Does OSGLI delay checks?

Posted: Sun Nov 29, 2009 06:44 am Post Subject:

Sorry for your loss (both your Mother, and your checks).

If your mother was not on Active Duty, she may not have been covered by SGLI, but was probably covered by VGLI (Veteran's Group Life) instead, since she was paying a premium. SGLI can only be continued for up to two years after discharge, if disabled, and there is no cost. Depending on her age, she was probably paying some more than $40/month for VGLI.

SGLI and VGLI are each managed by a consortium of life insurance companies, led by Prudential, and both are supervised by the VA's Office of Servicemembers Group Life Insurance (OSGLI, 1-800-669-8477). Calling the VA may help, but you have a better resource available, which is also free: your state Insurance regulator (the Dept of Insurance in most states). Find them through your state's main website.

Here's my recommendation: Call VGLI's claims department, and get transferred to the highest level manager you can speak to LIVE -- no voicemail!! Ask him if he knows what "unfair claims practices" means. You should get his attention with that statement. If he cannot resolve the matter in 24-hours, then you have to kick it up to your state insurance regulator.

File a complaint charging unfair claims practices, detailing the simultaneous lost checks to you and your brother, as well as the week-old postmark event. Do not get involved with a lawyer at this stage, or the regulator will be forced to back off (by state law).

I'm curious, however, why you chose to receive monthly payments instead of a lump sum following your mother's death? Was the option preselected by your mother?

As an agent first licensed in 1980, I hate to hear about things like this. It could be an innocent screw-up, but it should not be happening. Period.

I teach my students and my clients to go to the regulator with your complaints as soon as the insurance company starts giving you the runaround. The longer you wait, the more you lose.

Posted: Sun Nov 29, 2009 07:29 pm Post Subject: badger them

Get on the phone and badger badger badger. Get the names of whom ever you are speaking to, and keep calling them back. I have been dealing with them for two years. Its a huge bureau, things get mixed up very easily. Keep on them down there. They screwed up my case horribly. Nice folks, the system is just too big. Paperwork gets missed. computers make mistakes.
If the check got lost in the mail, there may be something they can do like put a stop on it, and issue another one. Good luck

Posted: Sat Dec 05, 2009 02:45 pm Post Subject:

MAX.....I'm in the Military and I don't even know THIS question!!LOL What IS the difference between SGLI and VGLI? You're a Vet, either way. On SGLI you can pay for it (conntinually) even after you get out of the Military. What about VGLI. How is THIS different?

Posted: Wed Dec 09, 2009 01:21 pm Post Subject:

SD . . .

Sorry I missed this earlier. SGLI is for active duty personnel. Coverage is available up to $400,000 for enlisteds. But SGLI terminates 120 days after separation from active duty. SGLI now include an additional "catastrophic" benefit (25% of the life insurance amount) for nonfatal injuries -- like missing limbs, brain injuries, etc. that have become more common than death on the battlefield. The full $400,000 + $100,000 cat addition is $28 or $29 per month regardless of age or rank, unless the rates have gone up recently. There is no cash value in SGLI.

It can be converted to VGLI, which is a "5-year banded" renewable term policy. The age bands are 20-24, 25-29, 30-34, 35-39 and so on. Premium increases as you enter a new band, but remains level within the band.

VGLI automatically is suspended if one is recalled to active duty, and SGLI begins again. When released from active duty, VGLI will resume at the end of 120 days following separation.

You do not keep paying for SGLI after separation from the service. IF you are still paying, you're paying for VGLI. Both programs are administered through the VA, so it is understandable that you might be confused as to which coverage you have. But if you're full-time active duty, you're current coverage is SGLI.

BTW, my son is a SSgt in the USMC currently stationed at Bagram Air Base in Afghanistan (been there about 5 weeks now) and will be there for another 5 months or so. He was in Iraq this time last year. Makes two of his birthdays, Thanksgivings, Christmases, New Year's, and one of his two daughters' birthdays in a row that he's missed being able to celebrate with family and friends.

Thanks for your service! And that of all the other men and women in our Armed Forces and Coast Guard, too.

Posted: Thu Dec 10, 2009 05:28 pm Post Subject: life insurance

Thank you for you comments, MAXHERR!!! i was deployed to Kwaitt/Iraq in 2003. was there 1 year. I know how it is to miss the birthdays, holidays, etc....it was very tough to be away from my son. The only thing that helped (alittle..) was that everyone, in my comapny, was in the 'same boat', as well. My enlistment is up in 2011.but, by that time, I will have 15 'good' years in..(15 years toward retirement). It would be silly to stop there..ya know? I hope your son remains safe.....GOD BLESS!!

Posted: Fri Dec 11, 2009 12:01 am Post Subject:

Well, once you have your fifteen, the last five should be a piece of cake. And who knows, you might like it so much you stay for another 10 after that!

To go back to one of your earlier posts, you must have SGLI at this point, not VGLI at all, because you're on active duty. If you're thinking that you need additional life insurance today, or might need more in the future after you separate, it might be better to obtain an individual policy at this point in time while you're still in your early 30s, and it's les costly and easier to qualify.

The only caveat . . . you have to look for a policy that does not include an exclusion for death in war or military service. There are companies that don't include them.

But a lot of servicemen were sold policies a few years ago that were essentially worthless to a serviceman due to the war/military exclusions. The insurer was required to refund something like $17 million in premiumms

You may also be limited to $400,000 (an amount equivalent to the maximum SGLI coverage).

Military marketing guidelines effectively prevent agents from calling onto bases to prospect for business (violated frequently), although they may respond to a request for information. In most cases, the agent has to apply for permission from the base CO to come onto the base to meet with a prospect in their living quarters or workplace, so many agents will encourage the servicemember to meet them off base at their office or in a restaurant instead.

Posted: Fri Dec 11, 2009 12:09 am Post Subject: life insurance

I'm 46 years old!!..LOL I DO have SGLI right now. I was told I can still keep the coverage, even when I get out of the Military. Just don't know how all of that works, though.

Posted: Fri Dec 11, 2009 06:27 pm Post Subject:

You didn't need to share that personal bit of information. But God bless you for your service.

If you visit http://www.insurance.va.gov you'll be able to locate a variety of documents on both SGLI and VGLI. The one you need to get relative to your question above is titled, appropriately, "How to Convert Your Servicemembers' Group Life Insurance to Veterans' Group Life Insurance." The copy I have in my laptop I downloaded about two years ago and it has a revision date of 2005. If it's been updated since then, the website will have that -- but the information probably hasn't changed.

This two page brochure is probably also available on base where you are stationed. Maybe in the Personnel Section (or whatever they call it) or wherever you would go to find out information about VA benefits or TriCare. But online is simple and quick.

You can also download the SGLI and VGLI "handbooks" that give more detailed information about each of the programs.

Basically, as I wrote earlier, you'll have your SGLi coverage for 120 days beyond separation from active duty. You can submit the application and "support documents" (DD-214 if you can get it ahead of time), with a check for the first premium to convert to VGLI before or after separation and within the 120 days without having to prove insurability. Between 121 days and 486 days ("1 year and 121 days"), you also have to prove insurability ("evidence of good health"). After Day 486 (maybe 487 if a leap year is involved, but why take the chance?), you are ineligible to apply.

SGLI is only continued after separation from active duty in the event of a total disability. The brochure explains that you have to seek the extension approval in writing from OSGLI and provide "medical evidence of disability" (why they wouldn't know this is beyond me, but then again we're talking about the US Govt). SGLI will continue without premiums for as long as the disability remains total. But note also, the Department of Veterans Affairs could classify you as totally disabled, and OSGLI can classify you as NOT totally disabled. Go figure (sounds like they've taken a page from the Social Security Disability handbook).

It's also possible to have both VGLI and SGLI (you separate and then decide to reenlist :shock:), but the total insurance amount cannot be more than $400,000 combined.

Probably more than you thought there was to know!

Get the documents and take a look. You might be able to help one of your 'buds' with information they don't know as they're getting ready to discharge.

Posted: Tue Mar 16, 2010 01:00 am Post Subject: VGLI vs. Whole Life Ins. as you age

Very informative website. We were shocked to receive the rate raise for my husband, who is now 50 for the VGLI. This band is going up to $533.24, and then up to $992.00, and then $1600.00 per year in ten years. Shocker! Is it really worth changing to a whole life policy? How strict are they with any health issues, i.e. cholesterol, etc.? Thanks for the input.

Posted: Wed Mar 17, 2010 02:43 am Post Subject:

It might be, no one can really give you a rule of thumb to follow, you have to look at the numbers and decide if it makes sense.

Underwriting requirements vary by company, and some care more than others. Some want your business more than others. What kind of health issues are we talking about?