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Are you looking for a Houston TX veterans life insurance policy for you or a family member? Veterans have several options for life insurance. Either the government or private insurance companies can provide coverage for veterans. You have a few more options than the typical civilian.
Of course, not every veteran can apply for life insurance. Some of the benefits are time-sensitive. And like with others, it may be because of your situation. That’s why figuring out what you can apply for and when to apply beforehand is optimal.
Sometimes you’ll be able to convert your policy from the Department of Veterans Affairs to a veteran’s life insurance or a private policy with an affiliated insurance company. On the other hand, if the protection you need exceeds the limits of what the government can offer you, you still have the option to seek out options from a private company.
Houston TX Veterans Life Insurance Options
Most active-duty service members have coverage through the government. This is called Servicemembers’ Group Life Insurance (SGLI). It’s a cheap group term life insurance for active service members. So long as you’re part of the military, you automatically qualify for SGLI.
This option can extend for another two years if you’re totally disabled at separation from service. After that, there are other life insurance options for disabled veterans.
However, since most veterans aren’t completely disabled after retiring or leaving service, the government offers several other options. If you find that none of these options suit your and your family’s needs, there are also options with private insurance companies.
The most common option is to convert your SGLI policy to the Veterans’ Group Life Insurance (VGLI) policy. This policy is actually just an extension of the SGLI policy from when you are on active duty. However, there are some limitations.
You usually only receive between $10,000 to $40,000, depending on your previous SGLI coverage. However, it is possible to increase the amount by $25,000 every year, up to $400,000, until you reach the age of 60.
To qualify for VGLI, you need to have SGLI coverage before leaving service. After leaving, you have to apply within one year and 120 days. If you apply before 240 days are up after leaving, you don’t need to prove you’re in good health. If you don’t, you’re likely to go through a physical to prove you’re still healthy.
In addition to those factors, you’ll need to meet one other requirement. You can qualify if you have part-time SGLI as a National Guard or Reserve member but got an injury or disability while on duty that disqualifies you from standard premium rates.
You can also qualify if you’re within 1 year and 120 days of retiring from the Ready Reserves of National Guard, receiving an assignment to the Individual Ready Reserves, or put on the Temporary Disability Retirement List. The last possible requirement is having SGLI while on active duty for 31 days and is within 1 year and 120 days of being released.
With VGLI, you also have the option to convert the policy from group life coverage to an individual policy. You don’t even need proof of good health. You only need to contact a participating life insurance company.
Private Insurance Options
There are several Houston TX veterans life insurance options if you choose not to take the VGLI option or can’t. The types usually available are term life, whole life, and universal life insurance plans.
Term life insurance plans are the most similar to the SGLI policy you receive as an active duty military member. Typical personal term life plans are temporary, lasting anywhere from 10 to 30 years. Outside that period, the term, if you will, your family won’t receive the death benefits.
Most term life plans have level premiums and death benefit amounts. That means you’ll pay the same amount throughout the policy’s lifespan. This factor is one of the reasons term life plans are the most cost-effective since you’re buying a sufficient amount of protection for an affordable price. However, another reason why it’s cheap is that it doesn’t offer many other benefits besides the guaranteed one.
Whole life plans are a type of permanent life insurance. It’ll protect you for the rest of your lifetime. Usually, these also have level premium and death benefits, so you’ll be paying and receiving the same amount for the duration of the policy. Not to mention, since it’s permanent life insurance, it can also accumulate cash value.
You can use your policy’s cash value for a number of things. You can withdraw it as a loan ahead of time and use it as a supplement for your retirement. If you pass, your family can use the cash value to pay for any finances.
Universal life policies are similar to whole life plans. It’s another type of permanent life insurance but with flexible level premiums or death benefits. So long as your policy has enough cash value, you can use it to supplement your premium.
The Appropriate Veterans Life Insurance for You
Choosing the right life insurance plan for you depends on your circumstances. The government provides veterans a few more options alongside the usual private companies’ own choices. Of course, you’ll need to qualify for the policy the government provides, but even if you don’t, they won’t stop you from seeking out a private insurance company.
If you don’t qualify for the VGLI policy or it doesn’t fit what you need, you have the same choices the general public has. No plan is a one-size-fits-all policy, so you’ll still need to find one that best suits you. You have several options among term or permanent life insurance, and the entire process may seem daunting.
The best way to figure out if that’s a choice you want to make is to speak to an insurance agent. They can spread out all your options on the table and help you come to an appropriate decision. Contact any of the agents with Best Life Insurance Houston Agency. They can help with choosing a Houston TX veterans life insurance that best fits you.
Houston, TX Fun Facts:
- There are more than 150 museums in the city.
- With 7 million visits a year, the Houston Museum District has 19 museums, 11 of which are always free.
- There is a 27-and-a-half foot intestine on display at the Museum of Health and Medical Science.
- Houston has an Art Car Museum that showcases cars transformed into works of art, including a gigantic bunny, a bull, and a giant red high heel.
- For more fun facts, visit Houston’s official website.