VGLI is one of the most common types of term life veteran insurance plans for retired service members. While the program is overseen by the Department of Veterans Affairs, the actual benefits come from Prudential. Prudential VGLI is only available if you previously had an SGLI plan while you were in the military. You must be within one year and 120 days of being released from your active-duty period to be eligible for VGLI. This applies whether you were a member of the National Guard or Individual Ready Reserve.
Life insurance for disabled veterans is available under this plan if you suffered your injury while on duty. Unlike with other life insurance plans, VGLI rates cannot change based on your disability, nor can you be denied coverage for a preexisting condition. How much you receive in life insurance benefits is based on your previous level of SGLI coverage, which ranges between $10,000 and $400,000.
If you want to increase your VGLI benefits, you are allowed to increase the amount of coverage by $25,000 every five years until you hit the maximum of $400,000. Once you are 60 years old you no longer have the ability to increase your benefits, so make sure to plan accordingly.
When you sign up for Prudential VGLI within 240 days of retiring from the military, everything from your previous SGLI plan carries over. VGLI is still available after 240 days, but you are required to resubmit your information.
VGLI premium rates are determined by your age as well as the amount of coverage you want. VGLI uses multiple age brackets. The first category is for veterans under the age of 30. From there, the age brackets increase every five years, so you move into a new bracket from 30 to 34, then enter the next bracket from 35 to 39. This continues until you hit the final bracket, which is age 80 and over.
Each of the VGLI age brackets has different premiums based on your level of coverage. The base premium is for $10,000 and increases for every additional $10,000 in coverage. If you want cheap life insurance for veterans, your best option is to select a lower coverage amount when you are younger, then gradually increase your coverage bracket every five years until you hit the desired level.
You can identify your target goal by using life insurance calculators and speaking with a financial advisor to determine how much your family needs.