Most service members leaving the military face the same choice: convert SGLI to VGLI, or buy a private life insurance policy. Neither is right for everyone. The good news is that you do not have to choose blindly, and you do not have to give up VGLI to shop around.
How they differ
| VGLI | Private level term | |
|---|---|---|
| Health questions | None if you apply within 240 days of separation | Yes; price depends on health, tobacco use and other factors |
| Price over time | Rises every five years with your age band | Stays level for the whole term (often 20 or 30 years) |
| How long it lasts | Renewable for life as long as you pay | Ends at the end of the term unless renewed or converted |
| Coverage amount | Up to your SGLI amount at first; later increases allowed in $25,000 steps up to $500,000 until age 60 | Based on need and underwriting |
| Converting later | Can be converted to a whole life policy with a participating company without proof of good health | Depends on the policy; many term policies include a conversion option |
When VGLI is usually the better fit
VGLI is hard to beat if you have health conditions, a service-connected disability, or anything else that would make private coverage expensive or hard to get. It is also useful as a bridge while you shop, and for veterans who want coverage for life and accept that the price will rise.
When private term is worth a look
If you are healthy and your need has an end date (a mortgage, children at home, a spouse’s income gap), a level-term policy can cost much less over 20 or 30 years. For example, $400,000 of VGLI from age 30 to 60 adds up to about $31,200 in premiums (see VGLI rates by age). A private quote depends on your health, so the only way to know is to compare real offers.
How to compare without losing VGLI
1. Mark your day 240
Use our SGLI to VGLI calculator to find the exact date. Before that day, VGLI needs no health questions.
2. Apply for private coverage early
Start a private application in the first few months after separation, so underwriting finishes well before day 240.
3. Keep VGLI until the new policy is in force
If the private offer is good, keep VGLI until the new policy is approved and active, then decide. If the offer is not good, VGLI is still there.
Get side-by-side numbers
We are an independent agency and compare coverage from multiple carriers. Tell us your separation date, age and coverage amount and we will show you VGLI and private term side by side. Request a comparison.
Lifeworth Insurance Agency is an independent agency and is not affiliated with the VA or the U.S. government. VGLI, SGLI and FSGLI rules and rates are set by the VA; check va.gov for the current rules before you decide.
Contact Lifeworth Insurance
Lifeworth Insurance Agency
2881 E Oakland Park Blvd, Fort Lauderdale, FL 33306
(954) 834-5433 · contact@lifeworthinsurance.com