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Coverage Types

What is the difference between SGLI and VGLI?

Last reviewed: · Big Sioux Life Data Desk

SGLI (Servicemembers’ Group Life Insurance) is the coverage you carry while serving: up to $500,000 of group term at a flat $30 a month plus $1 for traumatic injury protection, regardless of your age or health, per the VA. VGLI (Veterans’ Group Life Insurance) is the program that lets you continue that coverage as a civilian — same $500,000 maximum, no term end date, but priced by five-year age bands that rise for life, and gated by deadlines that start running the day you separate.

The differences that actually matter

SGLIVGLI
Who has itActive-duty and covered service membersSeparated veterans who apply in time
Maximum coverage$500,000 (raised from $400,000 effective March 1, 2023)Capped at your SGLI amount at separation, up to $500,000
PricingFlat $30/mo for $500,000, any age$0.60/mo per $10,000 under 30, rising each 5-year band to $44 per $10,000 at 80+
Health questionsNoneNone if you apply within 240 days of separation; required after that
When it ends120 days after leaving the militaryRenews for life while premiums are paid

Source: U.S. Department of Veterans Affairs, SGLI/VGLI program pages and published VGLI rate table, accessed 2026.

The three deadlines

  1. Day 120 after separation — free SGLI coverage ends. Until then you’re still insured at no cost while you decide.
  2. Day 240 — the no-health-questions VGLI window closes. Apply by here and enrollment cannot be denied for medical reasons.
  3. 1 year + 120 days — the final VGLI deadline, no extensions. Between day 241 and this date you must show evidence of good health, and the VA can decline.

The 240-day window is the strategic one: a veteran with a service-connected condition, a new diagnosis, or anything that would complicate private underwriting can lock $500,000 of lifetime-renewable coverage with no medical questions — an option the private market does not offer at that size. A healthy veteran, meanwhile, should price private term against the VGLI age bands before day 240, so the guaranteed option is still open if quotes come back worse than expected.

The full walk-through — VALife, the worked DIME example, and how South Dakota veterans compare all three against private term — is in What Happens to Your SGLI When You Leave the Military?.

Related questions

How much does VGLI cost compared with SGLI?

SGLI is a flat $30 a month for $500,000 (plus $1 for traumatic injury protection) at any age, per the VA. VGLI is priced per $10,000 of coverage in five-year age bands: $0.60 a month per $10,000 under age 30 — $30 a month for $500,000 — rising every five years regardless of health, to $44 per $10,000 at 80 and older, which is $2,200 a month for the same $500,000.

Is VGLI better than private term life insurance for a veteran?

It depends entirely on health. A healthy veteran shopping the private market is priced on their own health class and locks that rate for a full term, often beating VGLI's age-band rate. A veteran whose health would complicate private underwriting may find VGLI's no-questions-asked enrollment — available only in the first 240 days after separation — worth the rising cost. Compare real quotes before the window closes, not after.

What is VALife, and how does it fit in?

VALife is a separate VA program for veterans with any service-connected disability rating, even 0%. It asks no health questions at any point after the rating is assigned, but caps at $40,000 of whole life coverage and phases in over two years — die within the first two years and beneficiaries receive premiums paid plus interest, not the face amount, per the VA.

Talking it through beats guessing: book a strategy call or see all answers.

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