Veterans Group Life Insurance
A federal life insurance program available to U.S. military service members and veterans. The program provides group term life insurance coverage at competitive rates through the Department of Veterans Affairs.
Example
“After completing his military service, John converted his Veterans Group Life Insurance to continue coverage for his family at an affordable premium.”
Memory Tip
Think 'Veterans Get Life Insurance' - the government provides life insurance to those who served.
Why It Matters
This program offers veterans and service members affordable life insurance that might otherwise be difficult to obtain due to military-related health risks or injuries. It provides crucial financial protection for military families at rates significantly lower than private insurance.
Common Misconception
Many people think Veterans Group Life Insurance automatically continues after military service without any action required. In reality, veterans must actively convert their coverage and pay premiums to maintain benefits after leaving the service.
In Practice
A 30-year-old veteran can obtain $400,000 in Veterans Group Life Insurance coverage for approximately $27 per month. If the veteran passes away, their beneficiaries receive the full $400,000 death benefit tax-free. The premium remains level for the term period, making it one of the most cost-effective life insurance options available to former military personnel.
Etymology
Named for its coverage of veterans and active military personnel through a group insurance structure, established by Congress in 1965 as Servicemembers' Group Life Insurance (SGLI).
Common Misspellings
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Related Terms
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