When you leave the military, one of your biggest life insurance decisions is whether to convert your SGLI to VGLI or buy a private term life policy. Both protect your family. They just work differently, and the right one depends on your health, your age, and your budget.
VGLI vs. Private Term Life Insurance: A Side by Side Comparison
| Feature | VGLI | Private Term |
|---|---|---|
| Acceptance | Guaranteed if you apply within 240 days | Requires a medical exam or health questionnaire |
| Premium Cost | Increases every 5 years based on age | Locked and level for 10, 20, or 30 years |
| Long-term Value | Premium rises with age | Stays level, which is often lower over time for healthy veterans |
VGLI is guaranteed acceptance if you apply within 240 days. The trade-off is that the price increases every five years.
Private term requires a medical exam or health questionnaire. Its advantage is that the premium is locked in for 10, 20, or 30 years and never goes up during that time. Learn more in types of life insurance.
Cost Over Time
If you map out the cost over 20 years, VGLI usually becomes much more expensive. A healthy 30-year-old might pay a low rate for VGLI today, but by ages 45 and 50 those premiums rise steeply. A 20-year private term policy locks in that age-30 rate for the entire two decades.
VGLI vs Private Term Calculator
See how VGLI's rising premiums compare to a locked-in private term policy over time.
Adjust to match a quote. Private term rates depend on health, age, and coverage amount.
Potential Savings
By choosing private term over VGLI
Who Wins in Each Case
If you are in good health, private term is usually the stronger financial choice. It can save you thousands of dollars over the life of the policy.
If you have significant health issues, such as PTSD, severe injuries, or chronic illness, VGLI is an important safety net. Because it does not require a medical exam within the 240-day window, it keeps your family protected when private coverage would be hard to get.
How to Switch
If you already have VGLI and are healthy, you can apply for private term at any time. Before you switch, compare your actual VGLI rate against a real term quote for the same coverage, so the choice is based on your own numbers. If private term is the better fit, apply first. Once your new policy is active, you can cancel your VGLI. Do not cancel VGLI until your new coverage is officially in place, so you are never without protection.