The Survivor Benefits Program - United States Marine Corps

Report
2013
VGLI and Other
Life Insurance Options After
Transition
PEB Liaison
Mr. Dean Trio
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Terminal Learning Objectives
2
As an RCC help Marines and
families…
Prevent
Delays
Reduce
Frustration
Achieve the
Best
Possible
Outcome

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

Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Enabling Learning Objectives
3
 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
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
Marine’s attention is divided.
There are a variety of different programs out there, and educating
Marines on the advantages and disadvantages of each is difficult
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
Marine’s attention is divided.
There are a variety of different programs out there, and educating
Marines on the advantages and disadvantages of each is difficult
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Life Insurance for Active Duty Marines
6
SGLI
FGLI
TSGLI
• Servicemember’s
Group Life Insurance
• Covers Marine
• Marines must “optout”
• 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
• Family Group Life
Insurance
• Covers spouse
• Marine must “optout” unless dualmilitary 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
• Traumatic
Servicemember’s
Group Life Insurance
• Covers Marine
• Not life insurance –
it pays in the event of
a traumatic injury
• Details are not
covered in this class
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Life Insurance for Active Duty Marines
7
VGLI
S-DVI
Commercial Conversion
• Veteran’s 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
• Service Disabled Veteran’s
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
• 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 Marine’s separation
or retirement
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
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Life Insurance for Marines
9
Start
Did
Marine
have
SGLI?
Yes
Marine
wants…
VGLI
Complete
SGLV-8714
No
Marine has 240 days
to convert with no
proof of health OR 1
year and 120 days to
convert with proof of
health
Click boxes to see the form or brochure; all forms are available on
http://www.benefits.va.gov/INSURANCE/resources-forms.asp
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
Commercial
Policy
No Coverage
Review
brochure
No action
required,
document
clearly in
MCWIITS
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
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
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.
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
VGLI Application Requirements
11
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
only if you answer the health
after 120 days from separation
questions on the application
from service, but within 1 year
and you meet good health
and 120 days
requirements
on or after November 1, 2012
within 240 days of separation without having to meet good
from service
health requirements
only if you answer the health
after 240 days from separation
questions on the application
on or after November 1, 2012 from service, but within 1 year
and you meet good health
and 120 days
requirements
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
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Key Points for Marines Transitioning
13
Timely
Decisions
Best
Price
Consider
the
Spouse
• Marines will have only 240 days to purchase life insurance
without proof of health
• SGLI coverage is automatically extended for only 120 days
• Marines may be able to get a better price on a commercial
conversion
• FGLI can also be converted, although only to a commercial
policy
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Common Pitfalls
Life Insurance
Discussion: How can an RCC help avoid these pitfalls?
• A Marine’s spouse is the main breadwinner, but does not have
sufficient life insurance
• A Marine doesn’t realize they need to convert their SGLI
14
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Resources
15
Basic Resources
Seps/TAPS class
VGLI is covered
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
Advanced Resources
VA Website Insurance Page
Information ♦ Forms
List of Participating Civilian Providers
http://www.benefits.va.gov/INSURANCE
Wounded Warrior Regiment
PEB Liaison
Dean Trio
703-432-1856
WWR Internal Fact Sheet
https://ehqmc.usmc.mil/sites/wwr/wrc/Internal%
20Slick%20Fact%20Sheets/SGLIVGLI%20Fact%20Sheet.pdf
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
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 Marine’s age
The amount of coverage the Marine elected
The Marine’s DoD disability rating, if any
The Marine’s 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
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Knowledge Check
18
Cpl Hubbard’s 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
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
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Knowledge Check
20
PFC Henderson is transferred to the PDRL on January 1st, 2013. While she did have SGLI
she did not convert it to either VGLI or a commercial policy in 2013. In January 2014 she
discovers that she is pregnant and decides she does want life insurance. What options are
available to her that don’t 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
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome
Questions
21
Prevent Delays ♦ Reduce Frustration ♦ Achieve the Best Possible Outcome

similar documents