Veterans’ Group Life Insurance (VGLI): Continuing Life Insurance Coverage After Military Service
Veterans’ Group Life Insurance (VGLI) is a vital benefit for U.S. veterans transitioning from military life to civilian status, allowing them to maintain life insurance coverage by converting their Servicemembers’ Group Life Insurance (SGLI) into renewable term life insurance. This guide dives deep into VGLI eligibility, enrollment windows, coverage details, premiums, application process, advanced features, and real-life examples to help veterans secure lifelong financial protection.
What Is Veterans’ Group Life Insurance (VGLI)?
VGLI is a federal life insurance program managed by the Office of Servicemembers’ Group Life Insurance (OSGLI) and overseen by the Department of Veterans Affairs (VA). It provides veterans the ability to continue their life insurance coverage after separation from active military duty—even if their health has changed significantly since service—as long as premiums are maintained.
Unlike many civilian plans that require medical underwriting after employment changes, VGLI offers a guaranteed renewal term life insurance to separated veterans formerly covered under SGLI, preserving their coverage options without the need for new health exams during initial eligibility.
Eligibility: Who Can Apply for VGLI?
To qualify for VGLI, veterans must meet one or more of the following:
- Had SGLI coverage at separation from active duty—must have been insured for at least 31 days prior to separation.
- Are within 1 year and 120 days (approximately 16 months) from separation, end of Ready Reserve or National Guard duty, or placement on Temporary Disability Retirement List (TDRL).
- Were assigned to the Individual Ready Reserve (IRR) or Inactive National Guard (ING) during the eligibility window.
- Veterans with a duty-related injury or disability while covered by part-time SGLI and considered uninsurable at standard rates may also qualify.
Key Enrollment Windows
- First 240 days (8 months) after separation:
No health questions or medical exams are required. This is the prime window for sure approval at standard rates. - Between day 241 and 1 year plus 120 days:
Veterans must provide proof of good health (evidence of insurability) to enroll. - After 1 year and 120 days:
Generally not eligible, though certain exceptions may apply, especially for disabled veterans or other specific cases.
Note: Applying within the initial 240-day window is strongly recommended to avoid health-related underwriting.
Coverage Amounts and Options
| Feature | Details |
|---|---|
| Minimum Coverage | $10,000 |
| Maximum Coverage | Up to the amount of SGLI coverage at separation (maximum $500,000) |
| Increment Size | Increases/decreases in $10,000 increments |
| Coverage Increase Option | Increase by $25,000 increments on 1-year anniversary and every 5 years thereafter until age 60 with no health check required |
| Coverage Decrease | Allowed at any time, with the option to restore coverage within 5 years requiring health evidence |
| Renewable for Life | As long as premiums are paid, lay inactive or lapse options possible with reinstatement |
| Conversion to Permanent Life | Available anytime with participating private insurers regardless of health status |
Premiums: Understanding VGLI Costs
VGLI premiums are:
- Age-Based: Rates adjust every 5 years to reflect actuarial risk (e.g., age groups like 30–34, 35–39, etc.).
- Standardized Across Veterans: No variations based on gender, smoking status, occupation, or health.
- Payment Methods: Monthly, quarterly, or annual premium payment options with discounts for annual payments.
- Automatic Payment: Premiums can be auto-deducted from military retirement pay, VA compensation, or personal bank accounts.
- Lapse Policy: Coverage lapses if premiums are unpaid for 60 days past due; reinstatement possible with health proof.
Example Premiums for $500,000 Coverage (Estimates)
| Age | Monthly Premium Approx. |
|---|---|
| 30 | ~$40 |
| 50 | ~$145 |
| 80 | ~$2,200 |
Actual premiums vary; veterans should confirm current rates from VA or OSGLI.
How to Apply for VGLI: Step-by-Step
Application Methods
- Online: Apply through the OSGLI or Prudential website—fast and convenient.
- Mail or Fax: Send completed SGLV 8714 form with first premium and proof of separation (DD-214 or latest military leave & earnings statement).
Required Documents
- SGLV 8714 (Application for VGLI)
- Separation papers (DD-214 or Leave and Earnings Statement)
- Payment for first premium
Processing
- Applications must be received during the eligibility window.
- Coverage activates once premium payment and paperwork are accepted.
- Confirmation and insurance certificates are mailed to veterans once approved.
Reinstatement
- Missed payments leading to coverage lapse can be reversed if applied within a specific time frame by submitting SGLV 180 form and submitting evidence of insurability (health exam or statement).
Advanced Features and Flexibility
Conversion to Permanent (Whole) Life Insurance
VGLI policyholders can at any time convert their term coverage to a permanent life insurance policy with participating private insurers without undergoing new health screenings. This option provides:
- Cash value accumulation
- Lifelong coverage
- Potential to borrow against policy value
Increased Coverage Without Health Checks
Veterans can increase coverage by $25,000 increments once after the first year anniversary of their VGLI enrollment and every 5 years thereafter until age 60 without demonstrating good health.
Coverage Adjustments
Veterans may decrease their coverage whenever they choose and restore any reduced amounts within five years (requiring proof of good health).
Why VGLI Matters for Veterans
- Guaranteed Continuity: Seamless continuation of life insurance after military separation.
- No Medical Exams Initially: Essential for veterans who have developed medical conditions post-service.
- Financial Security: Provides peace of mind, ensuring families are protected for loss of income, debts, and final expenses.
- Flexibility: Adjustable coverage amounts and options for conversion.
- Access for Disabled Veterans: Even those uninsurable on the open market can retain coverage.
- Affordable & Predictable Premiums: No surprises due to standardized rates irrespective of health changes.
Practical Scenarios
Scenario 1: Applying Early to Avoid Health Questions
John, an Army veteran, separates with $400,000 in SGLI coverage. He applies for VGLI within 200 days after separation, avoiding health evidence and locks in his coverage with premiums based on age. He maintains coverage by paying premiums monthly.
Scenario 2: Increasing Coverage Over Time
Maria, a Marine veteran, initially selects $200,000 of VGLI coverage. On her one-year anniversary, she increases coverage by $25,000, and repeats every five years until she reaches the $500,000 max before age 60.
Scenario 3: Health Challenges Post-Service
David develops a serious health condition after separating. He enrolls in VGLI within 240 days and is accepted without medical exams, ensuring protection despite his health issues.
Veterans Group Life Insurance (VGLI) FAQ: Your Top Questions Answered
What is Veterans Group Life Insurance (VGLI)?
VGLI is a renewable term life insurance program for U.S. veterans that allows you to convert your Servicemembers’ Group Life Insurance (SGLI) into civilian coverage after leaving military service.
Who is eligible for VGLI?
You are eligible if you had SGLI coverage on active duty and apply within 1 year and 120 days after separation or leaving the Ready Reserve/National Guard. Veterans with duty-related disabilities also qualify under special conditions.
How do I apply for VGLI?
You can apply online through the OSGLI website or by mailing the SGLV 8714 form with your separation papers (DD-214) and first premium payment within the eligibility window.
Is there a medical exam required to enroll in VGLI?
No medical exam is required if you apply within the first 240 days following separation. After that, you must provide proof of good health (evidence of insurability) to enroll.
How much coverage can I get with VGLI?
Coverage ranges from $10,000 up to the amount of SGLI coverage you had at separation (maximum $500,000), in increments of $10,000.
Can I increase or decrease my VGLI coverage later?
Yes. You may decrease coverage anytime and increase it by $25,000 increments on the 1-year anniversary and every five years afterward until age 60, without a health exam.
What are VGLI premiums and how are they paid?
Premiums are age-based, standardized for all veterans regardless of gender or smoking status. Payments can be made monthly, quarterly, or annually, and can be automatically deducted from military retirement pay, VA compensation, or your bank account.
What happens if I miss a premium payment?
Coverage will lapse if premiums are not paid within 60 days of the due date, but you can apply for reinstatement by submitting proof of good health.
Can I convert VGLI to permanent life insurance?
Yes, VGLI can be converted at any time to a permanent (whole) life insurance policy with participating private insurers without new health requirements.
What if I return to active duty after enrolling in VGLI?
If you return to active duty, you will have SGLI coverage again. However, the combined SGLI and VGLI coverage cannot exceed $500,000.
Where can I find official VGLI information and apply?
Visit the Office of Servicemembers’ Group Life Insurance (OSGLI) website or the VA’s official site for detailed information, application forms, and premium calculators.
Q: Can I convert VGLI to permanent life insurance?
A: Yes. Veterans can convert VGLI coverage to permanent life insurance with participating private companies anytime, without new health exams.
Q: What happens if I miss a premium payment?
A: Coverage lapses if payment isn’t made within 60 days past the due date, but reinstatement is possible by submitting health evidence.
Q: Can I change my coverage amounts?
A: Yes. You can decrease coverage anytime and increase by $25,000 increments on specific anniversaries up to age 60.
Q: What occurs if I return to active duty?
A: If you return to active duty, you regain SGLI coverage. However, the combined total of SGLI and VGLI cannot exceed $500,000.
Q: How do I pay premiums?
A: Via monthly, quarterly, or annual payments, with options for automatic deductions from military retirement pay, VA benefits, or bank accounts.
Summary
Veterans’ Group Life Insurance (VGLI) offers a flexible, affordable, and comprehensive life insurance solution ensuring coverage continuity post-military service. By understanding eligibility, enrollment deadlines, premiums, and policy features, veterans can confidently secure lifelong protection for themselves and their loved ones, regardless of health changes after service.
To maximize benefits, veterans should apply as early as possible following separation, leverage coverage increase options, and consider conversion to permanent insurance for extended security. enrolls in VGLI within 200 days, avoiding health exams, and maintains her coverage as she transitions to civilian life, ensuring her family remains protected.
Read more:
Military Insurance – Military Insurance
- Servicemembers’ Group Life Insurance – Servicemembers’ Group Life Insurance
- TRICARE Program – TRICARE Program