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WASHINGTON – Some Veterans covered under the Veterans Group Life Insurance  program (VGLI) now have the opportunity to increase their coverage to the
current maximum coverage under the Servicemembers’ Group Life Insurance (SGLI)  program.

“Currently, 70 percent of the Veterans covered under VGLI are under age 60,  have less than $400,000 of coverage, and will greatly benefit from this law  change,” said Allison A. Hickey, Department of Veterans Affairs under secretary  for benefits.

Under the Veterans’ Benefits Act of 2010, enacted on Oct. 13, 2010, Veterans  can increase their coverage by $25,000 at each five-year anniversary date of  their policy to the current legislated maximum SGLI coverage, presently,  $400,000.

To date, approximately 21 percent of eligible Veterans have taken advantage  of this opportunity, resulting in nearly $113 million of new coverage being  issued.

The VGLI program allows newly discharged Veterans to convert their SGLI  coverage they had while in the service to a civilian program. Before enactment  of this law, Veterans could not have more VGLI than the amount of SGLI they had  at the time of separation from service.

For example, those who got out of the service prior to Sept. 1, 2005, when  the maximum SGLI coverage was $250,000, were limited to $250,000 in VGLI
coverage.

Now on their first five-year anniversary, these Veterans can elect to  increase their coverage to $275,000. On their next five-year anniversary, they  can increase the coverage to $300,000, and so forth.

The additional coverage can be issued regardless of the Veteran’s health. To  be eligible to purchase this additional coverage, the Veteran must:

· Have active VGLI coverage,

· Have less than the current legislated maximum coverage of $400,000,

· Request the additional coverage during the 120-day period prior to each  five-year anniversary date, and

· Be less than 60 years of age on the five-year anniversary date of his or
her coverage.

Eligible Veterans are notified of this opportunity a week before the start  of the 120-day period prior to their anniversary date, and twice more before
the actual anniversary date.

For more information about VA’s Insurance Program or other VA benefits, go to  www.va.gov or  call 1-800-827-1000. Veterans are also encouraged to visit VA’s web portal eBenefits – Insurance.

 

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