Is VGLI worth it? Who should keep it, convert it or replace it

Say Daniel opens his VGLI statement the month he turns 60 and sees the premium has jumped about 70 percent since last year. He wants to know one thing: is this still worth paying?

Is VGLI worth it? For a lot of veterans, yes: it accepts you when you enroll inside 240 days of leaving without health questions, it lasts for life as long as you pay, and it goes up to $500,000. It becomes worth a second look when your premium has stepped up several times and your health is good enough to qualify for something else. Prices below come from the VA’s VGLI page.

What does VGLI cost as you age?

VGLI is priced per $10,000 of coverage, and the rate depends only on your age band. The VA’s rates took effect July 1, 2025. Here is what that means for $100,000, which is ten $10,000 units, at five points on the chart:

That is five of the twelve bands. The full table, with every band and a printable copy, is on our VGLI rates chart, so we will not repeat it here. Multiply the per $10,000 rate by the number of units you carry to get your own number.

One current fact belongs in the math. The VA announced a three-month VGLI premium holiday from November 1, 2026 through January 31, 2027 for coverage that is active on November 1, with no action needed. It pauses the bill, not the age-band steps, and the holiday rules are on our rates page.

Why does the VGLI premium jump every 5 years?

Because the price is set by five-year age bands, not by the calendar. Your premium holds until the birthday that moves you into a new band, then steps up and holds again. The largest steps come in the middle of life, which is when many veterans stop watching.

By our arithmetic on the VA figures, each step into a new band from 50 to 54 through 75 to 79 raises the rate by roughly 53 to 79 percent. The last step, into 80 and older, is about 14 percent, and the rate stops there. Our VGLI rates page walks through each step with the dollar amounts. If a VGLI age-band step is coming and you are weighing your next move, see what is still open to a veteran over 70 before you decide.

One reason the cost matters: your coverage does not shrink to match. Daniel at 60 still holds the same death benefit, and the premium is simply paying for a larger chance that it gets used. The question is whether the benefit still has a job to do.

Who should keep VGLI?

VGLI is usually worth keeping when one or more of these is true:

• Your health would make private coverage hard to get. VGLI cannot be cancelled for a health change as long as you pay the premium. A new diagnosis does not touch it.
• You enrolled inside the 240-day window and you are under about 50. The early bands are cheap per $10,000, and the coverage can run for life.
• You need a large amount. VALife tops out at $40,000. VGLI goes to $500,000.
• The premium fits your budget today and the benefit still has a clear job, like a mortgage or a spouse who depends on your income.

Who should convert or replace VGLI?

Replacing is not the same as dropping. There are three real routes, and each one answers a different reason for leaving.

Convert to permanent. The VA says you can convert VGLI to an individual permanent policy, such as whole life, at standard premium rates and without proof of good health, through a participating company. You cannot convert to term, variable or universal life. This fits a veteran who wants a payment that never rises and accepts a smaller amount for the money. For how VGLI term coverage compares with a permanent policy, this explainer lays it out.

Add or move to VALife. If you have any VA service-connected rating, even 0 percent, and you are 80 or younger, VALife is open with no health questions. It is whole life up to $40,000, and the VA says your premium never increases while you keep the policy. The full benefit begins two years after you apply. Premiums as of May 15, 2026 for $40,000 are $61.60 a month at 30, $130.00 at 50 and $312.00 at 70. For the same $40,000, VGLI would run $11.60 a month at 50 to 54 and $86.00 at 70 to 74 (four units at the VA rate), so VALife costs more now and VGLI costs more later. Our VALife vs VGLI comparison has the side by side, and the VALife guide covers eligibility. If you hold the older S-DVI plan instead, the S-DVI guide explains where it stands.

Replace with private term. A healthy veteran in the 40s or 50s can sometimes find a level-premium term policy that stays below the next VGLI steps. Private term asks health questions and ends at the end of the term, so it works best when the need has an end date, like a mortgage or children at home. The tradeoff is simple: it is only available while you are healthy, so it is a quote to run, not an assumption.

What are the 240-day and 1 year 120 day windows?

VGLI is open to people who had SGLI and are within 1 year and 120 days of leaving. Apply inside the first 240 days and you do not need to prove good health. After 240 days, and up to 1 year and 120 days, you can still apply, but you answer health questions. After that, the VGLI option generally ends. The details, with the SGLI free coverage period, are on our SGLI to VGLI conversion guide. If your service coverage is still in force, the SGLI guide shows when it ends, and Prudential’s OSGLI is the office that handles VGLI billing and changes.

If you are past both windows, the question is no longer whether VGLI is worth it. It is which of VALife, term or permanent coverage fits, and we cover that on life insurance for veterans.

Veterans have more options than they are usually told, and walking through them is quick. Policy Review Center is a free comparison and referral service. We connect you with independent licensed professionals, and you decide what happens next. VGLI itself is a VA program, so the VA stays the place for official changes. We help you know what to ask and where to go.