SGLI vs. VGLI: What Fort Campbell Families Should Know Before Separation

Military family in the Clarksville and Fort Campbell area reviewing life insurance options together If you are stationed at Fort Campbell, preparing for separation, or building a life in Clarksville, you may be asking: What is the difference between SGLI and VGLI, and what should I review before leaving military service?

The short answer is that SGLI is life insurance available to eligible service members while they serve, while VGLI may allow eligible veterans and former service members to continue life insurance coverage after leaving the military. They are not identical programs, and important eligibility, application, health-review, premium, and timing rules apply.

Before separation, make sure you understand what coverage you have now, what options may be available afterward, and whether your household needs additional personal life insurance.

Important: Military life insurance rules, premiums, eligibility, and deadlines can change. Always confirm your individual status and current requirements through the official VA SGLI guidance and official VA VGLI guidance.

SGLI vs. VGLI: What Is the Difference?

Feature SGLI VGLI Who it generally serves Eligible service members Eligible veterans and former service members after qualifying military service Type of coverage Group term life insurance Renewable group term life insurance When it applies While eligible for military coverage After leaving the military, if you apply and qualify Maximum coverage Up to $500,000 Between $10,000 and $500,000, based in part on SGLI coverage Premium structure Low-cost premium generally deducted from military pay Premiums based on age and coverage amount Health questions Generally not part of automatic SGLI enrollment No proof of good health within the initial 240-day application period; evidence of good health may be required afterward Key transition concern Coverage ends after applicable continuation periods Application deadlines and ongoing premiums apply

SGLI and VGLI can be valuable parts of a military family’s protection plan. However, neither option automatically answers every household’s long-term needs.

What Is SGLI?

Servicemembers’ Group Life Insurance, or SGLI, provides low-cost term life insurance to eligible service members. The VA explains that eligibility may include active-duty service members, certain Ready Reserve and National Guard members, some cadets and midshipmen, and other qualifying categories.

Eligible service members can generally select coverage in increments up to the current maximum of $500,000. SGLI is generally automatic for eligible service members, although you can manage your coverage amount and beneficiaries through the SGLI Online Enrollment System.

The VA’s current SGLI information lists:

  • Coverage up to $500,000
  • Coverage options in $50,000 increments
  • A basic premium of 5 cents per $1,000 of coverage
  • An additional monthly premium for Traumatic Injury Protection, or TSGLI, when applicable
  • Coverage that generally continues for 120 days at no cost after leaving the military
  • A possible disability extension for eligible individuals

Your SGLI election and beneficiary information should be reviewed before a PCS, separation, retirement, marriage, divorce, birth, adoption, or other significant life change.

What Is VGLI?

Veterans’ Group Life Insurance, or VGLI, is renewable group term life insurance that may allow eligible service members to continue life insurance after leaving the military.

You may be eligible for VGLI if you had SGLI and are within the applicable period following a qualifying event, such as:

  • Release from an active-duty period of 31 or more days
  • Retirement or release from the Ready Reserve or National Guard
  • Assignment to the Individual Ready Reserve or Inactive National Guard
  • Placement on the Temporary Disability Retirement List
  • Certain qualifying situations involving part-time SGLI and an injury or disability

The VA currently states that eligible individuals may apply for VGLI within 1 year and 120 days of leaving the military or experiencing another qualifying event. Your exact eligibility depends on your service history and circumstances, so confirm your status directly with the VA.

VGLI coverage can range from $10,000 to $500,000. The initial amount is generally based on the SGLI coverage you had when you left service, up to the program maximum.

When Should You Apply for VGLI?

Application timing matters.

The VA states that if you apply for VGLI within 240 days of leaving the military, you do not need to provide proof of good health. After that initial period, you may still be able to apply until the broader eligibility window closes, but you will generally need to submit evidence of good health.

A simple way to think about the transition is:

  1. At separation: Your SGLI may continue for 120 days at no cost.
  2. Within the first 240 days: You may apply for VGLI without proof of good health.
  3. After 240 days but before the final eligibility deadline: You may still apply, but health evidence may be required.
  4. After the eligibility period: You may no longer be able to apply for VGLI for that separation event.

Do not wait until the last week to research your options. Save your separation paperwork, review official notices, and confirm deadlines based on your actual discharge or release date.

Life insurance planning graphic representing income, housing, childcare, education, debt, and final expenses

How Much Does VGLI Cost?

SGLI and VGLI use different premium structures.

SGLI is designed to be low-cost while you are serving, with premiums generally deducted from military pay. VGLI premiums are based on your age and the amount of coverage selected. As a result, VGLI premiums can increase as you enter older age brackets.

The VA publishes current VGLI premium tables, including rates listed as of July 1, 2025. Because premiums and program rules can change, review the current VA VGLI premium information rather than relying on an old estimate or a social media post.

When comparing options, consider more than the first monthly premium. Ask:

  • How long do I need coverage?
  • Will the premium remain affordable as I age?
  • Do I need term coverage or lifelong protection?
  • Would an individual policy offer different features or pricing?
  • What happens if my employment or military status changes?
  • Does my household need coverage on both spouses?

No single option is right for every Fort Campbell or Clarksville family.

SGLI, VGLI, and Personal Life Insurance

Military life insurance may be an important foundation, but it may not be the only coverage your household needs.

A personal life insurance review can help you consider:

  • Income replacement
  • Mortgage or rent payments
  • Childcare and household support
  • Education goals
  • Auto, student, credit card, or personal debts
  • Final expenses
  • Business obligations
  • Financial support for a spouse or dependent
  • Coverage for a military spouse’s unpaid household or caregiving responsibilities

An individual policy may also be worth reviewing because it is not necessarily tied to military service or a specific employer. Term and permanent life insurance have different costs, durations, features, and requirements. Policy suitability depends on your goals, budget, health, and broader financial circumstances.

Employer-provided life insurance should also be checked carefully. Ask whether it ends when you leave the job, whether portability is available, whether conversion is available, and what the premiums would be after employment ends.

The The Goines Agency life insurance page offers additional information about starting a local coverage conversation.

SGLI Conversion Options

The VA explains that, when leaving the military, you may have more than one transition option.

Eligible individuals may apply for VGLI within the applicable deadline. The VA also explains that SGLI may be converted to an individual permanent life insurance policy within 120 days of discharge without proof of good health, subject to the program’s rules.

These options are different:

  • VGLI: Renewable group term coverage with age-based premiums
  • Individual permanent policy: Designed for lifelong coverage, with different policy features and costs
  • Personal term life insurance: Individual coverage for a selected period, subject to the policy’s terms and application process

Review the official VA information about converting coverage before making a decision. You may also want to compare available options while you still have time to do so.

Branded comparison graphic showing military group coverage and personal life insurance planning

A Fort Campbell Separation Life Insurance Checklist

Before leaving military service, add these steps to your transition list:

  • Confirm your SGLI coverage amount.
  • Review and update your beneficiary designation.
  • Record your actual separation, discharge, or release date.
  • Read all official VA and service-related notices.
  • Confirm whether you may qualify for VGLI.
  • Mark the 120-day, 240-day, and final application periods on your calendar.
  • Compare VGLI premiums with personal life insurance options.
  • Review employer coverage for both spouses.
  • Estimate mortgage, rent, childcare, education, debt, and final-expense needs.
  • Gather existing policy documents and benefit statements.
  • Review coverage after your PCS, new job, home purchase, marriage, divorce, or family change.
  • Ask questions before canceling or replacing existing coverage.

For additional PCS planning, read our PCS Insurance Checklist for Fort Campbell families. You may also find our related guide, Life Insurance for Clarksville Families: Is SGLI Enough?, helpful as you think through your broader needs.

Frequently Asked Questions

Is SGLI automatically enough for my family?

Not necessarily. SGLI may provide meaningful protection, but your household may also need to account for lost income, housing, childcare, education, debt, and final expenses.

Can I keep SGLI after separation?

SGLI itself does not continue indefinitely after separation. It may continue temporarily, and eligible individuals may have options such as VGLI or conversion to an individual permanent policy. Deadlines apply.

Do I need a medical exam to apply for VGLI?

The VA states that applicants within the first 240 days after leaving the military do not need to provide proof of good health. Applications after that period may require evidence of good health.

Can VGLI coverage increase after enrollment?

The VA explains that certain policyholders under age 60 may be able to increase VGLI coverage by $25,000 on the one-year anniversary and every five years afterward, up to the program maximum, subject to current rules.

Should military spouses have life insurance?

A spouse’s income, caregiving, transportation, household management, and other responsibilities have financial value. If one spouse died, the surviving spouse might need additional support or childcare. Both spouses should be included in a household coverage review.

Is this article financial or legal advice?

No. This article provides general educational information and is not individualized financial, tax, or legal advice. Review official VA rules and consult qualified professionals for questions specific to your situation.

Let’s Review Your Next Chapter

Separation from military service can involve a lot of moving parts, especially when your family is also managing a PCS, a new job, a mortgage, or changing childcare needs. Reviewing SGLI, VGLI, employer benefits, beneficiaries, and personal life insurance can help you identify questions before an important deadline arrives.

At The Goines Agency, my team and I are a Local Award Winning Team with deep community roots in Clarksville, Fort Campbell, and surrounding Tennessee and Kentucky communities. As a resident, military spouse, mother, and small business owner, I understand why clear, personal guidance matters during major transitions.

We help families understand their options, fill coverage gaps, and work toward greater peace of mind. Call 931-553-1970 to schedule a life-insurance review. We are happy to listen, answer questions, and help you understand what deserves attention next.

I’m Alexis Goines, and my team and I are proud to be your local expert for home, auto, business, and life insurance.

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