VGLI Rates Compared to Alternative Options
Veterans who are exiting the service need to pay close attention to the current VGLI rates. Life insurance continuation is one of the many items on a service member’s to-do list as they prepare to separate. If a service member does not have another life insurance plan outside of the military to rely on, they’ll need to assess what options make the most sense. Since it is common for service members to join the military and retire at an early age chances are life insurance will still be necessary.
In an ideal situation they would have plenty of assets, minimal liabilities and children who are grown and outside of the house. We all know that is not every veteran’s situation.
Veterans are also leaving the military with mental and physical disabilities. These disabilities often can prevent service members from obtaining life insurance coverage after the military. Or at least at an affordable rates. This is where the Veterans Group Life Insurance plan becomes a saving grace.
If you are familiar with my life insurance practice and other articles, you may already know that my #1 recommendation to service members is that they buy supplemental life insurance coverage while they are young and healthy. That way they wont run the risk of having to pay high VGLI rates later in life.
VGLI Premium Rate Table
This veterans group life insurance rate chart shows the most recent VGLI rates for $400,000 of coverage provided by the VA website. Unlike the SGLI this does increase as the veteran ages.
Veterans have a total of 465 days to elect the veterans life insurance but only if they participated in the SGLI program as a service member. Life insurance for veterans with disabilities can be hard to obtain on the private market. While it is not impossible, it is a good idea for a veteran who has disabilities to consider the VA insurance coverage. They should apply within the 240 days from their separation date so that they wont have a health review for the program. After the 240 days the veterans life insurance benefit could be denied by Prudential depending on a veteran’s health status. The VA has published information on health conditions that can be considered uninsurable.
VGLI Premium Rates VS Alternatives
The good news is that service members who are shopping for life insurance after retirement or separation can often find a better price than the VGLI insurance rates. Even if they have a medical condition. While private life insurance companies all have similar takes on common health issues, there are some that provide more favorable rates than others. Working with an independent life insurance professional who has several companies to offer can save a veteran time and money. They will be able to assess which company has the best chance of approval and best price point.
Shopping to see if a veteran can beat the VGLI rates is a worth while cause! It can save them a lot of money in the long run.
Is VGLI a Good Deal?
The Veterans Group Life Insurance program can end up being a good deal for a veteran who has an uninsurable or highly rate-able health condition. That is why it is important for service members who are transitioning to look at their life insurance needs within the suggested time frames. If they put it off they can end up paying for it big time. Service members who are healthy should not consider this plan and find one on the private market to avoid overpaying for coverage. Service members who aren’t sure if their mental or physical health issues are uninsurable should check with an experienced professional for guidance.
As a practicing broker I can assist veterans compare their life insurance options. Request a quote online or call me today!