You signed the separation paperwork, and a few weeks later it hits you: the coverage that came with the uniform is about to end. Here is the briefing.
Life insurance for veterans comes down to three paths. VGLI keeps your service coverage by converting from SGLI, up to $500,000. VALife is guaranteed-acceptance whole life for any service-connected rating, up to $40,000. And a private policy from an A-rated carrier can go larger, often for less if you qualify on health. The VA runs the first two — see VA.gov.
Separating soon, or recently out? A free, no-pressure call with a licensed professional — to compare your three options before the 240-day window closes.
Call (888) 959-0710Why your coverage changes after service
The short version: the life insurance you carried on active duty was tied to your service, so it winds down when your service does. SGLI — Servicemembers’ Group Life Insurance — is the low-cost group coverage you held while serving, up to $500,000. It ends shortly after you separate, after a brief grace period. That is the gap every veteran has to plan for.
What fills the gap is your choice, and you have real options. Two come straight from the VA. One comes from the private market. None of them is automatic the way SGLI was — each takes a deliberate step to set up. We cover the SGLI-to-VGLI handoff in detail in our guide to SGLI vs. VGLI; this page zooms out to all three paths so you can see the whole board.
VGLI: keeping your service coverage
VGLI — Veterans’ Group Life Insurance — is how you keep coverage after service by converting from SGLI. You can carry up to the amount of SGLI you held, to a maximum of $500,000, as renewable term-style group coverage that stays with you for life. The feature that makes it valuable: no health questions if you apply within 240 days of separation. Your medical history cannot keep you out inside that window.
The tradeoff is the pricing. VGLI is group term insurance priced in five-year age bands — the premium holds steady within a band, then steps up when you cross into the next one. That is normal for coverage that accepts every eligible veteran, but it means the same $500,000 costs more in your fifties than your thirties. For the full band-by-band chart, see our VGLI rates guide, and for why the cost climbs, our explainer on VGLI cost increases.
- Best for. Veterans whose health makes private coverage costly or hard to qualify for.
- How much. Up to the SGLI you held, to a $500,000 maximum.
- The window. No health questions within 240 days of separation.
- The cost. Group term, priced by age band — steps up over time.
VALife: the guaranteed whole life option
VALife is whole life insurance the VA offers to veterans with a service-connected disability rating — even a 0% rating. Whole life means permanent coverage that does not expire and builds a small cash value over time. It is guaranteed acceptance: no health questions, no medical exam. Coverage runs up to $40,000, chosen in $10,000 increments, and your premium is locked to your age at enrollment for life.
Two details matter. There is a two-year waiting period before full coverage begins; if you die during it, the VA returns every premium you paid plus interest — 4.23% for a death in 2026, per VA.gov. And the $40,000 cap is built for final expenses, not income replacement. VALife and VGLI are designed to work together — the VA itself describes them as complementary. Our full VALife guide walks through eligibility and the waiting period in plain terms.
Private life insurance for veterans
Private life insurance — a policy from an A-rated carrier rather than the VA — is the third path, and for a healthy veteran it is often the lower long-term cost. The reason is underwriting: underwriting is the carrier’s health review, and if you pass it, a private term policy can lock one level premium for the whole term — 20 or 30 years — instead of stepping up by age band the way VGLI does.
Service alone does not raise your rates. Carriers price on your health, age, and the amount, and most rate veterans the same as anyone else with the same profile. A service-connected condition can affect a private application, which is exactly where VGLI’s no-questions acceptance earns its keep. The honest framing: private coverage rewards good health with lower cost and larger amounts; VGLI rewards everyone with certainty. Plenty of veterans carry both — a private term policy for the big years, VGLI as the floor that can never be taken away.
One thing worth confirming before you buy private coverage: the carrier’s financial strength rating. Independent agencies like AM Best grade insurers on their ability to pay claims, and an A rating or better is the standard to look for. If you already hold a private policy, a free policy review can confirm it is still priced and structured the way it should be.
Want VGLI and a private quote side by side? A licensed professional can run both for your age and amount — no obligation, and you keep whichever costs less.
Call (888) 959-0710VGLI vs. VALife vs. private, side by side
The same questions answer all three. Here they are next to each other, so you can see where each one fits before you choose:
| Question | VGLI | VALife | Private |
|---|---|---|---|
| Best for | Health that makes private coverage costly; certainty. | A permanent floor for final expenses. | Healthy veterans who want a larger amount, lower long-term cost. |
| Max coverage | Up to $500,000 (the SGLI you held). | Up to $40,000, in $10,000 increments. | Varies by carrier — often well above $500,000. |
| Health questions | None within 240 days of separation. | None — guaranteed acceptance. | Yes — a health review (underwriting) sets your rate. |
| Cost over time | Group term, priced in 5-year age bands; steps up. | Whole life; premium locked to enrollment age for life. | Term can lock one level premium for 20–30 years. |
| Type | Renewable term, for life. | Permanent whole life (builds small cash value). | Term or permanent, your choice. |
Source: U.S. Department of Veterans Affairs — va.gov/life-insurance. VGLI and VALife are administered by the VA; private figures vary by carrier and underwriting. Confirm current details on VA.gov.
A simple way to decide
Start with two questions, in order. First: does your health make private coverage costly or uncertain? If yes, VGLI moves to the front — inside the 240-day window it asks no questions and can never be cancelled for health. Second: how long do you need the coverage, and how much? A long horizon and a healthy profile point toward private term; a smaller, permanent need points toward VALife.
Most real answers are a combination, not a single product. A rule of thumb many veterans land on:
- 1.Have a service-connected condition? Lock VGLI inside the 240-day window first — it is the certain path. Then layer the rest.
- 2.Need a large amount for a mortgage or income years? Compare a private 20- or 30-year term policy, which can hold one level premium for the term.
- 3.Want a permanent floor for final expenses? VALife’s guaranteed $40,000 is built for exactly that, and pairs with the above.
- 4.Already healthy with VGLI? Run VGLI’s age bands beside a private quote before you decide — keep whichever costs you less for the years you need it.
When to keep exactly what you have
Sometimes the right answer is to change nothing — and that is worth saying plainly, because nobody makes money telling you so. If you have a service-connected condition and you are holding VGLI, keep it. VGLI can never be cancelled for health reasons, and replacing it with a private policy that asks health questions could cost more or fall through in underwriting. The certainty you already have is the product working.
Two more keep-what-you-have moments. If a private policy you bought years ago is already locked at a low level premium and still fits your need, there is usually no reason to touch it. And never drop coverage you have until the replacement is fully approved and in force — a gap, even a short one, is the one outcome worth avoiding. That is not a sales rule; it is just how to stay covered. When you do want a second set of eyes, our veterans life insurance hub and a no-pressure call are there for it.
Free · No obligation
Not sure which path fits? Let’s walk all three through together.
A licensed professional will look at your health, your timeline, and your budget, then put VGLI, VALife, and a private quote side by side — and tell you straight which fits. If keeping what you have is the right call, you’ll hear exactly that.
Call (888) 959-0710Mon-Sat · 10am-9pm
Questions veterans ask about life insurance
01What life insurance options do veterans have?
Veterans generally have three paths. VGLI lets you keep your service coverage by converting from SGLI, up to $500,000, with no health questions if you apply within 240 days of separating. VALife is guaranteed-acceptance whole life for veterans with any service-connected rating, up to $40,000. And private term or permanent policies from A-rated carriers can offer larger amounts, often at a lower long-term cost if you qualify on health. Most veterans use one of these or a mix.
02What is the best life insurance for veterans?
There is no single best policy — the best one depends on your health, your budget, and how long you need the coverage. VGLI is the surest path for anyone whose health makes private coverage costly, because it asks no health questions inside the 240-day window. A private term policy is often the lower long-term cost for a healthy veteran with a long horizon. VALife is the dependable floor for final expenses. The honest move is to compare all three against your own situation.
03Can veterans keep their military life insurance after service?
Yes, through VGLI. Your SGLI ends shortly after you separate, but you can convert it to Veterans’ Group Life Insurance and carry up to the amount you held, to a maximum of $500,000. Apply within 240 days of separation and no health questions are asked. You have a longer overall window — up to 1 year and 120 days — but health questions may apply after the first 240 days. Current steps are on VA.gov.
04Is VGLI cheaper than private life insurance?
It depends on your age and health. VGLI is group term coverage priced in five-year age bands, so the premium holds steady within a band and steps up as you move into the next one. For a veteran in good health with a long horizon, a private term policy can sometimes lock one level premium for the whole term and cost less over the years. For a veteran with a service-connected or other condition, VGLI is often the better value because acceptance is automatic. Comparing both is the only way to know.
05Can I have VGLI and a private policy at the same time?
Yes. They are separate policies and many veterans hold both. A common pattern is to keep VGLI for the certainty it gives, then add a private term policy for extra coverage during the years your family needs the most protection — a mortgage, young children, or income to replace. There is no rule against stacking coverage, and the death benefits add together.
06Should I keep my VGLI or replace it?
Keep it if your health would make private coverage expensive or hard to qualify for — VGLI can never be cancelled for health reasons, which is real security. Consider comparing if you are in good health and have a long horizon, since a private policy may cost less over time. Never drop existing coverage until the replacement is fully approved and in force. A free policy review can confirm where you stand before you change anything.