Reviewed by the Rank and Pay editorial team. Content reflects current VA and Department of Defense program rules as of 2026.
SGLI vs VGLI is one of the most important financial decisions a servicemember faces at separation. SGLI — Servicemembers' Group Life Insurance — covers you automatically while you serve. VGLI — Veterans' Group Life Insurance — lets you keep life insurance after you leave, but the cost rises sharply as you age. This guide explains both programs side by side so you can act before your coverage lapses.
Table of Contents
- What Is SGLI?
- What Is VGLI?
- SGLI vs VGLI: Side-by-Side Comparison
- SGLI vs VGLI Cost Breakdown
- The Enrollment Window You Cannot Miss
- TSGLI: The Hidden Rider Inside SGLI
- Verdict: Which Should You Choose?
- Next Steps
- Frequently Asked Questions
What Is SGLI?
SGLI is a low-cost group life insurance program administered by the Department of Veterans Affairs and provided through Prudential Insurance Company of America. It covers active-duty servicemembers in the Army, Navy, Marine Corps, Air Force, Space Force, Coast Guard, and NOAA and USPHS commissioned officers. Coverage is automatic — you are enrolled at the maximum amount unless you opt down or out in writing.
The maximum coverage is $500,000. The premium is $0.066 per $1,000 of coverage per month. That means $500,000 of coverage costs exactly $33 per month, no matter how old you are or what your health history looks like. There are no medical underwriting questions and no age-based increases while you serve.
SGLI also covers Reserve and National Guard members under certain activation orders. Premiums are deducted automatically from your military pay. You can learn more about who qualifies and how to manage your coverage on our SGLI guide.
When Does SGLI End?
SGLI ends 120 days after your separation or release from active duty. This 120-day extension is free — you do not pay extra premiums during that window. Death during those 120 days is still covered. After day 120, coverage stops unless you have already converted to VGLI or another policy.
One non-obvious detail: the 120-day extension runs from your actual date of separation, not from when you start terminal leave. If you start 60 days of terminal leave, your separation date is still at the end of that leave — so your total free extension from the last day you physically work is closer to 180 days in practice. Plan your VGLI application around your official DD-214 date, not your last day in uniform.
What Is VGLI?
VGLI is a post-military group life insurance program that lets veterans convert their SGLI coverage into a permanent, renewable policy. Prudential administers VGLI under a contract with the VA. You apply after separation — VGLI does not activate automatically.
Coverage amounts match whatever SGLI coverage you had at separation, up to a maximum of $500,000. You can later increase your coverage in $25,000 increments up to the maximum, subject to evidence of insurability. VGLI has no cash value and no investment component. It is pure term insurance that renews for life as long as you keep paying premiums.
The key benefit of VGLI over private insurance is guaranteed acceptance. If you apply within the first 240 days after separation, Prudential cannot deny you — regardless of injuries, diagnoses, or medications from your service. This is critical for veterans with combat injuries, PTSD, TBI, sleep apnea, or other service-connected conditions that might make private insurance expensive or unavailable. See our VGLI hub for full enrollment instructions.
How VGLI Premiums Work
VGLI premiums are age-banded and increase every five years. The rates are set by the VA and apply equally to all VGLI policyholders in the same age group — Prudential cannot charge you more based on your health. But the five-year step-ups can be steep, especially after age 60.
SGLI vs VGLI: Side-by-Side Comparison
The table below covers the seven features that matter most when choosing between SGLI and VGLI.
| Feature | SGLI | VGLI |
|---|---|---|
| Maximum coverage | $500,000 | $500,000 |
| Premium structure | Flat rate: $0.066/mo per $1,000 — age does not matter | Age-banded; increases every 5 years |
| Eligibility | Active-duty, Reserve/Guard on qualifying orders | Veterans who had SGLI at separation |
| Medical exam required | No — automatic enrollment | No exam if applied within 240 days of separation; exam required after day 240 |
| Enrollment window | Automatic at accession; opt-down requires written request | Apply within 1 year + 120 days of separation; guaranteed issue ends at day 240 |
| Cost over time | Stays flat at $33/mo for $500K — no increases | Starts ~$30/mo at age 29 or younger; rises to ~$840/mo at ages 70–74 for $500K |
| Portability | Not portable — ends at separation | Fully portable; continues for life regardless of employment |
| Traumatic injury rider | Yes — TSGLI pays up to $100,000 for qualifying injuries | No traumatic injury rider |
| Administrator | Prudential (VA contract) | Prudential (VA contract) |
Sources: VA SGLI overview and VA VGLI overview.
SGLI vs VGLI Cost Breakdown
SGLI costs the same for every servicemember — $33 per month for $500,000 in coverage, period. VGLI costs depend entirely on your age at the time you pay your premium. The table below shows current Prudential VGLI monthly rates for $500,000 of coverage across key age bands.
| Age Band | Monthly Premium ($500K VGLI) | Annual Cost |
|---|---|---|
| 29 and under | ~$30 | ~$360 |
| 30–34 | ~$37 | ~$444 |
| 35–39 | ~$56 | ~$672 |
| 40–44 | ~$88 | ~$1,056 |
| 45–49 | ~$134 | ~$1,608 |
| 50–54 | ~$206 | ~$2,472 |
| 55–59 | ~$317 | ~$3,804 |
| 60–64 | ~$492 | ~$5,904 |
| 65–69 | ~$632 | ~$7,584 |
| 70–74 | ~$840 | ~$10,080 |
These are approximate rates based on current Prudential VGLI schedules. You can confirm exact prudential VGLI rates on the VA benefits site.
When Private Term Life Beats VGLI
A healthy veteran under 40 can often find a 20-year level-term policy from a private insurer for $25–$45 per month for $500,000 in coverage — and that rate will never increase during the term. VGLI for the same veteran will cost less initially, but then step up every five years until it far exceeds what a locked-in term policy would have cost.
The break-even math matters here. If you buy a 20-year private term policy at age 30 for $35 per month, you pay $8,400 total over 20 years. If you stay with VGLI from age 30 to 50, you pay roughly $444 + $672 + $1,056 + $1,608 across those same four five-year bands, totaling over $14,000 — and that assumes you reduce or drop coverage as you age. The longer you live and the healthier you are, the more VGLI costs relative to alternatives.
For a deeper look at how VGLI stacks up against the private market, see our guide: VGLI vs. Term Life Insurance.
The Enrollment Window You Cannot Miss
The single most important date in VGLI enrollment is day 240 after your separation — the last day you can enroll without a medical exam.
Here is exactly how the timeline works:
- Day 0: Your official separation date (the date on your DD-214).
- Days 1–120: SGLI free extension. You are still covered at your SGLI amount at no cost.
- Days 1–240: Guaranteed-issue VGLI window. Apply any time during this period and Prudential must accept you — no health questions asked.
- Days 121–240: Your SGLI free extension has expired, but you are still in the guaranteed-issue VGLI window. If you have not enrolled in VGLI yet, you have a coverage gap. Apply immediately.
- Days 241–480 (1 year + 120 days): You can still apply for VGLI, but Prudential will require evidence of good health. You may be declined or rated.
- After day 480: VGLI enrollment is closed permanently.
Do not confuse the 240-day guaranteed window with the 480-day final deadline. Many veterans assume any application in the first year is automatic — it is not. Missing day 240 means facing medical underwriting.
What to Do If You Are Approaching Day 240
If your 240-day window is closing, apply for VGLI immediately — even if you plan to replace it later with private coverage. Locking in guaranteed acceptance now costs you nothing but a few minutes of paperwork and a monthly premium. You can cancel VGLI the moment a private policy is in force. You cannot undo a missed enrollment window.
TSGLI: The Hidden Rider Inside SGLI
TSGLI — Traumatic Servicemembers' Group Life Insurance — is an automatic rider on every SGLI policy that most servicemembers do not know they have.
TSGLI pays a lump sum between $25,000 and $100,000 for specific traumatic injuries. Covered losses include limb loss, loss of sight or hearing, severe burns, paralysis, TBI resulting in a coma, and other qualifying events. The benefit is designed to help injured servicemembers and their families cover immediate expenses during recovery.
TSGLI applies to injuries on and off duty — not just combat injuries. A servicemember injured in a car accident while on leave is still covered. The injury does not need to result in death. TSGLI is completely separate from any disability rating or VA compensation you might receive later.
VGLI does not include a traumatic injury rider. This is one concrete area where SGLI provides broader protection than VGLI. Veterans who transition out lose TSGLI coverage entirely unless they secure a private accident or disability policy.
This is a non-obvious tradeoff that competitors rarely surface: the day you leave active duty, you lose TSGLI — a benefit worth up to $100,000 — in addition to your SGLI death benefit. Replacing that protection requires a separate accidental death and dismemberment (AD&D) policy, which most veterans forget to buy.
Verdict: Which Should You Choose?
Keep VGLI if: you have a service-connected health condition that would make private insurance expensive or unavailable, you are over 60 and approaching the end of a private term policy, or you want permanent life insurance with no future underwriting risk.
Replace VGLI with private term life if: you are healthy, under age 50, and qualify for standard or preferred rates from a private insurer. A 20-year level-term policy will almost certainly cost less over that period, and you can lock in the rate while your health is on your side.
Never skip the VGLI application window just because you plan to get private coverage. Apply for VGLI within 240 days, then shop private policies simultaneously. Only cancel VGLI once a private policy is active and you have confirmed the coverage amount and beneficiaries are correct.
For a broader look at all military life insurance options, visit our military life insurance overview and the VA Benefits hub.
Quick Decision Guide
- Under 40, healthy: Apply for VGLI within 240 days, then compare private 20-year term quotes. Switch if you qualify for a lower rate.
- Under 40, service-connected health issues: Keep VGLI. The guaranteed-issue benefit is too valuable to give up.
- 40–55, healthy: Run the numbers. A 10-year or 15-year private term policy may still beat VGLI costs. Compare before committing long-term.
- Over 60: VGLI is usually the better choice. Private term policies at this age are expensive, and VGLI continues for life with no new underwriting.
- Retired military with pension: Your income replacement need may be lower. Consider reducing VGLI to $250,000 and investing the premium savings.
Next Steps
Here is what to do before your separation date:
- Confirm your current SGLI coverage amount and beneficiaries in the SGLI Online Enrollment System (SOES) or through your unit's personnel office.
- Note your official separation date from your DD-214 and mark day 120 and day 240 on your calendar.
- Apply for VGLI at va.gov within 240 days of separation to lock in guaranteed acceptance.
- Get at least two private term life quotes while your VGLI application is processing. Use your health exam results from your separation physical if recent.
- Compare total cost over 10 and 20 years, not just the monthly premium, before deciding whether to keep or cancel VGLI.
- Buy a separate AD&D policy to replace the TSGLI coverage you lose at separation.
Read our full breakdown of SGLI coverage and options and the complete VGLI enrollment guide for step-by-step instructions on each program.