Military Careers, Retirement - Navy Times

Life Insurance

VA life insurance. The Servicemembers Group Life Insurance (SGLI) Disability Extension allows service members who are totally disabled at the time of discharge to retain their SGLI coverage at no cost for up to one year. Members must apply for this benefit.

Veterans Group Life Insurance (VGLI) is post-separation insurance that allows service members to convert their SGLI coverage to renewable term insurance. Members can convert to VGLI without proof of good health within 120 days of separation, or for up to one year after the 120-day period with proof of good health.

VGLI coverage is limited to the maximum amount of SGLI the member had upon discharge or separation. The veteran must complete an application and choose the amount of coverage.

VGLI provides five-year renewable term life insurance and is issued in amounts of $10,000 to $400,000, subject to the maximum amount of SGLI coverage the service member had while in the Ready Reserve. All service members who separate on or after Sept. 1, 2005, with SGLI coverage greater than $250,000 can now apply for VGLI at the higher level.

The Emergency Supplemental Approp-riations Act for Defense, the Global War on Terror and Tsunami Relief Act of 2005 (Public Law 109-13) increased the death gratuity for survivors of service members killed in action and the SGLI coverage for service members deployed to designated combat zones.

This immediate cash payment of $100,000 is for survivors of those who have died in hostile action, in designated combat operations or combat zones, or while training for combat or performing hazardous duty. The supplemental also increased the maximum amount of SGLI coverage from $250,000 to $400,000 for all service members effective Sept. 1, 2005, and provides that the department will cover the cost of premiums of up to $150,000 of SGLI coverage for service members deployed in designated combat zones.