Life Insurance for Veterans: SGLI to VGLI to Civilian Coverage (2026)
Most veterans transitioning out of active service know about SGLI (Servicemembers' Group Life Insurance) and VGLI (Veterans' Group Life Insurance). Few know how those compare to civilian term life — and even fewer know that VGLI's premium structure makes it expensive after age 35. This article walks through the math and the underwriting tricks for service-connected conditions.
SGLI, VGLI, civilian — what each is and isn't
SGLI (Servicemembers' Group Life Insurance)
Provided to active-duty servicemembers automatically. Coverage up to $500,000 in $50,000 increments. Premium is around $30/month for full coverage in 2026. Includes Family SGLI for spouse and children.
SGLI is unbeatable while you're serving — there's nothing on the civilian market that competes with it for active-duty members.
VGLI (Veterans' Group Life Insurance)
Available to separating servicemembers within 1 year + 120 days of separation. Coverage up to whatever your SGLI level was. Premiums increase every 5 years based on your age.
Critical: VGLI does not require evidence of insurability if you enroll within 240 days of separation. After that window, evidence (health underwriting) is required. So if you have a service-connected condition that would affect civilian underwriting (PTSD, TBI, sleep apnea, prior cardiac events), grabbing VGLI in the no-evidence window is often the right move.
Civilian Term Life Insurance
Underwritten individually. Cheaper than VGLI for healthy applicants, especially under age 50. Typically substantially cheaper for non-smokers in good health. Locks in premium for the term length (usually 10/15/20/30 years), unlike VGLI's escalating premium.
The math: when VGLI beats civilian, when civilian beats VGLI
VGLI premium structure (2026, $400,000 coverage):
| Age band | Monthly premium | Annual |
|---|---|---|
| 30–34 | $32 | $384 |
| 35–39 | $48 | $576 |
| 40–44 | $68 | $816 |
| 45–49 | $96 | $1,152 |
| 50–54 | $160 | $1,920 |
| 55–59 | $268 | $3,216 |
| 60–64 | $432 | $5,184 |
| 65–69 | $600 | $7,200 |
| 70–74 | $972 | $11,664 |
Civilian 20-year term, $400K, healthy non-smoker applying at age 35 (locked rate for 20 years):
- Approximate premium: $25–$40/month — locked through age 55.
- Compare to VGLI over the same period: roughly $48 → $268/month. By age 55, civilian term is ~7x cheaper than VGLI.
The break-even: if you're healthy and under ~40, civilian term wins big. If you have a service-connected condition that affects civilian underwriting, VGLI's no-evidence enrollment may be the better deal — especially in the 240-day post-separation window.
Underwriting tricks for service-connected conditions
Common veteran underwriting situations and how civilian carriers handle them:
PTSD diagnosis
Many carriers will rate PTSD as Standard or Substandard depending on severity, treatment compliance, time since stabilization, and absence of recent suicidal ideation or hospitalizations. Some carriers (e.g., Banner Life, Pacific Life) underwrite PTSD more favorably than others. An independent agent with veteran clients knows which to target.
TBI (Traumatic Brain Injury)
Mild TBI with no current cognitive symptoms is often Standard. Moderate to severe TBI typically rates Substandard or declined depending on functional status and time elapsed.
Sleep apnea (very common in veterans)
If you're CPAP compliant with documented usage, most carriers will rate Standard. Without compliance documentation, you may rate Substandard or be table-rated. CPAP usage data from your machine is your friend during underwriting.
Prior cardiac events or hypertension
Time since event matters more than the event itself. Most carriers want 12+ months post-event with stable readings; some require 24+. Independent agents shop the case based on your specific history.
Service-connected disability rating
Doesn't directly affect underwriting — but the conditions underlying the rating do. Knowing which conditions are documented and which carriers underwrite favorably for those conditions is the key.
Decision framework for separating servicemembers
- Get civilian quotes within the first 90 days post-separation. Independent agent, multi-carrier shop. See what you actually qualify for.
- If healthy and quotes are favorable: civilian term wins. Lock 20- or 30-year coverage at low rates.
- If you have service-connected conditions and rating comes back unfavorable: enroll in VGLI within the 240-day no-evidence window. Then re-shop civilian every 2–3 years as carriers may add veteran-friendly underwriting niches.
- For high coverage amounts ($1M+): stack — civilian term up to your maximum approved amount, plus VGLI for additional coverage above that. VGLI doesn't reduce based on civilian coverage you also hold.
- If your spouse needs coverage: Family SGLI was cheap; VGLI doesn't extend to spouses. Civilian term for spouse, sized via DIME, is the standard play.
Why I work with veterans specifically
Jon Lynch Insurance Group is a SDVOSB-certified veteran-owned agency. I work with veterans because I am one — I understand SGLI/VGLI, the disability rating system, the timing windows that matter, and which carriers underwrite veterans favorably.
Not every agent who claims "veteran-friendly" services actually understands the products. Ask them to explain VGLI's premium escalation schedule. Ask them which carriers underwrite favorably for documented PTSD with current treatment. If they can't answer cleanly, find someone who can.
Got specific questions about your situation?
5 minutes by phone. I shop multiple A-rated carriers in real time.
📞 Call (786) 777-8869Frequently asked
Is VGLI better than civilian term life insurance?
Depends on age and health. For healthy veterans under 40, civilian term is usually 50–80% cheaper than VGLI. For veterans with service-connected conditions that affect civilian underwriting (PTSD, TBI, sleep apnea, prior cardiac events), VGLI's no-evidence enrollment in the 240-day post-separation window is often the better deal.
Can I have both VGLI and civilian life insurance?
Yes — they don't reduce each other. Many veterans stack: civilian term for the bulk of coverage at lower per-dollar cost, plus VGLI for additional coverage that doesn't require new underwriting.
How long do I have to enroll in VGLI after separation?
1 year + 120 days for full eligibility. Within 240 days you don't need evidence of insurability. After 240 days, you can still enroll up to 1 year + 120 days but must provide evidence (health underwriting).
Will my VA disability rating affect civilian life insurance?
Indirectly. The rating itself isn't reviewed by carriers, but the underlying medical conditions are. PTSD, TBI, sleep apnea, and prior cardiac events all affect underwriting. Treatment compliance and time-since-stabilization typically improve outcomes.
Can I get life insurance with PTSD?
Yes, in most cases. Many carriers underwrite PTSD as Standard if you're stable, on consistent treatment, and have no recent suicidal ideation or hospitalizations. Some carriers underwrite more favorably than others — an independent agent shops your case to the best-fit carrier.
Does Jon Lynch specialize in veteran insurance?
Yes — JLIG is SDVOSB-certified and the parent company (Jon Lynch Financial Group) is a federally certified veteran-owned business. I work with active-duty, veterans, and military spouses on the timing windows, underwriting tricks, and carrier selection that matter for the military market.
Sample rates and figures cited assume Preferred or Standard health classification. Actual results vary by individual circumstances. License #<PENDING>.