VGLI vs Term Life Insurance: Which Should Veterans Choose?
Choosing between VGLI vs term life insurance is one of the first money decisions you face after leaving the military. Your SGLI coverage ends 120 days after you separate. You then must decide whether to keep Veterans' Group Life Insurance (VGLI) or buy a private term life policy.
This guide breaks down both options in plain language. We use current 2026 facts from va.gov. The right choice depends mostly on your health, age, and budget.
What Is VGLI?
VGLI is a government term life program for veterans. It lets you convert your military SGLI coverage into a civilian policy after you separate. You can read how all three programs fit together in our VA Life Insurance overview.
You can get between $10,000 and $500,000 in coverage, in $10,000 increments. Your amount cannot be more than the SGLI level you had at separation. The biggest perk is simple: VGLI never requires a medical exam.
VGLI Enrollment Window
You have 1 year and 120 days after separation to apply for VGLI. The timing matters a lot for your approval.
- Within 240 days: No health questions are asked. Approval is guaranteed.
- After 240 days, up to 1 year and 120 days: You must submit proof of good health.
Because SGLI ends just 120 days after you leave, apply early. This avoids any gap in coverage.
What Is Commercial Term Life Insurance?
Term life insurance from a private company pays a set benefit if you die during the policy term. Common terms are 10, 20, or 30 years. Most private policies use a level premium, so your rate stays the same for the whole term.
Private insurers usually require health underwriting. That often means a medical exam or detailed health questions. Healthy applicants are rewarded with low, locked-in rates.
VGLI vs Term Life Insurance: Side-by-Side Comparison
The table below shows how the two options compare on the points that matter most. Use it to match each plan to your own situation.
| Feature | VGLI | Commercial Term Life |
|---|---|---|
| Medical exam / underwriting | No exam ever; no health questions within 240 days | Usually requires exam or full health review |
| Maximum coverage | Up to $500,000 (not above your SGLI level) | Often $1 million or more available |
| Premiums as you age | Rise every 5 years in age brackets | Level premium for the full term |
| Best for | Veterans with health issues or high disability ratings | Healthy, non-tobacco applicants |
| Enrollment window | 1 year and 120 days after separation | Apply anytime, if you qualify |
| Coverage length | Renewable for life; no fixed end date | Fixed term; rate can jump after it ends |
| Cost over time | Cheap when young, expensive when older | Cheap and stable for healthy buyers |
How VGLI Premiums Change With Age
VGLI premiums are not based on your health. They are based only on your age and coverage amount. Rates step up at each 5-year age bracket.
For example, a veteran age 29 or younger may pay about $30 a month for $500,000. A veteran in their late 70s can pay more than $1,900 a month for the same amount. Always check the current VGLI rate table on va.gov for exact numbers.
Which Should You Choose?
There is no single best answer. Your health, age, tobacco use, and budget all shape the right pick. Here are common scenarios.
The Healthy Veteran
If you are young, healthy, and do not use tobacco, private term life usually wins. You can lock in a low, level rate for 20 or 30 years. That rate often beats VGLI badly once you reach your 50s and 60s.
The Veteran With Health Conditions or a High Disability Rating
If you have serious health issues, VGLI may be the smarter choice. Private insurers can charge you more or deny you. VGLI cannot deny you during your enrollment window and needs no exam.
Tobacco Users
Tobacco use raises private term life rates a lot. VGLI does not ask about tobacco at all. So heavy tobacco users may find VGLI more affordable, at least while they are younger.
The Budget-Focused Veteran
Many veterans use a smart middle path. They keep VGLI as a bridge right after separation. Then they shop for private term life and drop VGLI once the new policy is active.
This avoids any coverage gap. It also lets healthy veterans capture low long-term rates without risk.
Conclusion and Next Steps
When you weigh VGLI vs term life insurance, the key factor is your health. Healthy veterans usually save money with private term life and its level premiums. Veterans with health problems or high disability ratings often get more value and security from VGLI.
Do not let your enrollment window close. Compare quotes early, and apply for VGLI within 240 days if you want guaranteed approval. To learn the full rules, eligibility, and rate details, read our complete VGLI guide. You can also explore every veteran benefit on our VA Benefits hub.