What Should You Do If Your Veterans Group Life Insurance (VGLI) Claim Is Denied?
If your VGLI life insurance claim has been denied, don’t give up—many rejections are based on errors, misinterpretations, or technicalities. Veterans and their families are often entitled to benefits, and with legal help, these wrongful denials can often be reversed.
For many veterans, enrolling in a Veterans Group Life Insurance (VGLI) policy is an act of love and foresight. It’s a way to provide financial security for their families after they pass away, ensuring funeral costs, medical bills, and everyday living expenses can still be met. But while veterans make this effort to care for their loved ones, the system doesn’t always deliver on its end. Beneficiaries who file VGLI claims are sometimes met not with a check—but with a denial letter. These denials often arrive after weeks or months of waiting, and after submitting all required documents. They feel like a betrayal of the veteran’s wishes and can leave families scrambling to survive financially. Our law firm helps people in exactly this position. Whether you're dealing with a denied VGLI, SGLI, or FEGLI claim, we’re here to help you get the benefits you were promised.
Who Qualifies for Veterans Group Life Insurance?
VGLI is a unique federal life insurance program for those who have served in the U.S. Armed Forces or specific state military components. Generally, eligibility includes:
Veterans of the Army, Navy, Air Force, or Marines who apply within one year and 120 days of leaving the service
Those who apply within 240 days of separation do not need to prove insurability or provide medical evidence
After day 241, applicants must submit proof of good health to qualify
Members of the National Guard or Reserves may qualify under more limited conditions, often requiring prior Servicemembers' Group Life Insurance (SGLI) coverage or coverage under the Temporary Disability Retirement List (TDRL). These technical eligibility rules are frequently misapplied, which is one reason we see VGLI claims wrongfully denied.
How Much Coverage Does VGLI Provide?
VGLI policies range from $10,000 to $400,000 in coverage, depending on the veteran’s chosen benefit level. Premiums increase with age and can become expensive over time. For example:
At age 29, a $400,000 policy costs $32 per month
By age 75, that same policy can cost as much as $1,840 monthly
Because of rising costs, some veterans reduce their coverage later in life, which can impact the benefit amount. Still, if the premiums were paid and the policy remained in force, your claim should not be denied.
Why Are VGLI Claims Denied?
There are several common reasons insurance companies give for denying a VGLI claim. Some of them are based on genuine policy issues, but many others are either incorrect or legally challengeable. Here are a few scenarios where our attorneys have helped families reverse a denial:
Policy Cancellation Before Death: The insurer may claim the policy was canceled or lapsed due to non-payment. We often uncover evidence showing the policy was still active or that required notices were never sent.
Alleged Misrepresentation: The insurer may argue that the veteran lied or omitted information on the application. We help prove that any omissions were unintentional, or that the insurer cannot prove the veteran knew about the condition in question.
Eligibility Disputes: Claims are sometimes denied based on technical rules about when the veteran enrolled. If enrollment was timely or a delay was justified, we gather service records and correspondence to support your case.
Divorced Beneficiaries: Ex-spouses or children named as beneficiaries may be denied coverage under the assumption the designation was void after divorce. We help produce divorce decrees, court orders, and other documents showing the policyholder intended to keep the beneficiary in place.
Can Divorce Affect a VGLI Life Insurance Claim?
Yes—but not always in the way you might expect. While divorce may seem to disqualify a former spouse as a beneficiary, many policies or court orders specifically require veterans to name or maintain their ex-spouse or children as beneficiaries as part of a divorce agreement. These designations are legally enforceable, even after the divorce is finalized. If a VGLI claim was denied due to your relationship status with the veteran, we can fight back by:
Providing divorce settlements or court mandates that support your beneficiary status
Arguing the veteran’s clear intent to maintain you or your child as the rightful recipient
Challenging any wrongful interpretation of VGLI regulations
What to Do If You’ve Received a VGLI Claim Denial
Time is critical. If your claim was denied, don’t assume the insurer’s decision is final. The appeals process exists for a reason—and with proper legal guidance, many claims are successfully overturned. Our firm has extensive experience with denied VGLI, SGLI, and FEGLI claims. We know the policies, the laws, and the tactics insurers use to delay or deny payouts. We'll review your case for free, identify the strongest arguments, and handle all communication with the insurer on your behalf.
Frequently Asked Questions (FAQ)
Q: How long does it take to receive a VGLI death benefit?
A: It typically takes 30–60 days if the claim is straightforward. If the insurer delays or disputes eligibility, the process can take significantly longer—unless you pursue an appeal.
Q: Can I appeal a denied VGLI claim?
A: Yes. You can appeal through the Department of Veterans Affairs or file a legal challenge with the help of an attorney. Many denials are successfully reversed on appeal.
Q: What happens if my VGLI policy was reduced before death?
A: The insurer is only required to pay the amount in effect at the time of death. However, if a reduction occurred in error or due to misinformation, we may be able to challenge the final payout amount.
Q: Can an ex-spouse receive VGLI benefits?
A: Yes, if the ex-spouse was still listed as a beneficiary at the time of death—or was named due to a court order or divorce settlement. We can help enforce this right.
Q: Do I need a lawyer to challenge a VGLI denial?
A: While not required, having an attorney significantly improves your chances of success. We handle appeals, gather supporting documents, and ensure that your case is properly presented.