SGLI vs VGLI: Complete 2026 Comparison Guide for Military Life Insurance

If you’re an active duty servicemember or a veteran transitioning to civilian life, understanding the difference between Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) is critical to protecting your family’s financial future. These two government-sponsored programs provide up to $500,000 in coverage — but they work very differently, and the transition from SGLI to VGLI can be expensive if you don’t plan ahead.

In 2026, SGLI remains one of the best life insurance deals in America at just $26/month for $500,000 of coverage. But that coverage expires 120 days after you leave the military. VGLI lets you keep coverage after separation — but premiums increase every five years and can become prohibitively expensive as you age. This guide breaks down every difference between SGLI and VGLI, compares costs side by side, and shows you when a private term policy might save you thousands.

What Is SGLI? Servicemembers’ Group Life Insurance Explained

SGLI is a group term life insurance program administered by the Department of Veterans Affairs (VA) for active duty members of the uniformed services. All active duty servicemembers are automatically enrolled for the maximum $500,000 of coverage unless they opt out or reduce coverage through milConnect.

SGLI Key Features (2026)

• Coverage amount: Up to $500,000 (can be reduced in $50,000 increments)
• Monthly premium: $0.05 per $1,000 of coverage + $1.00 for TSGLI. Full $500,000 = $26/month
• TSGLI included: Traumatic Injury Protection provides up to $100,000 for severe injuries
• No medical exam: All servicemembers qualify regardless of health
• Flat rate: Same premium regardless of age, gender, or health status
• War/terrorism coverage: Pays for all deaths including acts of war — most commercial policies exclude this
• Automatic payroll deduction: Premium deducted from military pay
• Coverage ends: 120 days after separation from service

What Is VGLI? Veterans’ Group Life Insurance Explained

VGLI is the post-service continuation of SGLI. When you leave the military, you can convert your SGLI coverage to VGLI without a medical exam — but you must apply within 1 year and 120 days of separation. After that window closes, you lose eligibility permanently.

VGLI Key Features (2026)

• Coverage amount: Up to $500,000 (initially matches your SGLI amount; can increase by $25,000 every 5 years)
• No medical exam: If you apply within 240 days of separation. After 240 days, you may need to answer health questions
• Age-based premiums: Rates increase every 5 years based on your age bracket
• Lifetime coverage: Renewable for life as long as you pay premiums
• Convertible: Can be converted to a permanent commercial policy at any time without a medical exam
• Coverage cap at age 60: Cannot increase coverage after age 60

SGLI vs VGLI: Head-to-Head Comparison Table

Feature	SGLI	VGLI
Eligibility	Active duty, Ready Reserve, National Guard	Veterans within 1 year 120 days of separation
Max Coverage	$500,000	$500,000
Premium Structure	Flat $0.05/$1,000 + $1 TSGLI = $26/month for $500K	Age-based, increases every 5 years
Medical Exam Required	No — automatic enrollment	No — if applied within 240 days of separation
TSGLI Coverage	Yes — up to $100,000 for traumatic injuries	No — TSGLI ends with SGLI
War/Terrorism Exclusion	No exclusions — covers all deaths	No exclusions — same as SGLI
Coverage Duration	Ends 120 days after separation	Lifetime (as long as premiums are paid)
Premium Payment	Automatic payroll deduction	Direct bill or automatic bank draft
Conversion Option	Convert to commercial policy within 120 days of separation	Convert to commercial policy at any time
Coverage Increases	N/A — fixed at enrollment	$25,000 every 5 years until age 60
Accelerated Death Benefit	Yes — up to 50% for terminal illness	Yes — up to 50% for terminal illness

VGLI Premium Rates by Age: Complete 2026 Cost Table

This is where VGLI gets expensive. Unlike SGLI’s flat $26/month rate, VGLI premiums climb steeply with age. Here are the current 2026 monthly premiums for $500,000 of VGLI coverage:

Age Bracket	Monthly Premium ($500K)	Annual Cost	Cost Per $1,000 of Coverage
Under 30	$30	$360	$0.06
30–34	$35	$420	$0.07
35–39	$42	$504	$0.084
40–44	$55	$660	$0.11
45–49	$75	$900	$0.15
50–54	$110	$1,320	$0.22
55–59	$170	$2,040	$0.34
60–64	$260	$3,120	$0.52
65–69	$400	$4,800	$0.80
70–74	$600	$7,200	$1.20
75+	$900+	$10,800+	$1.80+

Rates are approximate 2026 figures. Actual VGLI rates are published by the VA and may adjust annually. Check va.gov/life-insurance for the most current rate schedule.

VGLI vs. Private Term Life Insurance: Cost Comparison

Here’s the critical question most veterans face: should you keep VGLI or buy a private term policy instead? For young, healthy veterans, private term insurance is almost always cheaper. For older veterans or those with health conditions, VGLI’s no-exam guarantee can be worth the higher cost.

VGLI vs. Private 20-Year Term: $500,000 Coverage, Male Non-Smoker

Age at Separation	VGLI Monthly Premium	Private Term (Preferred Health)	Annual Savings with Private Term
25	$30	$18–$22	$96–$144/year
30	$35	$19–$24	$132–$192/year
35	$42	$22–$28	$168–$240/year
40	$55	$30–$38	$204–$300/year
45	$75	$45–$58	$204–$360/year
50	$110	$68–$88	$264–$504/year
55	$170	$105–$140	$360–$780/year

For a 30-year-old veteran separating from service, choosing a private 20-year term policy over VGLI saves approximately $150/year — and locks in a level premium for 20 years instead of facing VGLI’s 5-year rate increases. Over 20 years, the savings can exceed $5,000.

When VGLI Is the Better Choice

Despite the higher cost, VGLI is the right choice in several scenarios:

• You have a serious health condition: VGLI requires no medical exam within 240 days of separation. If you have diabetes, heart disease, cancer history, or PTSD, private carriers may decline you or charge table-rated premiums that exceed VGLI rates.
• You need coverage past age 70: Most private term policies expire by age 75–80. VGLI is renewable for life — a 75-year-old veteran can still keep coverage (though at $900+/month).
• You want guaranteed conversion to permanent insurance: VGLI can be converted to a whole life policy at any time without a medical exam. This is valuable if you develop a health condition later in life.
• You’re deployed to a combat zone: SGLI covers war-related deaths. If you’re separating and heading to a high-risk civilian job (private security contracting overseas), VGLI maintains that war exclusion waiver that commercial policies don’t offer.

When Private Term Insurance Beats VGLI

• You’re under 50 and in good health: Private term rates are 20–50% cheaper than VGLI for healthy veterans under 50.
• You want level premiums for 20–30 years: VGLI rates increase every 5 years. A private 30-year term policy locks in the same rate from age 30 to 60 — no surprises.
• You need more than $500,000 coverage: SGLI/VGLI cap at $500,000. If your family needs $750,000–$1,000,000, you’ll need private coverage regardless.
• You want living benefits: Many private carriers now include accelerated death benefit riders for chronic illness, critical illness, and terminal illness — benefits that go beyond VGLI’s terminal illness-only accelerated benefit.

The SGLI-to-VGLI Transition Timeline: Critical Deadlines

Missing a deadline can cost you coverage permanently. Here’s the exact timeline every servicemember needs to know:

1. Day 0 — Separation from service: SGLI coverage continues for 120 days at no cost to you (premium-free coverage period).
2. Day 1–120 — Free SGLI extension: You’re still covered. If you die during this period, your beneficiary receives the full SGLI benefit. Use this time to compare VGLI vs. private options.
3. Day 120 — SGLI expires: Coverage ends. You must have VGLI or private coverage in place by this date to avoid a gap.
4. Day 1–240 — No-exam VGLI window: Apply for VGLI within 240 days of separation and no medical exam is required. After 240 days, you may need to answer health questions.
5. Day 240–485 (1 year + 120 days) — Late VGLI application: You can still apply for VGLI, but you’ll need to answer health questions and may be denied based on your health status.
6. After 1 year + 120 days — VGLI eligibility ends: You can no longer apply for VGLI. Your only option is private insurance.

How to Convert SGLI to a Private Policy (VGLI Alternative)

Within 120 days of separation, you can convert your SGLI to an individual commercial policy through a participating carrier — without a medical exam. This is different from VGLI conversion and can get you better rates. Here’s how:

1. Request Form SGLV 8286 from the VA or download it from benefits.va.gov/insurance
2. Choose a participating carrier: Major carriers like Prudential, MetLife, and New York Life participate in the SGLI conversion program
3. Select a permanent policy type: The conversion must be to a permanent policy (whole life, universal life) — not term
4. Apply within 120 days: The conversion privilege expires 120 days after separation
5. No medical exam required: The carrier must accept you at standard rates regardless of health

This conversion option is especially valuable for servicemembers who developed health conditions during service — it guarantees access to permanent life insurance at standard rates that would otherwise be unavailable or prohibitively expensive.

SGLI and VGLI Beneficiary Designations: What You Must Know

One of the most overlooked aspects of SGLI/VGLI is beneficiary management. The VA’s Office of Servicemembers’ Group Life Insurance (OSGLI) pays benefits based on your SGLI/VGLI designation — not your will. If your SGLI designation lists an ex-spouse from 10 years ago, that ex-spouse receives the $500,000, regardless of what your current will says.

• Update through milConnect: Active duty members update SGLI beneficiaries via milConnect (milconnect.dmdc.osd.mil)
• Update through VA: Veterans update VGLI beneficiaries through the VA Insurance Center (1-800-419-1473)
• Review after major life events: Marriage, divorce, birth of a child, death of a named beneficiary — update immediately
• Name contingent beneficiaries: If your primary beneficiary dies before you, the contingent receives the benefit

Frequently Asked Questions About SGLI and VGLI

Can I have both SGLI and private life insurance?

Yes. SGLI’s $500,000 cap may not be enough for families with mortgages, children’s education costs, and income replacement needs. Many servicemembers supplement SGLI with a private term policy for additional coverage. There’s no restriction on owning multiple policies — your beneficiaries receive the death benefit from each.

Is VGLI worth it for a healthy 30-year-old veteran?

Usually not. A healthy 30-year-old can get a 30-year $500,000 private term policy for $19–$24/month — cheaper than VGLI’s $35/month, and the rate stays level for 30 years instead of increasing every 5 years. Over 30 years, the private policy saves $5,000–$8,000. The only reason to choose VGLI at 30 is if you have a health condition that would make private insurance expensive or unavailable.

What happens to my SGLI if I’m deployed?

SGLI coverage continues during deployment, and in some cases, premiums are waived. If you’re deployed to a combat zone or qualifying hazardous duty area, you may not have to pay SGLI premiums during the deployment. Coverage remains in full force — including TSGLI traumatic injury protection.

Can I reduce my VGLI coverage to save money?

Yes. You can reduce VGLI coverage in $10,000 increments at any time. Many older veterans reduce coverage as their financial obligations decrease — for example, dropping from $500,000 to $200,000 after the mortgage is paid off. Reduced coverage means lower premiums, but you cannot increase coverage again after age 60.

Does VGLI cover deaths from service-connected disabilities?

Yes. VGLI pays the full death benefit regardless of cause of death, including deaths related to service-connected disabilities. There are no exclusions for pre-existing conditions, PTSD-related deaths, or any other cause. This is one of VGLI’s strongest features — commercial policies may have contestability periods or exclusions that VGLI does not.

How do I file an SGLI or VGLI claim?

Beneficiaries file claims using VA Form SGLV 8283, available at benefits.va.gov/insurance/forms. The claim requires a certified death certificate and the veteran’s SGLI/VGLI certificate number if available. OSGLI typically processes claims within 30–60 days. Beneficiaries can choose to receive payment as a lump sum check, electronic transfer, or 36 monthly installments.

Can I get VGLI if I’m in the National Guard or Reserves?

Yes, if you had SGLI coverage while serving. National Guard and Reserve members who had full-time SGLI coverage during active duty periods are eligible for VGLI upon separation. Part-time Reserve members with part-time SGLI coverage may have different eligibility rules — check with the VA Insurance Center for your specific situation.

Related Resources

• VA.gov — VGLI Official Page — Current rates, application forms, and eligibility details
• VA Life Insurance Center — All SGLI, VGLI, and TSGLI program information
• AM Best Insurance Ratings — Check private carrier financial strength before converting

If you’re exploring private alternatives to VGLI, see our SGLI to private term conversion guide for step-by-step instructions. For veterans with service-connected conditions, our life insurance for veterans with PTSD guide covers underwriting considerations. And if you’re comparing coverage amounts, our SGLI/VGLI cost comparison calculator lets you run the numbers for your specific age and coverage needs.

Ready to compare private term rates against VGLI? Use our free quote tool to see real rates from 10+ top-rated carriers. Enter your age and coverage amount to see if private insurance beats VGLI for your situation. Get your free quotes now →