KEY TAKEAWAYS
- VGLI lets veterans keep up to $500,000 in life insurance coverage after separation — with no medical exam required if you apply within 240 days of leaving service
- VGLI premiums increase every five years as you age — a veteran paying $95/month at 45–49 for $500,000 will pay $250/month at 55–59 and $690/month at 65–69 for the same coverage
- For healthy veterans under 45, private term life insurance typically offers more coverage at a lower cost — with level premiums that do not increase every five years
- For veterans with service-connected disabilities or health conditions that affect insurability, VGLI’s guaranteed acceptance window may be the best — or only — affordable coverage available
- VALife is a separate VA whole-life program for veterans with any service-connected disability rating — available at any age, with no enrollment deadline after separation
- The decision between VGLI and private coverage deserves serious attention at separation — not years later when health has changed and private options have narrowed
Life insurance is one of the most important financial decisions a veteran makes at separation — and one of the most commonly deferred until it is too late to make it well. SGLI ends shortly after you leave service. You have a limited window to convert to VGLI without a medical exam. And if your health changes before you get around to evaluating your options, the guaranteed-acceptance window may be the only affordable coverage available to you.
This guide covers VGLI in full — how it works, what it costs at every age, and how it compares to private term life insurance — so you can make this decision with current numbers in front of you, not guesswork.
From SGLI to VGLI: The Transition Every Veteran Faces
Servicemembers’ Group Life Insurance (SGLI) covers you automatically while you serve — up to $500,000 at a flat rate that does not change based on age or health. When you leave the military, SGLI ends. You then have a time-limited window to convert that coverage to Veterans’ Group Life Insurance (VGLI), and the rules of that window matter enormously.
Apply within 240 days of separation: No medical exam, no health questions, guaranteed acceptance regardless of your health status. Your previous SGLI coverage continues forward as VGLI.
Apply between 241 days and 1 year + 120 days after separation: You can still apply for VGLI, but you must submit evidence of good health. If a health condition has developed or worsened since separation, this evidence requirement can make VGLI difficult or impossible to obtain at standard rates.
After 1 year and 120 days: VGLI eligibility expires. You cannot apply for VGLI after this window closes, regardless of health or circumstance.
The 240-day guaranteed-acceptance window is the entire value proposition of VGLI for veterans with health concerns. Do not let it lapse without making a deliberate decision — either enrolling in VGLI or confirming that private coverage is the better choice before the window closes.
How VGLI Works
VGLI is a renewable group term life insurance program administered through the VA and underwritten by Prudential Life Insurance Company of America through the Office of Servicemembers’ Group Life Insurance (OSGLI). Key features:
- Coverage amounts: $10,000 to $500,000 in $10,000 increments; initial amount cannot exceed the SGLI coverage you had at separation
- Coverage increases: You can increase coverage by $25,000 on the one-year anniversary of your VGLI and every five years thereafter, up to $500,000, until age 60 — no proof of good health required for these increases
- Premium structure: Age-based, increasing every five years; the rate is the same regardless of health within each age bracket
- Term type: Renewable term — coverage continues as long as premiums are paid; there is no expiration date and no maximum age
- Conversion option: VGLI can be converted to an individual permanent policy (whole life) with a participating commercial insurer at any time, without proof of good health
- No medical exam ever required: Once enrolled, premiums increase with age but insurability is never re-evaluated
- Administration: Apply and manage coverage at giosgli.prudential.com or by calling OSGLI
VGLI Premium Rates by Age
VGLI rates were lowered on July 1, 2025 — the current rates below reflect those updated premiums. Rates are the same for all veterans within an age bracket regardless of health, gender, or smoking status.
| Age Group | $250,000 Coverage | $400,000 Coverage | $500,000 Coverage |
|---|---|---|---|
| Under 30 | $15.00/mo | $24.00/mo | $30.00/mo |
| 30–34 | $20.00/mo | $32.00/mo | $40.00/mo |
| 35–39 | $25.00/mo | $40.00/mo | $50.00/mo |
| 40–44 | $35.00/mo | $56.00/mo | $70.00/mo |
| 45–49 | $47.50/mo | $76.00/mo | $95.00/mo |
| 50–54 | $72.50/mo | $116.00/mo | $145.00/mo |
| 55–59 | $125.00/mo | $200.00/mo | $250.00/mo |
| 60–64 | $212.50/mo | $340.00/mo | $425.00/mo |
| 65–69 | $345.00/mo | $552.00/mo | $690.00/mo |
| 70–74 | $537.50/mo | $860.00/mo | $1,075.00/mo |
| 75–79 | $962.50/mo | $1,540.00/mo | $1,925.00/mo |
| 80+ | $1,100.00/mo | $1,760.00/mo | $2,200.00/mo |
Source: VA.gov VGLI premium rates, effective July 1, 2025.
The pattern in this table is the central issue with VGLI as a long-term strategy. A 35-year-old veteran pays $50/month for $500,000 in coverage. That same veteran, keeping the same policy, will pay $250/month at age 55 and $690/month at age 65. The cost escalation is not gradual — it accelerates sharply after 50 and becomes very expensive past 65, precisely when fixed retirement income makes high premiums most burdensome.
Private Term Life Insurance for Veterans
Private term life insurance offers a fundamentally different cost structure from VGLI: a level premium locked in at the time of purchase for the full term of the policy. A healthy 35-year-old veteran who buys a 20-year term policy locks in that rate until age 55 — the premium never increases during the term, regardless of age or health changes.
The trade-off is that private coverage requires underwriting — a medical exam and health history review. Veterans with significant health conditions, obesity, recent medical treatment, or certain diagnoses may pay higher rates or be declined altogether. This is where VGLI’s guaranteed acceptance becomes most valuable.
For veterans in good health at separation, the private market typically offers substantially more coverage at lower cost, particularly for 20- or 30-year terms that cover the years when family financial obligations are highest. Veterans who purchase private coverage at separation and maintain good health through their 40s and 50s will almost certainly pay less over time than VGLI’s escalating rates would cost for the same coverage.
VGLI vs. Private Term: Side-by-Side
| Factor | VGLI | Private Term Life |
|---|---|---|
| Medical exam required? | No (if applied within 240 days) | Usually yes for best rates |
| Premium structure | Increases every 5 years | Level for the term period |
| Maximum coverage | $500,000 | $1M–$5M+ depending on insurer |
| Coverage for health conditions | Guaranteed (within enrollment window) | May be rated or declined |
| Cost for healthy veteran, age 35, $500K | $50/mo (rises to $145/mo by 50–54) | ~$25–35/mo level for 20 years |
| Policy expires? | No — renewable indefinitely | Yes — at end of term |
| Convertible to permanent coverage? | Yes — to whole life at any time | Some policies offer conversion |
| Best for | Veterans with health conditions; those needing guaranteed coverage | Healthy veterans under 45 with specific term coverage needs |
Top Life Insurance Companies for Veterans
If you are comparing VGLI to private options, these companies serve veterans well and are worth getting quotes from alongside your VGLI evaluation:
VALife — The Option Most Veterans Miss
Veterans with any service-connected disability rating — including 0% — have access to a third option that most are never told about: Veterans Affairs Life Insurance, or VALife.
VALife launched in January 2023 and replaced the older S-DVI program as the primary VA life insurance option for service-disabled veterans. It offers whole-life coverage up to $40,000 with level premiums that never increase after enrollment. Unlike VGLI, there is no enrollment deadline after separation — VALife is available at any age, as long as the veteran has a service-connected disability rating.
Key VALife features:
- Whole-life coverage: $10,000 to $40,000 in $10,000 increments
- No medical exam or health questions
- Level premiums — set at enrollment and never change
- Builds cash value over time
- Two-year waiting period before the full death benefit is paid (during the first two years, beneficiaries receive a refund of premiums plus interest if the veteran dies from a non-service-connected cause)
- No enrollment deadline — apply at any age after receiving a service-connected disability rating
VALife’s $40,000 maximum is modest compared to VGLI’s $500,000, making it a supplement rather than a replacement for most veterans’ coverage needs. But for veterans who missed the VGLI window, have health conditions that make private insurance expensive, or simply want a permanent policy that will never lapse or increase in cost, VALife fills an important gap. You can apply at VA.gov.
Who Should Choose VGLI vs. Private Coverage
Choose VGLI (or keep VGLI) if:
- You have a significant health condition — diabetes, heart disease, obesity, sleep apnea, mental health conditions — that would result in higher rates or declination from private insurers
- You have service-connected conditions that affect insurability in the private market
- You are past 55 and the remaining term of coverage need is short enough that VGLI’s escalating rates are still cost-effective
- You want coverage that renews indefinitely with no term expiration
- You missed the 240-day window and must now prove good health for VGLI — if you cannot qualify for private coverage either, VGLI may still be available if you are still within the 1-year-120-day window
Consider private term life insurance if:
- You are healthy at separation and under 45 — the cost savings over 20 years compared to VGLI’s escalating rates are typically substantial
- You need more than $500,000 in coverage — private insurers offer $1M, $2M, or more
- You want a fixed premium for a defined period — term coverage aligns with a specific financial obligation like a mortgage or children’s dependency years
- You can combine private coverage for the term years with VGLI for later in life when health may change
The hybrid approach many veterans use:
Purchase private term life insurance at separation for the core of your coverage need — a 20-year term to cover mortgage and family obligations — while also enrolling in VGLI at a lower coverage amount as a guaranteed permanent backstop. When the private term expires, VGLI remains in force regardless of health changes. This approach captures the cost efficiency of private term coverage during peak earning years while protecting against uninsurability later in life.
Find a Licensed Agent Near You
If you are ready to compare private life insurance options, connecting with a licensed agent who works with veterans can help you get accurate quotes across multiple carriers and understand which underwriting standards apply to your specific health history.
Frequently Asked Questions
What happens to VGLI if I stop paying premiums?
VGLI coverage lapses if premiums are not paid. Once lapsed, you can reinstate within a five-year period by paying back premiums plus interest and submitting evidence of good health. After the five-year reinstatement window closes, the lapsed policy cannot be reinstated. Veterans who think they may have difficulty paying premiums should consider reducing their coverage amount — lower coverage is far better than a lapsed policy with no coverage at all.
Can I have both VGLI and private life insurance?
Yes — there is no restriction on having both VGLI and private life insurance simultaneously. Many veterans carry both, using VGLI as a permanent backstop while private term covers the years of peak financial obligation. Having multiple policies does not affect the death benefit of either — beneficiaries collect from all policies in force at the time of death.
Does VA disability compensation affect life insurance eligibility?
VGLI is not affected by disability status — it is available to all veterans within the enrollment window regardless of their VA rating. Private insurers handle disability differently: some will rate up premiums for certain service-connected conditions, while others may offer standard rates depending on the nature of the disability. A service-connected disability does not automatically disqualify a veteran from private life insurance, but the underwriting process will evaluate the specific conditions and their impact on life expectancy.
Is VGLI a good deal compared to private insurance?
It depends on your age, health, and coverage needs. At younger ages (under 40) and in good health, private term life insurance almost always offers more coverage at lower cost with level premiums. At older ages or with health conditions that affect insurability, VGLI’s guaranteed rates and guaranteed acceptance become significantly more valuable. The July 2025 rate reduction made VGLI more competitive than it was previously, particularly at younger age brackets. Run the comparison with actual quotes from private insurers before deciding.
What is the difference between VGLI and VALife?
VGLI is renewable term life insurance — it covers you as long as you pay premiums, but premiums increase every five years with age, and coverage ends when you stop paying. VALife is whole-life insurance — premiums are set at enrollment and never change, and the policy builds cash value over time. VALife has a $40,000 maximum coverage limit compared to VGLI’s $500,000, but it is available at any age to veterans with any service-connected disability rating, with no enrollment deadline. Most veterans use VGLI for primary coverage and may add VALife as a permanent supplement if they have a service-connected rating.
Can I increase my VGLI coverage after I enroll?
Yes. VGLI allows you to increase coverage by $25,000 on the one-year anniversary of your enrollment and every five years thereafter, up to the $500,000 maximum, until age 60. No proof of good health is required for these increases — they are available regardless of your health status at the time of the increase. This feature makes VGLI particularly valuable for veterans who separate with less than $500,000 in SGLI coverage and want to build up to the maximum over time.
Related Guides
- DIC for surviving spouses — what the VA pays after a veteran’s death
- Survivors Benefit Plan (SBP) — how military retirement annuities protect your family
- The complete list of benefits for 100% P&T veterans, including life insurance options
- VA Disability Compensation Calculator — 2026 Rates
This article is provided by MilitaryBenefitGuide.com, an independent educational resource. We are not affiliated with the Department of Veterans Affairs, Prudential Life Insurance Company of America, or any government agency. Life insurance rates shown are for illustrative purposes — actual private market rates vary by insurer, health profile, and underwriting. For official VGLI information, visit VA.gov.