(This article by Kimberly Lankford originally appeared in the June 2025 issue of Military Officer, a magazine available to all MOAA Premium and Life members, who can log in to access our digital version and archive. Basic members can save on a membership upgrade and access the magazine.)

While serving in the military, you have access to low-cost life insurance through the Servicemembers’ Group Life Insurance (SGLI) program. You can get the maximum coverage of $500,000 for $31 a month, regardless of age or health. And premiums are set to drop to $26 a month starting July 1, 2025.

[RELATED: MOAA-Backed Bill Would Help VA Insurance Programs Keep Pace With Inflation]

But SGLI coverage typically expires 120 days following separation from service, with a few exceptions. So do you have a plan for after you leave the
military?

“If the servicemember has certain conditions or a disability that prevents them from maintaining gainful employment, they can apply for a free extension of their SGLI for up to two years following separation from service,” said Timothy Sirhal, executive director of insurance service for the VA.

Some families need life insurance after SGLI ends. There are several options, including the VA’s Veterans’ Group Life Insurance (VGLI). But the rules and costs differ from SGLI.

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You have one year and 120 days after separating from service to apply for VGLI. If you apply within the first 240 days, you don’t have to answer any health questions. But if you apply beyond that period up to the maximum time frame, you must answer health questions and meet requirements for approval, according to Sirhal.

VGLI premiums increase in five-year increments and rise significantly as you get older.

You can receive the same level of VGLI coverage as you had for SGLI. You can also purchase up to $25,000 more after a year and then every five years, up to the current maximum coverage of $500,000, Sirhal said.

[FROM VA.GOV: VA Life Insurance Options]

If you’re healthy, you might pay a lot less for a private life insurance policy. Under current VGLI rates, a healthy, nonsmoking 42-year-old man would pay $151,560 for $500,000 of VGLI over 30 years, said Lt. Col. Joshua Andrews, USAF (Ret), CFP®, advice director for USAA. For this servicemember, comparing VGLI costs to private policies might be beneficial.

But if a servicemember has preexisting health conditions, you might have to pay more for the private coverage or simply not qualify at all. In this case, VGLI might be a better option if you apply within the first 240 days.

Lt. Col. Amy King, USA (Ret), CFP®, the founder of Maryland-based Instar Financial Planning, said VGLI can be helpful for those with health issues, especially if there’s a need for extra short-term coverage.

“I’ve run across clients who need coverage for three to five years to pay off a mortgage, but they probably couldn’t get through underwriting [for private insurance] without it being expensive,” she said.

Consider assessing your life insurance needs, and shop around for a private policy before you leave the military. Then compare those costs to VGLI.

Kimberly Lankford is a financial expert based in Virginia and the spouse of a retired Army colonel.