When you exit the army what happens to your life insurance if you were paying extra money towards a higher payout?

SPC Chad Kolod — Thu, 18 Jun 2015 16:25:50 -0400

While in the army I paid extra each month towards a higher rate on my life insurance. Can I get any of that money back? Can I transfer that insurance? I have no idea. Any help would be appreciated.

Response by MSgt Private RallyPoint Member made Jun 18 at 2015 4:30 PM

MSgt Private RallyPoint Member — Thu, 18 Jun 2015 16:30:11 -0400

Up on retirement I have 120 Days to figure out if I want to continue with the Life Insurance or Not. I think there are two choices (I cannot remember whatthey are) that you can look into and the insurance carries over, but the rate increases.

Response by MSG Brad Sand made Jun 18 at 2015 4:32 PM

MSG Brad Sand — Thu, 18 Jun 2015 16:32:37 -0400

If you are speaking about SGLI, the same thing when exit a plane...its gone and you are hoping your chute opens.

Response by SGT Jeremiah B. made Jun 18 at 2015 4:35 PM

SGT Jeremiah B. — Thu, 18 Jun 2015 16:35:07 -0400

Gone. You'll need to look into private term life insurance.

Response by SSG Private RallyPoint Member made Jun 18 at 2015 5:13 PM

SSG Private RallyPoint Member — Thu, 18 Jun 2015 17:13:07 -0400

SPC Chad Kolod, To apply for VGLI, complete the attached application and return it with your first premium payment to the Office of Servicemembers’ Group Life Insurance (OSGLI) or visit http://www.benefits.va.gov/insurance. You have one year and 120 days from your date of separation to apply for VGLI.

Your separation date was November 1, 2012 or later:
You have 240 days from your separation date to apply for VGLI without answering health questions. After which, you must provide proof of good health."

The thing you have to remember with VGLI are the rates are based on age. Even with civilian insurance coverage age is still a factor. There are viable alternatives to VGLI and no unfortunately you don't get those premiums back you paid on SGLI before your separation date.

http://www.benefits.va.gov/INSURANCE/forms/SGLV_8714_ed2014-07.pdf

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Response by LCDR Rabbah Rona Matlow made Jun 19 at 2015 1:44 PM

LCDR Rabbah Rona Matlow — Fri, 19 Jun 2015 13:44:46 -0400

SGLI is only in existence while on Active Duty. It's term insurance, and like all term insurance, it has no cash value.

DO NOT go for VGLI unless you are so severely disabled that you cannot qualify for commercial insurance. VGLI is way too expensive if you are healthy...