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Prevent Delays Reduce Frustration Achieve the Best Possible Outcome 2013 VGLI and Other Life Insurance Options After Transition PEB Liaison Mr. Dean Trio.

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Presentation on theme: "Prevent Delays Reduce Frustration Achieve the Best Possible Outcome 2013 VGLI and Other Life Insurance Options After Transition PEB Liaison Mr. Dean Trio."— Presentation transcript:

1 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome 2013 VGLI and Other Life Insurance Options After Transition PEB Liaison Mr. Dean Trio

2 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Terminal Learning Objectives As an RCC help Marines and families… 2 N/A, there are deadlines that must be met Provide basic factual information about options Help the Marine understand the necessary paperwork Help Marines find the local office of companies participating in the commercial policy conversion program Keep the Marine on track so that life insurance can be procured without a proof of health requirement

3 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Enabling Learning Objectives Identify the options available to Marines who have a valid SGLI policy when they transition Identify the options available to provide life insurance for a spouse after transition Identify SGLI, TSGLI, FGLI, VGLI, and S-DVI Identify the window in which a Marine can obtain VGLI without proof of health Describe the process for converting SGLI to VGLI Identify the factors used to set premiums for VGLI 3

4 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome VGLI Benefit Profile 4 Frequency The vast majority of transitioning Marines are eligible to convert an SGLI policy to either VGLI or a commercial policy Most Marines opt for VGLI Drawbacks Each insurance option includes premiums Importance to Marines Most Marines are eligible for up to $400,000 is life insurance. In the event of their death this is a substantial financial cushion for their survivors. Challenges Life insurance decisions are made right at the point of transition when a Marines attention is divided. There are a variety of different programs out there, and educating Marines on the advantages and disadvantages of each is difficult

5 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome FGLI Conversion to Commercial Policy 5 Frequency The vast majority of married transitioning Marines are eligible to convert an FGLI policy to a commercial policy Most Marines opt not to Drawbacks Each insurance option includes premiums Importance to Marines The lifetime premiums and/or the lifetime benefit could exceed $100,000. Challenges Life insurance decisions are made right at the point of transition when a Marines attention is divided. There are a variety of different programs out there, and educating Marines on the advantages and disadvantages of each is difficult

6 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Life Insurance for Active Duty Marines SGLI Servicemembers Group Life Insurance Covers Marine Marines must opt- out Up to $400,000 in coverage No proof of health required Dangerousness of job not considered in setting premiums All Marines pay the same premium for the same coverage FGLI Family Group Life Insurance Covers spouse Marine must opt- out unless dual- military family; then Marine must opt-in Up to $100,000 in coverage No proof of health required All Marines pay the same premium for the same coverage TSGLI Traumatic Servicemembers Group Life Insurance Covers Marine Not life insurance – it pays in the event of a traumatic injury Details are not covered in this class 6

7 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Life Insurance for Active Duty Marines VGLI Veterans Group Life Insurance Separating or retiring (regular, TDRL, PDRL) Marines who have a current SGLI policy may convert to VGLI at transition Maximum policy for the first 5 years is the amount of SGLI coverage Marine may add $25,000 additional coverage each 5 years thereafter No proof of health required if converted within 240 days of separation / retirement Final deadline to convert (with proof of health) is 1 year and 120 days after separation / retirement Only age and amount of coverage are considered in setting premiums S-DVI Service Disabled Veterans Insurance Up to $10,000 in coverage available to any Marine who has a VA rated disability (even 0%) If the VA rating is 100% the premiums for the first $10,000 are waived, although Marine must still apply; Marine may also purchase an additional $25,000 Application form should be sent with IDES findings Commercial Conversion Marines may convert SGLI and / or FGLI to a commercial policy Participating providers agree to waive any proof of health requirements Premiums will vary – Marines must price shop Marines may not convert SGLI to both VGLI and a commercial policy Marines may convert both their SGLI and FGLI to commercial policies Conversions must occur within 120 days of Marines separation or retirement 7

8 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Conversion of Existing Policy 8 VGLI and commercial policies are conversions of existing life insurance Marines who decline SGLI while on active duty can not sign up for VGLI, nor take advantage of the opportunity to convert SGLI to a commercial policy Marines who decline FGLI while on active duty can not take advantage of the opportunity to convert FGLI to a commercial policy

9 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Life Insurance for Marines 9 Did Marine have SGLI? Start Marine wants… VGLI No Coverage Commercial Policy Marine may not convert; they may shop for private insurance but will likely need to provide proof of health Note: RCCs should encourage Marines who believe they declined SGLI to double-check LES and make sure that premiums were not being withdrawn Complete SGLV-8714 Complete SGLV-8714 Review brochure Review brochure Apply directly to participating providers Marine has 240 days to convert with no proof of health OR 1 year and 120 days to convert with proof of health No action required, document clearly in MCWIITS Click boxes to see the form or brochure; all forms are available on Yes No

10 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome VGLI Eligibility 10 If a Marine is not participating in SGLI then the Marine can not participate in VGLI You qualify for VGLI if you are one of the following: Servicemember being released from active duty who was covered by SGLI, OR Servicemember separating, retiring, or being released from assignment in the Ready Reserve or National Guard who was covered by SGLI, OR National Guard or Reserve member covered by part-time SGLI who incurred a disability or aggravated a pre-existing disability while performing inactive duty or traveling to/from duty, OR Member of the Individual Ready Reserve or Inactive National Guard.

11 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome VGLI Application Requirements If you separated from service... And You Apply... You Can Be Approved for VGLI… before November 1, 2012 within 120 days of separation from service without having to meet good health requirements before November 1, 2012 after 120 days from separation from service, but within 1 year and 120 days only if you answer the health questions on the application and you meet good health requirements on or after November 1, 2012 within 240 days of separation from service without having to meet good health requirements on or after November 1, 2012 after 240 days from separation from service, but within 1 year and 120 days only if you answer the health questions on the application and you meet good health requirements 11

12 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome One-Time Window to Convert 12 If the Marine does not convert SGLI during the eligibility window there is never another opportunity A single Marine may not have an immediate need for life insurance; however, the first 240 days after transition may be his or her only opportunity to obtain life insurance without proof of health As a consequence when he or she starts a family the Marine may not be able to obtain any life insurance at a reasonable rate

13 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Key Points for Marines Transitioning Timely Decisions Marines will have only 240 days to purchase life insurance without proof of health SGLI coverage is automatically extended for only 120 days Best Price Marines may be able to get a better price on a commercial conversion Consider the Spouse FGLI can also be converted, although only to a commercial policy 13

14 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Common Pitfalls Discussion: How can an RCC help avoid these pitfalls? Life Insurance 14 A Marines spouse is the main breadwinner, but does not have sufficient life insurance A Marine doesnt realize they need to convert their SGLI

15 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Basic Resources Advanced Resources Resources 15 VA Website Insurance Page Information Forms List of Participating Civilian Providers VA Website Insurance Page Information Forms List of Participating Civilian Providers Wounded Warrior Regiment PEB Liaison Dean Trio Wounded Warrior Regiment PEB Liaison Dean Trio WWR Internal Fact Sheet https://ehqmc.usmc.mil/sites/wwr/wrc/Internal% 20Slick%20Fact%20Sheets/SGLI- VGLI%20Fact%20Sheet.pdf WWR Internal Fact Sheet https://ehqmc.usmc.mil/sites/wwr/wrc/Internal% 20Slick%20Fact%20Sheets/SGLI- VGLI%20Fact%20Sheet.pdf WWR External Fact Sheet https://ehqmc.usmc.mil/sites/wwr/wrc/External%20F act%20Slick%20Sheets/SERVICEMEMBERS%20AND %20VETERANS%20GROUP%20LIFE%20INSURANC E%20Slick%20Sheet.pdf WWR External Fact Sheet https://ehqmc.usmc.mil/sites/wwr/wrc/External%20F act%20Slick%20Sheets/SERVICEMEMBERS%20AND %20VETERANS%20GROUP%20LIFE%20INSURANC E%20Slick%20Sheet.pdf Seps/TAPS class VGLI is covered Seps/TAPS class VGLI is covered

16 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Knowledge Check 16 PFC Thomas, a single Marine is transferred to the TDRL and chooses not to convert his SGLI to either VGLI or a commercial policy. Three years later he is married and wants VGLI coverage. Can he get it? Yes No

17 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Knowledge Check 17 Which of the following factors are used to determine the VGLI premiums for an individual Marine? The Marines age The amount of coverage the Marine elected The Marines DoD disability rating, if any The Marines VA Disability Compensation rating, if any A only A and B only A and C only C and D only B, C, and D only

18 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Knowledge Check 18 Cpl Hubbards husband, Jim, is covered by FGLI when Cpl Hubbard is medically separated. Jim is the primary breadwinner and is not in good health. The Hubbards want to make sure that he has continued, affordable life insurance. What are their options? Convert the FGLI policy to VGLI Convert the FGLI policy to a commercial policy Write the Secretary of the Navy to request a special extension of his FGLI Have Jim commit a felony so that he can obtain free health care in prison A only B only A and B only A and C only B and D only

19 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Knowledge Check 19 In 2012 Sgt Brown elected to reduce his SGLI coverage to $200,000. Now he is being transferred to the PDRL. What is the maximum amount of VGLI coverage he can elect for the first five years he is retired? None $200,000 $225,000 $400,000

20 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Knowledge Check 20 PFC Henderson is transferred to the PDRL on January 1 st, While she did have SGLI she did not convert it to either VGLI or a commercial policy in In January 2014 she discovers that she is pregnant and decides she does want life insurance. What options are available to her that dont require a proof of health? VGLI only Commercial policy only Either VGLI or a commercial policy Neither VGLI, nor a commercial policy; although she can still convert to VGLI with a proof of health

21 Prevent Delays Reduce Frustration Achieve the Best Possible Outcome Questions 21


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