How to Convert an SGLI Policy to a VGLI Policy

Should you convert Servicemembers Group Life Insurance (SGLI) policy to Veterans’ Group Life Insurance (VGLI) policy? It can be a great option, but there are several factors to consider before making the call.
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How to Convert SGLI to VGLI

One of the most important things to consider when transitioning from military to civilian life is ensuring you have the right life insurance coverage. You’ll want to know how much coverage you need—and whether your military policy will still protect your family after you leave active duty.

Life insurance provides critical financial support to your loved ones if you’re no longer there to provide for them. The last thing you want is to separate from service and leave your family without a safety net.

Fortunately, the Veterans’ Group Life Insurance (VGLI) program allows you to convert your Servicemembers Group Life Insurance (SGLI) to a similar, low-cost group policy designed specifically for veterans.

Key Takeaways:

  • You can convert your SGLI to VGLI within 1 year and 120 days after separation from service—but to skip the medical exam, apply within 240 days.
  • VGLI offers guaranteed acceptance (no health questions) if you apply within the 240-day window, making it a good option for veterans with medical conditions.
  • VGLI premiums are based on age and will increase significantly over time, so it’s smart to compare rates with private life insurance before making a decision.

Converting SGLI to VGLI: The Quick Answer

You can convert your SGLI policy to a VGLI policy either online or by mail. You’ll need to submit your application within a year and 120 days after separation, and you can skip the medical exam if you apply within the first 240 days.

Online: Use the VA’s application portal.
By mail: Submit Form SGLV 8714 to the address listed on the form.

VGLI Eligibility: Who Can Apply?

Before you start the application process, make sure you’re eligible. According to the VA, you may qualify for Veterans’ Group Life Insurance (VGLI) if any of the following apply:

  • You had full-time SGLI coverage while serving in the military and are within 1 year and 120 days of your discharge or release from active duty (with at least 31 consecutive days of service)
  • You’re within 1 year and 120 days of retiring or being released from the Ready Reserves or National Guard
  • You’re within 1 year and 120 days of being assigned to the Individual Ready Reserve (IRR) or Inactive National Guard (ING)—this includes members of the U.S. Public Health Service Inactive Reserve Corps
  • You had part-time SGLI as a member of the National Guard or Reserves and became disabled while on duty (including while traveling to or from duty), making you ineligible for standard premium rates
  • You’ve been placed on the Temporary Disability Retirement List (TDRL) within the last 1 year and 120 days

Note: If you’re not sure whether you qualify, the VA’s online application will guide you based on your service details.

Comparing SGLI and VGLI

There are two important distinctions between SGLI and VGLI: eligibility and cost. SGLI is for active servicemembers. Everyone using SGLI pays the same, low-cost premium. VGLI, on the other hand, is only for veterans and premiums are based on your age. So, as you age, your premium will increase.

FeatureSGLIVGLI
EligibilityActive servicemembersVeterans
Coverage LimitUp to $500,000Equal to SGLI coverage
Cost StructureFlat rate for everyoneBased on age (increases every 5 years)
Medical ExamNot requiredNot required if applied for within 240 days of leaving military; required for applications filed between 241 days  and 1 year and 120 of leaving service

Comparing SGLI and VGLI Premiums

As of July 1, 2025, SGLI premiums are 5 cents per thousand dollars of coverage. Servicemembers can purchase coverage in $50,000 increments up to a maximum of $500,000 (maximum coverage comes out to $25 per month, plus $1 for TSGLI, for a total of $26).

Servicemembers also buy into the Traumatic Servicemembers Group Life Insurance (TSGLI) program for $1 per month. The TSGLI program provides cash assistance for servicemembers who are injured while on active duty.

You can see the full range of SGLI premiums:

SGLI Coverage AmountMonthly Premium RateTSGLI PremiumTotal Monthly Premium Deduction
$500,000$25.00$1.00$26.00
$450,000$22.50$1.00$23.50
$400,000$20.00$1.00$21.00
$350,000$17.50$1.00$18.50
$300,000$15.00$1.00$16.00
$250,000$12.50$1.00$13.50
$200,000$10.00$1.00$11.00
$150,000$7.50$1.00$8.50
$100,000$5.00$1.00$6.00
$50,000$2.50$1.00$3.50

VGLI premiums, however, can be purchased in $10,000 increments, and premiums vary by age. Here is an abbreviated table showing VGLI premiums (note: for space reasons, we chose to show premiums in $50,000 increments, even though VGLI can be purchased in $10,000 increments):

VGLI Premiums Ages 18 – 54

Amount of InsuranceAge 29 and BelowAge 30–34Age 35–39Age 40–44Age 45–49Age 50–54
$500,000$30.00$40.00$50.00$70.00$95.00$145.00
$450,000$27.00$36.00$45.00$63.00$85.50$130.50
$400,000$24.00$32.00$40.00$56.00$76.00$116.00
$350,000$21.00$28.00$35.00$49.00$66.50$101.50
$300,000$18.00$24.00$30.00$42.00$57.00$87.00
$250,000$15.00$20.00$25.00$35.00$47.50$72.50
$200,000$12.00$16.00$20.00$28.00$38.00$58.00
$150,000$9.00$12.00$15.00$21.00$28.50$43.50
$100,000$6.00$8.00$10.00$14.00$19.00$29.00
$50,000$3.00$4.00$5.00$7.00$9.50$14.50
$10,000$0.60$0.80$1.00$1.40$1.90$2.90

VGLI Premiums Ages 55 and Up

Amount of InsuranceAge 55–59Age 60–64Age 65–69Age 70–74Age 75–79Age 80 & Over
$500,000$250.00$425.00$690.00$1,075.00$1,925.00$2,200.00
$450,000$225.00$382.50$621.00$967.50$1,732.50$1,980.00
$400,000$200.00$340.00$552.00$860.00$1,540.00$1,760.00
$350,000$175.00$297.50$483.00$752.50$1,347.50$1,540.00
$300,000$150.00$255.00$414.00$645.00$1,155.00$1,320.00
$250,000$125.00$212.50$345.00$537.50$962.50$1,100.00
$200,000$100.00$170.00$276.00$430.00$770.00$880.00
$150,000$75.00$127.50$207.00$322.50$577.50$660.00
$100,000$50.00$85.00$138.00$215.00$385.00$440.00
$50,000$25.00$42.50$69.00$107.50$192.50$220.00
$10,000$5.00$8.50$13.80$21.50$38.50$44.00

While VGLI premiums start out relatively low for younger veterans,  VGLI premiums increase every five years, and those increases become much steeper after age 55.  If you’ll continue to need insurance coverage later in life (after 55), other options could be cheaper.

Comparing VGLI to Another Civilian Life Insurance Policy

One of the biggest advantages of VGLI is that it doesn’t require a medical exam or health questionnaire if you apply within 240 days of leaving the military. This guaranteed acceptance can be a huge benefit for veterans with health conditions that might make private insurance difficult or expensive to obtain.

However, VGLI isn’t always the most cost-effective option, especially for younger, healthy individuals or if you’ll need insurance after VGLI premiums rise substantially. Civilian term life insurance policies often offer lower premiums and more flexible coverage options, particularly if you’re in good health and a non-smoker.

That’s why it’s wise to shop around before committing. Get free quotes from private insurers and compare the rates, coverage amounts, and policy terms with what VGLI offers.  You should do this at least 6-12 months prior to military separation to ensure you have enough time to avoid a lapse in coverage.  It can also be smart to do this before filing a VA disability claim.  

 Even if you end up choosing VGLI, you’ll feel more confident knowing it was the right decision for your situation.

Step-by-Step: How to Apply for VGLI

1. Decide if Converting to VGLI Is Right for You

Before applying, take time to evaluate whether VGLI is the best fit for your situation. It’s often a smart option if:

  • You’re nearing separation and want to avoid a lapse in life insurance coverage
  • You have a medical condition that could disqualify you from, or increase the cost of, private life insurance
  • You’ve been denied or quoted high premiums by private insurers
  • You want guaranteed acceptance without a medical exam (as long as you apply within 240 days of separation)
  • You prefer a government-backed policy with predictable, age-based premiums
  • You want lifelong renewable coverage, regardless of future health changes

That said, VGLI may not always be the most affordable choice. If you’re in good health and under 40, you could potentially get lower premiums and more flexible coverage with a private term life policy.

2. Choose Your Coverage Amount

VGLI allows you to carry over up to the full amount of your SGLI coverage (currently up to $500,000), but it’s worth asking yourself how much life insurance you actually need.

Consider:

  • Your mortgage or rent payments
  • Day-to-day living expenses for your spouse and/or children
  • Future costs like education or long-term care
  • Any outstanding debts you’d want covered

Quick tip: Many experts recommend coverage equal to 5–10 times your annual income. If you need more than what VGLI allows, consider supplementing it with a civilian policy.  Additionally many employers offer affordable group term life insurance.  This typically covers 1 or 2 times salary.  If you have employment lined up, consider this in your calculation.  

Check out our guide to how much life insurance you need to learn more.

3. Submit Your VGLI Application

Once you’ve decided to convert and know how much coverage you need, you can apply online or by mail.

Online: You can apply online using the VA’s online application. The application process is straightforward, guiding you through each step and even providing a chart to estimate your monthly premium. 

Once submitted, your application is evaluated instantly, and you’ll either receive immediate approval or be notified if further review is needed.

If you prefer to apply by mail, simply fill out Form SGLV 8714 and send it to:

Office of Servicemembers’ Group Life Insurance (OSGLI)
PO Box 41618
Philadelphia, PA 19176-9913

Be sure to include:

To ensure a smooth transition from SGLI to VGLI, make sure you understand the timeline and submit all required materials well before the one year and 120-day deadline.

Pros and Cons of VGLI

Just because you’re eligible to convert your SGLI policy to VGLI doesn’t mean it’s automatically the right choice. The decision will vary for each person based on his or her individual situation and the options they have available outside of the VGLI program.

Here’s a breakdown of the main pros and cons of converting to VGLI over a private life insurance plan:

ProsCons
No medical exam or health questions if you apply within 240 days of leaving active dutyCoverage is capped at the amount you had under SGLI (up to $500,000)
Guaranteed acceptance within 240 days, regardless of health statusPremiums increase with age and can become expensive over time
Premiums are based solely on age—not health, gender, or smoking statusMay be more expensive than private life insurance for young, healthy individuals
Reliable, government-backed coverage with a straightforward application processLess flexible than some private life insurance policies
Good option for those with medical issues who may be denied private coverageCannot increase your coverage beyond what you had under SGLI

Tip: If you’re considering VGLI but still healthy and under 40, get quotes from private insurers first. Even if you don’t go with a civilian plan, it helps confirm whether VGLI is your best choice.

Final Thoughts: Is VGLI the Right Move for You?

Deciding whether to convert your SGLI policy to VGLI is an important step as you transition to civilian life. VGLI offers a reliable, government-backed option for continued life insurance coverage, especially valuable for veterans with medical conditions or those seeking guaranteed approval without a medical exam.

If you’re in good health, it’s worth comparing VGLI premiums to those from private insurers. Civilian life insurance may offer lower rates and greater flexibility, but it typically requires more paperwork, underwriting, and health evaluations.

Ultimately, the best choice depends on your personal situation—your health, your financial goals, and your family’s needs. What matters most is securing the coverage that will protect your loved ones if something happens to you.

Ready to take the next step?

  • Compare life insurance quotes from private providers to see if you can get a better deal.
  • Apply for VGLI online through the VA if it fits your needs, and don’t miss the 240-day deadline to avoid medical requirements.
  • Talk to a licensed insurance advisor if you’re not sure which option is best for your long-term financial plan.

Make a decision that brings you peace of mind today and provides protection for your family tomorrow.

Fact-checked by Mike Hunsberger, ChFC®, CFP®, CCFC

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