VGLI vs. a Personal Policy: Questions to Ask Before Day 240
Compare guaranteed acceptance, age-banded premiums, policy ownership, and health status before converting SGLI to VGLI.
VGLI lets you keep up to the same coverage you had under SGLI after you leave the service. It's guaranteed if you apply within 240 days. That guarantee is valuable, but it isn't the whole picture.
WHAT VGLI DOES WELL
- No health questions if you apply within 240 days of separation. - Lifetime renewable as long as you pay premiums. - Can grow: you can add $25,000 at your one-year anniversary and every five years after, up to $500,000, until age 60. - No war exclusion.
WHERE VGLI CAN COST MORE
VGLI premiums are set by age and rise every five years. The Military Officers Association of America estimated that a healthy, nonsmoking 42-year-old would pay about $151,560 over 30 years for $500,000 of VGLI. A healthy veteran may find a level-premium personal policy costs far less over the same period.
HOW TO COMPARE
Am I healthy enough to qualify for a personal policy at a good rate? If not, VGLI's guarantee may win.
How long will my family need coverage? Level term locks a price for 20 or 30 years. VGLI keeps rising.
Do I want coverage that lasts for life? Whole life can build cash value. VGLI does not.
What will I pay at 55, 60, and 65? Ask for VGLI's future rate bands and compare totals, not just this month's price.
A SMART SEQUENCE
1. Get personal quotes early, before day 120. 2. If you're approved at a good rate, compare the lifetime cost. 3. If underwriting is uncertain, apply for VGLI inside the 240-day window as a backstop.
YOUR NEXT STEP
Don't let the deadline make the decision for you. Compare both options while you still have the guaranteed window.
This guide is for education only and is not legal, tax, or investment advice. Coverage is subject to underwriting.