Converting SGLI Coverage to a Commercial Policy

Upon separating from the military, a veteran has a few options to consider regarding future benefits. With regards to insurance, veterans can choose to either apply for Veterans Group Life Insurance (VGLI) or seek a commercial policy. While in service with the military, a member is insured under Servicemembers Group Life Insurance (SGLI). Converting SGLI to either VGLI or a commercial policy is a fast and easy process.For those choosing to enroll in a commercial policy, there a few simple steps that must be taken. First and foremost, it should be noted that veterans have 120 days to convert to a commercial policy. During this grace period, a military veteran is required to select an insurance policy offered by one of the organizations on the Participating Companies Listing. This listing is available for download on the Department of Veterans Affairs web site. After a company is chosen, a veteran must apply at a local sales office of the selected company. At this sales office, an agent will usually be available to assist with the whole conversion process. A veteran needs to provide the agent with the necessary conversion documentation, which must be either Form DD-214 or NGB-22 and a Leave & Earnings statement. One of the unique attractions for military members converting to a commercial policy is that members need not provide proof of good health. Given the extreme experiences that a service member encounters during the military, it is only understandable that health is a concern for almost every veteran. Consequently, commercial insurance providers accept this realization and do not make it disadvantageous for veterans with poor health to obtain life insurance.Clearly, the conversion of SGLI to a commercial policy is not a complicated process. As long as the commercial policy is a permanent policy, there is very little reason why a veteran would not be able to complete the conversion process. For the most part, commercial policy premiums offered from companies on the Participating Companies Listing have decreased over the past year. Without a doubt, the military has recognized the need for servicing its veterans as well as the convenience of flexibility in choosing an insurance policy.