Navigating through Life Insurance
Leaving the military, whether through separation or retirement, involves a long checklist. One of the most critical items on that list is life insurance. Your Service members' Group Life Insurance (SGLI) provided excellent, low-cost coverage while you were in, but that coverage does not automatically follow you into civilian life.
Understanding your options before you transition is key to ensuring your family remains protected. This guide breaks down the VA life insurance programs available to you as a separating service member or veteran.
When you separate from service, your SGLI coverage does not stop immediately.
120-Day Free Coverage
You are covered by SGLI at no cost for 120 days after you separate. This gives you a grace period to get your new coverage in order.
SGLI Disability Extension
If you are totally disabled (unable to work) at the time of your separation, you may be able to apply for the SGLI Disability Extension. This provides free coverage for up to two years from your separation date. At the end of that extension, you are automatically converted to Veterans' Group Life Insurance (VGLI).
What About Family Coverage (FSGLI)?
It's crucial to know that FSGLI spousal coverage also ends 120 days after you separate (or if your SGLI is terminated). You will need to plan for a new policy for your spouse.
VGLI is the most common next step. It is a renewable group term life insurance program that allows you to continue the coverage you had under SGLI.
Who is Eligible?
Service members who had SGLI at the time of separation.
The Application Window is Critical:
- You have one year and 120 days from separation to apply for VGLI.
- IMPORTANT: If you apply within 240 days (about 8 months) of separation, you do not need to submit evidence of good health.
- If you apply after the 240-day period, you will have to answer health questions and may be required to prove you are in good health.
Coverage Amount
You can get VGLI coverage up to the amount of SGLI you had when you separated.
Increasing Coverage
If you are under age 60 and have less than the maximum coverage, you can purchase up to $25,000 of additional coverage every five years, up to the legal maximum ($500,000 as of 2025).
Conversion
You can convert your VGLI policy to a commercial (private) permanent plan at any time with any participating company.
Accelerated Benefits
If you are diagnosed with a terminal illness (a medical prognosis of 9 months or less to live), you can receive up to 50% of your VGLI coverage in advance.
This is a newer, guaranteed-acceptance whole life insurance program for veterans with service-connected disabilities.
Who is Eligible?
Veterans aged 80 and under who have a VA disability rating of 0% to 100%. There is no time limit to apply after you receive your rating (unless you are 81 or older, in which case special rules apply).
Guaranteed Acceptance
There is no medical underwriting or health questions.
Coverage Amount
You can get from $10,000 up to $40,000 in coverage.
How it Works
This is a whole life policy, meaning it builds cash value and does not expire.
Two-Year Waiting Period
The policy's full face amount takes effect two years after enrollment. If you pass away within this initial two-year period, your beneficiary will receive all the premiums you paid plus interest.
This is a specific program designed to protect the homes of veterans with severe disabilities.
Who is Eligible?
Veterans under age 70 who have a severe service-connected disability and have received a Specially Adapted Housing (SAH) Grant from the VA.
What it Covers
This is not a standard life insurance policy. It provides up to $200,000 in coverage paid directly to your mortgage lender if you die. It is designed solely to pay off your mortgage.
Requirements
You must have title to the home and a qualifying mortgage on it.
Navigating these options can be confusing. We strongly recommend you speak with a specialist to determine what is best for your family's needs.
For VGLI, SGLI, and FSGLI Questions:
Phone:
800-419-1473
Hours:
Monday - Friday, 8 a.m. to 5 p.m. ET
Mail:
Office of Service members' Group Life Insurance
P.O. Box 41618
Philadelphia, PA 19176-9913
For VALife, VMLI, and Other VA Insurance Questions:
Phone:
800-669-8477 (or 800-MyVA411 and press 5)
Hours:
Monday - Friday, 8:30 a.m. to 6 p.m. ET
Mail:
U.S. Department of Veterans Affairs Insurance Center
P.O. Box 42954
Philadelphia, PA 19101
For complete details on all programs, visit the official VA Life Insurance website at www.benefits.va.gov/insurance
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