You served your country. Now let us help you protect your family. Whether you are transitioning from active duty, comparing VGLI to private options, or supplementing your VA benefits — we understand your unique needs.
Understanding these deadlines is critical to avoiding a coverage gap.
While serving, SGLI provides up to $400,000 in coverage at $25/month ($0.065 per $1,000). This is excellent, low-cost coverage subsidized by the government. Automatic enrollment for most service members.
Your SGLI coverage continues automatically for 120 days after separation at no cost. This is your safety net. Use this time to evaluate your options.
You have 240 days from separation to convert SGLI to VGLI with no health questions and no medical exam. This is guaranteed acceptance regardless of any conditions developed during service.
If you missed the 240-day window, VGLI requires medical evidence. At this point, private coverage through accelerated underwriting or simplified issue may be easier and cheaper to obtain.
VGLI premiums increase every 5 years. Private term rates are locked for the full term.
| Feature | SGLI (Active) | VGLI (After Service) | Private Term |
|---|---|---|---|
| Max Coverage | $400,000 | $400,000 | $1,000,000+ |
| Cost at Age 30 ($400K) | $25/mo | $52/mo | $32/mo |
| Cost at Age 40 ($400K) | N/A | $88/mo | $48/mo |
| Cost at Age 50 ($400K) | N/A | $208/mo | $112/mo |
| Rate Changes | Fixed while serving | Increases every 5 years | Locked for 20–30 years |
| Health Screening | None | None (within 240 days) | Required (no-exam available) |
| Portability | Ends at separation | Fully portable | Fully portable |
| Coverage Duration | Active duty only | To age 80 | 10–30 year terms |
Key insight: VGLI is valuable during the 240-day conversion window (guaranteed acceptance), but after age 35, private term coverage is almost always cheaper with locked rates. We recommend: convert to VGLI as a safety net, then shop private coverage. Drop VGLI once your private policy is in force.
Up to $400,000 in coverage at $25/month. Automatic enrollment. Covers active duty, Ready Reserve, and ROTC members.
Coverage for spouses up to $100,000. Premiums based on spouse age. Automatic enrollment for all SGLI-eligible members.
Lump sum $25,000–$100,000 for qualifying traumatic injuries sustained during service. Automatic with SGLI enrollment.
Coverage gap alert: SGLI maxes at $400,000 and FSGLI at $100,000. For many military families, this is not enough — especially with a mortgage, children, and a non-working spouse. Supplemental private coverage during service fills this gap at very affordable rates for young, healthy service members.
Military-to-civilian career changes often mean income fluctuations. Life insurance protects your family during this uncertain period.
VA disability compensation does not replace your full earning potential. If you pass away, your family loses both your income AND much of the disability benefit.
Your mortgage, car payments, and family obligations continue regardless of military status. Civilian life often adds new financial responsibilities.
Up to $10,000 in coverage for veterans with service-connected disabilities. Additional $30,000 supplemental available if totally disabled.
Up to $40,000 in whole life for veterans with service-connected disabilities. No medical underwriting. Guaranteed acceptance. Phased in to replace S-DVI.
Convert SGLI up to $400,000 within 240 days. No health screening during window. Coverage to age 80. Premiums increase every 5 years based on age bracket.
The takeaway: VA programs provide a valuable safety net, but coverage amounts are limited and costs (especially VGLI) escalate with age. Private coverage through Palmwood supplements or replaces these programs at competitive rates.
Not necessarily. VGLI premiums increase every 5 years and become expensive after 40. Private term often offers more coverage at lower locked rates. However, VGLI is guaranteed acceptance within 240 days — valuable if you have service-connected conditions. We recommend: convert as a safety net, then shop private. Drop VGLI once private is in force.
Yes. Many carriers offer competitive rates for veterans with disability ratings. PTSD, tinnitus, and musculoskeletal conditions are evaluated individually by military-friendly carriers — not automatically penalized. A 30% rating often qualifies for standard rates with the right insurer.
VGLI becomes very expensive after 40. At 45, $400K VGLI costs about $128/month; by 55 it jumps to $280/month. A healthy 45-year-old can often get equivalent private term for $80–100/month with rates locked for 20 years. VGLI may be the only option for those who cannot qualify for private coverage due to health.
SGLI continues for 120 days at no cost. You then have 240 days total to convert to VGLI without health screening. After 240 days, VGLI requires medical evidence. This window is critical — do not miss it even if you plan to get private coverage.
No. TSGLI only covers traumatic injuries sustained during service. It does not continue after separation. For post-service injury protection, you need private disability or life insurance coverage.
No. FSGLI ends 120 days after separation. Your spouse should obtain individual coverage before FSGLI expires to avoid a gap. Palmwood can help your spouse find affordable individual coverage during this transition.
We will compare your current VGLI costs against private options and show you exactly where you can save — or where you have gaps. No obligation.