Money Saving Idea for Veterans - The Facts About Veterans Group Life Insurance

Money Saving Idea for Veterans - The Facts About Veterans Group Life Insurance

Why pay more when you can get the same thing for less?

Veterans' Group Life Insurance (VGLI) is the renewable group term life policy that is offered to members of the military upon leaving service. Like all things dealing with spending money, it pays to do your homework before making financial decisions.

While on active duty, military personnel are provided with SGLI (Servicemans' Group Life Insurance). Most service members take the maximum currently available; however, the options range in $50,000 increments up to a maximum of $400,000. SGLI premiums are currently $.065 per $1,000 of insurance, regardless of the member's age. The $26 monthly cost for $400,000 is automatically deducted from the military twice monthly paycheck.

When a military member separates or retires from service, he or she cannot keep the SGLI coverage. SGLI automatically terminates 120 days after leaving service. Several options are open to convert the coverage. The first is VGLI.

VGLI is a guaranteed issue renewable group term life insurance policy that can be purchased regardless of health status only if bought within 120 days after leaving active military service. If you have serious health issues, this may be your only chance to maintain life insurance coverage. You can be insured for up to $400,000, but not more than whatever your coverage was under SGLI. If you are married, the coverage provided for your spouse and children under SGLI cannot be converted to VGLI.

You can also convert your SGLI during the first 120 days to a selected list of commercial insurance companies; however, the conversion can only be made to whole life insurance. Term or universal life policies are not an option.

You can still opt for VGLI for one year after the initial 120 period ends, but your health history will now become an issue. If you are in good health, you need to comparison shop. As your age increases the cost of VGLI becomes quite expensive. VGLI premiums increase every 5 years beginning at age 30. Insurance companies will always charge higher premiums if they must accept all applicants, regardless of health. VGLI is no exception. They charge more to offset their increased risk. If you are healthy, you can always save money by allowing a life insurance company to verify that fact by having you take a para-medical exam.

One of the most inexpensive term life insurance sources for veterans is a military association. Most have been around over 50 years, are non-profit, and cater especially to active duty military and veterans. They offer numerous benefits including group term life insurance programs which can save over time as much as 50% of the cost of VGLI. This can equate to tens of thousands of dollars over a lifetime. Military associations can also provide coverage for your wife and children. Even if you have been out of service for years and are currently in your 40', 50's, or 60's it's not too late to access benefits with a military association.

You work hard for your money. Learn about all your options before you spend your dollars.

Military Separation - How to Reduce Your Health Insurance Premiums by Half

As a military member separating from your respective service you have many people you need to see; papers that need to be signed; interviews that need to be scheduled, and somehow you have to remember everything that needs to be done and not jeopardize your family's future.

Of the utmost importance is how you and your family will be able to effectively transition from military health insurance benefits to civilian health insurance plans. In this article I'll give you an overview about the top 5 things you need to know and how to plan accordingly so you don't make a bad decision.

1) Military members are eligible to participate in Continued Health Care Benefit Program (CHCBP) when they separate from the military, which allows you to continue to insure yourself prior to the start of any group coverage from starting at a new job or an individual/family plan if you will become self-employed.

2) CHCBP mirrors Tricare Standard benefits, but some benefits are excluded. Additional information can be found here http://www.humana-military.com/chcbp/main.htm

3) The plan will cost an individual $311 per month or a family $663 a month. The first 3 months are due upon application for benefits.

4) Military members must enroll within 60 days following the loss of their Military health insurance benefits and they can keep their new coverage for 18-36 months.

5) Depending upon the nature of any pre-existing conditions you have, CHCBP may provide you with insurance coverage and insure any conditions that you might be experiencing.

As you can clearly see it's a pretty simple process, but you might (should) be asking yourself what other options do I have? I'm glad you asked.

CHCBP is a great program that helps military members feel one less thing to worry about prior to obtaining group coverage. Having said that, if you're healthy and can obtain a short term or standard insurance plan, the CHCBP premiums are up to 500% more expensive than similar plans you could find on the market depending upon your age, family size and health status.

For example, a family of 4 living in Maryland, Virginia or Connecticut, might expect to pay $300-$500 a month for a plan that is similar to Tricare Standard. Do you think that you could find a way to spend the extra $4300 a year you'd be saving? If not, I'm sure the insurance company would love the extra money, but I don't make a living recommending that approach.

Stay tuned for future articles that illustrate other methods that will enable you to save money on your health care costs.

John McCollough is the owner of a national insurance agency ([http://www.midatlanticquotes.com]) that only attracts insurance agents of the highest caliber to consult in Health, Life and Medicare insurance products with individuals and/or families, students, retired/separated military members, small businesses under 20 employees and seniors, in the United States.