Page 77 - Senior Link Magazine Fall 2023 - Online Magazine

VETERAN RESOURCES

LIFE INSURANCE OPTIONS
FOR RETIRED
militarY veterans

by Mellissa Luna

fter retiring from the military, industry is highly regulated and becoming unaffordable after the
it is important for veterans to provides a secure option for age of 60. Lastly, if the security
Aconsider their life insurance protecting one's family. Consulting of growing cash value is desired,
options in order to ensure their final with a reputable and licensed broker whole life policies from private
wishes are met and their families can simplify the process of shopping insurers offer this benefit, which is
are financially protected. Many for the best option. Brokers can not available with VA-sponsored
veterans mistakenly believe that offer a variety of carriers to choose policies. The longer a permanent
the National Cemetery takes care of from, while private agents may have policy is held, the more cash value
all their funeral expenses, but the limited options. Additionally, brokers it can accrue, providing flexibility
reality is that funeral obligations and specialize in assisting clients with for retirement planning. These types
costs mostly fall on the families. It is fixed or limited incomes. of policies also offer the option of
crucial to understand the available borrowing against the cash value,
options and make informed decisions In some cases, VGLI may not be which can be a significant asset in a
regarding life insurance. the best choice. For instance, if family’s financial structure.
more than 16 months have passed
During active-duty service, service since retirement, VGLI is no longer In conclusion, veterans have various
members are automatically enrolled available. If the coverage limit of life insurance options after retiring
in Servicemembers' Group Life VGLI is insufficient, additional from the military. While VGLI is a
Insurance (SGLI), which is paid for coverage from private insurers may viable choice, within a specific period
through premium deductions from be necessary. Healthy non-smokers after retirement, private life insurance
their base pay. However, when a may find better rates with insurance companies offer additional benefits
service member retires from active companies that separate smokers and and flexibility. It is crucial to assess
duty, SGLI benefits come to an end. non-smokers into different risk pools. individual needs and preferences
Although retirees can continue Those seeking term coverage for 10 when selecting a life insurance plan,
coverage through Veterans' Group or 20 years may find that level-term and consulting with a knowledgeable
Life Insurance (VGLI), the cost is policies with consistent rates are more broker can be instrumental in making
significantly higher, and there are cost-effective than yearly renewable an informed decision. Being proactive
more limitations to the program. policies like VGLI. and securing appropriate life
insurance coverage ensures peace of
To secure VGLI coverage, service Furthermore, if the non-military mind for veterans and their families
members have one year and 120 days spouse requires coverage, VGLI during their post-military lives.
(approximately 16 months) after may not provide it after retirement.
retirement to apply. It is advisable For individuals nearing retirement
to apply within 240 days of leaving but still in the service, waiting until
the military in order to ensure retirement to
guaranteed acceptance without the supplement SGLI
need for evidence of good health coverage with
or a medical exam. However, VGLI VGLI may not
coverage cannot exceed the amount be ideal. VA-
of coverage the service member had sponsored life
under SGLI upon retirement. insurance tends
to have lower
While VA-sponsored policies premiums, but
for veterans are an option worth those premiums
considering, it may also be beneficial increase as
to explore private life insurance individuals
companies. The life insurance age, potentially

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