The VA offers several life insurance programs for veterans and service members. Here's a comparison of SGLI, VGLI, and Veterans Affairs Life Insurance (VALife).
Life insurance is one of the benefits that transitions with you from military service to veteran status, but the options change at each stage. Understanding which VA life insurance programs you're eligible for — and when you need to act — can prevent gaps in coverage and save you money.
Servicemembers' Group Life Insurance (SGLI) covers you while you're on active duty. The maximum coverage is $500,000, and it's available at very low rates. When you separate from service, SGLI continues for 120 days at no cost, and you can convert it to Veterans' Group Life Insurance (VGLI) without a medical exam as long as you apply within the first 240 days after separation.
Veterans' Group Life Insurance (VGLI) is the most straightforward conversion from SGLI. It's renewable 5-year term insurance available in amounts from $10,000 to $500,000. The rates are age-based and increase at each 5-year renewal. For younger veterans, VGLI rates are competitive with private insurance. For older veterans, the rates become more expensive — which is why many financial advisors recommend using the 240-day conversion window to lock in coverage while also shopping for a private term or whole life policy that may offer better long-term rates.
Veterans Affairs Life Insurance (VALife) became available in 2023 and has replaced the older S-DVI program. It provides whole life insurance coverage up to $40,000 for veterans with service-connected disabilities rated between 0% and 100%. There's no time limit to apply — you can apply at any age as long as you have a service-connected disability. VALife is guaranteed issue (no medical underwriting), which makes it particularly valuable for veterans with health conditions that might make private insurance difficult or expensive to obtain.
The key action item: don't let your SGLI lapse without a plan. Apply for VGLI within 240 days of separation, and consider VALife if you have a service-connected disability and need additional coverage.