Handbook - Indiana County, Pennsylvania

CHAPTER 12. VETERANS' GROUP LIFE INSURANCE12.01. General Informationa. Veterans' Group Life Insurance (VGLI) is a program of post-separation insurance whichprovides for the conversion of SGLI to renewable term coverage. VGLI provides up to amaximum of $400,000 of insurance coverage.b. Persons insured in the VGLI program, like SGLI, are insured under the provisions of a grouplife insurance policy purchased from a commercial life insurance company by VA. The program isadministered by the OSGLI (see paragraph 1.01b for address) and is supervised by VA.c. The group coverage does not contain any restriction on or require any additional premium formilitary service. It provides for life insurance but not disability or other supplementary benefits.VGLI has no cash, loan, paid-up or extended insurance values and does not pay dividends.d. At the end of each term period, the insured has the right to renew coverage for another termperiod. A member may convert such insurance to an individual policy with any one of theparticipating companies at any time.e. VGLI is issued in $10,000 increments up to a maximum of $400,000, but not for more thanthe amount of SGLI the member had in force at the time of separation. If an individual declinesVGLI or elects for an amount less than the amount of SGLI held while on duty, he or she maylater apply for VGLI or for an increase in coverage up to the amount of SGLI held, withoutevidence of good health, if application is made to the OSGLI within 120 days of release fromactive duty. Application for insurance or an increase in the amount of coverage may also bemade for up to one year from the end of the 120-day SGLI extension, however, evidence ofgood health may be required.f. Individuals who separate from active duty, re-enlist, and effect other changes in their dutystatus, will become eligible for both SGLI and VGLI coverage and in some cases will becomeinsured under both programs. An individual can be insured under both programs at the sametime, provided the coverage does not exceed $400,000, the maximum allowed under the law.Listed below is an explanation of when double coverage may occur and what the member mustdo to avoid it.(1) When Double Coverage OccursIf a member currently insured under VGLI reenters on active duty or active dutyfor training, he or she becomes automatically covered under SGLI.To avoid double coverage the member can:50