What are more reputable alternatives to the VGLI (Veteran's Group Life Insurance)?

2015-06-12T16:21:54-04:00

Response by CAPT Kevin B. made Jun 12 at 2015 7:53 PM

2015-06-12T19:53:17-04:00

VGLI and SGLI basic coverages are a good deal. However the SGLI additional coverages you can get after retirement are not as cost effective. The financial houses that manage your 401 (need to get away from TSP when you're 59 1/2) have very good policies that become part of your income stream. For instance you can start washing some of your 401 into insurance that you'll plan to cash in. My sweet spot happens to be 68. That way you pay far less in tax, just on your outlay for the premium each year. Then when you cash in say $300 grand, there is no tax on it.

I think the overall question is how to make your money work best for you, insurance included.

Response by SSG Private RallyPoint Member made Jun 12 at 2015 10:48 PM

2015-06-12T22:48:01-04:00

VGLI rates are great as a young veteran but suck as you age. The only determine factor for VGLI is age. VGLI did raise premium rates overall by 5 cents per $1000 of coverage.

VGLI is a death benefit only, has no cash value so you can't borrow against your policy.
You’ve also got the option of converting your VGLI policy to an individual commercial permanent life policy with a participating insurance company at standard premium rates, without proof of good health. http://www.benefits.va.gov/INSURANCE/converting.asp

A number of insurers also allow you to lock in rates with term insurance for periods of up to 30 years, but this coverage won’t have a cash value. One size doesn't fit all, it's a matter of shopping around. I have USAA and AFBA, for me its great, for someone else it may not be, shop around till you find one that does.

Convert SGLI, VGLI or FSGLI to a Commercial Policy - Life Insurance

Learn how to convert a SGLI, VGLI or FSGLI to a Commercial Insurance Policy

Response by CPL Eric Allen made Jun 12 at 2015 11:06 PM

2015-06-12T23:06:46-04:00

USAA bu i choose to continue with VGLI

Response by SSG Alan Wardell made Oct 23 at 2015 10:43 AM

2015-10-23T10:43:15-04:00

you are able to convert your vgli and sgli into a whole life policy. at least at my company if you need more information contact me at new york life [login to see]

Response by SFC Clifford Brewer made Jul 28 at 2021 8:21 AM

2021-07-28T08:21:30-04:00

I have seen one unless you or under age 65..I don’t understand why the writers post bs about military insurance is for all vets and it’s only geared to age 65 and under..I think the military and whoever else got there sticky hand and pen put this insurance plan together should go back and rewrite or make some adjustment where 65 and older can benefit from the plan (if) it for all vets..
And about TSP..polices SUCKS in reference to age and the amount one can have in TSP account., TSP is not doing any extra favor except making IRS fat if one withdrawals from there account and I haven’t read the reason why but TSP has a healthy penalty if one missed withdrawal age.. and they advice one to join TSP and if one overlook there withdrawal period he or she pays