Leaving the Military: Is VGLI My Best Option?

When you begin planning your retirement or transition out of the military, you should be aware that your Servicemembers’ Group Life Insurance (SGLI) will end 120 days after your separation. As a retiring or transitioning veteran, you can convert your SGLI to Veterans’ Group Life Insurance (VGLI).

With VGLI, you can get between $10,000 and $500,000 in term life insurance benefits. The amount you’ll get will match the amount of SGLI coverage you had when you left the military.

It’s important to note that on October 17, 2022 the Supporting Families of the Fallen Act was signed into law. The legislation increased insurance coverage from $400,000 to $500,000 for Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI). 

While this is good news for service members and veterans alike, you may need more life insurance than what is available to you via VGLI and you may want to take the time to get quotes from a number of providers. 

For example, USBA offers you more policy options and a higher maximum coverage. As a not-for-profit association, USBA has for 60+ years provided life insurance to active and reserve service members, transitioning and retired veterans and their family members.

5 Reasons to Consider Coverage from USBA

• You need coverage for your entire family. Did you know that VGLI only covers you when you separate from the military? With group life insurance from USBA, you can secure your family’s financial future with coverage for you, your spouse and eligible children, too.
  
  
• You need more coverage than VGLI offers. If the VGLI maximum coverage amount isn’t sufficient for your family situation, USBA policies offer protection up to $750,000.¹ If you need help determining the amount of life insurance you and your family need, use our handy Life Insurance Coverage Estimator.
  
  
• You’re healthy and lead a healthy lifestyle. While VGLI rates are one-size-fits-all, if you’re healthy and lead a healthy lifestyle, you may qualify for our preferred life insurance rates which provide substantial savings over our standard rates. These rates are available in coverage amounts from $100,000 to $500,000.
  
  
• You want more predictable rates. When you convert your coverage to VGLI, be prepared for premium increases every five years. USBA offers 15- and 20-Year Group Level Term policies. Although not guaranteed, your monthly cost is expected to remain level for the first 15 and 20 years respectively. USBA also offers Group Whole Life Insurance options. With Group Whole Life Insurance, your premium rate is guaranteed, and your benefit will never change, provided premiums are paid when due.
  
  
• You want more choices. USBA offers a choice of eight group life insurance policies, including both Term Life and Whole Life, so you can choose the option that best fits your needs.

Don’t wait until your SGLI is about to end. Call us today at (877) 297-9235 from 9:00 a.m. - 4:00 p.m. Central Time, Monday through Friday (or leave a message after hours for a prompt call back on the next business day). We will help you find the right life insurance policy for you and your family.

¹ The overall maximum coverage for each Member/Associate Member is $650,000 under all USBA-sponsored Group Life Insurance policies, with the option for those ages 69 and below, if approved, to add up to an additional $100,000 of Traditional Whole Life (G-10648-0), for a maximum of $750,000.