The short answer
- SGLI covers you on active duty; VGLI lets you convert within 240 days of leaving with no health exam.
- VGLI is guaranteed but group-priced - healthy veterans often pay less on the private market.
- Service-connected conditions are usually underwritten the same as they would be for any civilian.
- Do not drop VGLI until private cover is approved and in force.
The reassuring truth
Healthy veterans often beat VGLI
VGLI is convenient and guaranteed, but it is priced for the whole group. A healthy veteran who can medically qualify frequently pays less for private term cover, and can buy more of it.
Compare my options →The alphabet soup, briefly
- SGLI - Servicemembers Group Life Insurance, automatic on active duty, up to 500,000 dollars
- VGLI - Veterans Group Life Insurance, the civilian continuation you can convert SGLI into after service
- FSGLI - cover for a servicemember's spouse and children
When you leave service, the decision that matters is what to do about VGLI - keep it, replace it, or combine it with private cover.
VGLI versus private cover
VGLI has one big advantage and one big drawback. The advantage: within 240 days of separation you can take it with no health questions at all. The drawback: it is priced for the whole veteran group and its premium rises in age brackets, so for a healthy veteran it is often more expensive than private term cover.
| Your situation | Usually the better fit |
|---|---|
| Healthy, insurable | Private term cover, often cheaper and larger |
| A serious service-connected condition | VGLI - guaranteed, no health questions |
| Want cover for life, not a term | Private whole life or a small final expense policy |
| Unsure, leaving service now | Take VGLI in the window, then shop - do not lose the option |
Mind the 240-day window
The no-health-questions VGLI conversion is genuinely valuable if your health would make private cover expensive or impossible. If that is you, use it and do not let the window close. If you are healthy, still take a look at private term - but never cancel VGLI until a private policy is actually approved and in force.
Service-connected conditions and your rating
A VA disability rating is not itself a life insurance rating. Underwriters price the underlying conditions, the same way they would for a civilian. Hearing loss or an orthopedic injury usually has little effect. PTSD, depression or anxiety is underwritten like any mental health condition - treated and stable is routinely approved. If a condition is serious, that is exactly when the guaranteed VGLI route earns its place.
The order to decide
- In the 240-day window, secure VGLI if there is any doubt about your insurability
- Get quoted for private term if you are healthy - it is often cheaper for more cover
- Keep whichever is guaranteed until the alternative is issued and in force
- Consider a small permanent policy for final expenses that will not expire
Common questions
Can veterans get private life insurance?+
Yes. Veterans can apply for ordinary private life insurance just like anyone else, and healthy veterans often find it cheaper than VGLI. Service-connected conditions are underwritten the same way they would be for a civilian.
Is VGLI worth keeping?+
It depends on your health. VGLI is guaranteed with no health questions in the conversion window, which is very valuable if you have serious conditions. If you are healthy, private term cover is frequently cheaper for the same or more coverage.
Does a VA disability rating affect life insurance?+
Not directly. Underwriters do not price the disability percentage itself; they price the underlying medical conditions, exactly as they would for anyone else. Many rated conditions have little or no effect on the premium.
Does PTSD affect life insurance?+
Usually less than veterans expect. Treated and stable PTSD, depression or anxiety is routinely approved, often at standard rates. Severity, any hospitalizations and how recent the last episode was matter more than the diagnosis.