VGLI vs. Private Term Life Insurance: Which Is Right After Service?

Key takeaways

• When you leave the military, you can apply for VGLI with no health questions within 240 days, and with proof of good health up to 1 year and 120 days.
• VGLI premiums are based only on your age and coverage amount, and they rise as you move into each new five-year age bracket.
• VGLI often makes sense if you have serious health conditions. Private term often makes sense if you're healthy and want a price that stays level.

Deciding between VGLI vs. private term life insurance is one of the money choices that come with leaving the military. Both can protect your family. They're priced in very different ways, and the deadlines for VGLI are firm. This guide explains how each works so you can choose before your window closes.

What VGLI is

Veterans' Group Life Insurance (VGLI) lets you keep life insurance after you leave the military. It converts your Servicemembers' Group Life Insurance (SGLI) into renewable term coverage that you can keep for life by renewing every 5 years, as long as you pay the premiums.

You can get between $10,000 and $500,000 of coverage, up to the amount of SGLI you had when you left. If you start with less than the maximum, you can add $25,000 one year after getting VGLI and then every 5 years after that, up to $500,000, until you're 60.

The VGLI timeline after you leave service

The dates matter more than anything else in this decision.

The 240-day window is the big one. VA says that applying within 240 days means you can get coverage even if you have health conditions. That's the main advantage VGLI has over private coverage.

How VGLI premiums rise in 5-year age bands

VGLI premiums depend only on your age and the amount of coverage. VA doesn't charge more based on gender or tobacco use. Rates adjust at five-year age brackets, so your premium goes up each time you enter a new bracket.

Here's what $100,000 of VGLI coverage costs per month, using VA's rates as of July 1, 2025:

The rates are low when you're young, but they climb steeply with age. Over a few decades, that adds up. That's why it pays to compare VGLI with a private policy before you commit, especially if you're healthy.

One note for this year: VA has announced a VGLI premium holiday. If your coverage is active on November 1, 2026, you won't owe premiums from November 1, 2026, through January 31, 2027. It's applied automatically.

How private term life compares

Private term life insurance covers you for a fixed period, usually 10 to 30 years. According to VA's comparison, private term differs from VGLI in a few key ways:

• You may need a health review or medical exam, and your health conditions may affect whether you're approved.
• Private insurers often base premiums on gender and tobacco use.
• Your payment can stay the same for the whole term.
• Your coverage ends when the term ends. VGLI, by contrast, can be renewed every 5 years for life.

VGLI vs. private term: when VGLI wins

VA describes VGLI as a good option if you have a health condition linked to your service, or if you want a policy you can keep for life by renewing it. VGLI tends to make sense when:

• You have serious health conditions. Within 240 days, VGLI doesn't ask about your health. With a private insurer, your health conditions may affect whether you're approved.
• You use tobacco. VGLI doesn't charge more for tobacco use.
• You want coverage you can keep for life, and you're comfortable with premiums that rise with age.
• You need time. VGLI can hold your coverage in place while you shop for private options. You can convert VGLI to an individual permanent policy, such as whole life, through participating companies at standard rates without proving good health.

VGLI vs. private term: when private term wins

VA says private term may be a good option if you're in good health and want a payment that won't change for the length of the policy. Private term tends to make sense when:

• You're healthy and don't use tobacco. You may qualify for a payment that won't change for the length of the term.
• Your need has an end date, like raising children or paying off a mortgage.
• You want a predictable budget. Because VGLI rates rise every five years, a private premium that stays level for the term can be easier to plan around.

A practical approach

You don't have to decide on day one. One practical sequence:

1. Apply for VGLI within 240 days so coverage is locked in without health questions.
2. Get private term quotes while VGLI is in place.
3. Compare the total cost over the years they expect to need coverage.
4. Keep VGLI, replace it or keep some of each.

Don't cancel VGLI until a private policy is approved and in force. A gap in coverage could leave your family without protection.

The bottom line

VGLI's biggest strength is access: no health questions if you apply within 240 days, and coverage for life if you keep paying. Its weakness is cost at older ages, since premiums rise every five years. Private term can be the better fit for healthy veterans who want a payment that stays level.

See how both compare for your age and health on our veterans life insurance page.