When you leave service, your SGLI ends — and VGLI is the easy default. But “easy” isn’t always “best.” For many veterans, a privately owned policy locks in a lower, level premium for life. Here’s how to tell which one wins for you.
Veterans’ Group Life Insurance (VGLI) lets you convert your military SGLI into civilian coverage without a medical exam, as long as you apply within the required window. It’s a genuine benefit — especially if you have health conditions that would make private coverage expensive or hard to get. But it has two features that surprise people: premiums that rise with every age band, and a coverage cap of $500,000.
VGLI premiums are not locked in. They increase as you move into each new age bracket — and the jumps get steep later in life, exactly when you can least afford a rising bill. For example, $500,000 of VGLI coverage runs roughly $690 per month at age 65. A level private policy bought while you’re healthy can keep the same premium for the life of the policy.
Rule of thumb: if you’re in good health, a private level-premium policy often costs less over time and may offer more coverage. If you have health issues, VGLI’s no-exam acceptance can be the safer bet. The only way to know is to compare both side by side.
| VGLI | Private Life Insurance | |
|---|---|---|
| Medical exam required | No (if you apply in time) | Often yes (some no-exam options exist) |
| Premiums over time | Increase with age | Can be locked level |
| Maximum coverage | $500,000 | Often higher available |
| Cost if you’re healthy | Can become expensive later | Frequently lower |
| Cost if you have health issues | Can be the better deal | May be higher or limited |
| Permanent (lifelong) option | Term-style, age-priced | Term or whole life available |
You have significant health conditions, you’re uninsurable privately, or you only need coverage for a short period. The guaranteed acceptance is the whole point.
You’re in reasonably good health and want a premium that won’t balloon at 65, 70, and beyond — or you want permanent coverage and more than $500,000.
Real reviews from veterans, seniors, and families we’ve helped navigate Medicare.
We’ll run your VGLI cost against private options so you can see, in real dollars, which protects your family for less. It’s free and there’s no obligation.
Cole Insure, LLC is a licensed independent insurance agency. We are not affiliated with, endorsed by, or connected to the U.S. government, the Department of Veterans Affairs (VA), the Department of Defense, or any government life insurance program (including SGLI/VGLI). This is an advertisement for insurance. Premiums and rates cited are illustrative, current as of 2026, and vary by age, health, coverage amount, and carrier; VGLI rates are set by the VA. Confirm current VGLI rates at va.gov/life-insurance. Coverage is not guaranteed; private policies are subject to underwriting.