Veterans Universal Life Insurance is a Low Cost Policy for Our Brave Military Families

Veterans Universal Life InsuranceFor our brave and dedicated military servicemen (and women), the U.S. Department of Veterans' Affairs makes sure that there is life insurance coverage for all active and retired military men, regardless of whether or not they ever saw active duty in a war, which branch of the military they were in, or how long they served (those who received court martialing or dishonorable discharge are usually a different case, however). Those who serve(d) in the Coast Guard and the Reserves are also eligible for this military group life insurance.

This group life insurance is low-cost. The Servicemembers Group Life Insurance program (SGLI) is that which is for the active duty members of the U.S. military forces. When one of these retires, he can extend this government life insurance coverage by converting the SGLI coverage to VGLI (Veterans Group Life Insurance program) which is for the retired members of the U.S. military.

VGLI is renewable term life insurance. VGLI coverage can be purchased in $10,000 increments but not to exceed $400,000 in face amount or exceed any coverage limits that the service member had with his SGLI policy. Service members need to convert to a VGLI policy within 485 days after their discharge date, or lose their eligibility for it. If they convert right away (within 120 days after their discharge date) they are guaranteed the requested VGLI coverage regardless of current health status (there is no physical or medical questioning within this time frame).

VGLI policy premiums get calculated based on the age of the service member at the time of conversion. There is no need to give proof of income or any credit score information. The spouses and dependant children of service members are also eligible to buy VGLI polices.

However, a service member can convert his VGLI term insurance policy to a private insurance company permanent policy at any time. Over 45 private life insurance companies now offer a conversion policy.

Veterans Universal Life Insurance policies are fundamentally the same as the usual Universal Life Policies, but there are a couple of very important differences that are there solely for military personnel. VULI policies have lower premiums than the same face amount (assuming similar risk factors) would for non-veteran citizens. There are also less strict eligibility and issuance requirements. These qualities enable veterans who are just returning to, or starting out in, civilian life to afford quality permanent life insurance that they otherwise might not be able to afford. U.L. policies offer benefits to policy holders that term life insurance does not, such as the building of cash value. So while the long term advantages of VULI should be obvious, there are short term advantages, too. Many veterans are just finding or starting up in jobs and did not receive the greatest pay while in the military. VULI policies don't require the usual level of premiums for the face amount, and the income required to qualify for them is not as high as normal, either.

Veterans Universal Life Insurance policies are a great thing for military veterans. But they are also a shining statement about the goodness, in general, of life insurance providers. Life insurance salesman and the industry have been ripped apart by the media for decades. Life insurance is seen as an "unnecessary" expense that just takes away from your lifestyle and could make you "insurance poor". Life insurance salesmen are seen as people who disrupt dinner time and family time with rude calls or high pressure sales tactics. And it's true that some life insurance bad seed agents have definitely tarnished the industry image with their evil ways. But for the most part, life insurance salesmen and companies feel that they are truly helping people--and they truly are.

Why do they offer these lesser requirements and lower premiums for VULI policies? It's nothing more than their small way of saluting military veterans.

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