Life Insurance for Veterans: VA Benefits and Beyond

Life Insurance for Veterans: VA Benefits and Beyond

If you served in the United States military, you have access to life insurance options that most civilians do not — including programs administered by the Department of Veterans Affairs that provide affordable coverage regardless of service-connected health conditions. But VA coverage alone may not be enough.

VA Life Insurance Programs

Servicemembers' Group Life Insurance (SGLI)

SGLI provides automatic coverage for active duty service members: up to $500,000 in $50,000 increments for just $25 per month. It is one of the best deals in life insurance. If you are still on active duty, max out your coverage and keep beneficiary designations current. SGLI ends 120 days after separation from service.

Veterans' Group Life Insurance (VGLI)

VGLI allows you to convert SGLI to civilian group coverage after separation. Up to the SGLI amount you had (max $500,000). Within 240 days of separation, acceptance is guaranteed regardless of health with no medical exam.

However, VGLI premiums increase significantly every five years:

Compare that to a private $400,000, 20-year term policy at roughly $25 to $35 per month with level premiums. For healthy veterans, private term insurance is often significantly cheaper long-term.

Service-Disabled Veterans' Insurance (S-DVI)

Available to veterans with a service-connected disability rated by the VA. Up to $10,000 basic coverage plus $30,000 supplemental. Must apply within two years of receiving a new disability rating. Premiums are waived for supplemental coverage for totally disabled veterans.

Veterans Affairs Life Insurance (VALife)

A newer program for veterans with any service-connected disability rating. Up to $40,000 in whole life coverage with guaranteed acceptance and no medical underwriting. Cash value accumulates over time.

When VA Benefits Are Not Enough

Low coverage limits. Combined VA coverage caps well below what most families need. If you have a mortgage, children, and a spouse, you likely need $500,000 to $1,500,000 or more.

Increasing premiums. VGLI premiums rise every five years, becoming very expensive by age 50 and beyond.

Limited policy types. VA programs do not offer the variety of term life and whole life products available on the private market.

Private Life Insurance for Veterans

If You Are Healthy

Compare VGLI rates to private term life insurance. In most cases, private term offers level premiums, higher coverage amounts, conversion options, and rider options — often at lower total cost.

If You Have Service-Connected Conditions

Many service-connected conditions are insurable on the private market:

• PTSD: Treated, stable PTSD with no hospitalizations in two to three years is often insurable at Standard or Substandard rates.
• Hearing loss and tinnitus: Minimal impact on life insurance rates.
• Orthopedic injuries: Rated based on severity. Many are insurable at Standard rates.
• Traumatic brain injury: Depends on severity. Mild TBI with full recovery is often insurable.

Work with a broker experienced with veteran applicants who knows which carriers are most favorable for specific conditions.

The Optimal Strategy

1. Keep your VA coverage as a baseline, especially S-DVI and VALife for disabled veterans.
2. Supplement with private term life insurance to reach your total coverage target.
3. Compare VGLI vs. private if healthy — you may replace VGLI with cheaper private coverage.
4. Use our coverage calculator to determine your total family protection need.

Take Action

You served your country. Now make sure your family is protected. VA insurance programs are valuable but rarely sufficient on their own.

Get a free quote to see how private life insurance complements your VA benefits. Explore options by state or browse our resources for veterans-specific guidance.