When you separate from the military, your SGLI life insurance doesn't automatically follow you into civilian life. Veterans' Group Life Insurance (VGLI) is the VA-sponsored conversion option — up to $500,000 in coverage, no medical exam if you apply within 240 days. But the window is firm: apply within 1 year and 120 days of separation or lose eligibility forever.
Servicemembers' Group Life Insurance (SGLI) is the life insurance coverage provided to active duty service members — up to $500,000 of coverage for a very low monthly premium (about $0.065 per $1,000 of coverage, or $32.50/month for full $500,000 coverage). SGLI is automatic, group-rate coverage that doesn't require a medical exam and doesn't factor in health status.
When you separate from active duty, your SGLI coverage continues for 120 days at no charge as a separation benefit. After those 120 days, SGLI terminates. At that point, you have options:
VGLI is the most commonly chosen option because it preserves the VA group rate structure and, critically, doesn't require a medical exam if you apply within 240 days of separation — making it accessible for veterans with health conditions that might make private insurance expensive or unavailable.
VGLI has two key deadlines every separating veteran should know:
The bottom line: apply within 240 days to guarantee no-exam coverage. Apply within 1 year 120 days or lose the option entirely.
The 240-day no-exam window is particularly important for veterans with service-connected disabilities. A veteran who received a 70% rating for PTSD and multiple physical conditions may struggle to obtain affordable private life insurance due to their medical history. VGLI's no-exam window essentially allows them to grandfather in up to $500,000 of life insurance based solely on their military service — regardless of the VA rating, treatment records, or medications they're on.
If you miss the 1 year + 120 day VGLI deadline, you cannot enroll in VGLI — ever. This is a permanent forfeiture of a significant benefit. Veterans who've been out of the military for years and never enrolled in VGLI cannot go back and retroactively enroll. This is one of the most commonly missed post-separation benefits.
VGLI coverage is capped at the amount of SGLI you had when you separated, up to a maximum of $500,000. You cannot enroll in VGLI for more than your SGLI amount at separation.
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Get Free Claim Help →If you had $500,000 of SGLI, you can elect anywhere from $10,000 to $500,000 of VGLI coverage in $10,000 increments. If you had less SGLI (perhaps you elected a lower amount during service), your VGLI cap is your SGLI amount at separation.
Once enrolled in VGLI, you can increase coverage in $25,000 increments — but only every 5 years, and only up to the $500,000 maximum. Any increase above your initial enrollment amount requires proof of insurability (health questions). Planning to enroll at your maximum SGLI amount from the start is generally better than starting low and trying to increase later.
VGLI premiums are based on age groups, not individual health status. This is a significant advantage for veterans with health conditions — a 35-year-old veteran with PTSD and diabetes pays the same VGLI rate as a healthy 35-year-old veteran. Premiums increase as you move into higher age brackets.
| Age Group | Monthly Premium per $10,000 Coverage | Monthly Premium for $500,000 |
|---|---|---|
| Under 29 | $0.60 | $30.00 |
| 30–34 | $0.65 | $32.50 |
| 35–39 | $0.86 | $43.00 |
| 40–44 | $1.30 | $65.00 |
| 45–49 | $2.00 | $100.00 |
| 50–54 | $3.02 | $151.00 |
| 55–59 | $4.93 | $246.50 |
| 60–64 | $7.18 | $359.00 |
| 65–69 | $11.28 | $564.00 |
| 70–74 | $18.78 | $939.00 |
| 75 and over | $31.52 | $1,576.00 |
VGLI premiums are competitive at younger ages but become significantly more expensive in the 60+ range compared to private term insurance that a young, healthy veteran might lock in. This rate structure is one reason veterans in their 20s and 30s in good health may prefer to compare VGLI against private term life insurance.
For many veterans, the no-exam VGLI conversion is not just convenient — it's the difference between having life insurance and having none at all.
Consider the typical post-separation situation: a veteran with service-connected PTSD at 70%, sleep apnea at 30%, and hypertension at 10% — with prescription medications, documented mental health treatment, and multiple VA diagnoses on record. When this veteran applies for private life insurance, underwriters see a complex medical profile that often results in rated policies (higher premiums) or outright denial for standard-rate coverage.
VGLI within the 240-day window ignores all of this. The veteran with the complex medical profile pays exactly the same rate as the veteran with perfect health. The group rate structure subsidizes veterans with health conditions by pooling them with healthier veterans — a significant benefit that reflects the VA's mission to serve all veterans.
The comparison depends heavily on the veteran's age, health, and how long they need coverage:
Many veterans use both: VGLI as a guaranteed-renewable base layer, and a private term policy for additional coverage during peak income-earning and family-obligation years.
In addition to VGLI, the VA now offers VALife — a whole life insurance program specifically for veterans with service-connected disabilities. Launched in 2023, VALife provides:
VALife replaced the older Service-Disabled Veterans' Life Insurance (S-DVI) program for new applicants. Veterans who already have S-DVI coverage retain it; new applicants use VALife.
VALife is not a replacement for VGLI — the coverage amounts are quite different ($40,000 vs. up to $500,000). But for service-connected veterans who want a whole life component with permanent cash value, VALife provides this at guaranteed rates based on disability status rather than health.
VGLI applications are handled by the Office of Servicemembers' Group Life Insurance (OSGLI), administered through Prudential Financial under contract with the VA.
If you're recently separated and haven't yet addressed your life insurance situation, this should be a priority alongside filing your VA disability claim. For veterans focused on their claim, get free help with your VA disability claim while simultaneously handling the VGLI enrollment. Both are time-sensitive tasks with hard deadlines.
For veterans thinking about the broader financial picture — including how VA disability compensation, life insurance, and survivor benefits interact — see our guide on surviving spouse VA benefits.
Life insurance is one piece of the post-service financial picture. Make sure your VA disability compensation is complete too — get a free claim assessment today.
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