the applicant wants to receive.
Veterans Group Life Insurance
Veterans Group Life Insurance (VGLI) is a type of life insurance that assists military veterans after they leave the armed forces. VGLI offers lifetime coverage as long as the applicants are willing to pay the monthly premiums. VGLI applicants may enroll for a maximum amount of coverage based on how much coverage they were getting when they were part of the armed forces. Unlike other types of life insurance for veterans, there is no proof of good health required in order to get VGLI coverage. Applicants will need to have information about their past service record and previous SGLI insurance plan in order to get VGLI coverage. Applicants who are going to leave the service and want to turn their SGLI plan into VGLI will have one year and 120 days to file once they have officially been discharged from the armed forces.
Traumatic Injury Protection Program
The Traumatic Injury Protection Program (TSGLI) is an extension of SGLI life insurance. Just like with SGLI life insurance, members of the armed forces are automatically enrolled into the program. However, TSGLI is available only to servicemembers and veterans who have suffered a traumatic injury while serving in the armed forces. The purpose of the program is to provide short-term monetary assistance for any members of the armed forces or veterans who require assistance recovering from traumatic injuries. Despite the name, TSGLI does offer some coverage for non-traumatic injuries as well.
Traumatic Injury Protection Program coverage amounts depend on what type of injury occurred for the veteran. Veterans may get TSGLI coverage for multiple injuries, but in some cases, the injuries will be combined together and treated as a single loss for the purposes of determining coverage costs. Since the program is meant to help injured veterans, the TSGLI premium rate is kept as low as possible, with the majority of veterans only paying one dollar per month. Along with their military records, applicants for TSGLI will also need to have any medical documents that have details about the injuries they received.
Service-Disabled Veterans Insurance
Service-Disabled Veterans Insurance (S-DVI) is one of the oldest forms of VA life insurance. This disabled veterans life insurance program is designed to assist veterans who received service-related disabilities during their time with the military. S-DVI policies are designed with permanent plans in place, as well as term insurance policies. The maximum face amount that is available from S-DVI is $10,000 dollars. Because of their conditions, veterans who have a severe disability may be able to get a waiver for premium costs.
To apply for a service disabled veterans life insurance policy, applicants will need to have documents that relate to their time spent in the armed forces. They will also want to have any medical documents on hand that relate to injuries received while serving in the armed forces. S-DVI applicants who are on some form of disability will need to provide proof of these benefits.
Veterans' Mortgage Life Insurance
Veterans' Mortgage Life Insurance (VMLI) is one of the more specific types of insurance plans. VMLI provides financial assistance and mortgage protection to the families of servicemembers who are severely injured and to the families of veterans who have passed away. The plan is only available to veterans and members of the armed forces who have the title to their home and are actively paying a mortgage.
VMLI can provide up to $200,000 that is paid out to the mortgage holder. For VMLI eligibility guidelines, the mortgage holder can refer to both a person as well as a bank or a mortgage lender. The payment for VMLI cannot go to a beneficiary. As the mortgage balance starts to decline, so does the amount that will be paid from VMLI.
When applying for VMLI, applicants must have different pieces of information on hand. Because of the nature of the program, applicants must have their past service records, but also all of the documentation that shows they own the house, as well as documentation that shows how much they have paid toward the house.