Life Insurance for Veterans and Military Families
Service members get some of the best group life insurance available while they serve. The trouble starts at separation, when that coverage ends and veterans have to decide quickly what comes next. Here's how the government programs work, where they fall short and when private coverage is the better deal.
The government programs
- SGLI (Servicemembers' Group Life Insurance)
- Low-cost term coverage for active duty, Reserve and National Guard members, up to $500,000. Ends 120 days after separation, unless you're totally disabled, in which case it can be extended.
- FSGLI (Family SGLI)
- Coverage for spouses (up to $100,000) and dependent children ($10,000, at no cost) of SGLI members. Ends when the member's SGLI ends.
- VGLI (Veterans' Group Life Insurance)
- Lets veterans convert SGLI to renewable term coverage after separation, up to the amount of SGLI they had. Apply within 240 days of separation to avoid health questions; you can still apply up to 1 year and 120 days with proof of good health.
- VALife (Veterans Affairs Life Insurance)
- Whole life coverage up to $40,000 for veterans with any VA service-connected disability rating, available without health questions to eligible veterans. There's a two-year waiting period before the full benefit applies.
Where VGLI falls short
VGLI's biggest strength is that it requires no health questions if you apply in time. Its biggest weakness is price as you age. Premiums are based on age brackets and go up every five years.
| Age | Approximate VGLI monthly cost for $400,000 |
|---|---|
| Under 30 | about $20–$25 |
| 40–44 | about $60–$70 |
| 50–54 | about $150–$160 |
| 60–64 | about $400+ |
| 70–74 | about $1,000+ |
Approximate. Check current VA rates; they change periodically.
VGLI vs private coverage
| VGLI | Private term life | |
|---|---|---|
| Health questions | None if applied within 240 days | Yes |
| Premium | Increases every 5 years | Level for 10–30 years |
| Long-term cost for healthy veterans | Usually higher | Usually lower |
| Best for | Veterans with service-connected conditions or health issues | Healthy veterans who want a locked-in rate |
A smart sequence at separation
- Before you separate, get a private quote. Military service doesn't stop you from buying private term while still on active duty, though some carriers ask about deployments.
- If you qualify for good private rates, lock in a level-premium term policy that covers your family's needs.
- Apply for VGLI anyway within 240 days if you have any health concerns, as a backup with no health questions.
- If you have a VA disability rating, look at VALife for permanent coverage without health questions.
- Revisit in a few years. Drop VGLI once private coverage is in place and you're confident in it.
Other benefits that affect your plan
- Burial in a VA national cemetery, a headstone and a burial flag for eligible veterans at no cost
- VA burial allowances, which may help with funeral costs in certain situations
- Dependency and Indemnity Compensation (DIC) for survivors in some service-connected deaths
These help with final costs, but they don't replace a veteran's income for a young family.
Thank you for your service. Let's protect your family.
We'll compare your VGLI or VALife options against private coverage so you can see which saves more over the years.
This guide is general education, not tax, legal or financial advice. Product features, issue ages and prices vary by carrier and state and change over time.