SGLI to VGLI: the deadlines that catch people

The timeline

The two windows overlap, which is where people get confused. The free SGLI period is shorter than the application window, so coverage can quietly stop while you still think you have time.

Why 240 days is the date that matters

Inside 240 days, VGLI asks nothing about your health. No exam, no questionnaire, no rating, whatever is in your record. That guarantee is the single most valuable thing about the programme, and it expires quietly on a date nobody reminds you about.

If there is any chance a private carrier would decline you or price you up, apply inside that window even if you are not sure you want to keep it. You can cancel later. You cannot reopen it.

How much you can take

You can take up to the amount of SGLI you carried when you left, to a maximum of $500,000, in $10,000 steps. If you take less than the maximum, you can add $25,000 one year after joining VGLI and every five years after that, up to $500,000, until you turn 60.

VGLI is age-banded term insurance, so the premium steps up every five years for as long as you hold it. What that looks like over time, and how it compares with a private policy, is on the VGLI page.

The other option nobody uses

There is a second route out of SGLI: converting to an individual commercial policy with a participating company, at standard rates, without proving good health. That conversion window is short, running from separation, and it is separate from VGLI.

The catch is the same one VGLI conversion carries: the policy has to be permanent insurance rather than term, which costs several times more per dollar of cover. It exists for people who cannot pass underwriting, not as a cheaper alternative.

If you separate with a disability

Service members who are totally disabled at separation can keep SGLI free for a period beyond the usual 120 days under the SGLI Disability Extension, and VGLI can follow at the end of it. The rules and the exact periods are specific, so check VA's own page or call VA's insurance line rather than relying on a summary.

If you carry a service-connected rating, VALife is also worth a look: it is guaranteed acceptance whole life, capped at a modest amount, with a waiting period before the full benefit is payable.

Where people lose coverage

• Assuming the free 120 days is the deadline. It is the end of free cover, not the end of the application window.
• Waiting to shop privately first. Quote by all means, but file the VGLI application inside 240 days while you do it.
• Taking less cover than you had without realising you can only build it back $25,000 at a time, and only until 60.
• Letting the premium lapse later. VGLI can be reinstated, but the rules tighten the longer the gap runs.
• Forgetting the beneficiary. VGLI is a new policy with its own beneficiary designation. Your SGLI form does not carry across.

Common questions