Getting out, military retirement, military to civilian transition - Marine Corps Times

Separation: Life insurance

A major concern of service members with families is whether they have enough life insurance.

Service members have two options for continuing their Servicemembers’ Group Life Insurance coverage after leaving the military:

å Convert the policy to Veterans’ Group Life Insurance.

å Buy a policy from a commercial insurance company that participates in the conversion program.

VGLI is available to all service members who were on active duty at the time of separation and some reservists. Eligible reservists include:

å Those who were on active duty, including training on orders for 31 days or more.

å Those who have full-time SGLI policies.

å Those with part-time coverage, if their coverage has been extended past their active duty because of a disability that occurred or was aggravated during active duty.

Retired reservists may convert their coverage to VGLI if their SGLI coverage was active during their most recent drill period.

VGLI coverage may be purchased in multiples of $10,000, up to a maximum of $400,000, although the coverage cannot exceed the level of SGLI coverage that a member formerly carried. You must apply for the conversion within one year and 120 days of separation from military service. However, veterans who apply within 120 days do not have to provide proof of good health.

Premiums can be paid monthly, quarterly, semi-annually or annually. Policyholders will receive a 2.5 percent discount for quarterly payments, a 3.75 percent discount for semi-annual payments and a 5 percent discount for annual payments. No discounts are available for monthly payments.

The other option for separating SGLI policyholders is to purchase an individual policy from a commercial insurance company that accepts SGLI conversions. You must provide the carrier you choose with a letter from the SGLI office that verifies your coverage.

The VGLI Web site has links for information about conversions to commercial insurance companies, as well as a list of the participating companies.

Contact: http:/www.insurance.va.gov/ sgliSite/VGLI/VGLI.htm