July 24

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Retired Military? Here’s How Long Your SGLI Coverage Lasts

By Harrison O'Reill

July 24, 2023


If you are a retired service member, you may be wondering how long your Servicemembers’ Group Life Insurance (SGLI) coverage will last. SGLI is a life insurance program that provides coverage to active duty and reserve members of the military, as well as members of the National Guard. However, once you retire, your SGLI coverage will end.

Fortunately, there is an option to continue your life insurance coverage after retirement. The Veterans’ Group Life Insurance (VGLI) program allows you to convert your SGLI coverage to a renewable term policy.

By enrolling in VGLI, you can continue to receive the same amount of coverage you had with SGLI, and you can renew your policy every five years until you reach age 75.

The cost of VGLI premiums is based on your age and the amount of coverage you choose. While VGLI premiums may be more expensive than SGLI premiums, they are still competitive with other life insurance options available to civilians. By enrolling in VGLI, you can have peace of mind knowing that your loved ones will be financially protected in the event of your death.

How Long is SGLI Good For After Retirement?

After retirement, your SGLI coverage will end 120 days after your retirement date. However, if you have a totally disabling condition, you can apply for an extension of up to two years.

VGLI and Other Options for Veterans

If you want to continue your life insurance coverage after retirement, you have several options. One of the most popular options is to convert your SGLI coverage to Veterans’ Group Life Insurance (VGLI).

VGLI provides coverage up to the amount of your SGLI coverage, and you can keep it for life as long as you pay the premiums. You can also explore other options like private life insurance or employer-sponsored group life insurance.

Converting SGLI to VGLI

To convert your SGLI coverage to VGLI, you need to apply within one year and 120 days of your retirement date. The premium for VGLI is based on your age and the amount of coverage you choose. You can choose coverage in increments of $10,000, up to the amount of your SGLI coverage.

Increments and Premiums

The premium for VGLI is based on your age and the amount of coverage you choose. The premium rates increase as you get older, and the coverage amount increases in increments of $10,000. You can use the VGLI Premium Rate Calculator to estimate your premium based on your age and coverage amount.

SGLI Online Enrollment System

You can apply for SGLI and VGLI online using the SGLI Online Enrollment System (SOES). The SOES allows you to manage your life insurance coverage online, including applying for coverage, updating your beneficiaries, and changing your coverage amount.

To use the SOES, you need to have a Common Access Card (CAC) or a Department of Defense Self-Service Logon (DS Logon) account.

Overall, it is important to understand your life insurance options after retirement. Converting your SGLI coverage to VGLI is a popular option, but there are other options available as well. Use the resources available to you, like the VGLI Premium Rate Calculator and the SOES, to make informed decisions about your life insurance coverage.

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Eligibility for SGLI Coverage

Here are the requirements to be eligible for SGLI Coverage.

Eligible Service Members

If you are an active-duty member of the uniformed services, you are automatically enrolled in the Servicemembers’ Group Life Insurance (SGLI) program.

This includes members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and the Commissioned Corps of the National Oceanic and Atmospheric Administration (NOAA) and the Public Health Service (PHS). Reservists and members of the National Guard are also eligible for SGLI coverage.

SGLI Coverage for Spouses and Dependent Children

If you are an active-duty member of the uniformed services, you can also apply for SGLI coverage for your spouse and dependent children. The coverage for spouses is limited to $100,000, and the coverage for dependent children is limited to $10,000. The premiums for this coverage are deducted from your pay.

Beneficiaries

When you enroll in SGLI, you must designate one or more beneficiaries who will receive the death benefit if you die while covered under the program. You can change your beneficiaries at any time by completing a new designation of beneficiary form.

In general, your spouse is automatically the primary beneficiary of your SGLI coverage unless you designate someone else.

If you do not have a spouse, or if your spouse predeceases you, your children are next in line to receive the death benefit. If you do not have a spouse or children, you can designate any person or organization as your beneficiary.

Remember that SGLI coverage ends 120 days after your separation from the military. However, if you were totally disabled at the time of your separation, you may be eligible for the Veterans’ Group Life Insurance (VGLI) program, which provides similar coverage.

OSGLI and Prudential

As a retired military service member, you may be wondering how long your Servicemembers’ Group Life Insurance (SGLI) policy is good for. The answer lies with the Office of Servicemembers’ Group Life Insurance (OSGLI) and their partnership with Prudential, the company that administers SGLI policies.

Value of SGLI Policy

Your SGLI policy provides valuable life insurance coverage at a low cost. The coverage amount is based on your military pay grade, and you can choose to increase it with additional coverage options. SGLI also offers a traumatic injury protection rider that can provide additional benefits if you suffer a severe injury.

Medical Exam and Disability Extension

If you become disabled before age 60, you may be eligible for a free extension of your SGLI coverage for up to two years. To qualify for this extension, you must have become totally disabled within 120 days of your separation from the military. You will need to provide medical documentation to support your disability claim.

Canceling SGLI or VGLI Policy

If you no longer need your SGLI coverage, you can cancel it at any time. You can also convert it to a Veterans’ Group Life Insurance (VGLI) policy within 120 days of your separation from the military. VGLI is a renewable term life insurance policy that provides coverage up to $400,000.

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SBP and Pension

If you are retired and receiving a military pension, you may also be eligible for the Survivor Benefit Plan (SBP). SBP provides a monthly annuity to your eligible survivors in the event of your death. It is important to note that SBP is separate from SGLI and VGLI, and you must enroll in it separately.

In conclusion, OSGLI and Prudential work together to provide valuable life insurance coverage to military service members and their families. Understanding the value of your SGLI policy, the medical exam and disability extension, canceling options, and the importance of SBP and pension can help you make informed decisions about your insurance coverage.

Service Members’ Group Life Insurance (SGLI)

As a retired service member, you may be wondering how long your SGLI coverage will last. The answer depends on your circumstances and the type of coverage you have. Here are some things to keep in mind:

Army and Coast Guard

If you’re a retired Army or Coast Guard member, your SGLI coverage will end 120 days after your retirement date. However, you can convert your SGLI coverage to a Veterans’ Group Life Insurance (VGLI) policy within that 120-day period.

National Oceanic and Atmospheric Administration

If you’re a retired member of the National Oceanic and Atmospheric Administration (NOAA), your SGLI coverage will end 120 days after your retirement date. However, you can convert your SGLI coverage to a VGLI policy within that 120-day period.

TSGLI and Totally Disabled

If you become totally disabled before your SGLI coverage ends, you may be eligible for Traumatic Servicemembers’ Group Life Insurance (TSGLI) benefits. TSGLI provides a one-time payment of between $25,000 and $100,000 to service members who suffer a traumatic injury. To be eligible, you must have SGLI coverage at the time of the injury.

Loss of Speech

If you suffer a loss of speech before your SGLI coverage ends, you may be eligible for an SGLI Disability Extension. This extension provides free coverage for up to two years after the loss of speech.

Service Member

If you die while you have SGLI coverage, your beneficiaries will receive a tax-free death benefit of up to $400,000. This benefit can help provide financial security for your loved ones in the event of your death.

Remember, SGLI coverage is an important benefit that can help protect you and your loved ones. Be sure to understand your coverage and take advantage of any benefits you may be eligible for.

Conclusion

In summary, SGLI coverage does not continue after retirement. However, there are options for veterans to convert their SGLI coverage to VGLI, which provides similar coverage at a higher cost. It is important to weigh the benefits and costs of VGLI coverage and explore other life insurance options before making a decision.

Additionally, it is important to keep in mind that SGLI and VGLI coverage amounts may not be sufficient for all financial needs, such as paying off debts or providing for dependents. It is recommended to review and update life insurance coverage regularly to ensure adequate protection.

Finally, veterans should also consider other retirement benefits available to them, such as healthcare and pension plans. It is important to consult with a financial advisor or retirement specialist to develop a comprehensive retirement plan that meets individual needs and goals.

Overall, while SGLI coverage does not continue after retirement, veterans have options for life insurance coverage and should carefully consider their retirement benefits to ensure financial security in their later years.

Frequently Asked Questions

Here are some common questions about this topic.

How long is SGLI good for after retirement?

If you are retiring from the military, you may be wondering how long your Servicemembers’ Group Life Insurance (SGLI) coverage will last. The answer is that it depends on your situation.

If you are retiring with 20 years of active-duty service, you can keep your SGLI coverage for 120 days after your retirement date. After that, you may be eligible for Veterans’ Group Life Insurance (VGLI), which is a similar program offered by the Department of Veterans Affairs (VA).

What is VGLI?

Veterans’ Group Life Insurance (VGLI) is a program offered by the Department of Veterans Affairs (VA) that provides life insurance coverage for veterans who have left the military. It is similar to SGLI, but the premiums may be higher.

How do I apply for VGLI?

To apply for VGLI, you must complete and submit a VGLI application within one year and 120 days of your separation from the military. You can apply online, by mail, or by fax. The amount of coverage you can get depends on the amount of SGLI coverage you had before you left the military.

Can I get life insurance coverage after VGLI?

Yes, you can get life insurance coverage after VGLI. There are many private life insurance companies that offer coverage to veterans and their families. You may want to shop around to find the best rates and coverage for your needs.

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