Life Insurance for Veterans: VA Coverage vs Private Policies

VA Life Insurance Programs for Veterans

Veterans have access to several government-sponsored life insurance programs that civilians cannot get. Understanding what is available — and what each program actually covers — helps you decide whether VA coverage alone is sufficient or whether a private policy fills a gap.

SGLI: Servicemembers Group Life Insurance

SGLI provides coverage while you are on active duty. It offers up to $500,000 in coverage at a low group rate — currently $0.06 per $1,000 per month. It is automatic unless you decline it.

SGLI ends when you separate from service. You have 120 days to convert it to VGLI or a private policy without a medical exam.

VGLI: Veterans Group Life Insurance

VGLI is the post-service continuation of SGLI. You can convert your SGLI coverage to VGLI within one year and 120 days of separation without medical underwriting. After that window, you must qualify medically.

VGLI premiums increase significantly with age. At age 30, VGLI for $400,000 runs roughly $32/month — competitive with private term insurance. At age 60, the same coverage exceeds $556/month. Private term insurance locks in a rate for the full term length, making it far cheaper over a 20 or 30-year period.

VGLI is best as a bridge — keep it while transitioning to civilian life, then replace it with a private policy while you are still young and healthy.

Service-Disabled Veterans Insurance (S-DVI)

If you have a service-connected disability rating, you may qualify for S-DVI. This provides up to $10,000 in whole life insurance at low rates, regardless of your disability. Veterans who are totally disabled can receive up to $30,000 in free coverage.

S-DVI does not replace a family income needs — the coverage amount is too small. Think of it as supplemental coverage.

Veterans Mortgage Life Insurance (VMLI)

VMLI is available to severely disabled veterans who received a Specially Adapted Housing grant from the VA. It covers your mortgage balance — up to $200,000 — and decreases as you pay off the loan. It is not a general life insurance policy.

Private Life Insurance for Veterans

Most veterans qualify for private life insurance without complications. A service history does not automatically raise your rates or disqualify you.

Exceptions include:

• Active combat deployments (some policies exclude death during war)
• PTSD or other mental health conditions flagged in medical records
• Physical injuries that affect health classification

Veterans with a disability rating should work with a broker who specializes in high-risk or impaired-risk underwriting. Many will qualify for standard or preferred rates even with a disability.

Comparing Costs: VGLI vs Private Term

Private term insurance almost always wins on price, especially if you lock in rates while young. The only advantage of VGLI is that you cannot be declined for health reasons if you convert within the initial window.

What Most Veterans Should Do

1. Keep SGLI active while on duty — the rate is hard to beat.
2. Convert to VGLI immediately upon separation to protect insurability.
3. Shop private term insurance within the first six months after separation, while health is still fresh.
4. Replace VGLI with private coverage once you secure a policy — unless a health issue prevents you from qualifying.

Veterans with service-connected disabilities should apply for S-DVI as soon as they receive their rating. The free coverage for totally disabled veterans is genuinely valuable.