Whats the story on the SGLI/VGLI early payment?
The President signed the new authority into law on Veterans Day (November 11) as part of the Veterans Programs Enhancement Act. Because the legislation specified that it would take effect 90 days after enactment, the implementation date will be February 8, 1999. Holders of Servicemen’s Group Life Insurance (SGLI) or Veterans Group Life Insurance (VGLI) who have been diagnosed as terminally ill will be able to receive up to half the face value of their SGLI/VGLI policy. To qualify for the accelerated benefit, the policyholder must be diagnosed as having a life expectancy of less than 12 months. Policyholders so diagnosed may elect to receive the payment as a lump sum. Increments of less than 50 percent will also be available. The member’s subsequent SGLI/VGLI premiums will be reduced to reflect the remaining face value of the policy. The election may only be done once, and it is irrevocable.
