Leaving active duty: a coverage timeline from the last year of service

The most useful fact for a service member about to separate is that your Servicemembers' Group Life Insurance (Servicemembers' Group Life Insurance) does not end the day you leave. According to the VA, it continues for 120 days after separation, and the window to move into Veterans' Group Life Insurance (Veterans' Group Life Insurance (VGLI): eligibility, cost and conversion) without a health review runs 240 days. Those dates sound generous, but they are the end of a longer process. The members who have the most choices are the ones who started pricing civilian coverage a year before the date on their orders.

This timeline walks through the last year of service in order, then the first year after. The VA figures here come from the VA's SGLI and VGLI pages as summarized in the guides linked above and checked in October 2026. Rules and premiums change, so confirm each deadline on VA.gov and with your transition office before you rely on it. The people in the examples are made up.

The dates that drive everything

Count from your separation date, which this post calls day zero.

Mark all three on a calendar when you get your separation date. A date missed here cannot be undone, and a health condition that appears in the meantime can turn an easy approval into a hard one.

Twelve months out: take stock and price the civilian market

1. Write down what you have. Your current SGLI amount (the maximum is $500,000, which costs $26 a month including the $1 for traumatic injury protection: 500 × $0.05 = $25, plus $1), your spouse's Family SGLI amount, any private policy you already own and who the beneficiaries are on each. Open the beneficiary forms and read them. A marriage, divorce or birth since you last looked is the usual reason they are out of date.

2. Estimate what your family will need as civilians. Your income will change, your housing allowance may end, and health insurance will change. Use the How much life insurance do I need? and the method in Life insurance for military members: SGLI and private policies. Count debts, children's costs, your spouse's income and what Social Security survivor benefits might provide; ask the Social Security Administration for current figures.

3. Get quotes now, not at the end. Civilian term insurance is priced on your age, health, tobacco use and the amount and length you choose. Collect two or three quotes for a level term policy at the amount you need. Ask each agent about any clause on military service, deployment or hazardous duty; if you will still be in the reserve component, say so. An independent agent or broker can show several insurers at once.

4. Know your health picture. The next section covers this in more detail, but the principle is simple: the best time to apply is while your health is stable and documented, before a separation physical or a new diagnosis adds questions.

Why not wait until after separation?

It is tempting to wait, because SGLI feels like it covers you and the civilian job might offer group coverage. The reasons to move earlier:

• Underwriting takes weeks. An application with a paramedical exam and a records request often takes a few weeks and sometimes longer; see how long it takes to get life insurance. You want the new policy in force before the old coverage ends, so a delay does not leave a gap.
• Your health can change. If something develops during transition, the insurer prices it. VGLI's 240-day window protects you from that, but only for VGLI.
• The coverage overlaps cheaply. While you are still serving, SGLI is your safety net during underwriting. If the private application is declined or delayed, you have time to adjust.

Nine months out: apply for a private policy

Most members who plan to keep a civilian policy apply here. Pick a term length that fits the need: a child who will finish school in 18 years suggests a 20-year policy, for instance. A term-length calculator can help.

During the application:

• Answer every medical and occupational question accurately. The insurer will check prescriptions, past claims and the MIB database; see the guide on prescription history checks and the MIB. An error that looks small at application can become a problem at claim time, as what happens if you lie on a life insurance application explains.
• If you are in a special duty, such as aviation or diving, say so. These are rated separately, as with pilots.
• Say whether you expect deployment before separation. A pending deployment to a combat area can delay or limit approval.
• Choose the owner and beneficiary carefully. You will own the policy, and it goes with you.

Keep the quote you accept in writing and put the first premium on a method that will not depend on your military pay. Premiums paid by allotment or from a military account can stop on the day you separate; a civilian bank account, a card or an automatic bank draft will not.

Six months out: confirm the policy and plan the rest

Once the policy is issued, check it against what you were quoted: amount, term, rate class, riders, the beneficiary and the effective date. The free-look period, commonly 10 to 30 days, lets you cancel for a refund if something is wrong. The free-look period guide has the details.

Then decide what role SGLI and VGLI will play after you leave. The usual options, drawn from the VA's rules:

1. Rely on the private policy alone if it covers the full need and you are comfortable with it.
2. Add VGLI (up to $500,000, but not more than the SGLI you held) as an extra layer, especially if your health is uncertain.
3. Convert part of your SGLI to an individual permanent policy with a participating commercial insurer within 120 days of discharge, without proving good health (VA rules; prices are higher than for healthy-applicant term).
4. Consider VALife if you have a service-connected disability rating and need small, guaranteed-acceptance coverage; see VA Life Insurance (VALife): who qualifies, what it costs, the 2-year wait.

A worked comparison appears below.

Health changes during the transition

The separation process produces medical records. Whether you want them to or not, they matter to private coverage.

• The separation physical documents your current health. Findings that were minor in service can look different on paper.
• VA disability claims create a record of conditions the VA rated. Applications for private insurance ask about diagnoses, treatments and medications in recent years; some also ask about disability claims or benefits. Answer what the question asks. A VA rating by itself is not a reason to avoid applying, and each insurer evaluates the condition, not the rating.
• Common service-related conditions include joint and back injuries, hearing loss, sleep problems and mental health conditions. Underwriters evaluate such conditions by severity, treatment and stability. For example, see the sleep apnea guide and the guide on depression and anxiety.
• Do not delay care to protect an application. Medical care comes first. If you are treated for something in the months before you apply, the underwriter will look at the outcome, and a controlled condition is often priced differently from an untreated one.

If your health is worse than you hoped, the order of choices changes: VGLI within 240 days, with no health review, may be your best base, and the private policy becomes an add-on if you qualify.

Ninety days out: the checkpoint

At 90 days before separation, confirm each of these:

1. The private policy is in force and you have the document.
2. Your beneficiaries match your wishes on the private policy, SGLI and any other benefit. Update them if not.
3. Your civilian employer's group coverage. Ask when it begins. Many employers have a waiting period; see employer group life insurance: what it really covers. Do not count on it for the first weeks, and remember that group coverage generally ends when the job does (keeping group life insurance when you leave a job).
4. Your spouse's coverage. Ask the VA what happens to Family SGLI coverage on your separation and what conversion rights, if any, your spouse has. Deadlines apply.
5. Your decision on VGLI. If you plan to use it, learn the application steps now, not on day 200.
6. Your health. If a new condition is under evaluation, ask an agent whether to apply before or after the results are known.

Thirty days out: the paperwork month

• Move the premium payments. The private policy's premium should be drafting from a civilian account.
• Update the address. The insurer needs a mailing address that will last more than a few weeks. An old base address means lapse notices go missing, and military families on the move: keeping coverage steady through relocations explains how often that happens.
• Get your separation date confirmed in writing. Every deadline is counted from it.
• If you are retiring, note that retirement brings separate decisions, such as the Survivor Benefit Plan, with their own deadlines; ask your retirement services office.
• If you are staying in the Guard or Reserve, you may keep SGLI under the reserve rules. Check with your unit rather than assuming.
• Share the plan. Tell your spouse or a trusted person where the policy is, who the insurer is and what the deadlines are.

Day one: the clock starts

On day zero, write down three dates: day 120, day 240 and the date of 1 year and 120 days. Then:

1. Confirm that the private policy's first civilian payment cleared.
2. Check your pay for any final SGLI deduction.
3. Save a copy of the policy, the confirmation and your beneficiary designations in a place your family can find.
4. Review at day 60 or so: is the plan still right? If you changed your mind about VGLI or a conversion, there is still time. If not, you have the calendar.

When the timeline does not go to plan

Separations rarely follow a clean schedule. A few common departures from the plan above, and what each changes:

• The separation date moves. Every deadline is counted from the actual date you leave, not the date you first expected. If your orders change, recompute day 120 and day 240. A private policy applied for early is unaffected, which is one more reason to buy it before the date is settled.
• You separate with little notice. If you have only weeks, skip the quote-gathering phase: apply for a private policy immediately if your health is good, and keep the VGLI window in your pocket as the backup. Ask the agent for the fastest underwriting path available, which may be a policy that needs no exam, and ask what the price difference is. See no-medical-exam term life insurance: how it works for how those policies work and what you give up in exchange for speed.
• You separate for medical reasons. The VA allows free SGLI coverage for up to two years after separation if you are totally disabled when you leave, applied for on a separate form. If that applies to you, ask your transition office and the VA about it before the 120 days run out, and do not let the standard dates lull you or rush you.
• You are switching to the Guard or Reserve. Coverage may continue under reserve rules rather than ending. Confirm the amount and your beneficiaries with your new unit.
• You are declined for private coverage. A decline from one insurer does not mean every insurer will decline you; see the guide on being declined for how to approach the next step. VGLI within 240 days and conversion within 120 days of discharge are the two routes that do not depend on your health.
• You already own an older private policy. Check what the policy says about military service and war, because some older contracts contain clauses that matter less once you are a civilian. An agent or the insurer's service line can tell you what applies after you separate.

Questions to ask before you sign off on a plan

Put these to the agent, the VA or your transition office, and write down the answers with the date and the name of the person.

1. What is my exact separation date, and what is the last day of free SGLI coverage?
2. What is my spouse's Family SGLI status after I leave, and does my spouse have a conversion right with a deadline?
3. If I apply for VGLI on day 200, what documents do I need, and how long does it take to be effective?
4. Does the private policy have any clause that depends on military service, residence or travel? What happens if I rejoin the reserve?
5. What happens to my beneficiary designations when SGLI ends? Who is covered if I die on day 100?
6. If my civilian employer offers group coverage, what is the waiting period, and is it portable?
7. If I have a pending VA claim, does the insurer need to know?

A worked comparison

Say Sam, 31, is a sergeant separating with a spouse and two children. The calculator suggests $900,000 of total need. He holds $500,000 of SGLI. His health is standard. Two paths, using illustrative prices:

Path A: private term for the whole need. A 20-year, $900,000 level term policy at an illustrative $55 a month.

• Total over 20 years: $55 × 12 × 20 = $13,200.

Path B: VGLI plus a smaller private policy. VGLI of $500,000 at the VA's published age-band rates (July 1, 2025 rates: $40 a month through age 34, $50 for 35 to 39, $70 for 40 to 44, $95 for 45 to 49, $145 for 50 to 54; rates may change) plus a $400,000 private policy at an illustrative $28 a month.

• VGLI over 20 years starting at 31: 4 years × $480 + 5 × $600 + 5 × $840 + 5 × $1,140 + 1 × $1,740 = $1,920 + $3,000 + $4,200 + $5,700 + $1,740 = $16,560.
• Private $400,000: $28 × 240 = $6,720.
• Total: $23,280.

The difference is $23,280 − $13,200 = $10,080 over 20 years for Sam. If his health stays standard and the private quote holds, Path A is cheaper. But Path B has a feature A does not: the VGLI part would be available within 240 days without a health review. If a diagnosis arrives while Sam is applying, Path B is the one that still works. VGLI is also a rising-cost product, since the premium steps up with each age band, while a level term premium does not. See Veterans' Group Life Insurance (VGLI): eligibility, cost and conversion for the premium table and the other terms.

For people in a job change after service, your own term policy when you change jobs: three career paths covers why an individually owned policy matters.

Key takeaways

• SGLI continues for 120 days after separation and the no-health-review VGLI window is 240 days; mark day 120, day 240 and the 1-year-and-120-day limit on a calendar when you get your separation date.
• Price civilian level term about a year before you leave and apply while still in service, so the new policy is in force before SGLI ends.
• Separation physicals and VA claims create records; answer application questions accurately, and know that VGLI's 240-day window is the option that does not turn on health.
• At 90 days check beneficiaries, the civilian employer's coverage start date and your spouse's coverage; at 30 days move premium payments to a civilian account and update your address.
• Compare the full 20-year cost of VGLI, which rises by age band, with a level private policy, but treat the figures as a way to frame the choice rather than a prediction.