Jeffrey Wade
Veterans' Group Life Insurance (VGLI) is a term life insurance program that allows veterans to convert and maintain the term life insurance coverage they had under Servicemembers' Group Life Insurance (SGLI). On the other hand, the VA Insurance Center offers Veterans Affairs Life Insurance (VALife), which is a whole life insurance program that provides coverage for the entire life of the policyholder. While VGLI provides coverage for a set period, VALife offers coverage for as long as premiums are paid. VGLI is available to veterans who had SGLI coverage while they were in the military and apply within 1 year and 120 days of being released from active duty. VALife, meanwhile, is available to veterans with service-connected disabilities and offers guaranteed acceptance for those aged 80 and under.
| Characteristics | Values |
|---|---|
| Type of insurance | Term life insurance |
| Coverage | $10,000 to $500,000 in term life insurance benefits |
| Eligibility | Veterans who have served in the military and meet at least one of the following requirements: • Had SGLI while in the military and are within 1 year and 120 days of being released from active duty • Are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard • Are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING) • Are within 1 year and 120 days of being placed on the Temporary Disability Retirement List (TDRL) |
| Application process | Apply within 1 year and 120 days of leaving the military. No health review is required within the first 240 days of separation. After this period, health will be taken into consideration and proof of good health may be required. |
| Premiums | Premium rates are lower at younger ages and typically increase as the policyholder ages. |
| Conversion | VGLI coverage can be converted to an individual insurance policy or a commercial whole life insurance policy at any time without providing evidence of good health. |
| Benefits | Provides death benefits. Offers an Accelerated Benefit Option (ABO) for terminally ill insureds, allowing access to a portion of the death benefit while still living. |
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What You'll Learn
VGLI eligibility criteria
Veterans' Group Life Insurance (VGLI) allows veterans to convert their Servicemembers' Group Life Insurance (SGLI) to a civilian program of lifetime renewable term coverage after separation from service. With VGLI, you may be able to keep your life insurance coverage after leaving the military as long as you continue to pay the premiums.
To be eligible for VGLI, you must meet at least one of the following requirements:
- You had SGLI while you were in the military and are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
- You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
- You are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) of a branch of service or to the Inactive National Guard (ING). This includes members of the United States Public Health Service Inactive Reserve Corps (IRC).
- You are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).
It is important to note that you must apply for VGLI within 1 year and 120 days of leaving the military. If you apply within 240 days of separation, there is no health review, and you can be approved without any health review, regardless of any medical conditions. After this period, your health will be considered, and you may need to submit evidence of good health to be approved for coverage.
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Converting VGLI to an individual policy
Veterans’ Group Life Insurance (VGLI) allows veterans to keep their life insurance coverage after leaving the military as long as they continue to pay the premiums. You'll need to apply for VGLI within 1 year and 120 days of leaving the military. If you sign up within 240 days of leaving the military, you won't need to prove you're in good health. After this period, your health will be considered and may impact your eligibility.
VGLI coverage can be converted to an individual permanent insurance policy with a private insurer without providing proof of good health. This is a good option if you have health conditions that may make it difficult to get coverage from a private insurance company. Additionally, the younger you are when you convert to a permanent plan, the better, as your premiums are based on your age when you enroll and remain fixed for the duration of the policy.
To convert your VGLI coverage to an individual policy, follow these steps:
- Choose a new insurance company.
- Apply at the local sales office of your chosen company.
- Obtain a letter from the Office of Servicemembers' Group Life Insurance (OSGLI) confirming your VGLI coverage (VGLI Conversion Notice). Submit this letter to the agent processing your application.
- Note that the conversion policy must be a permanent policy, such as whole life insurance. You cannot convert to term, variable, or universal life insurance. Additionally, supplementary benefits like Accidental Death and Dismemberment or Waiver of Premium for Disability are not included in the conversion.
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VGLI vs. VALife
Veterans’ Group Life Insurance (VGLI) and Veterans Affairs Life Insurance (VALife) are the two life insurance programs offered by the VA specifically for veterans. VGLI is a term life insurance program, while VALife is a whole life insurance program. Term life insurance provides coverage for a set period, whereas whole life insurance provides coverage for the entire life of the policyholder, provided that premiums are paid.
Veterans with full-time Servicemembers' Group Life Insurance (SGLI) coverage are eligible to convert SGLI to VGLI after separation from service. VGLI allows veterans to keep their life insurance coverage after leaving the military as long as they continue to pay the premiums. The amount of coverage is determined by the veteran's SGLI coverage, ranging from $10,000 to $500,000. VGLI premium rates are typically lower when the veteran is younger and increase with age.
On the other hand, VALife offers whole life insurance coverage to veterans with service-connected disabilities. VALife provides guaranteed acceptance for veterans aged 80 and under, with coverage of up to $40,000. Unlike VGLI, VALife's premium rates are fixed for the life of the policy and are generally higher. VALife's application and eligibility decision process is completely automated and online.
Some key differences between VGLI and VALife include coverage types, application timelines, and the amount of coverage available. VGLI-insured veterans who are eligible for VALife can add VALife coverage to their plan, ensuring higher coverage for earlier stages of life and continued coverage once term life coverage expires. While VGLI may be a priority for veterans with medical conditions due to its 240-day no-health" application period, VALife can be a valuable option for veterans with service-connected disabilities who may struggle to obtain non-VA life insurance.
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VGLI coverage amount
Veterans' Group Life Insurance (VGLI) allows veterans to convert their Servicemembers' Group Life Insurance (SGLI) to a civilian program of lifetime renewable term coverage after separation from service. VGLI coverage amounts range from $10,000 to $500,000 in term life insurance benefits. The amount received is based on the level of SGLI coverage held during military service.
Veterans with SGLI coverage can apply for VGLI within 1 year and 120 days of leaving the military. If the application is submitted within 240 days of leaving the military, no proof of good health is required. After this period, evidence of good health is necessary to obtain VGLI coverage.
Veterans with VGLI coverage can increase their coverage by $25,000 after the first year and every five years until they reach the age of 60, without needing to provide proof of good health. The maximum coverage amount is $500,000. It is important to note that the combined amount of SGLI and VGLI coverage cannot exceed this maximum limit.
VGLI premium rates are based on age and coverage amount, with rates adjusting at five-year age brackets. If premiums are not paid in full within 60 days of the due date, coverage will be cancelled. Veterans can decrease their coverage at any time, but they have five years from the date of the decrease to restore their coverage to the previous level.
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VGLI premium rates
Veterans' Group Life Insurance (VGLI) is a program that allows veterans to keep their life insurance coverage after leaving the military, as long as they continue to pay the premiums. The amount of coverage one can get ranges from $10,000 to $500,000 in term life insurance benefits, based on how much Servicemembers' Group Life Insurance (SGLI) coverage they had when they left the military.
If you had SGLI coverage while in the military, you are eligible to convert it to VGLI after separation from service. You must apply for VGLI within 1 year and 120 days of leaving the military, and if you sign up within 240 days, you won't need to prove you're in good health. After this period, your health will be considered, and you may not be approved.
The VGLI premium rates are not explicitly stated, but it is mentioned that SGLI is a low-cost group term life insurance program. Additionally, all SGLI, Family SGLI, and VGLI insureds will see a premium discount effective July 1, 2025.
It is important to evaluate whether VGLI will meet your life insurance needs and consider it as part of your insurance portfolio. VGLI can be a priority for those with medical conditions that may affect their insurability, as most insurance plans use a health review to determine eligibility.
You can also convert your VGLI coverage to an individual insurance policy at standard premium rates without providing proof of good health. To do this, you must choose a new insurance company and apply at their local sales office.
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Frequently asked questions
Veterans' Group Life Insurance (VGLI) is a term life insurance program that allows veterans to convert and keep the term life insurance coverage they had under Servicemembers' Group Life Insurance (SGLI).
Veterans Affairs Life Insurance (VALife) is a whole life insurance program that offers coverage to veterans with service-connected disabilities.
VGLI is a term life insurance program, whereas VALife is a whole life insurance program. Term life insurance provides coverage for a set period of time, whereas whole life insurance provides coverage for the entire life of the policyholder.
Yes, VGLI-insured veterans who are eligible for VALife can add VALife coverage to their plan, making the programs complementary to each other.
