VA Life Insurance Programs: The Full Picture
The VA offers several life insurance programs, but most veterans are surprised to find that private market alternatives are often cheaper—especially if you left the service in good health.
| Program | Who Qualifies | Max Coverage | Key Feature |
|---|---|---|---|
| SGLI | Active duty, Reservists, Guard | $500,000 | Automatic; ends at separation |
| VGLI | Veterans within 2 yrs of separation | $500,000 | Converts SGLI; no health exam if within 240 days |
| VALife | Veterans with service-connected disability | $40,000 | Whole life; available regardless of health |
| S-DVI | Veterans with service-connected disability (pre-2023) | $10,000 | Legacy; replaced by VALife |
| Private Term | Healthy veterans (most) | $10M+ | Often 40–60% cheaper than VGLI at same coverage |
VGLI vs. Private Term: The Cost Reality
VGLI premiums are based on age brackets and are not medically underwritten—meaning healthy veterans subsidize those in poor health. This makes VGLI expensive compared to private market options for anyone who left service in good health.
| Age | VGLI $500K | Private Term 20yr $500K | Annual Savings |
|---|---|---|---|
| 30 | $32/mo | ~$18/mo | ~$168/yr |
| 35 | $52/mo | ~$23/mo | ~$348/yr |
| 40 | $80/mo | ~$33/mo | ~$564/yr |
| 45 | $132/mo | ~$54/mo | ~$936/yr |
| 50 | $200/mo | ~$88/mo | ~$1,344/yr |
Important: If you have service-connected conditions (sleep apnea, PTSD, hearing loss, joint issues) that affect your health rating, VGLI's no-underwriting guarantee may be worth the premium premium. A broker can compare both options side by side.
Common Conditions Veterans Face & Their Impact on Underwriting
- Sleep apnea: Usually Standard or Preferred if controlled with CPAP. Rarely a decline.
- PTSD: Well-managed PTSD with no hospitalizations often qualifies for Standard rates. Severe/recent treatment may require a specialty carrier.
- TBI (mild): Typically Standard rates if resolved. Moderate/severe TBI varies by carrier.
- Agent Orange exposure: Some resulting conditions (Type 2 diabetes, ischemic heart disease) are ratable but not typically declined at lower coverage amounts.
- Joint replacements: Post-surgery, usually Standard with waiting period.
The 240-Day Window: Don't Miss It
When you separate from service, you have 240 days to convert to VGLI without a medical exam. After 240 days (up to 1 year 120 days), you can still enroll but must provide evidence of good health. If you're healthy, get private quotes during this window—but don't let VGLI lapse before you have replacement coverage in place.
Frequently Asked Questions
Healthy veterans typically save 40–60% by choosing a private term policy over VGLI. VGLI is better suited for veterans with service-connected conditions that would make them uninsurable or expensive to cover in the private market. A broker can run both scenarios.
Not necessarily. Many veterans with well-managed PTSD qualify for standard or slightly above-standard private life insurance rates, especially if there have been no recent hospitalizations or suicide attempts. Each carrier has different underwriting guidelines.
Yes. Many veterans keep VGLI for its guaranteed-issue benefit while adding a private term policy for lower-cost primary coverage. There is no restriction on owning multiple policies.
VALife is a VA whole life insurance program for veterans with a service-connected disability rating. It offers up to $40,000 in permanent coverage regardless of other health conditions. Applications are accepted within 2 years of receiving a service-connected disability rating.