SGLI vs VGLI — the basics
SGLI (Servicemembers' Group Life Insurance) is automatic life insurance for active-duty members and certain Reserve/Guard members under 38 U.S.C. § 1967. Maximum coverage is $500,000 at a flat $0.06 per $1,000of coverage per month regardless of age — roughly $31/month at the maximum coverage level, including TSGLI traumatic injury benefit.
VGLI (Veterans' Group Life Insurance) is the post-separation version available under 38 U.S.C. § 1977. Coverage is preserved up to the SGLI level held at separation. The fundamental difference: VGLI premiums are age-rated and escalate every five years. The $500k that cost $31/mo on active duty costs $40/mo at age 30, $145 at age 50, $425 at age 60, and $2,200/mo at age 80.
The 240-Day window — why it matters
If you apply for VGLI within 240 days of separation, no medical underwriting is required. VA must accept you for coverage up to your prior SGLI level. After 240 days, you can still apply for up to 1 year + 120 days post-separation, but VA requires proof of good health — meaning any prior medical condition (including a pending VA disability claim) can disqualify you.
In practice, the 240-day window is the single most important decision in your VGLI transition. Veterans who skip it and develop a condition during the gap (or who file a VA disability claim that's still under review) often find themselves rejected from VGLI and forced into much-more-expensive commercial guaranteed-issue policies.
VGLI vs commercial term life — which wins?
For a healthy 30-year-old, commercial 20-year level-term life insurance is almost always cheaper than VGLI:
- Healthy 30-year-old, $500k coverage: commercial 20-year level term ≈ $20–$30/mo (locked rate); VGLI starts $40/mo and rises every 5 years.
- Healthy 40-year-old, $500k: commercial 20-year level term ≈ $40–$60/mo; VGLI = $70/mo and rising.
- Healthy 50-year-old: commercial term still typically beats VGLI but the gap narrows.
- Smokers, conditioned veterans, or anyone with a current VA disability rating: commercial term may decline coverage or charge significantly more — VGLI's no-medical window becomes the safer option.
Run quotes at multiple commercial insurers (USAA, NavyFed via Nationwide, MOAA Insurance Group, AAFMAA, Term Life Insurance Brokers). If healthy and uncomplicated, lock 20- or 30-year level term during the SGLI period and let VGLI close — that often wins by tens of thousands of dollars over the 30-year horizon.
Special cases
- Disabled veteran: VGLI's no-medical window is invaluable — commercial insurers often decline or rate-up. Even if VGLI is "expensive," it may be the only path to maintain coverage.
- Reservists / Guard: SGLI applies during qualifying drill and active-duty periods. VGLI is available after release from Reserve/Guard service. The 240-day window applies from the release date.
- Total disability waiver (SGLI-T DI): Servicemembers totally disabled at separation may qualify for the Service-Disabled Veterans Insurance program (S-DVI), $10,000 base coverage at no cost, plus optional supplemental.
- Family SGLI / VGLI: Spouse coverage under FSGLI ends at separation; convert to a commercial spouse policy during the 120-day post-separation conversion window.
- Increases over time: VGLI policies can be increased by $25,000 every 5 years (subject to maximum $500k); no proof of good health required for the increase.
How to apply for VGLI
- Go to va.gov/life-insurance within 240 days of separation. The online application takes about 10 minutes.
- Select coverage amount up to your final SGLI level (in $25,000 increments).
- Set up automatic premium withdrawal (monthly or annual).
- You may apply by mail using SGLV 8714 if you prefer paper.
- Coverage begins the day after SGLI ends; premiums begin one month after enrollment.
After the no-medical window closes (day 241), the application requires medical evidence. After day 485 (1 year + 120 days), VGLI is no longer available — commercial coverage or VA's S-DVI (if totally disabled) become the only options.