Why You Must Apply for VGLI Within 240 Days
To get VGLI without answering any health questions, you must apply within 240 days of your separation date. If you apply after 240 days, you will need to prove you are in good health. You have up to 1 year and 120 days from separation to apply at all. The steps are in converting SGLI to VGLI.
How Premiums Rise with Age
VGLI is an age-banded term policy. This means your premium increases every five years. It may be affordable in your 20s and 30s, but the cost becomes very high in your 50s and 60s. Some veterans end up dropping their coverage later in life because they can no longer afford the payments.
That is the key difference from a private policy. A level term life policy locks in one rate for the whole term, so the cost does not climb as you get older.
Who It Suits
VGLI makes the most sense for veterans who have serious health issues or a high VA disability rating that makes private term life insurance hard to get. Because VGLI skips the medical exam, it can be the stronger option, and sometimes the only option, when your health would raise the price of private coverage or rule it out. If you are healthy, private term is almost always the better financial decision. See the full breakdown in VGLI vs term life, and for every choice you have, start with veteran life insurance, explained.