SGLI & VGLI Claims – An Overview
There are many types of denied SGLI or VGLI claims. The most common reasons for denials are if the death was not within the specified period or if the cause of death was not covered, among others. When this happens, the surviving spouse or beneficiaries may still be eligible for benefits under the Spouses’ Benefits program.
What Are SGLI & VGLI Claims?
SGLI or VGLI are life insurance policies offered by the Veterans Administration (VA). SGLI stands for Servicemembers’ Group Life Insurance, while VGLI stands for Veterans’ Group Life Insurance. Both of these policy types are available to active service members and veterans, respectively.
They offer death benefits to the beneficiaries of the policyholder in the event of their death.
Common Reasons For Denied SGLI or VGLI Claims
There are several reasons why an SGLI or VGLI claim may be denied. Some of the most common reasons include:
- Death was not within the specified period: SGLI and VGLI policies have a set amount of time, known as the “death benefit period.” If the policyholder dies outside of this period, the claim will be denied.
- Cause of death was not covered: SGLI and VGLI policies only cover certain causes of death. If the policyholder’s death was not caused by one of these covered causes, the claim would be denied.
- The policy was not in effect at the time of death: In order to receive benefits, the policy must have been in effect at the time of the policyholder’s death. If the policy has lapsed or was canceled, the claim will be denied.
- The beneficiary was not properly designated: In order to receive benefits, the policyholder must have explicitly been designated a beneficiary. If there is no beneficiary designated, or if the beneficiary is not eligible, the claim will be denied.
What To Do If Your Claim Is Denied
If your SGLI or VGLI claim is denied, there are a few things you can do:
First, you should contact one of our SGLI or VGLI attorneys.
Second, you get a free consultation from one of our top life insurance lawyers.
Spouse’s Benefits & SGLI or VGLI Claims
As mentioned above, in case of SGLI or VGLI insurance claim denial, spouses may still be eligible for a certain sum, as the Spouses’ Benefits program suggests. The settlement amount will depend on the rank, service, designation, and other factors of the service member and veteran. The cause of death is also a major consideration when determining how much is paid out.
Of course, there are certain conditions that the spouses must conform to, as well as per the program’s guidelines.