Separated members, is the VGLI a good life insurance after the SGLI ?

CSM Private RallyPoint Member — Thu, 02 Jun 2016 16:48:04 -0400

Response by MSG Private RallyPoint Member made Jun 2 at 2016 10:20 PM

MSG Private RallyPoint Member — Thu, 02 Jun 2016 22:20:23 -0400

My insurance agent loves me since I bundled our cars, home and with a Life Insurance policy. Brought cost down and I have more than the 400K.

Response by SSG Private RallyPoint Member made Jun 3 at 2016 11:00 AM

SSG Private RallyPoint Member — Fri, 03 Jun 2016 11:00:57 -0400

This is situational. With USAA, I can start my life insurance without a physical NOW before I get out and everything is ok. However when I get out, I will need a physical after xxx days. This physical can adversely effect my rates. VGLI is a flat rate, regardless of your physical / mental state.

It is however very expensive the older you get.

I would say to someone who is 100% disabled with PTSD, that VGLI could be a cheaper option.
It all depends on your insurance carrier and how they adjust their rates. My experience with USAA has shown me that USAA is superior to VGLI in my situation.

Response by CSM David Heidke made Jun 3 at 2016 11:25 AM

CSM David Heidke — Fri, 03 Jun 2016 11:25:03 -0400

I have to figure this out too. SGLI stays effective for a few months after you retire, but I need to get a replacement. There was an Army times article a few months back with alternatives, I just need to get on the phone.

Response by SGT Tom Carlson made Jun 4 at 2016 1:50 AM

SGT Tom Carlson — Sat, 04 Jun 2016 01:50:56 -0400

As an insurance professional it would be in your best interest to talk to a couple of agents. From what I understand VGLI can get a bit expensive. I work for the Knights of Columbus. The basic rule of thumb I use is cover mortgage/utilities/groceries if the budget allows. If the budget is a bit higher I recommend about $1,000,000 in coverage for every $50,000 in income you have.

Response by COL Private RallyPoint Member made Apr 5 at 2017 8:53 AM

COL Private RallyPoint Member — Wed, 05 Apr 2017 08:53:13 -0400

If you are of average or better health, I recommend shopping around for comparable coverage with a term policy from a reputable insurance company. Conversely, if you have medical issues, or are uninsurable, VGLI may be your best option because o proof of medical insurability is needed if elected within 240 days of separation/retirement.