The Department of Veterans Affairs (VA) has announced a major enhancement to the life insurance plan available to most U.S. active duty and reserve servicemembers.

The change makes life insurance coverage available to spouses and dependent children of servicemembers effective Nov. 1, 2001.

"This is a major new benefit for today's servicemembers," said Secretary of Veterans Affairs Anthony J. Principi. "It recognizes the changing financial needs of our military families and provides them with a new measure of security."

The change was provided under the Veterans' Survivor Benefits Improvement Act signed earlier this year. That law expanded the popular Servicemembers' Group Life Insurance (SGLI) program to generally allow spousal coverage up to $100,000 plus $10,000 per child.

Coverage was automatic at the highest levels when the law went into effect Nov. 1, unless the servicemember declines the insurance or requests a lower coverage level. The spouse's insurance level cannot exceed the servicemember's policy. 

The vast majority of servicemembers today take SGLI coverage to the highest limit allowed for active duty members, $250,000. Like SGLI coverage for the servicemember, the family coverage will be available in $10,000 increments. 

While military members pay premium costs of 80 cents a month per $10,000 of coverage for their life insurance, the new coverage for children is free, and the spousal premium for each $10,000 of coverage will range from 90 cents for spouses below age 35 to $5.50 per month for those over age 54.

Under the new family life insurance policies, if the servicemember drops his or her SGLI coverage or leaves the military, the spouse's policy can be converted to a private life insurance policy within 120 days. Such conversion options currently are offered by 86 commercial insurance companies.

Spouse policy conversion also is available in the event of the servicemember's death, or where the marriage ends by divorce. The coverage of dependent children is not convertible to a private policy.

More information, including premium rates is available on the VA's Insurance Program Web site.

What About Veterans Coverage?
Upon separation from the service, veterans are eligible to participate in the Veterans' Group Life Insurance (VGLI). Under VGLI, separating servicemembers who were covered full-time by SGLI are eligible to convert to VGLI 5-year renewable term insurance. VGLI Premiums are based upon the separating member's age. Follow this link to view VGLI premium rates. VGLI is convertible at any time to an individual commercial life insurance policy with any one of the participating commercial insurance companies. For more information, veterans can call the VA at Toll Free at 1-800-419-1473.

Contact Information:

Email: VAinsurance@vba.va.gov 
Phone Toll-free: 1-800-669-8477 ( Life Insurance) 
1-800-827-1000 ( Other Benefits)