Military life insurance: SGLI, VGLI & private options

A staff sergeant clears out his barracks room, drives off base for the last time, and assumes his family is still covered. Six months later, it isn’t. Here’s the briefing that prevents that.

Military life insurance comes in three forms. SGLI is the automatic, low-cost coverage you carry while you serve, up to $500,000. VGLI is how you keep it after you separate, by converting your SGLI. A private term policy from a civilian carrier is the third path, and it can sit alongside either one. SGLI and VGLI are run by the VA.

SGLI: coverage while you serve

SGLI — Servicemembers’ Group Life Insurance — is the life insurance that comes with service. For active-duty members and certain reservists it’s automatic: you’re enrolled at the maximum unless you choose a lower amount or opt out. Coverage runs up to $500,000, offered in $50,000 increments, and the premium stays low because it’s a group plan covering a large eligible population at one flat rate.

The detail that catches people off guard is the end date. SGLI is tied to your service, so it ends shortly after you separate. There’s a short grace period of free coverage after separation, but it’s brief — and once it lapses, that protection is gone unless you’ve already set up what comes next. The VA confirms the current amounts and grace-period rules on its SGLI pages.

• Who it covers. Active-duty members and certain reservists, automatically.
• How much. Up to $500,000, in $50,000 increments.
• What it costs. A low, flat group rate while you serve.
• When it ends. Shortly after you separate from service.

Worth knowing: SGLI also includes coverage for a spouse and dependent children through Family SGLI, and a separate program, TSGLI, pays a benefit for certain traumatic injuries. Those are coverages many families never think to check.

VGLI: coverage after you separate

VGLI — Veterans’ Group Life Insurance — is the bridge from service coverage to veteran coverage. It lets you continue your protection after you separate by converting from SGLI. You can carry up to the amount of SGLI you held, to a maximum of $500,000, and the policy is yours to keep for life as renewable, term-style group coverage.

Two features define VGLI. First, the health window: no health questions are asked if you apply within 240 days of separation. You can apply later — up to 1 year and 120 days from separation — but health questions may apply after that first window closes. Second, the pricing: VGLI is group term coverage whose premiums increase with age in five-year bands. It holds steady within a band, then steps up as you move into the next. For the full chart, see our VGLI rates guide and the deeper comparison in SGLI vs. VGLI.

Private life insurance options

Private life insurance is a policy you buy from a civilian carrier, and for many military families it’s the piece that closes the gap. SGLI caps at $500,000. A mortgage, a couple of vehicles, and the cost of raising and educating children can run well past that. A private term policy — coverage for a set number of years, like 20 or 30 — lets you add protection on top of your government coverage, often for a modest monthly premium when you’re young and healthy.

Here’s the difference from VGLI. A private term policy is individually underwritten, meaning the carrier reviews your age and health to set the price. In good health, that can mean a level premium locked for the whole term — it doesn’t step up every five years the way VGLI does. The tradeoff is the underwriting itself: if you have a service-connected or other condition, a private policy can cost more or be harder to qualify for, which is exactly where VGLI’s no-health-questions window earns its keep.

• When private term shines. Good health, a long horizon, and a need above the $500,000 SGLI ceiling.
• What it adds. A level premium for the term, and coverage that isn’t tied to your service status.
• What to confirm. Whether the policy has a military service or aviation clause — some older or specialty policies do; most modern term policies cover service members normally.

The three paths, side by side

The same questions answer all three programs. Here they are next to each other, so you can see where each one fits. The dollar figures are illustrative ranges to show the shape of the cost — not quotes. Your own numbers depend on your age, health, and coverage amount.

Which path fits you (a framework)

There’s no single right answer, so use a short framework instead of a verdict. Run your situation through three questions, in order, and the path usually becomes clear.

1. 1.Are you still serving? Then SGLI is already working for you. The question is whether $500,000 is enough — if not, a private term policy on top is the common fix.
2. 2.Are you separating or recently out? Decide on VGLI first, because the 240-day no-health-questions window is time-sensitive. You can always add or compare private coverage after, but the VGLI window won’t reopen.
3. 3.How’s your health? In good health with a long horizon, price a private term policy — a locked premium can cost less over the years. With a service-connected or other condition, lean on VGLI’s no-health-questions window, and keep it.

For most military families the honest answer isn’t SGLI or VGLI or private — it’s a combination. A government program for the certain, can’t-be-cancelled base, and a private policy to reach the total your family actually needs. If you already hold a policy and want a second set of eyes, a free policy review can confirm where you stand in one unhurried call.

Retired military: what changes

For retired military life insurance, the options are the same — the timeline is what shifts. Retiring is a separation, so your SGLI still ends shortly after, and you can convert to VGLI within the same window: up to 1 year and 120 days, with no health questions in the first 240 days. The clock starts the day you retire, not the day your benefits begin.

Two things change in practice for retirees. First, age matters more for private coverage — a term policy bought at 60 costs more than one bought at 40, so the math between VGLI’s age bands and a new private premium gets closer. Second, retirees often already carry coverage from earlier in their careers, which makes this a review decision rather than a from-scratch one: what to keep, what to convert, and whether there’s still a gap. The VA keeps current figures and any rule changes on VA.gov.

When to keep what you already have

Sometimes the right move is to change nothing — and a good review will tell you so. If you’re still serving and your SGLI comfortably covers your debts and your family’s needs, you’re done; there’s nothing to fix. If you’re a veteran already holding VGLI because a health condition makes private coverage costly, keeping it is usually the smart call, and switching to chase a slightly lower rate could cost you the very acceptance you already have.

The same goes for a private term policy you bought years ago at a good rate when you were younger and healthier — that locked premium is often worth holding, even if a new shopping trip looks tempting. We’ll say it plainly: a review that ends in “keep what you have” is a successful review. You only need to act when there’s a real gap or a window closing — not because someone told you to.