Most people know that life insurance gets more expensive as you age. Fewer
understand exactly what that means in practice, or how significant the
difference can be between applying at 30 and applying at 45.
When you apply for
15 Year Group Level Term Life Insurance with Uniformed Services Benefit Association® (USBA®), your
starting premium is based on your age, gender, and tobacco use at the time of
application. Premiums for the 15-year term are designed to remain level, so
your age at application helps establish the rate you start with for that term.
For military families, there’s an added layer to this. Many service members
rely on Servicemembers’ Group Life Insurance (SGLI) during active duty and
move to Veterans’ Group Life Insurance (VGLI) after separation. VGLI is a
valuable program, but it works very differently from private group term
coverage when it comes to how premiums change over time. Understanding those
differences can help you make a more informed decision about when and how to
secure coverage.
How Term Life Insurance Rates Work
When you apply for term life insurance, the insurer looks at your risk profile
at that moment. Age is one of the most significant factors—the younger you
are, the lower the age-based starting rate generally is.
With USBA 15 Year Group Level Term coverage, premiums are designed to remain
level for the full 15-year term. That means the rate is based on your issue
age when coverage begins rather than increasing simply because you move into a
new age band during the term.
What changes over time is your starting point. Applying at a younger age can
mean a lower starting premium for comparable newly issued coverage. Health and
other underwriting factors can also affect the rate class for which you
qualify. Waiting means applying at an older issue age, when the starting rate
may be higher.
What the Numbers Actually Look Like
The table below compares current rates for $250,000 of coverage from ages 35
through 49. USBA 15 Year Group Level Term rates are for an eligible male who
applies at age 35 and qualifies for the preferred rate shown in the current
policy rate table. VGLI rates are sourced directly from VA.gov, effective July
1, 2025.1
At age 35, the current USBA preferred rate for $250,000 of 15 Year Group Level
Term coverage is $22.50 per month, compared with the current VGLI rate of
$25.00 per month for ages 35–39. As VGLI premiums increase at later age bands,
the difference grows while the USBA premium is designed to remain level
throughout the 15-year term.
| Age Band | VGLI Monthly
($250,000) | USBA 15-Year Term Monthly
($250,000 issue age 35) | Monthly Savings
with USBA coverage |
| 35–39 |
$25.00 |
$22.50 |
$2.50 less/mo |
| 40–44 |
$35.00 |
$22.50 |
$12.50 less/mo |
| 45–49 |
$47.50 |
$22.50 |
$25.00 less/mo |
| 15-Year Total |
$6,450.00 |
$4,050.00 |
$2,400.00 less with USBA |
VGLI rates: VA.gov, effective July 1, 2025. USBA rate: 15 Year Group Level
Term, Male Preferred, $250,000, issue age 35, per the current 2026 policy rate
table. USBA coverage is subject to eligibility and underwriting approval by
New York Life Insurance Company. The VGLI 15-year total applies current VGLI
rates to future age bands for illustrative purposes; future VGLI rates may
change. USBA premiums for the 15-year term, although not guaranteed, are
designed to remain level.
Using current rates for each applicable age band, the illustrative 15-year
premium difference in this example is $2,400.
Premium, however, is only one factor to consider when comparing coverage. VGLI
and USBA Group Level Term have different eligibility, underwriting, rate,
continuation, and other policy features.
When VGLI May Make Sense
One important feature of VGLI is that eligible Veterans who apply within 240
days of leaving the military don’t need to provide evidence of good health.
Veterans may apply for VGLI for up to 1 year and 120 days after leaving the
military, but those who apply after the first 240 days must provide evidence
of good health.
This may be an important consideration for Veterans with health conditions
that could affect their ability to obtain other life insurance coverage.
Applying for VGLI during this window does not prevent a Veteran from exploring
other life insurance options later, although applying for other coverage may
require health questions, medical underwriting, or other evidence of good
health.
Eligible Veterans can initially obtain VGLI coverage up to the amount of SGLI
coverage they had when they left the military, up to the program maximum. VGLI
premiums are based on age and coverage amount rather than health, gender, or
tobacco use.
VGLI and private group term coverage have different eligibility, underwriting,
rate, and continuation features. Comparing those features along with premiums
can help Veterans evaluate their options based on their individual
circumstances.
The Timing Challenge Military Families Face
Waiting until separation to consider private life insurance means applying at
an older age, and because age is a key factor in determining rates, that can
result in a higher starting premium.
That timing can be easy to overlook when SGLI is already in place. SGLI
provides eligible service members with up to $500,000 of coverage while they
serve, with 120 days of free coverage generally continuing after they leave
the military. Private coverage may not feel like an immediate consideration
while that coverage is available.
But SGLI and private group term coverage aren’t necessarily an either/or
choice. Eligible service members can carry both. Considering private coverage
before separation gives service members the opportunity to compare their
options and understand how their age at application may affect the cost of
coverage.
How USBA-Sponsored Coverage Works
The Uniformed Services Benefit Association sponsors
Group Level Term and
Group Whole Life Insurance underwritten by New York Life Insurance Company for eligible military
personnel, veterans, Federal employees, National Guard and Reserve members,
and their families.
USBA Group Level Term policies are available in 5, 10, 15, and 20-year terms,
with coverage from $25,000 to $750,000 depending on the policy.2 Rates are based on age, gender, tobacco use, and applicable underwriting
factors at the time of application. Although not guaranteed, the monthly rate
is designed to remain level for the selected term.
Coverage is portable. If you retire or separate from military or Federal
service, you can keep your coverage as long as premiums are paid when due and
coverage remains in force. You won’t be asked to pay a higher rate or receive
less coverage simply because you retire or separate.
USBA life insurance pays benefits for service-related and combat deaths. There
is no war exclusion, and there has never been one.
Preferred Rates: The Case for Applying While You’re Healthy
Non-tobacco users who meet applicable underwriting requirements may qualify
for preferred rates on USBA’s 10, 15, and 20-year Group Level Term policies
and the
TWO for ONE® Group Level Term policy, for coverage amounts between $100,000 and $750,000 (up to $400,000 for
TWO for ONE). The USBA rates in the comparison table above reflect preferred
pricing.
Preferred rates are not available to individuals who have used nicotine in any
form, including nicotine patches, nicotine gum or e-cigarettes, in the last 24
consecutive months, who have high-risk hobbies such as skydiving or scuba
diving, or who work in certain high-risk occupations. If you’re interested in
learning more about how tobacco and nicotine use affect your life insurance,
check out:
How Smoking Affects Your Life Insurance Rates.
Health can change. Applying while you qualify for preferred rates can give you
access to lower pricing, with premiums designed to remain level for the
selected term.
The Right Time to Apply May Be Sooner Than You Think
Age and health can affect the cost of newly issued life insurance coverage.
Applying at a younger age can result in a lower starting premium than applying
later for comparable coverage.
If you’re active duty and considering private group term coverage, it may be
worth comparing your options before separation. If you’ve recently left the
military and are considering VGLI and private coverage, compare more than
premiums. Eligibility, health, underwriting requirements, how rates change
over time, and other policy features can all affect which option fits your
needs.
And if you already have life insurance coverage, reviewing it periodically can
help you determine whether the amount and type of coverage still align with
your family’s needs.
September is Life Insurance Awareness Month, a good time to take a closer look
at what you have, what it costs, and whether it still fits your family’s
needs.
Contact a USBA Product Specialist at 877-297-9235, Monday–Friday, 9:00 a.m. to
4:00 p.m. Central Time, or visit the
Life Insurance Overview page to explore your options.
1 VGLI rates sourced from VA.gov
(va.gov/life-insurance/options-eligibility/vgli), effective July 1, 2025, last
updated March 18, 2026. Rates are subject to change. Verify current rates at
VA.gov before making coverage decisions.
2 Coverage amounts of $25,000 to $250,000 for 5 Year Group Level
Term. Coverage amounts of $25,000 to $750,000 for 10, 15, and 20 Year Group
Level Term.