Eric Henry, Insurance Agent, is a veteran-owned agency. Eric served in the U.S. Marine Corps, and he knows the transition out of uniform comes with a long checklist. Life insurance is easy to overlook in the middle of it all. Many service members have SGLI while serving, and that coverage doesn’t simply continue after separation. Here’s a plain-English comparison of life insurance for veterans, including VGLI, VALife, and private coverage.
Quick takeaway
- You can apply for VGLI within 1 year and 120 days of leaving the military. Apply within 240 days and VA says you won’t need to prove good health.
- VGLI coverage ranges from $10,000 to $500,000, based on the SGLI you had, and premiums are based on age.
- VALife offers up to $40,000 of guaranteed-acceptance whole life for veterans with any service-connected disability rating, with a 2-year waiting period for full coverage.
- Healthy veterans often compare VGLI with private term life. The right answer depends on your age, health, and goals.
Start with what you had: SGLI
Servicemembers’ Group Life Insurance (SGLI) is group term life coverage for service members. When you leave active duty, SGLI coverage ends after a limited period. That’s when you need a plan, because the clock on your conversion options starts running.
VGLI: keeping VA coverage after you separate
Veterans’ Group Life Insurance (VGLI) lets you keep VA-backed coverage after you leave the military, as long as you pay the premiums. According to the VA’s VGLI page:
- Deadline: apply within 1 year and 120 days of leaving the military, for most separations.
- No health review if you’re early: if you sign up within 240 days of leaving, you won’t need to prove you’re in good health. After that, you’ll need to submit evidence of good health.
- Coverage amount: between $10,000 and $500,000, up to the amount of SGLI you had when you left.
- Increases: if you have less than the maximum, you can increase coverage by $25,000 one year after getting VGLI and every five years after that, up to $500,000, until age 60.
- Pricing: premiums are based on your age and coverage amount. VA notes it doesn’t charge more based on gender or tobacco use.
- Duration: coverage can last your whole life as long as you keep paying.
- Conversion: you can convert VGLI to an individual permanent policy with a participating company, at standard rates and without proving good health. VA notes the conversion must be to a permanent policy, such as whole life, not term.
The trade-off with VGLI
VGLI premiums rise as you move into older age brackets. VA publishes the rate table on its site. For a younger veteran in good health, VGLI rates may be competitive at first. Over time, the increases can add up. That’s why many veterans compare VGLI with private term life, where the premium is often locked for 10, 20, or 30 years.
VALife: for veterans with a service-connected disability
VALife is a newer VA program. According to the VA’s VALife page:
- Eligibility: veterans age 80 or younger with a VA service-connected disability rating, even 0 percent. There’s no time limit to apply after getting your rating. Some veterans 81 and older may also qualify under specific rules.
- Coverage: up to $40,000 of whole life insurance, in $10,000 increments.
- Guaranteed acceptance: no need to prove good health if you meet eligibility rules.
- Waiting period: full coverage starts 2 years after you apply. If you die during the waiting period, VA pays your beneficiaries the premiums paid plus interest.
- Premiums: based on age at application and coverage amount, and VA says the rate never increases as long as you keep the policy.
- Cash value begins building two years after approval. VA notes VALife doesn’t offer loans.
VALife can be valuable for veterans whose health makes private coverage hard to get. For many families, $40,000 works best as a supplement to other coverage rather than the whole plan.
Private life insurance
Private carriers offer term and permanent life insurance to veterans just like anyone else. Your military service generally doesn’t hurt you, though carriers will ask about health conditions, including some service-connected ones.
Term life covers a set period, often 10 to 30 years, usually with level premiums. It’s often the most affordable way to buy a large amount of coverage while kids are young or a mortgage is outstanding.
Permanent life, like whole life or universal life, can last your whole life and may build cash value. It costs more for the same death benefit.
Our term vs. whole life guide explains how to decide between them.
How to compare your options
Here’s a simple way to think about it:
- Don’t let the 240-day window pass by accident. Even if you’re shopping private coverage, consider applying for VGLI within 240 days so you have a guaranteed option while you compare.
- Price private term coverage for the amount and length you need.
- Compare total costs over time, not just the first-year premium.
- Check whether you qualify for VALife if you have a service-connected rating.
- Coordinate everything. Many veterans combine a private term policy, VALife, and coverage through a civilian employer.
Once a private policy is approved and in force, you can decide whether to keep or drop VGLI.
Veterans in Middle Tennessee
Middle Tennessee is home to a lot of veterans and military families, with Fort Campbell just up the road near Clarksville and VA facilities in Nashville and Murfreesboro. Many veterans settle in Hendersonville, Old Hickory, Gallatin, and Murfreesboro after they separate. If you’re transitioning, add life insurance to your checklist right next to your DD214, VA disability claim, and health care enrollment.
Common mistakes to avoid
- Missing the 240-day no-health-questions window without a backup plan.
- Assuming civilian employer coverage is enough. Group life usually ends when the job does.
- Dropping VGLI before a private policy is approved.
- Not updating beneficiaries after marriage, divorce, or a new child.
- Ignoring VALife if you have a service-connected rating, even a 0 percent rating.
Frequently asked questions
How long do I have to convert SGLI to VGLI?
The VA says you generally need to apply within 1 year and 120 days of leaving the military. If you apply within 240 days, you won’t need to prove good health.
Is VGLI better than private life insurance?
It depends on your age, health, and how long you need coverage. VGLI offers guaranteed options early on, while private term often locks in level premiums for a set period. Comparing both is the best approach.
Who qualifies for VALife?
According to the VA, veterans age 80 or younger with any service-connected disability rating, including 0 percent, are eligible. Some veterans 81 and older may also qualify.
Can I have VGLI and private life insurance at the same time?
Yes. Many veterans keep VGLI while a private policy goes through underwriting, then decide which to keep.
Next step
You served your country. Let’s make sure your family is protected the way you want. Learn more about life insurance with Eric Henry, Insurance Agent, and ask Eric, a Marine Corps veteran, to compare VGLI, VALife, and private options side by side.
Coverage descriptions are general information only; your policy documents determine actual coverage. Availability varies by carrier.
