VGLI Life Insurance

The short version

When you separate, your SGLI (Servicemembers' Group Life Insurance) ends a short time later. Veterans' Group Life Insurance (VGLI) lets you convert that coverage into a civilian policy, and if you act inside the window, you do not have to prove you are healthy.

That no-health-questions window is the whole point: if you have any condition that would make private insurance expensive or impossible, VGLI can be the most important box you check on the way out.

The deadline is the benefit

You can apply for VGLI up to 1 year and 120 days after you separate. But if you apply within 240 days of separating, you skip the health questions entirely. Miss the 240-day no-health window and you can still get VGLI up to the full deadline, but you may have to prove good health.

The windows

• Within 240 days: no proof of good health required.
• Up to 1 year + 120 days: still eligible, may need health evidence.
• Initial coverage equals your SGLI amount at separation.

Coverage and growth

• Up to $500,000 in coverage (the SGLI maximum).
• Increase $25,000 every five years until age 60, no health proof.
• Premiums rise with age.

Apply within 240 days of separating and VGLI asks no health questions. That is the single most valuable thing about it.

Source: VA.gov

Is VGLI the right call?

VGLI is group term insurance, and its premiums climb as you age, so a healthy veteran can often find cheaper level-term coverage on the private market. The case for VGLI is strongest if you have health issues, because it ignores them inside the window. Many veterans get a private term quote first and keep VGLI only if they cannot beat it.

Lean VGLI if

• You have health conditions that raise private rates.
• You want coverage locked in now without underwriting.

Shop private term if

• You are young and healthy.
• You want a fixed premium for 20 to 30 years.

Healthy? Get a private term quote before the VGLI premiums climb. Not healthy? VGLI inside the window may be your best option.

Source: VA.gov, VGLI

Do this now

1. Mark the 240-day window on your calendar the day you separate.
2. Decide your coverage amount (up to your SGLI level).
3. Get a private term quote to compare if you are healthy.
4. Apply for VGLI before the no-health window closes if there is any doubt.

FAQ

How long do I have to sign up?

Up to 1 year and 120 days after separation. Apply within 240 days to skip the health questions.

How much coverage can I get?

Up to $500,000, not to exceed the SGLI amount you had when you separated. You can grow it in $25,000 steps every five years until age 60.

Is VGLI cheaper than private insurance?

Often not, if you are young and healthy, because premiums rise with age. It shines when health would make private coverage costly or unavailable.

Does VGLI ever end?

It is renewable for life as long as you pay premiums, which increase as you age.

Sources & links

• VA, Veterans' Group Life Insurance (VGLI): va.gov
• VA, SGLI: va.gov