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Checking for Veteran Life Insurance

ByWallstreet Observer

Quick answer

  • Life insurance for veterans can come from the VA or private insurers.
  • The VA offers Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI).
  • Private life insurance policies are also common and are not managed by the VA.
  • To check for VA life insurance, contact the Department of Veterans Affairs directly.
  • For private policies, you’ll need to search through the deceased’s personal records and financial documents.
  • If you’re unsure about any policy, consult with an estate attorney or a financial advisor.

What to check first (before you buy or change coverage)

When considering life insurance for yourself or navigating a loved one’s estate, understanding your options and existing coverage is crucial. Here’s what to examine before making any decisions:

Coverage needs

The first step is to assess how much coverage is actually necessary. This involves looking at your current financial obligations and future needs. For example, consider outstanding debts like mortgages or car loans, potential future expenses for dependents (like college tuition), and final expenses. A common guideline is to aim for 5-10 times your annual income, but this can vary significantly based on individual circumstances.

Deductibles and premiums

For any insurance policy, understanding the cost is paramount. Premiums are the regular payments you make to keep the policy active. Deductibles, more common in health or auto insurance, refer to the amount you pay out-of-pocket before insurance kicks in. While life insurance typically doesn’t have a deductible in the same way, understanding the premium structure and payment schedule is essential. Ensure the premiums are affordable long-term to avoid policy lapse.

Exclusions and limits (general)

Every insurance policy has specific terms, conditions, exclusions, and limits. Exclusions are situations or events that the policy will not cover. For life insurance, common exclusions might include death during the commission of a felony or in certain high-risk activities not disclosed at the time of application. Limits refer to the maximum amount the policy will pay out. It’s vital to read the policy document carefully to understand what is and isn’t covered to avoid surprises.

Claim process

Knowing how to file a claim is essential, especially when dealing with the loss of a loved one. This typically involves notifying the insurance company of the death, providing a death certificate, and filling out a claim form. Understanding the required documentation and the typical timeline for processing a claim can help ease the burden during a difficult time. For VA-related benefits, the process may involve specific forms and contact points within the VA system.

Bundling and discounts (general)

Many insurance providers offer discounts for bundling multiple types of insurance policies, such as homeowners, auto, and life insurance, with the same company. This can lead to significant savings. Additionally, insurers may offer discounts for non-smokers, those with healthy lifestyles, or for paying premiums annually instead of monthly. Exploring these options can help reduce the overall cost of your insurance coverage.

Step-by-step (simple workflow)

Navigating the process of determining if a veteran has life insurance requires a systematic approach. Here’s a straightforward workflow:

1. Gather Initial Information:

  • What to do: Collect any documents or information you have about the veteran’s finances and personal life. This includes bank statements, mail, and any known insurance policy numbers or company names.
  • What “good” looks like: You have a list of potential insurance providers or policy types the veteran might have had.
  • Common mistake: Assuming you know all the policies without checking.
  • How to avoid it: Be thorough in your initial search, looking through filing cabinets, digital files, and even asking close family members.

2. Check VA-Specific Insurance:

  • What to do: Contact the Department of Veterans Affairs (VA) to inquire about Servicemembers’ Group Life Insurance (SGLI) or Veterans’ Group Life Insurance (VGLI).
  • What “good” looks like: You have confirmation from the VA whether any SGLI or VGLI policies were active and their details.
  • Common mistake: Overlooking VA-specific benefits, assuming all insurance is private.
  • How to avoid it: Always start with the VA if the individual was a veteran, as these policies are common.

3. Review Personal Records:

  • What to do: Carefully go through the veteran’s mail, emails, computer files, and any safe deposit boxes for policy documents, premium notices, or correspondence from insurance companies.
  • What “good” looks like: You find physical or digital policy documents or statements from insurance providers.
  • Common mistake: Not looking in less obvious places like old address books or financial planning software.
  • How to avoid it: Dedicate sufficient time to a comprehensive search, involving multiple people if possible.

4. Contact Financial Institutions:

  • What to do: Reach out to banks, credit unions, and investment firms the veteran used. Sometimes, policies are held in conjunction with other financial products or were purchased through these institutions.
  • What “good” looks like: A bank or financial advisor confirms the existence of a life insurance policy linked to the veteran’s accounts.
  • Common mistake: Only checking the primary bank, not other institutions used for savings or investments.
  • How to avoid it: List all financial institutions the veteran had relationships with and contact each one.

5. Consult Employer Records (if applicable):

  • What to do: If the veteran was employed, check with their former employers about any group life insurance policies offered as part of their benefits package.
  • What “good” looks like: You receive confirmation of a group policy from a past employer.
  • Common mistake: Forgetting about employer-provided life insurance, which often continues for a period after employment ends or can be converted.
  • How to avoid it: Obtain a list of all past employers and systematically inquire about benefits.

6. Check with Insurance Agents or Brokers:

  • What to do: If the veteran worked with a specific insurance agent or broker, try to contact them. They would have records of any policies sold.
  • What “good” looks like: An agent or broker provides details of policies they managed for the veteran.
  • Common mistake: Not remembering or having contact information for a specific agent.
  • How to avoid it: Look for business cards, email signatures, or correspondence from insurance professionals in the veteran’s records.

7. Utilize Free Online Search Services:

  • What to do: Consider using services that help locate lost life insurance policies. Some are free and supported by the insurance industry.
  • What “good” looks like: One of these services helps identify a previously unknown policy.
  • Common mistake: Falling for scams or paying for services that are readily available for free.
  • How to avoid it: Stick to reputable, industry-backed resources for policy searches.

8. Review Legal and Estate Documents:

  • What to do: Examine the veteran’s will, trust documents, or any legal papers related to estate planning. Life insurance policies are often mentioned or designated as beneficiaries.
  • What “good” looks like: The will or trust explicitly names a life insurance policy or its beneficiaries.
  • Common mistake: Overlooking legal documents as a source of insurance information.
  • How to avoid it: Treat all legal and estate planning documents as potential sources of financial information.

9. Contact Beneficiaries:

  • What to do: If you know who the designated beneficiaries were, reach out to them. They may have been notified of the policy or received payouts.
  • What “good” looks like: A beneficiary confirms knowledge of or receipt from a life insurance policy.
  • Common mistake: Not contacting all known beneficiaries, especially if relationships were distant.
  • How to avoid it: Make a comprehensive list of all designated beneficiaries and contact them systematically.

10. If Still Unsure, Seek Professional Help:

  • What to do: If you’ve exhausted other avenues, consult an estate attorney or a financial advisor who specializes in probate or estate settlement.
  • What “good” looks like: A professional helps you identify any remaining possibilities or confirms that no policies exist.
  • Common mistake: Giving up too soon or making assumptions without professional guidance.
  • How to avoid it: Recognize when you need expert assistance to navigate complex financial matters.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes | Fix

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