More than 457,000 veterans participating in the Veterans’ Group Life Insurance program will get a three-month break on their monthly premiums, just in time for the holidays.
Starting in November, veterans won’t have to pay insurance premiums for three months, ending in January 2027, according to a Department of Veterans Affairs announcement.
All told, the break is expected to save veterans nearly $150 million in insurance payments, officials said.
On average, veterans pay about $110 a month for VGLI coverage. VGLI insurance premiums vary and increase every five years as veterans age. Payments range from $30 a month for the maximum $500,000 in insurance to $2,200 a month for the maximum coverage for veterans 80 and older.
All veterans with VGLI policies are eligible for the premium holiday if they have a current policy that hasn’t lapsed or been cancelled due to non-payment of premiums.
Eligible veterans don’t have to take any action. They will be automatically exempted from the three months of premium payments and will be notified by letter or email within the coming weeks if they are eligible. Many veterans pay by allotment from military retired pay, or by withdrawals from their bank account.
Those veterans who paid in advance can either receive credit on their policies for three months or ask for refunds, officials said.
Officials said the program’s financial performance has been “incredibly strong,” making the premium holiday possible.
“VA is all about making life better and more affordable for veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money,” said VA Secretary Doug Collins in the announcement about the initiative.
Servicemembers’ Group Life Insurance coverage doesn’t automatically carry over after leaving the military. Everyone leaving the military with SGLI coverage qualifies to sign up for VGLI, with certain time limits.
However, VGLI is more expensive than SGLI, so experts advise shopping around for other life insurance options. One advantage of VGLI is that veterans who sign up within 240 days of leaving the military don’t need to prove they’re in good health.
Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book “A Battle Plan for Supporting Military Families.” She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga.
Read the full article here