What Is VGLI
Veterans' Group Life Insurance (VGLI) is a term life insurance policy available to service members and veterans who had Servicemembers' Group Life Insurance (SGLI) coverage at the time of separation from active duty. You can convert your SGLI coverage to VGLI without a medical exam, provided you apply within 120 days of discharge or within one year if you're converting from Veteran's Group Life Insurance Traumatic Injury Protection (TSGLI).
VGLI premiums are based on your age at conversion and increase every five years as you age. Current rates start around $12 per month for basic coverage, though this varies by age bracket. Unlike SGLI, which the government heavily subsidizes while you're serving, VGLI is fully veteran-funded. You pay the full premium amount, with costs rising significantly as you enter older age brackets. A 65-year-old veteran, for example, pays substantially more per month than a 35-year-old for the same coverage amount.
VGLI in the Context of VA Disability
While VGLI itself is separate from the VA disability rating system, understanding your life insurance options matters when filing a disability claim. Veterans with service-connected disabilities sometimes face higher mortality risks or medical expenses, making life insurance coverage a practical financial consideration alongside compensation and pension benefits. When you receive a VA disability rating and begin receiving monthly compensation, VGLI premiums do not change or become covered by the VA.
If you're pursuing a disability claim and working with a Veterans Service Officer (VSO), they can help you understand how to maintain continuous VGLI coverage during the appeals process. Lapsed VGLI coverage cannot typically be reinstated, so maintaining payments during a lengthy C&P exam period or appeal is essential.
How to Convert or Maintain VGLI
- Conversion window: You have 120 days from your separation date to convert SGLI to VGLI. The VA will send conversion paperwork to your last military address, but tracking it down during a PCS or after discharge can be difficult. Contact the VA directly at 1-800-419-1473 if you don't receive the form.
- No medical underwriting: Unlike private term life insurance, VGLI requires no medical exam or health questionnaire. This is valuable if you're filing for service-connected conditions that might otherwise result in a medical decline.
- Automatic premium deduction: Once enrolled, you can set up automatic monthly payments from your bank account or have premiums deducted from your VA disability compensation if you receive it.
- Coverage amounts: You can carry up to $400,000 in VGLI coverage, though most veterans elect between $100,000 and $250,000.
- Renewal and increases: VGLI is renewable, meaning as long as you pay premiums, your coverage remains active. You cannot increase coverage amounts after conversion, but you can decrease them at any time.
Common Questions
- Can I get VGLI if I'm past the 120-day conversion window?
- Not through standard conversion. However, if you had SGLI when you separated and are within one year of separation, you may still be eligible. After that window closes, VGLI is no longer available to you. If you let coverage lapse, you'll need to pursue private term life insurance instead, which will require medical underwriting and may be more expensive, especially if you have a service-connected disability.
- Will VGLI rates increase if I receive a VA disability rating?
- No. Your VGLI premium is locked in at your conversion rate and only increases based on age brackets every five years. VA disability rating changes do not affect VGLI costs.
- What happens to my VGLI if I'm pursuing a disability appeal?
- VGLI coverage remains independent of your disability claim status. You must continue paying premiums during the entire appeals process, even if your initial claim is denied. Coverage lapses only if you stop paying premiums or fail to respond to renewal notices.
Related Concepts
SGLI is the military version of group life insurance you carried on active duty. TSGLI provides coverage for traumatic injuries sustained during service. Both programs connect to VGLI as you transition from military to veteran status and manage your overall benefits portfolio.