Getting The Right Policy
The “Fixed Cash Value” Requirement
Not every life insurance policy qualifies for the SGLI Conversion Pool. Federal regulations are very specific about what a member company can and cannot offer you under the conversion privilege. If you choose the wrong plan, your application will be rejected by the OSGLI.
The Rule: Permanent Insurance Only
The conversion privilege applies only to permanent life insurance. You cannot convert SGLI into a term insurance policy.
The “Fixed Cash Value” Requirement
This is the most critical technical detail: To be approved for the Conversion Pool, the policy must have fixed cash values.
- Allowed: Traditional Whole Life or permanent plans where the cash value is guaranteed and fixed.
- Prohibited: Any policy with Variable Cash Values is currently not permitted. This means most “Variable Universal Life” or similar market-linked products will not qualify for the guaranteed acceptance pool.
Why “Fixed” Matters for Veterans
By choosing a policy with fixed cash values, you are choosing stability. Your premiums won’t spike as you age, and your cash value growth isn’t subject to the volatility of the stock market. At Blue Crab Insurance, we only recommend plans that are fully compliant with Section B of the OSGLI Instruction Manual to ensure your approval is guaranteed the first time.
Are you choosing a policy that meets strict federal standards?
We ensure your conversion application is approved the first time.
