DEFINITION of 'Veterans Group Life Insurance - VGLI'
A policy that pays cash to the beneficiaries of a deceased member of the armed forces who had completed his or her service. Veterans Group Life Insurance (VGLI) is for service members who have completed their service and wish to continue to have life insurance coverage carried over from their Service members Group Life Insurance (SGLI) policy. They have one year and 120 days from the date they become veterans to exercise this option, and VGLI is a renewable term policy.
BREAKING DOWN 'Veterans Group Life Insurance - VGLI'
VGLI offers many benefits not available in the private life insurance market. Premium rates are age-based only; they do not consider gender, tobacco use, job or recreational activities, all of which can increase premiums in the private market.
The policy does not terminate at a certain age (such as 65); it remains in force for as long as the policyholder pays the premiums. Also, veterans who apply to convert their SGLI to VGLI within the first 120 days after completing their service are not subject to a health review. Approval of the policy is not contingent upon being in good physical or mental health.