- You have a serious health condition (recent cancer, uncontrolled diabetes, BMI > 40, recent cardiac event) that would cause private carriers to decline or heavily table-rate.
- You're within the 240-day post-separation window with significant health concerns.
- Your coverage need ends within 5-10 years and the 5-year VGLI bands match your timeline.
- You have a service-connected disability rating with conditions affecting underwriting.
Veteran coverage comparison
VGLI vs. Private Term Life Insurance
Every separating service member faces this decision. The default is to keep VGLI because it's easy and guaranteed-issue. The default is wrong for most healthy veterans — sometimes by tens of thousands of dollars over a 30-year career.
Option A VGLI
vs Federal guaranteed-issue conversion of SGLI
Option B Private term
Medically underwritten level term
Side by side
Point-by-point comparison.
Comparison VGLI Private term
Underwriting Guaranteed-issue (within 240 days of separation) Medically underwritten
Maximum face amount $500K $5M+ available
Premium structure Increases every 5 years Locked for full term
Cost: $500K, healthy 30-yo $32/mo (rises every 5 yr) $24-$28/mo (locked 30 yr)
Cost: $500K, healthy 60-yo $324/mo $28/mo (still locked)
Decline risk None — guaranteed Possible if serious health condition
Conversion to whole life Yes, no medical evidence required Conversion option to same carrier permanent product
Best for healthy veterans No — expensive long-term Yes — almost always wins on lifetime cost
Best for veterans with significant health conditions Yes — guaranteed-issue value matters May be declined or table-rated
- You're in standard health or better.
- You want premiums locked for 20-30 years.
- You need more than $500K of coverage.
- You're focused on lifetime cost — typically saves $30K-$60K over 30 years.
Common questions
VGLI vs. Private Term Life Insurance FAQ
What's the deadline to elect VGLI?
240 days post-separation for guaranteed-issue. Day 241-365 you can still apply but with evidence of insurability. After day 365, VGLI is no longer available.
Can I have both VGLI and private term?
Yes. Many veterans carry both during a transition period (lock private term while VGLI is your fallback) and drop VGLI once private is in force.
What's the smartest play for a separating service member in good health?
Apply for private term in months 6-12 of separation. If approved at favorable rates, drop SGLI/VGLI. If declined, you still have the 240-day VGLI window as fallback. This sequence saves the average healthy veteran $30K-$60K over 30 years.
Ready to see real numbers from multiple carriers?
Free Will Kit + 15-min review. We quote 5–8 carriers and tell you straight which option fits.