Is VGLI really a good option for the service members?
How does it vary from SGLI?
Total Comments: 27
Posted: Mon Dec 14, 2009 12:58 pm Post Subject:
SGLI is for active service members and dirt cheap, while VGLI is for retired service members and gets incredibly expensive as you get older.
Posted: Mon Dec 14, 2009 02:16 pm Post Subject: sgli
Yep...I pay $27.00 per month for a $400,000 Life Insurance policy (SGLI). Also...I'm a 'active' Reservist. I don't know what you would pay on VGLI.
Posted: Mon Dec 14, 2009 10:02 pm Post Subject:
SGLI is the life insurance protection available to members of the US armed forces while on active duty. Upon separation from active duty, SGLI continues for up to 120 days. $400,000 is the maximum benefit for death plus there is now a benefit for disabling "catastrophic" injuries -- the kind of stuff that seriously wounds (removes arms, legs, feet, hands, chunks of skull and brains, and severs the spinal cord of) our soldiers and marines without killing them.
During that time period, SGLI may be converted without proof of insurability to VGLI. VGLI is term life product with 5-year age bands: 20-24, 25-29, 30-34, 35-39, etc. As you move into the next age band, your premium is fixed for the next five years. As dgoldenz says above, it will eventually become very expensive to continue -- but only on the basis of age, not health status.
Other forms of life insurance often represent a better dollar value over the long term, but VGLI, for those in the active reserves, automatically converts back to SGLI if recalled to active duty. A private policy might have an exclusion for death while serving in the military or in times of war or as the result of an act of war, which would not be a good thing for someone recalled to active duty.
Posted: Tue Dec 15, 2009 12:05 am Post Subject: life insurance
I was told I can continue to pay for the Life Insurance when i get out of the Military. I know I would be paying MORE than I do now. Also, according to my Military contract, after I DO get out of the Military, I have a '2 year window' that I can possible get called back to duty.
Posted: Tue Dec 15, 2009 06:02 am Post Subject:
If an SGLI insured service member gets released from active duty for over 31 days, he should be eligible for VGLI on a full time basis.
Posted: Tue Dec 15, 2009 01:00 pm Post Subject: insurance
That would be great!! My 'enlistment' is up in 2011. By THIS time, I would have 15 years in the Military. Why quit now and waste all of this time..ya know? I'm gonna try to go to 'Retiremement'. On a VGLI, do you know what monthly payments would be, MAX? Just a 'ball park' fugure?
Posted: Tue Dec 15, 2009 02:18 pm Post Subject:
Here's a link to the VGLI premiums for all ages and amounts: http://www.insurance.va.gov/sgliSite/forms/VGLIRates(07-08).pdf
Here's a link to the VA page about it: http://www.insurance.va.gov/sgliSite/vgli/VGLI%20rates.htm
As you can see, the rates for ages 50 and up get pretty ridiculous. If you are healthy, you would be able to find much less expensive coverage on your own in the individual market. I'm sure you don't want to be paying $20k per year when you hit 70 years old.....or even $5k per year when you hit 60.
Posted: Tue Dec 15, 2009 09:29 pm Post Subject: insurance
I'm sure you don't want to be paying $20k per year when you hit 70 years old.....or even $5k per year when you hit 60.
No.........I don't think I do want to pay THAT much. It's sad....that people that have served our country have to pay THAT much AFTER they are discharged from the Military. They are STILL Vets...no matter how long they have been out.
Posted: Tue Dec 15, 2009 11:28 pm Post Subject:
The first link should have an 8 and closed parenthesis in there instead of a smiley face. Aside from that, it gets expensive to pay out claims of $400k if you're charging dirt cheap premiums. Money has to come from somewhere....it's no different than all group insurance, which usually has premiums that skyrocket as you get older.
Posted: Tue Dec 15, 2009 11:51 pm Post Subject: insurance
Well......thanks for the advice. Of course, I can have SGLI as long as I remain in the Military. Thanks for everyone's comments...they were very helpful.
Posted: Mon Dec 14, 2009 12:58 pm Post Subject:
SGLI is for active service members and dirt cheap, while VGLI is for retired service members and gets incredibly expensive as you get older.
Posted: Mon Dec 14, 2009 02:16 pm Post Subject: sgli
Yep...I pay $27.00 per month for a $400,000 Life Insurance policy (SGLI). Also...I'm a 'active' Reservist. I don't know what you would pay on VGLI.
Posted: Mon Dec 14, 2009 10:02 pm Post Subject:
SGLI is the life insurance protection available to members of the US armed forces while on active duty. Upon separation from active duty, SGLI continues for up to 120 days. $400,000 is the maximum benefit for death plus there is now a benefit for disabling "catastrophic" injuries -- the kind of stuff that seriously wounds (removes arms, legs, feet, hands, chunks of skull and brains, and severs the spinal cord of) our soldiers and marines without killing them.
During that time period, SGLI may be converted without proof of insurability to VGLI. VGLI is term life product with 5-year age bands: 20-24, 25-29, 30-34, 35-39, etc. As you move into the next age band, your premium is fixed for the next five years. As dgoldenz says above, it will eventually become very expensive to continue -- but only on the basis of age, not health status.
Other forms of life insurance often represent a better dollar value over the long term, but VGLI, for those in the active reserves, automatically converts back to SGLI if recalled to active duty. A private policy might have an exclusion for death while serving in the military or in times of war or as the result of an act of war, which would not be a good thing for someone recalled to active duty.
Posted: Tue Dec 15, 2009 12:05 am Post Subject: life insurance
I was told I can continue to pay for the Life Insurance when i get out of the Military. I know I would be paying MORE than I do now. Also, according to my Military contract, after I DO get out of the Military, I have a '2 year window' that I can possible get called back to duty.
Posted: Tue Dec 15, 2009 06:02 am Post Subject:
If an SGLI insured service member gets released from active duty for over 31 days, he should be eligible for VGLI on a full time basis.
Posted: Tue Dec 15, 2009 01:00 pm Post Subject: insurance
That would be great!! My 'enlistment' is up in 2011. By THIS time, I would have 15 years in the Military. Why quit now and waste all of this time..ya know? I'm gonna try to go to 'Retiremement'. On a VGLI, do you know what monthly payments would be, MAX? Just a 'ball park' fugure?
Posted: Tue Dec 15, 2009 02:18 pm Post Subject:
Here's a link to the VGLI premiums for all ages and amounts: http://www.insurance.va.gov/sgliSite/forms/VGLIRates(07-08).pdf
Here's a link to the VA page about it: http://www.insurance.va.gov/sgliSite/vgli/VGLI%20rates.htm
As you can see, the rates for ages 50 and up get pretty ridiculous. If you are healthy, you would be able to find much less expensive coverage on your own in the individual market. I'm sure you don't want to be paying $20k per year when you hit 70 years old.....or even $5k per year when you hit 60.
Posted: Tue Dec 15, 2009 09:29 pm Post Subject: insurance
I'm sure you don't want to be paying $20k per year when you hit 70 years old.....or even $5k per year when you hit 60.
No.........I don't think I do want to pay THAT much. It's sad....that people that have served our country have to pay THAT much AFTER they are discharged from the Military. They are STILL Vets...no matter how long they have been out.Posted: Tue Dec 15, 2009 11:28 pm Post Subject:
The first link should have an 8 and closed parenthesis in there instead of a smiley face. Aside from that, it gets expensive to pay out claims of $400k if you're charging dirt cheap premiums. Money has to come from somewhere....it's no different than all group insurance, which usually has premiums that skyrocket as you get older.
Posted: Tue Dec 15, 2009 11:51 pm Post Subject: insurance
Well......thanks for the advice. Of course, I can have SGLI as long as I remain in the Military. Thanks for everyone's comments...they were very helpful.
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