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Other benefits: Life insurance

Servicemembers’ Group Life Insurance coverage is available in $50,000 increments up to a maximum of $400,000.

Veterans’ Group Life Insurance extends renewable, five-year term insurance to members after they leave active duty or the reserves. It’s available in $10,000 increments up to $400,000, although maximum coverage is limited to the maximum amount of SGLI held on active duty or in the reserves.

Veterans who had SGLI in the military are eligible for VGLI coverage for their lifetimes without evidence of good health if they apply within 120 days of leaving service. They can apply for VGLI for up to another year, but they are then subject to medical screening.

Premiums can be deducted directly from retirement pay or VA disability compensation each month. They can also be paid quarterly, semiannually or annually, at discounted prices.

Policyholders will get a 2.5 percent discount for paying quarterly, a 3.75 percent discount for paying semiannually and a 5 percent discount for paying annually. No discounts apply for monthly payments.

As VGLI participants get older, their premiums increase. To hold down their costs, policyholders have two options: Convert VGLI to a permanent, whole-life insurance plan with fixed premiums for life, or keep the premium at a fixed level, but lower the amount of coverage they receive as they age.

Accelerated benefit. Terminally ill veterans with VGLI may be eligible to receive an accelerated benefit. Under this plan, policyholders can receive up to half of their coverage amount tax-free. To qualify, VGLI policyholders must produce a doctor’s certification that they have nine months or less to live.

Alliance Accounts. VGLI proceeds are distributed through the use of an interest-bearing account from which the beneficiary can write a check for $250 or more. Alliance Accounts allow beneficiaries to begin earning a competitive interest rate on their proceeds immediately upon payment, while providing instant access to their money.

Reservists are also eligible to convert their SGLI to VGLI when they separate from the service. The coverage largely parallels that offered to active-duty members.

Contact: (800) 419-1473; http://www .insurance.va.gov/sgliSite/handbook/ handbook.htm