SGLI ends 120 days after separation. VGLI premiums spike with age. Individual term life gives veterans a better rate — locked in while you're young — that VGLI can never match.
Most veterans don't realize their SGLI window is closing. Here's how coverage and cost evolve — and when to act.
| Stage | Cost |
|---|---|
Active Duty (SGLI Active) Full coverage — but expires at separation | ~$25/mo payroll |
Within 120 Days of Separation Apply for individual coverage NOW — while SGLI is still active | Included in service |
Post-Separation (VGLI) Expensive; no new value added over individual term | Increases with age — $98–$225/mo at 40+ |
Individual Term (Tower Hill) Best value — rate locked at separation-age health | Fixed for term — $25–$60/mo typical |
SGLI (Servicemembers' Group Life Insurance) covers up to $500,000 — currently the maximum available. For families with a mortgage, children, and spouse income gap, $500K may cover 5–7 years of expenses. Most financial planners recommend 10–12× income. A supplemental private policy can bridge the remaining gap at surprisingly low cost.
SGLI coverage ends 120 days after separation. You can convert to VGLI (Veterans' Group Life Insurance), but VGLI premiums increase significantly with age and aren't competitive with individual market pricing. Transitioning members in their 30s often find individual term life at 30–50% lower cost than VGLI — and individual rates are locked in for the full term.
Yes, and many do. Individual policies supplement SGLI and remain in force when you separate — providing continuity of coverage without the VGLI premium spike. Many active duty members lock in individual coverage while they're young and healthy, before any deployment-related health issues arise.
Individual policies already in force before deployment are not affected — your coverage continues unchanged. New applications during active combat zone deployment may be declined by some carriers, but coverage already issued stays active. This is another reason to lock in individual coverage early, before orders change your timeline.
Most veterans qualify for standard or preferred rates based on their current health, not service history. Unless a service-connected condition affects your health profile, your military background typically does not increase your premium. Tower Hill will match your profile to the carrier with the most favorable underwriting for veterans.
At separation, prioritize: (1) individual term life to replace or supplement SGLI before it expires, (2) disability income protection — the military's disability pay system is complex and civilian disability coverage kicks in immediately. A 20- or 25-year term policy during your transition sets up coverage through your prime earning and family-raising years.
Lock in your rate while you're healthy. Texas-licensed advisors who understand military coverage are available by phone anytime.
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