Life insurance for veterans: VGLI, VALife and more

A veteran has three main VA-backed ways to stay insured: Veterans' Group Life Insurance (Veterans' Group Life Insurance (VGLI): eligibility, cost and conversion) to carry over SGLI coverage of up to $500,000, VA Life Insurance (VA Life Insurance (VALife): who qualifies, what it costs, the 2-year wait) for veterans with a service-connected disability rating, which offers up to $40,000 of guaranteed-acceptance whole life, and, for veterans in good health, a private term policy. Which one fits depends on your health, your rating, your age and how much coverage your family needs. The deadlines after separation are the part most people miss.

The VA options side by side

Sources: VA pages on VGLI and VALife, checked October 2026.

VGLI: carrying SGLI into civilian life

Veterans' Group Life Insurance (VGLI): eligibility, cost and conversion lets you keep up to the amount of SGLI you held. Apply within 240 days of separation and there is no health review, a valuable option for veterans with health problems that would make private coverage costly. Apply later, up to 1 year and 120 days after separation, and you must submit evidence of good health.

VGLI premiums depend only on age, not on gender or tobacco use. For $500,000, the VA lists monthly premiums (rates as of July 1, 2025) of $30 up to age 29, $50 at 35 to 39, $95 at 45 to 49, $250 at 55 to 59 and $690 at 65 to 69, rising further after that. That makes VGLI cheap in the early years and expensive later, so many veterans use it as a bridge, then buy private level term while healthy. VA states you can convert VGLI to a private plan through participating companies without a medical exam.

The VA's VGLI page also announces a premium holiday: eligible veterans covered under VGLI do not need to pay premiums from November 1, 2026, through January 31, 2027, and coverage continues. Check the VA page to confirm you qualify. A three-month holiday is a small saving; it is not a reason to keep expensive coverage you could replace more cheaply.

Veterans separating soon should also read Servicemembers' Group Life Insurance for the free 120 days of coverage after discharge and the option to convert to an individual policy within 120 days.

VALife: guaranteed whole life for service-connected veterans

VALife began accepting applications on January 1, 2023, for veterans with a service-connected disability rating, even 0%, who are 80 or younger, with a path for some who are 81 or older. There is no time limit to apply after getting your rating. Key features according to the VA:

• Up to $40,000 of whole life coverage in $10,000 increments, with guaranteed acceptance and no health questions.
• Premiums never rise and are set by your age at application. For example, the VA lists a monthly premium of $18.30 per $10,000 at age 35, so $73.20 for $40,000, and $26.60 per $10,000 at age 45, so $106.40 for $40,000.
• Cash value starts to accumulate 2 years after approval; VALife does not offer loans or premium waivers.
• A 2-year waiting period. If you die in the first two years, beneficiaries get the premiums paid plus interest (4.23% for a death in 2026), not the full face amount. After two years, the full amount is paid.

That structure is typical of guaranteed issue life insurance: no health questions, with limits: no underwriting, but a limited benefit at first and a modest maximum. VA Life Insurance (VALife): who qualifies, what it costs, the 2-year wait covers the details. VALife replaced the older Service-Disabled Veterans Life Insurance (S-DVI), which closed to new applications after December 31, 2022. Existing S-DVI holders can keep it or move to VALife; the VA explains the trade-offs on its S-DVI page, including that premium waivers do not carry over.

Private term insurance for veterans

If your health is good, a level term policy bought from a private insurer is often the most economical way to carry a large amount for a fixed need, like raising children or paying off a mortgage. Veterans who exit the service with few health problems may get competitive rates, and a conversion option on the policy provides a path to permanent coverage later. Veterans with service-connected conditions, such as hearing loss, PTSD, back injuries or other conditions, should expect underwriters to ask about them and decide case by case; see how life insurance underwriting works. Some conditions raise rates only modestly, others lead to a decline, and the VA options above are the backstop.

Hypothetical example

Say a 44-year-old veteran with a 30% service-connected rating, high blood pressure that is controlled and a family of four has been out of the service for 12 years, so VGLI is no longer available. He needs $600,000 of coverage. He applies for private level term with medical underwriting and gets approved at a standard-plus rate that reflects the controlled blood pressure. Separately, he applies for $40,000 of VALife as a guaranteed layer in case his health changes. The VALife coverage costs a small amount each month, and his family collects the full amount if he outlives the two-year waiting period. These are illustrative; his real quotes would differ.

Key takeaways

• VGLI gives up to $500,000 with no health review if you apply within 240 days of separation, and the final deadline is 1 year and 120 days.
• VALife offers up to $40,000 of guaranteed whole life for veterans with a service-connected rating, with a two-year waiting period for the full benefit.
• Compare VGLI's rising premiums with private level term, especially if you are healthy.
• Check the VA's VGLI premium holiday (November 1, 2026, through January 31, 2027) and other current figures on va.gov before deciding.