SGLI is free for active duty (well, $31/month) and covers everything. VGLI is the conversion option after separation - no medical exam within 240 days, but rates increase with age and far exceed SGLI rates. For most sailors under 40, civilian term life is cheaper than VGLI for equivalent coverage.
SGLI vs VGLI: Complete Comparison
| Feature | SGLI Active Duty | VGLI |
|---|---|---|
| Who Qualifies | All active duty Navy | Separated/retired members within window |
| Max Coverage | $500,000 | $500,000 (can increase $25k/5yr up to 60) |
| Monthly Cost (Age 25) | $31 (flat) | $38 |
| Monthly Cost (Age 35) | $31 (flat) | $60 |
| Monthly Cost (Age 45) | $31 (flat) | $175 |
| Monthly Cost (Age 55) | $31 (flat) | $462 |
| Medical Exam Required | Never | No (within 240 days). Yes after. |
| Combat/Deployment Coverage | Full (active duty benefit) | N/A (veteran benefit) |
| Coverage Portability | Ends at separation | Continues as veteran |
VGLI rates are approximate for $500,000 coverage. Actual rates vary. Verify at benefits.va.gov/insurance.
The 120-Day Window: What You Need to Know
Days 1-120 Post-Separation
Apply for VGLI with no medical exam required. This is the simplest window - just apply, no questions about health.
Days 121-240
Can still apply, but must answer health assessment questions. Pre-existing conditions may affect approval.
After Day 240
Must prove full insurability with a medical exam. Any health issue discovered after separation could prevent coverage.
VGLI vs Civilian Term Life Insurance
For many separating sailors, civilian term life insurance is cheaper than VGLI after the first few years:
| Age at Separation | VGLI Monthly ($500k) | 30-yr Civilian Term (est.) | Verdict |
|---|---|---|---|
| 25 | $38 | $25-$35 | Civilian cheaper |
| 35 | $60 | $40-$60 | Similar |
| 45 | $175 | $80-$150 | Civilian much cheaper |
| 55 | $462 | $200-$400 | Civilian cheaper, if insurable |
The VGLI strategy most advisors recommend:
- Enroll in VGLI within 120 days (no medical exam - lock in coverage)
- Simultaneously shop for civilian term insurance while healthy
- Once you get approved for civilian term, cancel VGLI if civilian rates are better
- This strategy ensures you never have a gap in coverage
Frequently Asked Questions
VGLI is valuable as a bridge - it guarantees coverage when you separate without a medical exam. Whether it's worth keeping long-term depends on your age and health. Under 40 with good health, civilian term life is usually cheaper. Over 55 or with health issues, VGLI's guaranteed coverage may be the better value.
After 240 days, you can still apply for VGLI but must complete a Statement of Good Health. Pre-existing conditions, chronic illness, or injuries sustained during service could be used to deny your VGLI application. This is why the 120-day no-exam window is so valuable - don't miss it.
When you first apply for VGLI, your maximum coverage is equal to your SGLI coverage at separation (max $500,000). You can elect less. After initial enrollment, you can increase coverage by $25,000 every 5 years until age 60, regardless of health - this is another valuable feature of VGLI.