June 10

SGLI After Retirement? Military Retiree Insurance VGLI vs SBP Explained

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When you retire from the military, one of the first decisions you'll need to make is what to do with your SGLI insurance. SBP and VGLI are two popular options, but which is right for you? In this video, I break down the differences between SBP and VGLI and help you decide which is best for your needs.

SBP is a government-sponsored program that provides retirement income for your spouse and dependent children in the event of your death. VGLI, on the other hand, is a private insurance policy that you can purchase with no medical exam. So which one should you choose?

If you're unsure about what to do with your SGLI insurance after retirement, I can help. I offer a free life insurance assessment to help you decide which program is best for you. To schedule your assessment, please click the link below and fill out the form. I'll be in touch soon to discuss your options.

Do retired veterans automatically have life insurance?

Many retirees don't realize that they're eligible for life insurance through the Veterans Group Life Insurance (VGLI) program. VGLI is a 5-year renewable term life insurance policy for veterans who have separated from the military. You can convert your VGLI policy to a permanent life insurance policy without having to undergo a medical exam.

Is veterans group life insurance a good deal?

VGLI is not a great option for veterans who want life insurance and are still medicaly able to qualify for a private policy. The premiums will be more affordable, making a private VGLI replacement a great value.

To learn more about your options for SGLI insurance after retirement, please click the link below to schedule a free life insurance assessment.

How many years do you have to pay for SBP?

SBP premiums are deducted automatically from your pension each month for 30 years. If you die before the 30 years are up, your spouse would continue to receive SBP benefits regardless.

You cannot cancel your SBP coverage, and you will not be refunded for any premiums you have paid should your spouse pass away before you. .

You're required to pay for SBP for as long as you remain married to your military spouse. If you divorce, you'll need to cancel your SBP coverage.

Is the SBP worth the cost?

The SBP is an insurance program that provides retirement income for your spouse and dependent children in the event of your death. The SBP is a conventional way to provide financial security for your loved ones, but it's not right for everyone.

We offer a free Military Retiree Pay & Benefits guide to learn more.

About the author 

Scott R. Tucker

Scott R. Tucker is an author, speaker and the founder of US VetWealth, a lifestyle and financial consulting brand that helps US Military Retirees achieve more autonomy and work/life balance. He likes to say, "I help the 1% who serve our country become the 1% who influence It." A West Point graduate, serial world traveler, military financial expert, and entrepreneur, Scott brings valuable experience and insight to those who have sacrificed so much in service to our country.