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 $0.05 per $1,000of coverage per month regardless of age (rate effective Jul 1, 2025) — roughly $26/month at the maximum coverage level ($25 premium + $1 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 $26/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 the conditions documented in 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 risk being declined for VGLI once medical underwriting applies — leaving much-more-expensive commercial guaranteed-issue policies as the fallback.
VGLI vs commercial term life — which wins?
For a healthy 30-year-old, commercial 20-year level-term life insurance is often cheaper than VGLI. Commercial premiums are set by each insurer and are not published by VA, so the comparisons below are directional only — get real quotes before deciding. The VGLI figures are the VA rates effective Jul 1, 2025.
- Healthy 30-year-old, $500k coverage: VGLI starts at $40/mo and rises every 5 years; quoted 20-year level-term rates for a healthy applicant this age are often below that and stay locked for the full term.
- Healthy 40-year-old, $500k: VGLI is $70/mo and rising; level term is often still cheaper, but how much depends on health, tobacco use, and carrier.
- Healthy 50-year-old: commercial term can still beat VGLI, but the gap narrows with age.
- 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 insurers — military-affiliated carriers (USAA, AAFMAA, Navy Mutual) and civilian companies alike. For scale: under the VA table above, $500k of VGLI from age 30 through age 59 totals $39,000 in premiums. Compare that against a locked level-term quote for the same coverage and horizon before deciding.
Special cases
- Disabled veteran: VGLI's no-medical window is invaluable — commercial insurers can decline or rate-up. Even if VGLI is "expensive," it may be the only path to maintain coverage.
- Reservists / Guard: members assigned to a unit scheduled for at least 12 inactive-duty training periods a year carry full-time SGLI around the clock; other Reserve members have part-time coverage only while performing duty (38 U.S.C. §§ 1965(5), 1967). VGLI is available after release from Reserve/Guard service, and the 240-day window runs from the release date.
- Totally disabled at separation: You may keep SGLI free for up to 2 years via the SGLI Disability Extension (SGLI-DE). For longer-term coverage, service-connected veterans can apply for VALife — guaranteed-acceptance whole life up to $40,000 in $10,000 increments (2-year waiting period before the full death benefit). VALife replaced S-DVI, which closed to new applicants on 31 Dec 2022.
- Family SGLI / VGLI: Spouse coverage under FSGLI continues for 120 days after the member's separation, then ends (38 U.S.C. § 1968(a)(5)); the spouse may convert to an individual commercial policy during that 120-day window. FSGLI does not convert to VGLI.
- Increases over time: VGLI coverage can be increased by $25,000 — first available 1 year after enrollment, then every 5 years — up to the $500,000 maximum, until age 60; 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 and apply online.
- Select coverage amount up to your final SGLI level (elected in $10,000 increments).
- Set up automatic premium withdrawal (monthly or annual).
- You may apply by mail using SGLV 8714 if you prefer paper.
- Timing matters: SGLI stays in force free for 120 days after separation. If OSGLI receives your application and initial premium on or before day 120, VGLI takes effect on the 121st day — no gap. Apply later (day 121 through 1 year + 120 days) and VGLI is effective only on the date OSGLI receives your application and premium, so the days in between are uninsured. Your first premium must accompany the application even if you plan to pay by allotment or VA-compensation deduction; monthly premiums then begin the month after coverage takes effect. (38 CFR § 9.2(b)(1), (c), (d); VA SGLI/VGLI Handbook ¶¶ 12.04a, 12.05b)
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 VALife (for service-connected veterans) become the only options.