SGLI To VGLI – Life Insurance After The Military

SGLI to VGLI Pros & Cons

SGLI to VGLI is the process for service members to turn their life insurance benefit they received on active duty to coverage for life through the veterans program. Military personnel approaching their separation date have a long list of items to review as they work towards becoming a civilian. Comparing life insurance options should be at the top of that list as most may find a better priced plan than the retired military life insurance. 

The best life insurance for military retirees is the plan that can not only provide the lowest cost but greatest value. Many veterans leave the military with mental and physical health issues. As an experienced life insurance professional I have worked with several who are shopping the market to find out if they can decline the VGLI coverage. 

SGLI Conversion Pros

The most significant pro is the guaranteed insurability. In order for coverage to be guaranteed veterans must apply for the VGLI program within 240 days from their separation date. If they don’t they can still apply for another 245 days since the allotted time frame is 1 year and 120 days. After the 240 days a health review is required and a veteran can be denied the opportunity to participate in the program.

Another key consideration is that the veterans life insurance programs do not contain a suicide exclusion. Private market policies will have a suicide clause. This is usually a two year period from the issue date of the policy.

VGLI is a fantastic life insurance option for veterans who smoke or have a health condition which causes them to get higher rates on the private market plans.

SGLI Conversion Cons

Service members have another conversion benefit on the SGLI. They have the option of converting it to a whole life insurance policy at standard rates with a participating company. Whole life insurance is one of the most expensive permanent plans out there. Plus it is offered at standard rates. If a service member is healthy enough and really wants a whole life plan, they can likely get a new one at a preferred rate class which is less expensive.

As a recap service members exiting the military can either convert their SGLI benefit into a whole life plan or participate in the VGLI program.

Service members often ask “what does SGLI cost after the military?”. The VGLI plan is not competitive for those who are healthy and do not use tobacco products. They can save a lot of money by looking at VGLI alternatives.

To find the best life insurance for military retirees start with an independent broker with lots of companies. They can provide competitive veterans life insurance quotes.


SGLI to VGLI should only be exercised if a service member who is leaving the U.S. Military with an uninsurable or highly rated condition. Otherwise they can save a lot of money by obtaining a plan on the private market.

Separating the service can be a hectic transition! Be sure to not important deadlines for the VA insurance benefits and get in touch with a professional like me for advice. You can request a quote online or call me today!

About Melissa Schreur - Owner & Agent Insure The Heroes

My name is Melissa Schreur. I am a military spouse providing life insurance services over the phone and online across the United States. With my 14 years of experience and access to top rated carriers, I work hard helping my clients find the best life insurance!

This entry was posted in conversion, SGLI. Bookmark the permalink.

Leave A Reply