Can a Terminally Ill Policyholder Receive Part of the Proceeds While Still Living?
Yes. The SGLI and VGLI programs offer an accelerated benefits option to terminally ill policyholders. An policyholder is considered to be terminally ill if he or she has a written medical prognosis of 9 months or less to live. All terminally ill policyholders are eligible to take up to 50% of their SGLI or VGLI coverage in a lump sum. Many commercial life insurance companies offer accelerated benefits in their policies. Accelerated benefits, paid prior to death, are, of course, not available for payment to survivors. A policyholder must submit SGLV 8284, Servicemember/Veteran Accelerated Benefit Option Form.
