VGLI vs Private Life Insurance: Which Is Better for Veterans in 2026?

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 by age bracket, roughly every 5 years, and the jumps become dramatic after age 60.

VGLI vs Private Final Expense: Side-by-Side

Does VGLI Ever Make Sense?

The VA markets VGLI as a convenient transition from military service, and veterans enroll because it requires no medical exam during the initial window. But convenience is not the same as value. Even in the scenarios where VGLI seems appealing, a private carrier almost always offers a better deal.

• Need high coverage amounts? Private term carriers offer $100K–$500K with locked premiums, unlike VGLI which reprices you every age bracket.
• Have health conditions? Private carriers specializing in high-risk coverage often beat VGLI on both price and flexibility — and won't reprice you as you age.
• Just separated and want income replacement? A private term policy issued while you're young and healthy will cost a fraction of what VGLI charges 10–20 years from now.
• Want guaranteed acceptance? Private guaranteed issue final expense policies exist with no health questions and no waiting period on many plans.

The bottom line: VGLI benefits the VA's insurance program more than it benefits veterans. The escalating premium structure means the longer you stay, the more you pay for the same coverage. Getting a private policy while you're younger and healthier locks in a rate VGLI can never match.

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

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.