Military services are one of the top services that come with the great responsibility of guarding the borders. With a risky lifestyle and working environment, an army serviceman needs extra life protection. A security plan that helps their family when they pass away. In this context, Do retired veterans have life insurance automatically is an important concern that arises.
It is essential for a person with a military career to understand this question to ensure long-term financial security. Life insurance is a tool that provides the coverage amount to the beneficiary or the family after the plan owner’s passing. With this, understanding the life insurance options that veterans have after retirement is key.
Understanding Veteran Life Insurance Options After Retirement
Before going to the main concern, it is essential to understand what happens when a military serviceman retires. So, during the duty or the service life, the member is covered with a Servicemember’s Group Life Insurance (SGLI). It is a low-cost insurance plan that provides financial security to military personnel. However, this plan is only available for active members. This means that the SGLI expires shortly after the retirement of the person. So, from now on, it is the responsibility of the veteran to get another long-term protection plan.
People get confused with concerns like, Do retired veterans have life insurance automatically. So, it is important to understand that the veterans or military servicemen after retirement do not get insurance coverage automatically. They need to enrol in another plan provided by the administration or the government. There are various options that can be used to extend the protection, converting the SGLI into Veterans’ Group Life Insurance (VGLI). However, this transition can only be done within a specific time duration after retirement.
The VGLI provides similar coverage and benefits as the SGLI but is specifically designed for veterans. This conversion can be the best option because no medical examination is needed by the VGLI. Also, the veterans have private insurance options that are the same policies that are available for all people in the market. So, understanding all the possible options that a veteran has is important to continue the long-term financial security.
Do Retired Veterans Have Life Insurance Automatically?
This is one of the most common concerns that people have. Whether the veteran automatically gets covered by insurance or not. However, it is already mentioned that after retirement, veterans do not automatically get insured. However, they have some specific options that are provided by the Veterans Affairs Department. The plans include VGLI, which can be accessed if transferred from an SGLI policy within a defined period.
The VALife coverage is another option available that is specifically designed for service-related disabled veterans. It is advised that veterans convert their existing SGLI coverage into the VGLI after retirement, generally within 120 days. Key points are given below:
- It is important to apply for the VGLI within 120 days to continue the coverage without any medical examination. It is because the SGLI coverage expires after 120 days of separation.
- If this term passes, then the veteran can apply for the VGLI new account within 240 days of the separation to get the policy without any medical examination.
- After the 240-day period, a medical examination is required.
Life insurance is an important tool that every person needs to have, not just for peace of mind but also for the sake of their family and loved ones.
So, it is necessary for servicemen who are near retirement to plan for their after-retirement life for the best results. It is essential to enrol in a new plan (VGLI or VALife) within the given timeline to get the guaranteed coverage plan without any medical examination. This is a whole life insurance plan with affordable premiums and a decent coverage amount. So, the only way to get optimal protection is to make informed and proactive decisions.
Military Life Insurance Options After Leaving Service
When a military serviceman leaves the service, many things are present that need proper focus and understanding. One of which is the retirement insurance plan. So during the services, the member automatically gets the insurance, which is SGLI already mentioned above. However, this plan expires after the retirement of the serviceman. After this, there are various options that the person has.
All options come with their separate eligibility and coverage options, which need to be understood by the applicant.
Veterans’ Group Life Insurance (VGLI)
The VGLI is an effective insurance option that is available after retirement. It is offered by the VA department. The SGLI coverage plan that the serviceman has during duty can be converted into a VGLI within the 120 days of separation. This will help them to get a normal coverage plan with equal protection and without the need for a medical examination.
- The coverage of this plan lies between $10,000 and the maximum of $500,000, which can match the SGLI coverage amount.
- For having a VGLI, the person is required to have an SGLI coverage plan during the service.
- Premiums and coverage increase after every 5 years of coverage with the age increase.
VALife (Veterans Affairs Life Insurance)
This life insurance coverage plan is meant for veterans with service-related disability. The VALife is a guaranteed whole life insurance policy available for veteran retirees. This policy helps disabled veterans protect their loved ones’ long-term financial future. The VALife is one of the best life insurance policies for veterans.
- This plan comes with coverage of up to $40,000 with an increment of $10,000 per time.
- The eligibility for this plan aligns with the disability. The person who has 0 to 100% disability can apply for this insurance plan.
- The benefits require 2 years to become completely payable.
Private Insurance Providers
At the end, a veteran can consider the general insurance policies that are present in the market for all civilians. There are many companies that provide life insurance polices with decent coverage and affordable premiums.
- The private insurers provide a good amount of coverage that starts from $100,000 to millions of dollars based on the requirements.
- This provider offers high flexibility, and the premiums depend on the coverage chosen.
- Eligibility is based on age, health conditions, medical examinations, etc.
- The options are term life insurance for veterans, whole life insurance, etc.
People who still ask, do retired veterans have life insurance automatically? So, nothing will happen automatically after leaving the military services. You need to apply for the conversion or for a new policy on your own.
Are Disabled Veterans Automatically Eligible for Life Insurance?
Many veterans think that they have a service-related disability, so they automatically get an insurance plan after retirement. However, it is not possible to have an insurance plan automatically after retirement. It is completely the person’s responsibility to buy or convert the existing policy into an accessible policy. For this, the veteran has various options, which are listed below.
- VALife (Veterans Affairs Life Insurance): As mentioned above, this policy is meant for retired servicemen with work-related disability. For this, no medical examination is required, and the full benefit coverage starts after 2 years of the policy start.
- S-DVI (Legacy Service-Disabled Veterans Insurance): It is the older version of VALife insurance and is not available for new applicants. However, the old policyholders can continue to use it or convert it into a VALife.
- Private Life Insurance for Disabled Veterans: The companies are always an option for veterans and for all people. They provide high coverage options with multiple policy types supported. Also, the private insurers offer various riders and add-ons for specific protection needs.
Disability won’t help in getting the insurance policy automatically after retirement. However, unlike normal veterans, the disabled veterans have various specific insurance options available to them.
VALife Premium Costs by Age & Coverage Amount
This life insurance policy is one of the most preferred insurance options for veterans upon separation from the service. However, with this knowledge, the cost of the premium based on age and coverage amount is important.
| Age at Enrollment | Monthly Premium for $10,000 Coverage | Monthly Premium for $20,000 Coverage | Monthly Premium for $30,000 Coverage | Monthly Premium for $40,000 Coverage |
|---|---|---|---|---|
| 20 | $11.40 | $22.80 | $34.20 | $45.60 |
| 30 | $15.40 | $30.80 | $46.20 | $61.60 |
| 40 | $22.00 | $44.00 | $66.00 | $88.00 |
| 50 | $32.50 | $65.00 | $97.50 | $130.00 |
| 60 | $50.00 | $100.00 | $150.00 | $200.00 |
| 70 | $78.00 | $156.00 | $234.00 | $312.00 |
| 80 | $127.50 | $255.00 | $382.50 | $510.00 |
The above data and monthly premium estimation are just based on some facts and can be a little inaccurate. This is because the actual premiums depend on various factors other than the coverage, age, and amount. It is very obvious that the young policyholder pays low premiums as the length of the policy is decent, with a long life expectancy.
How Much Life Insurance Do Retired Veterans Actually Need?
For veterans, it is necessary to define how much insurance coverage they actually need. This will avoid paying extra premiums due to unnecessary coverages. By considering various factors, it becomes easy to get an optimal insurance plan that pays sufficient to manage several expenses, which are listed below:
- Consider all the debts, loans, outstanding funds, and other long-term costs that your family is associated with. These expenses need to be managed by the coverage so that the burden will not fall on your family.
- The insurance should also cover the burial cost. The burial cost is one of the major sudden expenses that your family will face just after you pass.
- The coverage is sufficient to provide a good amount of savings or income-type funds after your passing.
- Suppose a policy is capable of providing as much funding to the family so that, for some time, the regular expenses can be managed from these funds. Then the policy is the best policy for veterans.
Conclusion
For people who ask, Do retired veterans have life insurance automatically, the answer is no. The retired military mens do not automatically get an insurance policy. However, they have various options such as VGLI and VALife, which are specifically designed for veterans. The private insurance companies are always an option, which provides general policies which are available for all civilians. For the sake of family and long-term financial safety, having an insurance plan is the best way to manage afterlife expenses.
Frequently Asked Questions
What happens when a retired military member dies?
When the retired military member dies, all the assets, including the benefit programs, government assistance, insurance coverages, and other benefits, will be provided to the family.
Is it possible to get an insurance policy automatically after retirement from the Military?
No, a retired military serviceman will not automatically get an insurance policy. However, they have an option for converting the SGLI policy to VGLI to continue enjoying the coverage without any medical examination.
