VGLI vs. Private Term — the honest comparison.
VGLI is convenient. Private term is often dramatically cheaper long-term. Here's the math, and the scenarios where each one wins.
Veterans Group Life Insurance (VGLI) is the post-separation continuation of SGLI. It's automatically eligible if you apply within 240 days of separation regardless of health, and that's a real benefit — especially for veterans with complicated medical histories. But VGLI has one structural problem that private term life doesn't: premiums increase every five years.
By the time most veterans hit their late 50s, VGLI's age-banded premium schedule has pushed it well above what an equivalent private term policy would cost — sometimes 2–3× more. If you're healthy at separation, locking in a 20- or 30-year private term is almost always the cheaper play long-term.
Key points for your situation.
VGLI premiums step up every 5 years
Each five-year age band has its own rate. Costs accelerate sharply after age 50.
Private term locks rates for the full term
A 30-year term policy at age 30 has the same premium at age 59. Predictability for the entire window.
VGLI is guaranteed eligible (within 240 days)
Skip underwriting if you have service-connected conditions that would otherwise complicate civilian underwriting.
Private carriers underwrite veterans fairly
Most service-connected conditions, when stable, do not result in rate-ups with the right carrier match.
You can stack VGLI + private
Many veterans keep VGLI at the lowest tier as a portable safety net and layer private term on top to capture lower long-term cost.
Conversion rights matter
Both VGLI and private term offer conversion to permanent coverage at certain windows. Civilian carriers typically offer broader conversion options.
How this has played out for clients.
VGLI $400K runs ~$32/month at separation, ~$80/month by age 50, ~$200+/month by age 60. A 30-year private term at $400K issued at age 28 might be $25–$35/month — locked. Lifetime savings: tens of thousands.
Most service-connected conditions are stable enough for civilian underwriting. We've placed comparable cases at standard rates with carriers known for fair veteran underwriting.
Top questions on this scenario.
Should I keep VGLI at all?
Often yes — at the lowest tier. It acts as a portable safety net regardless of future health changes. The play is to layer cheaper private term on top, not to replace VGLI entirely.
What if my health is complicated?
VGLI's guaranteed-issue window is genuinely valuable here. We'll still quote private carriers; if civilian underwriting comes back unfavorable, you'll have used the VGLI window as a safety net.
Can I get private coverage after the 240-day window?
Yes — but you'll go through standard underwriting. Most veterans qualify; some service-connected conditions trigger rate-ups depending on carrier.
How much can I save by switching?
Healthy veterans separating in their 20s and 30s typically save tens of thousands over a 20- to 30-year window. We'll do your specific math in the discovery call.
Start with the free Will Kit. No pressure, no obligation.
We'll mail your kit, then schedule a 15-minute review whenever you're ready.