You are here: Home Insurance Life Insurance 101 Converting Group ... What If I Have Federal ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Converting Group Life Insurance

What If I Have Federal Employee's Group Life Insurance, Veteran's Group Life Insurance or Servicemen's Group Life Insurance?

Next » « Previous

7/8

Federal Employee's Group Life Insurance (FEGLI), Veteran's Group Life Insurance (VGLI) and Servicemen's Group Life Insurance (SGLI) are insured by a combination of insurance companies rather than just one life insurance company.

If you have FEGLI, VGLI or SGLI you will need to convert your life insurance through a life insurance agent for one of the insurance companies that participate in those particular programs.

  • Bear in mind that agents represent the insurance company -- not you.
  • Agents work on a commission basis. They generally receive less than a standard commission for issuing a conversion policy, and thus some may not exactly "dote" on you. If this is the case, don't hesitate to find another agent.
  • Agents may ask you medical questions. If one does, you can politely indicate that it is your understanding that such information is not required to convert. You do not have to provide medical information to convert group coverage to individual coverage as long as the amount you are converting is equal to or less than the amount of coverage you had under the group policy. There is no reason to provide medical information to an agent or insurance company when it is not necessary.
  • Agents may try to offer you a policy with various "bells and whistles". Generally, however, you best bet when converting is to indicate that you simply want the policy with the lowest premiums. It can't hurt to ask the agent if you can convert to term insurance for the first year since term is cheaper than permanent insurance.

Please share how this information is useful to you. 0 Comments

 

Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.