What happens to your coverage when you leave the military.

Leaving the service means leaving your SGLI behind. You have a short window to secure new coverage, whether you separate next month or already did.

The 120-Day SGLI Cliff

When you receive your DD-214, the clock starts ticking. Your SGLI coverage stays active and free for 120 days after your separation date. On day 121, that coverage drops to zero.

This 120-day window is critical. If something happens to you on day 121, your family receives nothing from SGLI. You need a new policy in place before this deadline. Learn the basics in the SGLI guide and see your full set of options in veteran life insurance, explained.

Lock it in before your separation medicals

If you have not separated yet, there is a good reason to act early. Once you start the separation process, medical exams and new diagnoses can end up on your record. A health change can make private coverage harder to get, or push the price up. Lining up a private policy while you are still healthy protects your rate. Keep your SGLI in place until your new coverage is active, so you are never without protection.

The VGLI Option and Its Cost

The VA offers a direct replacement called Veterans' Group Life Insurance (VGLI). You can convert your SGLI to VGLI without answering any health questions, as long as you apply within 240 days of separation. See the steps in converting SGLI to VGLI.

VGLI has one major catch: the price. VGLI premiums increase every five years based on your age. What seems affordable at age 30 becomes very expensive by age 50. Read the full VGLI guide for the rate schedule.

Compare VGLI vs private term life.

How Private Term Compares

Private term life insurance is usually the strongest alternative to VGLI. A term policy locks in your premium for a set period, like 20 or 30 years. Your cost never goes up during that term.

For a healthy veteran, a private term policy is almost always cheaper over the long run than VGLI. The trade-off is that you must qualify medically. If you have severe health issues, VGLI is the safer bet because it skips the health questions.

Beyond VGLI and term

Private coverage is more than term. Whole life, universal life, and indexed universal life add a cash value component at a higher cost. See how they stack up on the types of life insurance page. If you have a spouse or children to protect, look at life insurance for military families. And if you have a service-connected disability rating, VALife is a guaranteed-acceptance option worth knowing about.

Group vs Individual Coverage

You might get a civilian job that offers life insurance. Do not rely only on work coverage. Group life insurance through an employer ends when you leave the job, and you do not own it. An individual policy stays with you no matter where you work. Read more about group vs individual coverage.

How Much Life Insurance Do You Need?

Not sure how much coverage you need? A common rule of thumb is 10 times your annual income, adjusted for your mortgage, debts, and family. Size it for your situation with how much life insurance you need.

Frequently Asked Questions