Military Coverage Overview
While on active duty, Service Members' Group Life Insurance (SGLI) provides up to $500,000 in coverage at very low group rates. Upon separation, you have 240 days to convert SGLI to Veterans' Group Life Insurance (VGLI) without medical underwriting.
VGLI coverage starts competitive but becomes increasingly expensive with age, as premiums are based on 5-year age brackets and not locked in.
Private Coverage Comparison
For healthy veterans, individual term life insurance from private carriers often provides better value than VGLI, especially for younger veterans. A 30-year-old veteran in good health can typically find private coverage at 30-50% less than VGLI rates.
However, veterans with service-connected disabilities or health issues may find VGLI valuable because it requires no medical underwriting during the conversion window.
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Get Your Free QuoteMaking the Right Choice
If you're healthy and separating from service, get quotes for private coverage before defaulting to VGLI. Lock in a private term policy while you're young and healthy, and consider VGLI only as supplemental coverage.
Veterans with combat-related health conditions should take advantage of the VGLI conversion window regardless, as it may be the only guaranteed-issue option available.