SGLI to VGLI Conversion Guide for Military Veterans in 2026

While you are on active duty, you and your family’s life insurance needs are met by Servicemembers’ Group Life Insurance (SGLI), one of your many veteran’s benefits. But once you separate or retire, you have the option to convert that policy to Veterans’ Group Life Insurance (VGLI).

Learn how to manage this financial safety net while you serve, and whether you should convert SGLI to VGLI after you separate or retire from the military.

What is SGLI in 2026?

SGLI is a program administered by the Department of Veterans Affairs (VA), and provides low-cost, automatic term life insurance to eligible active-duty service, guard and reserve members. If you are eligible, the VA will automatically sign you up.

With SGLI, you have access to up to $600,000 in survivor benefits with:

• up to $500,000 (in $50,000 increments) in SGLI life insurance coverage.
• up to a $100,000 Traumatic Injury Protection (TSGLI), a short-term insurance benefit paid to severely injured service members to help with recovery and rehab.

Although it may seem like a lot of money, many families may still need additional coverage to replace income and maintain their family’s long-term financial stability.

SGLI is not available to you indefinitely. You will have a limited time after separation to convert SGLI to VGLI. If you do not convert, your SGLI end after 120 days, and you will need to purchase private life insurance to maintain financial protection for your family.

If you have SGLI, you pay a monthly premium that is automatically taken out of your basic bay. The rate in 2026 is 5 cents per $1,000 of insurance coverage, plus $1 per month for TSGLI.

​What is VGLI and Who Qualifies?

VGLI is a life insurance option for separating or retiring service members who have full-time SGLI coverage. You are eligible to convert your SGLI to a renewable term life VGLI policy within 1 year and 120 days (485 total days) of being released or retired from active duty as long as you continue to pay your SGLI premiums.

If you sign up within 240 days of separating, you won’t need to prove you are in good health. However, if you wait until after the 240-day period, you will need to provide evidence that you are in good health, and possibly undergo a medical exam.

Note: Guard and Reserve members should confirm eligibility requirements with the VA.

2026 VGLI Conversion Deadlines

Your SGLI expires 120 days after you separate. During this window, you receive free coverage at the same amount you had upon separation. Unless you convert your SGLI to VGLI within this period, or get private life insurance, you will experience a gap in life insurance coverage.

If you are 100% disabled when you leave the military, you may be able to extend SGLI coverage for free up to two years at no cost.

To apply for a disability extension, fill out the SGLI Disability Extension Application and send it to the address on the application.

SGLI to VGLI Conversion Timeline (Day-by-Day)

Day 0 (Separation Date): SGLI in effect

Days 1 to 120 (Free Extension): No cost coverage

Days 121 to 240 (Guaranteed Acceptance): Convert to VGLI up to $500,000 without proof of good health; policy cannot exceed SGLI amount at separation.

Days 241 to 485 (Medical Underwriting Period): Must submit proof of good health, but could be denied coverage for a service-connected or pre-existing condition.

Day 486 and Beyond (Deadline Passed): Your chance to convert SGLI to CGLI has expired.

VGLI Coverage Amounts and Premiums

You can get between $10,000 and $500,000 in VGLI coverage up to the amount of your SGLI policy before you separated from the military. If you had less than the maximum coverage, you can increase it by $25,000 one year after getting VGLI, and every five years after that up to $500,000, until you are 60 years of age.

VGLI is based on a unisex group rate structure and is designed to be highly accessible to departing service members. VGLI does not adjust premiums based on:

• Gender: Rates are identical.
• Tobacco Use: Smokers pay the exact same rate as non-smokers.
• Health Status: If you apply within 240 days of separation, you cannot be denied coverage or charged more for pre-existing medical conditions, such as Post-traumatic stress disorder (PTSD) or Traumatic Brain Injury (TBI).

How Do VGLI Premiums Increase by Age?

​VGLI vs Private Term Life Insurance (Cost Over Time)

You may be wondering how VGLI compares to private life insurance. Up to a certain age, VGLI can compete well with private insurance. However, once you reach age 45, VGLI monthly premiums increase dramatically, while the private policy locks in a fixed rate for the life of the policy.

Below is an example of a USAA 30-year term life insurance policy for a 40-year-old non-smoker in good health with no family history of cancer of heart disease.

Estimated USAA 30-Year Term Premiums (40-Year-Old)​

​Source: USAA On-line Quote, 14 July 2026

VGLI vs USAA 30-year term Life Insurance

​Over a 30-year period, private life insurance can save $23,931 to $132,499.20 compared to VGLI.

When VGLI Makes Sense (And When It Doesn’t)

VGLI is a great option for some separating military members, but it may not be best for everyone. While VGLI historically costs more, the VA reduced premiums in July 2025, narrowing the gap with private life insurance.

To make a more informed decision, here are cases when VGLI makes sense:

If You Have Pre-Existing Health Issues

VGLI is an excellent safety net if you suffered serious injuries or illness while in the military, such as PTSD, TBI, or other diagnosed conditions. If you sign up within 240 days of leaving the military, you are offered guaranteed acceptance without needing to prove good health. You can still apply after this period, but acceptance is dependent on proving good health or going through a medical exam.

If You are a Smoker

Private insurance companies typically charge smokers a much higher premium. Smokers pay the exact same premium as non-smokers under the VGLI plan.

Note: You can also search for veteran-friendly life insurance alternatives, like the Military Benefit Association, to explore smoker rates.

If You Want Gap Insurance

Unlike private term policies, VGLI is renewable for life as long as you keep paying your premiums. However, rates increase every five years. So, if you are not sure of your long-term insurance strategy, you can use VGLI as gap insurance. This makes sense, especially if you are under 40, when rates are the lowest.

You Want the Option to Convert VGLI to a Private Life Insurance Policy

You have the option to convert your VGLI coverage to participating private life insurance companies. However, the conversion must be to a permanent policy, like whole life. You cannot convert it to another term policy.

You can often convert at standard premium rates without having to prove that you are in good health. If you are in good health, you might even be able to get a better rate by going through the medical underwriting process.

Steps:

• Choose a provider from a list of participating companies.
• Apply through your chosen company.
• Obtain proof of VGLI coverage from the Office of Servicemembers’ Group Life Insurance (OSGLI) and provide it to your new agent.

Step-by-Step: How to Enroll in VGLI

Step 1: Verify Eligibility

You must have an active SGLI policy when you separate, and apply within 1 year and 120 days of separating from the military. If you sign up for VGLI within the 240-day period, VGLI offers “guaranteed acceptance,” meaning you don’t have to submit evidence of good health.

Step 2: Choose Your Coverage Amount

You can choose coverage from $10,000 up to $500,000 (using increments of $10,000). You can’t select an amount that exceeds the SGLI coverage you had when you separated or retired.

Step 3: Choose How to Apply

Online: Apply for VGLI through OSGLI. Don’t be alarmed if you see it is a Prudential website. Prudential administers and underwrites VGLI on behalf of the VA.

Mail or Fax: Apply by mail or fax using the Application for Veterans’ Group Life Insurance (SGLV 8714)

Fax:

Mail:

• OSGLI
• PO Box 41618
• Philadelphia, PA 19176-9913

Pro Tip: If your VGLI policy has expired, you will need to ask to have it reinstated by completing an Application for Reinstatement of VGLI Coverage (SGLV 180)

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FAQ

Q: What’s the final deadline to convert SGLI to VGLI?

• Ultimate Deadline: You must convert your SGLI to VGLI within 1 year and 120 days (485 days total) of leaving the military. After day 485, the opportunity to convert expires completely.
• Guaranteed Acceptance Deadline: Apply within 240 days of separating to avoid health questions or medical exams.

Q: Can I convert without a medical exam?

Yes, if you apply within 240 days of your separation date. During this window, acceptance is guaranteed, and you do not need to prove you are in good health.

No, if you wait until days 241 to 485. After day 240, you will have to undergo medical underwriting, prove you are in good health, and risk being denied coverage due to pre-existing or service-connected conditions.

Q: Can I increase my VGLI coverage later?

Yes. If you initially register for less than the maximum $500,000 coverage, you can increase your coverage by $25,000 starting one year after getting VGLI. After that, you can continue to increase it by $25,000 every five years, until age 60, up to $500,000.

Q: Is VGLI worth it compared to private term life insurance?

VGLI is worth it if:

• You have pre-existing health conditions (PTSD, TBI, service-connected injuries): VGLI is highly worth it because you cannot be denied coverage if you apply within the 240-day window.
• You are a smoker: VGLI does not charge higher rates for smokers, whereas private life insurance companies charge smokers heavily.
• You need temporary gap insurance: If you are under 40, VGLI rates are incredibly low, making it a great temporary safety net while you transition.

VGLI is NOT worth it if:

• You are in good health and do not smoke: Private term life insurance (such as USAA) is usually much cheaper. Because VGLI premiums increase every 5 years, a private 30-year term policy can save you between $23,931 and $132,499.20 over its lifetime compared to VGLI.