We’ve helped thousands of veterans replace their Veterans Group Life Insurance (VGLI) with private policies. When you’re an active duty service member, Service-members Group Life Insurance (SGLI) can be very inexpensive based on your age but when you retire the option to keep your term life insurance can get expensive depending on your age. The option that Veterans are given is called Veterans Group Life Insurance Insurance (VGLI).
Here is a VGLI rate chart below to show the cost breakdown for every 5 year age increase.
As you can see, the big price hike happens when you turn 55. If you are a Veteran looking for the maximum coverage that VGLI offers at $400,000 you will pay $240 per month at age 55. We highly encourage all Veterans that have VGLI policies to reach out to us directly to make sure that you understand all of your term life insurance options on the private market.
How Does That Compare With Rates Outside of VGLI?
Case study: We got a 55 year old male in average health approved with Prudential for $400,000 in coverage on a 10 year term for $106.49 per month. The rate class was Standard Plus which is the third best rate class below Preferred Best which is the #1 rate class. In comparison to what he was paying before which was $240 per month with VGLI, HE WILL NOW SAVE OVER $25,000 IN 10 YEARS.
When Does Paying VGLI Rates Make Sense?
Here are a few reasons when paying for your VGLI policy makes sense.
VGLI rates can make sense if your health isn’t so good. This is because there are no health questions or medical exams needed when applying for coverage. As long as you are an eligible Veteran then you can enroll within 240 days of leaving the military. If you smoke, no problem. If you have heart disease, no problem. VGLI will insure you no matter your health condition which can make this a great option for some.
If you only need coverage for a short period of time. If you just need some life insurance for a few years after your military service ends, you can easily apply for VGLI. However, if your going to need life insurance for at least 10-20 years then looking into a new term life insurance policy where your premium is fixed for that duration usually makes a lot more sense in the long run.
We encourage all Veterans to contact us to make sure that you understand all of your life insurance options out there.