Veterans Group Life Insurance - VGLI

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Group Life Insurance

    Life insurance offered by an employer or large-scale entity (i.e. ...
  2. Veteran's Administration

    A U.S. cabinet department that provides patient care, veterans' ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. VA Loan

    A mortgage loan program established by the United States Department ...
  6. Reinsurer

    A company that provides financial protection to insurance companies. ...
Related Articles
  1. A Look At Single-Premium Life Insurance
    Home & Auto

    A Look At Single-Premium Life Insurance

  2. Top 10 Life Insurance Myths
    Insurance

    Top 10 Life Insurance Myths

  3. How Much Life Insurance Should You Carry?
    Insurance

    How Much Life Insurance Should You Carry?

  4. The Unique Advantages Of VA Mortgages ...
    Home & Auto

    The Unique Advantages Of VA Mortgages ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center