SGLI to VGLI: Life Insurance After You Leave the Military

Your Servicemembers’ Group Life Insurance does not follow you out the door. The moment you separate or retire, that coverage starts winding down on a clock, and missing the deadlines can mean paying a lot more for coverage later, or losing the ability to get it at all without a medical exam. Here is what actually happens to your life insurance when you leave the military, and how to carry it forward without a gap.

What Happens to SGLI the Day You Leave

While you are on active duty, SGLI provides low-cost group term life insurance, automatically deducted from your pay, with coverage up to $500,000. That coverage does not end the instant you take off the uniform. The VA gives you a free extension period, generally 120 days after separation, during which your SGLI coverage continues at no cost while you decide what comes next.

The catch is that 120-day window closes fast, especially if you are also dealing with a PCS out of your last duty station, terminal leave, and a job search all at once. Once it closes, you need to already have your next coverage lined up.

Your Two Options: VGLI or an Individual Policy

You generally have two paths for keeping coverage after service, and the deadlines are different for each.

Veterans’ Group Life Insurance (VGLI)

VGLI lets you convert your SGLI into renewable term coverage as a Veteran, in amounts up to what you carried on active duty. According to the VA, you have one year and 120 days from your separation date to apply for VGLI. Inside that window there are two very different experiences:

• Apply within 240 days of separation: No medical exam or health questions required. You are approved based on your SGLI coverage alone.
• Apply between 240 days and one year, 120 days: You will need to answer health questions or provide evidence of good health, and approval is not guaranteed.

That gap between 240 days and the full deadline is where a lot of Veterans lose easy access to coverage simply because they were focused on the move to civilian life and let the clock run out.

Converting to an Individual Commercial Policy

If you would rather convert directly into a private, permanent individual policy instead of VGLI, the window is shorter: 120 days from your separation date, with no medical exam required for the conversion. This can make sense if you already know you want permanent coverage with cash value rather than renewable term insurance, but it closes well before your VGLI window does.

What VGLI Actually Costs

Because VGLI is government-run group term insurance rather than a loan or credit product, discussing its premium is straightforward, there is no financing involved. As of the 2025 SGLI and VGLI premium update, the maximum $500,000 in coverage runs $25 a month, plus $1 a month if you keep Traumatic Injury Protection (TSGLI). Premiums are based on your coverage amount and rise in age bands as you get older, similar to most term life insurance, so the earlier you lock it in, the longer you hold today’s rate for your age bracket.

You can also elect less than the maximum. Coverage is generally available in $10,000 increments up to your prior SGLI amount, so you are not forced into an all-or-nothing decision.

VGLI vs. Private Term Life Insurance

VGLI is not automatically your cheapest or best option, it is your guaranteed option. The tradeoffs are worth weighing side by side:

	VGLI	Private Term Life
Health questions	None if applied within 240 days	Usually required, medical exam common
Coverage cap	Up to your prior SGLI amount	Set by the insurer, often higher
Premiums	Rise in age bands, set by VA	Vary by insurer, health, and term length
Renewability	Automatically renewable, no re-underwriting	Depends on the policy

If you separated with a service-connected condition or anything that could complicate underwriting elsewhere, VGLI’s no-questions-asked window inside 240 days can be the more reliable choice even if a healthy applicant might find a cheaper rate on the private market. If you are in excellent health and want to shop around, it is worth comparing quotes before your VGLI deadline passes, since you can decline VGLI later but you cannot easily reclaim the no-exam window once it closes.

National Guard and Reserve Have Their Own Trigger Points

If you are Guard or Reserve, the VGLI clock is not tied to a single active duty separation date the way it is for someone leaving full-time service. According to the VA’s VGLI eligibility guidance, you become eligible for VGLI within one year and 120 days of retiring or being released from the Ready Reserve or National Guard, or within one year and 120 days of assignment to the Individual Ready Reserve or the Inactive National Guard. If your status has shifted between drilling, activation, and IRR in the last couple of years, do not assume your deadline matches a straightforward active duty separation. Confirm your specific trigger date with the Office of Servicemembers’ Group Life Insurance before you assume you are early or late.

Do Not Forget Family SGLI

If you carried Family SGLI (FSGLI) to cover a spouse or dependent children, that coverage is tied to your own SGLI and ends when yours does. Spouse coverage under FSGLI can also generally be converted to an individual policy, following a similar short conversion window described on the VA’s SGLI conversion page. If your family’s coverage matters to your overall plan, do not treat it as an afterthought behind your own VGLI decision. Handle both on the same timeline, since it is easy to remember your own coverage and forget a spouse’s is expiring on the same clock.

How to Apply for VGLI

1. Get your SGLV-8714 application from the VA’s Veterans’ Group Life Insurance page or through the myVA portal.
2. Confirm your separation date and count forward to the 240-day and one year, 120-day marks so you know exactly which application track you are on.
3. Choose your coverage amount, up to the amount of SGLI you carried, in $10,000 increments.
4. Submit before your deadline. Applications submitted after 240 days require health questions, so submitting even a few days early inside that window can save you an underwriting step entirely.
5. Set up premium payments, generally through direct billing or allotment once your coverage is approved.

Common Questions About SGLI and VGLI

Can I keep VGLI forever, or does it expire at some age?

According to the VA’s VGLI page, VGLI is lifetime renewable term coverage with no age limit or term limit. It renews every five years, and you are not asked medical questions at renewal as long as you keep paying premiums on time, though your premium rises as you move into higher age bands.

What if I miss the one year, 120-day deadline entirely?

Once that window closes, VGLI is no longer available to you, and your options shift to whatever private life insurance you can qualify for on the open market, which may involve full medical underwriting. This is exactly why calendaring the deadline the week you separate matters.

Can I convert my VGLI to a different type of policy later?

Yes. According to the VA’s guidance on converting coverage, you can convert VGLI to an individual permanent policy, such as whole life, with a participating private insurer at any time you hold it, without providing evidence of good health. A permanent policy tends to cost more than term coverage but builds cash value. That flexibility is one of the reasons Veterans use VGLI as a bridge even when they eventually want permanent coverage.

A Simple Timeline to Follow

1. Day 0 (separation date): Your free SGLI extension period begins.
2. Within 120 days: Decide whether you want to convert to an individual commercial policy, since this window closes first.
3. Within 240 days: Apply for VGLI if you want it, this is your last chance to skip the medical exam.
4. Within 1 year, 120 days: Final deadline to apply for VGLI at all, now with health questions required.

Put a reminder on your calendar for the 240-day mark the same week you sign your separation paperwork. That single date decides whether keeping your coverage is a quick form or a medical underwriting process.

The Bottom Line

SGLI does not just disappear when you leave the military, but it does start a countdown. Whether you choose VGLI or convert to an individual policy, the version of you that acts inside the first 240 days has more options than the version who waits. If you are still weighing your broader transition timeline or want a second set of eyes on how life insurance fits your overall retirement and benefits planning, that is exactly what The Edge is built for.

This article is general education, not individualized financial advice. Your situation is your own, and a decision this size deserves a conversation with someone who knows the details.