Life Insurance for Veterans in 2026: SGLI, VGLI, and Private Coverage — Best Rates Compared

If you’ve served in the U.S. military, you have access to life insurance options that civilians don’t — but those options can also be confusing. Between SGLI (Servicemembers’ Group Life Insurance), VGLI (Veterans’ Group Life Insurance), the newer VALife program, and the private insurance market, choosing the right coverage isn’t always straightforward. In this 2026 guide, we break down every option available to veterans, compare real rates, and help you decide which path gives you the best protection for your family.

We analyzed premium data from the VA, private carrier rate cards, and independent agent quoting platforms to give you a complete, unbiased comparison. Whether you’re recently separated, a retiree, or a veteran who’s been out for decades, this guide covers what you need to know.

SGLI vs. VGLI vs. Private Insurance: The Quick Comparison

The three main paths for veterans’ life insurance each serve different stages of your military career and post-service life. Here’s how they compare at a glance:

Feature	SGLI (Active Duty)	VGLI (Post-Service)	Private Term Life
Coverage Amount	Up to $500,000	Up to $500,000 (SGLI amount)	$100,000–$5,000,000+
Medical Exam	None	None (if converted within 240 days)	Usually required (some no-exam options)
Age Limits	Covers all active-duty ages	Available to any age (rate increases with age)	Term typically available to age 75
Premiums	Flat rate: ~$31/month for $500K	Age-banded, increases every 5 years	Level premiums for term duration
Service-Connected Disability	No impact on rates	No impact (standard rates for all veterans)	May affect rates or eligibility
Convertible to Permanent	Yes → VGLI	Yes → commercial permanent policy	Depends on policy
Best For	Active-duty servicemembers	Veterans within 1–2 years of separation	Veterans 2+ years post-separation

SGLI: Coverage While You Serve

SGLI (Servicemembers’ Group Life Insurance) is automatic low-cost term life insurance for active-duty members, reservists, and members of the National Guard. It’s one of the best deals in life insurance — a flat ~$31/month for $500,000 in coverage, with no underwriting. There’s also a traumatic injury protection (TSGLI) component that pays out for severe injuries.

• Coverage: Up to $500,000 in $50,000 increments
• Cost: 6 cents per $1,000 of coverage (~$31/month for max coverage)
• TSGLI: $1/month for traumatic injury coverage (automatic with full SGLI)
• Key limitation: Coverage ends 120 days after separation from service

VGLI: The Bridge After Service

VGLI (Veterans’ Group Life Insurance) lets you convert your SGLI coverage to a renewable term policy after you leave the military. You have 240 days from separation to apply with no medical exam. After that window, you can still apply within 1 year and 120 days, but you’ll need to answer health questions. After 1 year and 120 days, you must provide evidence of good health.

Here’s the critical thing about VGLI that many veterans miss: the premiums increase every 5 years based on your age. What looks affordable in your 30s can become very expensive by your 50s and 60s.

Age Bracket	VGLI Monthly Rate (per $1,000)	$500,000 Coverage Monthly Cost	Annual Cost
Under 30	$0.08	$40	$480
30–34	$0.10	$50	$600
35–39	$0.13	$65	$780
40–44	$0.17	$85	$1,020
45–49	$0.25	$125	$1,500
50–54	$0.45	$225	$2,700
55–59	$0.83	$415	$4,980
60–64	$1.50	$750	$9,000
65–69	$2.25	$1,125	$13,500
70–74	$3.60	$1,800	$21,600

At age 55, you’re paying $4,980/year for $500,000 in VGLI coverage. A healthy 55-year-old could get a 20-year level term policy on the private market for $1,500–$2,500/year — less than half the cost. This is why most financial advisors recommend veterans convert from VGLI to a private term policy within 2–5 years of separation, especially if they’re in good health.

VALife: The New VA Option for Veterans with Service-Connected Disabilities

Launched in January 2023, VALife (Veterans Affairs Life Insurance) is a newer whole life insurance program for veterans with VA-rated service-connected disabilities. Unlike S-DVI (the program it replaced), VALife offers guaranteed acceptance with no medical underwriting and coverage up to $40,000.

• Eligibility: Veterans age 80 or under with a VA service-connected disability rating (0% to 100%)
• Coverage: $10,000 to $40,000 in $10,000 increments
• Type: Whole life (builds cash value over time)
• Underwriting: None — guaranteed acceptance for eligible veterans
• 2-year waiting period: Full death benefit applies after 2 years; during the waiting period, premiums paid plus interest are returned
• Key limitation: $40,000 maximum may not be enough for most families’ needs — consider supplementing with private coverage

Private Life Insurance for Veterans: When It’s the Better Choice

For most veterans more than 2 years past separation — especially those in good health — private term life insurance offers significantly better value than VGLI. Here’s why:

1. Lower long-term cost: A level term policy locks in your rate for 20 or 30 years. VGLI increases every 5 years, becoming dramatically more expensive as you age.
2. Higher coverage amounts: Private policies routinely offer $1–5 million, while VGLI caps at $500,000.
3. More policy options: You can choose from term, whole life, universal life, indexed universal life, and no-exam policies — tailoring coverage to your exact needs.
4. Living benefits: Many private policies include accelerated death benefit riders at no extra cost, paying out if you’re diagnosed with a terminal, chronic, or critical illness.
5. Better pricing for healthy veterans: If your military service didn’t result in significant health issues, you’ll qualify for preferred or preferred-plus rates — often 40–60% cheaper than VGLI over the life of the policy.

Top Life Insurance Companies for Veterans in 2026

Not all insurers handle military service the same way in underwriting. Some are more favorable to veterans — particularly those with service-connected conditions. Based on our analysis of underwriting guidelines and rate comparisons, here are the top carriers for veterans:

Rank	Insurance Company	Best For	Underwriting for Veterans	AM Best Rating
1	USAA	Overall best for military families	Tailored for military; understands deployment history	A++
2	Navy Mutual	Active duty & retired sea service members	Specializes in military; favorable for service-connected conditions	A
3	AAFMAA	Active duty & veterans, competitive term rates	Military-focused; no war exclusion clauses	A
4	Banner Life	Healthy veterans seeking best private term rates	Standard underwriting; competitive for healthy applicants	A+
5	Protective Life	Veterans seeking large coverage amounts ($1M+)	Favorable for most service-connected conditions	A+
6	Mutual of Omaha	Veterans 50+; final expense or smaller policies	Simplified issue available; less strict on minor conditions	A+

How Service-Connected Disabilities Affect Private Life Insurance Rates

This is one of the biggest concerns veterans have when looking at private coverage. The good news: having a VA disability rating does not automatically disqualify you from private life insurance. Underwriters evaluate each condition individually — and many service-connected conditions have minimal impact on rates. Here’s what to expect:

• Tinnitus and hearing loss: Typically standard or better rates. These are among the most common VA disability ratings and rarely affect life insurance pricing.
• PTSD: Depends on severity and treatment. Well-managed PTSD with regular therapy and no hospitalizations often qualifies for standard rates. Severe cases with recent hospitalizations may result in a rating or decline.
• Orthopedic conditions (back, knee, shoulder): Generally standard rates unless the condition severely limits mobility or is associated with chronic pain medication use.
• Sleep apnea: Usually standard or slightly substandard rates if treated with CPAP and compliant. Untreated sleep apnea may result in a table rating.
• Diabetes (service-connected): Well-controlled diabetes with normal A1C typically qualifies for standard rates. Poor control may result in table ratings.
• Agent Orange presumptive conditions: Each condition is evaluated individually. Some (like hypertension) have minimal impact; others (like certain cancers) depend on time since treatment and remission status.

4-Step Action Plan: Get the Best Life Insurance as a Veteran

1. If you’re still on active duty, maximize SGLI: At ~$31/month for $500K, it’s unbeatable. Make sure you’re enrolled at the full amount. Designate your beneficiary through the SGLI Online Enrollment System (SOES).
2. Within 120 days of separation, decide on VGLI: You have 240 days to convert SGLI to VGLI with no medical questions. Use the VA’s VGLI premium calculator to see your age-based rates, then compare against private quotes. If you’re healthy, a 30-year level term policy will almost certainly be cheaper over the long run.
3. If you have a service-connected disability, check VALife eligibility: Visit benefits.va.gov/insurance/valife.asp or call 1-800-669-8477. VALife offers up to $40,000 in whole life coverage with guaranteed acceptance — but $40K may not be enough. Consider it as a supplement to private term coverage.
4. Shop private carriers that understand military service: USAA, Navy Mutual, and AAFMAA specialize in military families. An independent agent can also shop Banner Life, Protective, and other carriers that are veteran-friendly. Get at least 3–5 quotes before deciding.

Additional Resources

For further reading, check out these related guides on LifeQuotesWeb:

• Term Life Insurance: Complete Guide to Affordable Coverage
• No Medical Exam Life Insurance: The Complete 2026 Guide
• Impaired Risk Life Insurance: 2026 Complete Guide to Coverage & Best Companies
• Best Burial Insurance for Seniors in 2026: Top 10 Companies Compared
• Life Insurance for Seniors Over 60: Best Options & Rates

Frequently Asked Questions

Should I keep VGLI or switch to private insurance?

If you’re healthy and under 50, switching to a private level term policy usually saves you money over the long run — often 40–60% cheaper than VGLI after the first 5 years. VGLI premiums increase every 5 years while private term policies lock in your rate for 20–30 years. The exception: if you have a serious health condition that would make private underwriting difficult, VGLI’s no-exam conversion (within 240 days of separation) is a valuable guarantee worth keeping.

Does the VA offer life insurance for disabled veterans?

Yes. VALife (Veterans Affairs Life Insurance) offers guaranteed-acceptance whole life insurance for veterans with any VA-rated service-connected disability. Coverage is available up to $40,000 with no medical underwriting. There is a 2-year waiting period before the full death benefit applies. VALife replaced S-DVI (Service-Disabled Veterans Insurance) in January 2023.

Do veterans get discounts on life insurance?

There’s no universal “veterans discount” on life insurance, but several carriers cater specifically to military families with competitive rates: USAA, Navy Mutual, and AAFMAA. Additionally, some carriers are more lenient in how they underwrite service-connected conditions — effectively offering better rates to veterans than a generic carrier would. The key is working with an agent who understands military underwriting.

Can I have both VGLI and private life insurance?

Yes. There’s no rule against holding multiple life insurance policies. Many veterans carry VGLI initially after separation and later add a private term policy while keeping VGLI — or replacing it entirely. The one consideration: total coverage should align with your actual financial needs. Insurers may ask about existing coverage during underwriting for very large private policies ($1M+), but holding VGLI does not disqualify you from private coverage.

Does PTSD affect life insurance underwriting?

PTSD can affect life insurance underwriting, but having a PTSD diagnosis does not automatically disqualify you. Underwriters look at severity, treatment compliance, and stability. Well-managed PTSD with regular therapy, no recent hospitalizations, and steady employment often results in standard rates. Severe cases involving recent inpatient treatment, suicide attempts, or disability due to PTSD may lead to substandard ratings or declines. Working with a carrier experienced in military underwriting (like USAA or Navy Mutual) is recommended.

External resources: VA Life Insurance Program | VA.gov Life Insurance Portal | NAIC Consumer Guide