When a Servicemembers’ Group Life Insurance or Veterans’ Group Life Insurance claim is denied, many surviving spouses assume that all financial support has been lost. That is often not the case.
Even when a life insurance payout is unavailable, surviving spouses may still qualify for separate federal benefits administered by the Department of Veterans Affairs. These programs are not life insurance and do not depend on the approval of an SGLI or VGLI claim. In many cases, they provide ongoing monthly income and long term support.
Understanding these options is critical for families who are dealing with the financial impact of a denied military life insurance claim.
What Are VA Survivor Benefits for Spouses
VA survivor benefits are government programs designed to support spouses of deceased service members and veterans. These benefits are based on military service and the circumstances surrounding the death, not on whether a life insurance policy paid out.
The most common survivor benefit is Dependency and Indemnity Compensation, often referred to as DIC. DIC provides a monthly payment to eligible surviving spouses when a veteran’s death is connected to military service.
Other possible benefits may include:
Survivors Pension for low income spouses
Burial and funeral allowances
Health coverage through CHAMPVA
Educational assistance in certain situations
These programs operate independently from SGLI and VGLI and may still be available even if a life insurance claim was denied.
Who May Qualify for VA Spouse Benefits
Eligibility for survivor benefits depends on several factors reviewed by the VA, including:
The veteran’s service history
Whether the death was service connected
Marital status at the time of death
Whether the surviving spouse has remarried
Specific VA eligibility rules
A denied life insurance claim does not automatically disqualify a spouse from receiving VA benefits.
Example: A surviving spouse was denied a VGLI payout after coverage ended due to a missed conversion deadline. Although the life insurance benefit was unavailable, she qualified for Dependency and Indemnity Compensation after medical records showed the veteran’s death was linked to a documented service injury. The monthly payments provided long term financial stability.
Common Reasons SGLI or VGLI Claims Are Denied
Military life insurance claims are sometimes denied due to issues unrelated to the veteran’s death. These may include:
Coverage ending after separation from service
Missed deadlines when converting SGLI to VGLI
Premium nonpayment
Beneficiary designation disputes
Administrative or paperwork errors
While these issues can prevent a life insurance payout, they do not automatically prevent access to VA survivor programs.
Example: A spouse sought help after an SGLI claim was denied because the service member separated before completing required paperwork. Although the insurance claim failed, VA survivor benefits were approved after evidence showed the death was connected to military service.
Steps for Surviving Spouses After a Denial
Step One: Evaluate VA Survivor Benefit Eligibility
If an SGLI or VGLI claim was denied, the next step is to evaluate whether VA survivor benefits may be available. This includes reviewing whether the death can be connected to military service and whether other eligibility requirements are met.
Step Two: Understand How VA Benefits Are Paid
Unlike life insurance, VA survivor benefits are often paid monthly rather than as a lump sum. Some benefits increase when dependent children are involved, and others may include additional healthcare or education support.
Example: The widow of a Marine Corps veteran received monthly compensation after her husband died from a service related condition. Although no life insurance policy was in force, the VA benefits provided ongoing income and additional assistance for her children.
Step Three: Get Legal Guidance When Needed
VA survivor benefit claims can be denied or delayed due to missing records, incorrect service classifications, or disputes over service connection. Legal guidance can be helpful when navigating these issues, especially after a life insurance denial has already occurred.
Example: A surviving spouse was initially denied VA benefits because the death was classified as non service connected. Medical records and expert opinions later established the link to prior combat injuries, resulting in approval and retroactive payments.
Why This Matters After a Life Insurance Denial
A denied SGLI or VGLI claim does not always mean the end of financial support. VA survivor benefits exist to protect families in situations where insurance coverage is unavailable or disputed.
For surviving spouses, understanding these alternatives can make a significant difference in long term financial security.