Veterans Group Life Insurance (VGLI) is the government's answer to keeping you covered after you leave the service. It's convenient, well-known, and requires no medical exam. But is it actually the best deal for veterans — especially older veterans? The honest answer is: usually not. Here's why.
What Is VGLI?
VGLI is a term life insurance program administered by the VA that allows veterans to convert their Servicemembers' Group Life Insurance (SGLI) into a civilian policy after leaving the military. You have up to one year and 120 days from separation to enroll without answering health questions. After that window, you must provide evidence of good health.
Coverage amounts range from $10,000 to $500,000 in $10,000 increments, up to the amount you had under SGLI.
The VGLI Premium Problem
Here is the critical issue with VGLI that most veterans don't realize until it's too late: premiums increase every five years based on your age, and they increase dramatically at older ages.
| Age Range | VGLI Monthly Premium ($400K) | Private Final Expense ($15K) |
|---|---|---|
| 50–54 | $308/month | ~$55–75/month |
| 55–59 | $432/month | ~$65–90/month |
| 60–64 | $600/month | ~$75–110/month |
| 65–69 | $900/month | ~$90–130/month |
| 70–74 | $1,200/month | ~$110–160/month |
| 75+ | $1,560+/month | ~$140–200/month |
Key insight: VGLI provides much higher coverage amounts but at dramatically escalating costs. If all you need is coverage for final expenses ($10K–$25K), private final expense insurance is significantly cheaper and the premium never increases.
VGLI vs Private Final Expense: Side-by-Side
| Feature | Private Final Expense | VGLI |
|---|---|---|
| Premiums increase with age | ✓ Never increase | ✗ Every 5 years |
| Policy expires | ✓ Never — whole life | ✗ Term — can lapse |
| Medical exam required | ✓ No exam | ✓ No exam (if enrolled timely) |
| Waiting period | ✓ None (most policies) | ✓ None |
| Cash value buildup | ✓ Yes — whole life | ✗ No — term only |
| Coverage if you outlive term | ✓ Covered for life | ✗ Must keep paying or lose coverage |
| Affordable after age 70 | ✓ Yes — locked rate | ✗ Becomes very expensive |
When VGLI Makes Sense
VGLI is not always the wrong choice. It makes sense for veterans who:
- Have significant health conditions and need large coverage amounts (over $100K)
- Are within the enrollment window and want guaranteed acceptance for high coverage
- Need income replacement coverage (not just final expense)
- Are in their 40s or early 50s and can afford the escalating premiums
When Private Final Expense Insurance Wins
For most veterans over 60 who primarily need coverage for burial and final expenses, private final expense insurance wins on almost every measure:
- Locked premiums — the rate you're approved at today is the rate you pay forever
- Whole life coverage — the policy never expires as long as premiums are paid
- Builds cash value — acts as a small savings vehicle over time
- No medical exam — approval by phone with just a few health questions
- Same-day coverage — many policies activate immediately upon approval
- Significantly lower cost — especially after age 65
Can You Have Both?
Absolutely — and many veterans do. A common strategy is to keep VGLI at a reduced coverage amount for income replacement protection, and add a private final expense policy to lock in guaranteed burial coverage at a fixed rate. This hybrid approach gives you the best of both worlds without overpaying on either.
What Happens If You Let VGLI Lapse?
This is a danger zone many veterans fall into. As VGLI premiums increase into their 70s and 80s, some veterans stop paying because it becomes unaffordable. At that point, they lose all coverage and — due to age and health — may struggle to qualify for new private coverage at a reasonable rate.
The solution is to lock in a private final expense policy while you're younger and healthier, so your coverage is secured regardless of what happens to VGLI premiums later.
The Bottom Line
VGLI is a good safety net — especially for veterans with health conditions who need high coverage amounts. But for the majority of veterans over 60 who primarily want to protect their family from funeral costs and final expenses, private final expense insurance offers better value: lower cost, locked premiums, and coverage that never expires.
The smartest move is getting a free review that compares exactly what you'd pay under VGLI versus private options for your specific age and health situation. The difference is often hundreds of dollars per month.
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