The Department of Veterans Affairs (VA) announced an insurance premium holiday they say will save veterans a collective sum of nearly $150 million.
Beginning this November, eligible veterans enrolled in the Veterans’ Group Life Insurance program (VGLI) will not have to pay insurance premiums for three months.
VGLI is the VA’s life insurance program which veterans pay in to when they leave the military to maintain life insurance. The VA oversees the program and the Office of Servicemembers’ Group Life Insurance administers.
More than 457,000 veterans, including service members who were on active duty for more than 30 days, are enrolled in the program, which offers coverage in multiples of $10,000 up to a maximum of $500,000.
Their monthly premiums vary depending on age and insurance coverage but, on average, pay around $110 per month.
Hundreds in Savings
The holiday will save veterans an average of $330 through this three-month break, the VA said, adding that veterans nationwide will save nearly $150 million in insurance payments as a collective.
“VA is all about making life better and more affordable for Veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money,” VA Secretary Doug Collins said in a statement.
Those who have a current policy that has not lapsed or been canceled due to not paying premiums will be eligible for the pause.
Eligible VGLI policyholders will get the premium exemption automatically, while the VA will notify them in the coming weeks by letter or email if they are eligible.
Veterans who have paid in advance can either receive a credit on their policy for three months,or they can ask the VA for a refund.
How to Apply for VGLI?
Veterans who wish to apply for VGLI who are not currently in the program can do so.
Those eligible should receive an application within 45 to 60 days after leaving the service, and then have one year and 120 days from their date of separation to apply.
Those who apply within 240 days of leaving the service can submit their application with the first month’s premium payment and do not need to provide evidence of good health.
Those who submit an application after 240 days have to provide proof of good health, as well as the application and first month’s premium.
After one year and 120 days, veterans who have not applied are no longer eligible for VGLI.
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