Best Life Insurance for Veterans
Beyond SGLI: what to consider after separation
While serving, SGLI provides $400,000 of coverage at $25/month — an exceptional rate. After separation, you have 1 year + 120 days to convert to VGLI (Veterans Group Life Insurance) without a health exam.
VGLI rates increase every 5 years based on your age bracket. Under 35: reasonable ($20–$40/month for $400K). Over 40: increasingly expensive ($80–$200+/month). Over 50: often not competitive with private term insurance.
The decision framework: if you're young and healthy, compare VGLI rates against private term life insurance (Ladder, Haven, USAA, Navy Federal). Private term is often 30–50% cheaper for healthy applicants because it uses medical underwriting — healthy people get better rates.
If you have health conditions that make private insurance expensive or unavailable, VGLI is guaranteed issue (no health questions) — this is its primary advantage.
For most healthy veterans under 40: private 20-year or 30-year term policy at $500,000–$1,000,000 coverage costs $30–$60/month. VGLI at $400,000 may cost the same or more within 5 years.
SBP vs life insurance for retirees: SBP never expires and includes COLA. Term life expires. SBP premium = 6.5% of retirement pay. Compare the total cost over your expected lifetime.