VGLI vs. Private Life Insurance: A Guide for Veterans

There isn't one universally better option between VGLI and private life insurance. They have different eligibility rules, pricing structures, policy choices, and underwriting considerations. Some veterans use VGLI. Some use private coverage. Some use both. This guide goes deep specifically on that comparison — for the broader picture of all your options after service, including VALife, see our full guide: Life Insurance for Veterans.

LifeCoverPath is an independent educational resource and is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, the U.S. military, or any government agency.

Quick Comparison: VGLI vs. Private Life Insurance

Private life insurance varies significantly by carrier and product, so treat the "private" column below as a general pattern, not one standardized policy.

	VGLI	Private Life Insurance
Provider/program	Administered through VA	Offered by many different insurance companies
Insurance type	Renewable group term life insurance	Varies by carrier/product — term, whole, universal, and other structures are available
Eligibility	Veterans/former service members who had SGLI, applying within the post-separation eligibility window	Varies by carrier — generally open to applicants who meet that company's underwriting criteria
Health review	None if you apply within 240 days of separation; health questions required after that, up to the overall deadline	Typically required — health questions, and sometimes a medical exam, depending on carrier and coverage amount
Coverage amounts	$10,000 to $500,000	Varies by carrier/product — some private policies offer higher maximums than VGLI
Premium structure	Based only on age and coverage amount — not gender or tobacco use	Varies by carrier — often reflects age, health, gender, tobacco use, and other underwriting factors
Policy choices	One structure: renewable group term	Varies by carrier/product — term lengths, permanent options, riders, and features differ
Cash value	None — term insurance	Varies by carrier/product — some permanent policies build cash value; term policies generally do not
Ability to combine coverage	Yes — VA explicitly allows applying for both VGLI and a private policy at the same time
Where to get official/current information	VA's VGLI page	Directly from the private insurance company you're considering

What Is VGLI?

VGLI (Veterans' Group Life Insurance) is group term life insurance available to eligible veterans after leaving the military, designed as a continuation of SGLI. Two details matter most for this comparison:

It's renewable, not fixed-term. According to VA, your VGLI coverage "will not end unless you request it or fail to pay premiums" — it doesn't expire after a set number of years the way many private term policies do.
No ongoing medical re-underwriting. Once your coverage is established, VA doesn't re-evaluate your health to keep it in force — you simply keep paying premiums.

For full eligibility rules, coverage amounts, and application timing, see our complete guide: Life Insurance for Veterans, or go directly to VA's VGLI page.

How VGLI Premiums Work

VGLI premiums are based only on your age and the amount of coverage you choose — VA states they're the same regardless of gender or tobacco use. That makes age an important factor when comparing long-term cost: as you get older, VGLI premiums generally increase.

We're not reproducing a rate table here, since premium schedules change over time. VA's VGLI page has current premium information for every age and coverage amount.

How Private Life Insurance Works

Private insurers can offer a range of policy structures — term life, whole life, universal life, and other variations — depending on the carrier. Underwriting and availability vary by company, and typically consider factors like age, health, tobacco use, and other carrier-specific criteria.

No private insurer can promise approval or a specific premium before underwriting is complete, and outcomes vary person to person. A veteran in excellent health may find favorable private rates; a veteran with certain health conditions may find private options more limited or costly — which is exactly why the timing considerations below matter.

Where VGLI Can Be Especially Important

VGLI tends to matter most in a few specific situations:

Recently separated veterans. SGLI coverage ends 120 days after separation from service, so VGLI is the intended bridge to keep coverage continuous.
Veterans approaching the end of their SGLI-to-VGLI window. The longer you wait, the closer you get to losing the no-health-review option.
Veterans with health conditions. A condition that could complicate private underwriting doesn't affect VGLI eligibility if you apply within the 240-day window.
Anyone uncertain how private underwriting will turn out. Applying for private coverage doesn't guarantee an outcome, and a decision can take time.

The 240-day no-health-review window

If you apply for VGLI within 240 days of separating from service, VA won't consider your health when deciding your eligibility. After that — up to the overall 1-year-120-day deadline — you can still apply, but you'll need to provide proof of good health. Miss the full deadline entirely, and VGLI is no longer available to you.

VA's own guidance is direct: apply for VGLI right away, even if you're also considering private insurance. If you wait for a private insurer's decision first and it's delayed or unfavorable, you could miss the 240-day window and lose the no-health-review option entirely. Applying for VGLI doesn't prevent you from also pursuing private coverage.

See VA's full guidance for veterans with preexisting conditions for more detail.

When Veterans May Want to Compare Private Coverage

VA itself identifies a few reasons someone might look into private insurance:

They're in good health and find more favorable rates with a private company.
They want a type of policy VGLI doesn't offer.
They want more coverage than VGLI's $500,000 maximum.

These are reasons to compare, not reasons private coverage is automatically the better choice. Whether any of them apply to you depends on your own health, budget, and goals.

Can You Have Both VGLI and Private Life Insurance?

Yes. VA is explicit that you can apply for both VGLI and a private policy — they're not mutually exclusive. Veterans do this for a range of reasons: to get more total coverage than VGLI alone provides, to combine VGLI's no-health-review protection with a private policy's different features, or simply to compare real options side by side before deciding. None of these are a recommendation for your specific situation — just examples of why some veterans hold both.

VGLI vs. Private Term Life Insurance

This is the more apples-to-apples comparison, since both are term-style coverage.

VGLI: a single renewable group term structure, with age-based premiums, VA's specific eligibility rules, and — if you apply within the 240-day window — no health review.

Private term insurance: carrier-specific term lengths (such as 10, 20, or 30 years), individual underwriting, potentially a level-premium period depending on the product, and features and eligibility that vary by company.

We won't claim private term insurance is cheaper — it depends entirely on your age, health, and the specific product. A healthy younger veteran might find a lower rate privately; a veteran with a health condition might find VGLI's no-health-review option more valuable, or find private coverage costs more or is harder to obtain.

VGLI vs. Permanent Life Insurance

This isn't an apples-to-apples comparison. VGLI is term insurance — it doesn't build cash value and isn't designed to last your whole life. Private permanent products (such as whole or universal life) can have very different structures, potentially including cash-value growth, but costs, guarantees, and features vary substantially by carrier and product. If permanent coverage is something you're considering, that's a separate decision from the VGLI-vs-private-term question above — one worth researching on its own terms rather than assuming it's simply "better" than VGLI.

Questions to Ask Before Making a Decision

How much coverage does my family actually need?
How long do I need the coverage — a specific number of years, or indefinitely?
Do I have health conditions that could affect private underwriting?
Am I still inside my VGLI no-health-review period?
How would premiums change over time under each option?
Do I need more coverage than VGLI provides?
Do I want term coverage, permanent coverage, or a combination?
Do I already have other life insurance that should factor into this decision?
What would happen if I canceled existing coverage before another policy was actually in force?

That last question matters more than it might seem. Private underwriting can result in approval, different rates than expected, modified coverage, or denial — so it's generally worth avoiding canceling existing coverage, or letting an important VGLI application window expire, until replacement coverage is actually in force.

Estimate Your Family's Coverage Need

Before comparing specific costs across VGLI and private options, it helps to know roughly how much coverage you're actually trying to get. LifeCoverPath's calculator walks you through the key factors and gives you a personalized, educational estimate — not an insurance quote — in a couple of minutes.

See what this might mean for your own coverage.

Answer a few questions and get a free, personalized coverage-needs estimate in about 2 minutes.

Calculate My Coverage Need

Frequently Asked Questions

Is VGLI private life insurance?

No. VGLI is a VA-administered group term life insurance program, not a private insurance policy. It's available only to eligible veterans and former service members, under VA's own eligibility rules.

Is VGLI term or whole life insurance?

Term. VGLI does not build cash value.

Does VGLI get more expensive with age?

Yes. Premiums are based on your age and coverage amount, and generally increase as you get older. VA's VGLI page has current rates.

Do I need a medical exam for VGLI?

Not if you apply within 240 days of separating from service. After that window, you'll need to provide proof of good health to apply.

Can I have VGLI and another life insurance policy?

Yes. VA explicitly allows applying for both VGLI and a private policy at the same time.

Can private life insurance be cheaper than VGLI?

It depends on your age, health, and the specific policy. It can be cheaper for some veterans and more expensive — or harder to obtain — for others. There's no universal answer.

Should I cancel VGLI if I apply for private insurance?

Generally, no — not until replacement coverage is actually in force. Private underwriting can result in approval, different rates than expected, modified coverage, or denial, so canceling existing coverage beforehand can leave you without protection during that gap.

How long after leaving the military can I apply for VGLI?

Generally within 1 year and 120 days of separation. Applying within the first 240 days avoids health questions entirely; after that, up to the overall deadline, you can still apply but must provide proof of good health.

What happens when SGLI ends?

SGLI coverage ends 120 days after you separate from service. VGLI is designed to pick up where it leaves off, but you have to apply for it separately.

Is LifeCoverPath affiliated with VA?

No. LifeCoverPath is an independent educational resource operated by VetLife LLC as part of its Veteran Life Insurance business. It is not affiliated with, endorsed by, or operated by the U.S. Department of Veterans Affairs, the U.S. military, or any government agency.

Official Resources

For current rates, eligibility rules, and applications, always go directly to VA's own resources:

This page is educational information, not individualized insurance, financial, tax, or legal advice, and it's not a substitute for VA's own guidance about your specific eligibility. See LifeCoverPath's Disclaimer for more on how to use the estimates and information on this site.

VGLI vs. Private Life Insurance: What Veterans Should Know