If your Servicemembers’ Group Life Insurance (SGLI) or Veterans’ Group Life Insurance (VGLI) claim was denied, you may still be eligible for valuable spousal benefits through other government programs. Many surviving spouses are unaware that even if the life insurance payout is not approved, there are additional benefits available through the Department of Veterans Affairs that can provide long-term financial support. If you need a South Carolina life insurance lawyer call us.
Understanding how these programs work and what to do next is critical if you are facing a denied claim.
What Are Spouse’s Benefits and Who Qualifies
Spouse’s benefits refer to financial assistance available to the surviving spouse of a service member or veteran. These benefits are often available through the VA, and they may be awarded regardless of whether an SGLI or VGLI claim is successful. The most common of these is Dependency and Indemnity Compensation, which provides monthly payments to qualifying spouses when the veteran’s death is connected to military service.
Eligibility depends on several key factors, including:
The deceased’s rank and service record
Whether the death was service-connected
Marital status at the time of death
Whether the spouse has remarried
Other eligibility guidelines set by the VA
Example: One of our clients was denied a VGLI payout after her husband’s policy was canceled for nonpayment shortly before he passed. Although the insurer refused to pay the life insurance benefit, we helped her secure monthly Dependency and Indemnity Compensation payments by showing that the death was related to a previously documented combat injury. These benefits provided critical ongoing support that replaced some of what was lost through the denied claim.
Why SGLI or VGLI Claims Get Denied
Life insurance claims under these programs may be denied for a variety of reasons, including disputes over coverage status, missed conversions from SGLI to VGLI, incorrect beneficiary designations, or questions about whether the death was considered service-connected. Some denials are due to paperwork errors or lapses in coverage that occurred during military separation.
Example: A surviving spouse came to us after her SGLI claim was rejected on the grounds that her husband had separated from service before completing the necessary paperwork to maintain coverage. We assisted her in proving that the service member had been misinformed about his eligibility and helped her qualify for VA death benefits instead, which included a lump sum burial allowance and monthly income support.
Steps to Take If You Are a Surviving Spouse
Step One: Verify Your Eligibility
Even if the life insurance claim was denied, check to see if you qualify for VA spouse’s benefits. These include Dependency and Indemnity Compensation, Survivors Pension, and in some cases, educational assistance or health coverage through CHAMPVA. Eligibility depends on the nature of the service member’s death, the length and type of military service, and your current marital status.
Step Two: Understand How Benefits Are Calculated
Benefit amounts vary depending on the specific program and circumstances. For example, DIC benefits are usually a flat monthly amount, while other forms of assistance may be based on the veteran’s pay grade or whether the spouse has dependent children.
Example: We worked with the widow of a Marine Corps sergeant who had no VGLI policy in place when he died from a condition related to toxic exposure during service. Although there was no life insurance to claim, she received over one thousand five hundred dollars per month in VA compensation, as well as additional benefits for her two children.
Step Three: Seek Legal Advice If You Encounter a Denial
If you applied for SGLI or VGLI benefits and were denied, or if you are unsure whether you qualify for spousal benefits, it is essential to speak with a lawyer who understands military life insurance and VA compensation programs. An experienced attorney can review your situation, identify errors made by the insurer or VA, and pursue the benefits your family is entitled to receive.
Example: In one case, a surviving spouse was denied benefits because the VA incorrectly believed the veteran’s death was not service-connected. We obtained medical records and expert opinions showing a clear link between the veteran’s combat injuries and his death. The denial was overturned, and the widow received full monthly compensation, including retroactive payments going back over a year.