jgbyrd posted on August 28, 2009 14:49
Once you have completed actively drilling or retired from active duty, you may convert your SGLI into VGLI with 120 days after change in status. Transferring to the Retired Reserve (without pay) or “Gray Area” is the most probable time when SGLI is converted to VGLI.
Life insurance rates vary from company to company on policy features. Carefully evaluate your options. However, VGLI has the distinct advantage that if applied for within the 120 period, no proof of health is required. Therefore, if you have a preexisting condition that may disqualify you from commercial insurance, VGLI may be the perfect option.
Can A Terminally Ill Policyholder Receive Accelerated Benefits?
Effective February 9, 1999, the SGLI and VGLI programs began offering an accelerated benefits option to terminally ill insureds. An insured is considered to be terminally ill if he or she has a written medical prognosis of 9 months or less to live. All terminally ill insureds will be eligible to take up to 50% of their SGLI or VGLI coverage in a lump sum. Many commercial life insurance companies offer accelerated benefits in their policies. Accelerated benefits, paid prior to death, are, of course, not available for payment to survivors. An insured must submit "Servicemember/Veteran Accelerated Benefit Option Form", SGLV 8284 8/99.
Complete information on VGLI and rate schedules can be found on the Department of Veterans Affairs Website or by calling toll-free 1-800-419-1473.