Servicemembers' Group Life Insurance (SGLI) covers most active duty members automatically with up to $500,000 in coverage at a cost of $0.06 per thousand — one of the most affordable life insurance rates available. But SGLI terminates 120 days after separation. Veterans Group Life Insurance (VGLI) is the continuation option — and if you convert within 240 days of separation, you are guaranteed coverage with no medical underwriting regardless of your health.

SGLI Coverage During Service

Per VA.gov, active duty members are automatically enrolled in SGLI coverage at the maximum amount ($500,000) unless they request a reduced amount or waive coverage. The premium is deducted from base pay. SGLI also covers full-time National Guard and Reserve members under certain conditions.

Dependents can be covered under Family SGLI (FSGLI): up to $100,000 for a servicemember's spouse (at a premium based on spouse's age) and $10,000 for each dependent child at no cost.

SGLI After Separation: The 120-Day Extension

SGLI coverage continues at no cost for 120 days after separation. This is a free extension — you do not need to apply or pay premiums during this period.

Converting to VGLI

Veterans may convert to VGLI within 1 year and 120 days of separation. The key is timing:

If you apply within 240 days of separation: VGLI is issued with no medical exam, no health questions, no underwriting. This guarantee does not apply after 240 days.

If you apply between 241 days and 1 year and 120 days of separation: VGLI is still available, but you must answer health questions and provide evidence of insurability. Pre-existing conditions may affect approval.

VGLI coverage amounts match your SGLI coverage level at separation. You can increase coverage by $25,000 every five years on your birthday (up to the $500,000 maximum) without evidence of insurability, up to age 60.

VGLI Costs vs. Private Life Insurance

VGLI premiums are based on age and coverage amount. Unlike SGLI's flat rate, VGLI premiums increase in five-year age bands. At younger ages, VGLI is generally more expensive than comparably-sized term life insurance from private insurers. At older ages or for veterans with health conditions, VGLI's guaranteed renewability (it cannot be cancelled as long as premiums are paid) becomes more valuable.

Per VA.gov, current VGLI monthly premiums are available at benefits.va.gov/INSURANCE/vgli_rates_new.asp. Compare VGLI rates against private term life insurance quotes before making a final decision. The guaranteed conversion window (240 days, no medical questions) is the key benefit — obtain private life insurance quotes during this period while you have coverage options.

KEY TAKEAWAYS:

  • SGLI coverage continues free for 120 days after separation; convert to VGLI within 240 days for guaranteed coverage with no medical exam
  • After 240 days from separation, VGLI conversion requires health questions and evidence of insurability
  • VGLI coverage cannot be cancelled as long as premiums are paid — valuable for veterans with health conditions
  • VGLI allows $25,000 coverage increases every 5 years on your birthday (up to $500,000) without a medical exam, up to age 60
  • Compare VGLI rates against private term life insurance quotes — at younger ages, private term is often less expensive