What Is Veterans Group Life Insurance

Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience

Veterans’ Group Life Insurance is a federal term life insurance program that allows eligible veterans to continue life insurance coverage after Servicemembers’ Group Life Insurance ends. VGLI is administered under federal law and is not governed by state insurance regulations.

The purpose of VGLI is to provide continuity of life insurance protection for veterans who separate from military service and want to maintain coverage without immediately purchasing a private life insurance policy.

Who Is Eligible for VGLI

Most veterans who had SGLI coverage at the time of separation are eligible to apply for VGLI. Eligibility generally includes:

Veterans separated from active duty
Members of the Ready Reserve or National Guard who previously carried SGLI
Veterans placed on the Temporary Disability Retirement List

Eligibility depends on separation status and timing. Some Reserve and National Guard members qualify only under limited circumstances, making eligibility verification an important first step.

Converting SGLI to VGLI

VGLI coverage is not automatic. Veterans must affirmatively apply within a strict federal conversion period after separation from service.

Key conversion rules include:

Veterans generally have one year and 120 days from separation to convert SGLI to VGLI
Applications submitted within the first 240 days do not require proof of good health
Applications submitted after day 240 may require evidence of insurability
Conversion requests submitted after the deadline are usually denied

Missed conversion deadlines are one of the most common sources of VGLI disputes later.

VGLI Coverage Amounts

VGLI coverage amounts range from $10,000 up to the amount of SGLI coverage in effect at separation, subject to federal limits. Veterans may elect lower amounts and may later increase coverage in increments, subject to program rules and timing requirements.

The benefit payable at death depends on the coverage amount in force at that time.

VGLI Premiums and Payment Rules

VGLI premiums are based on age and increase over time. Premiums must be paid on a regular schedule to keep coverage in force.

Important premium rules include:

Premiums increase every five years as the insured ages
Payments may be made monthly, quarterly, or annually
Coverage can lapse if premiums are not paid within the applicable grace period

As premiums increase later in life, some veterans reduce coverage or experience payment difficulties, which can lead to disputes if coverage lapses are later asserted.

Does VGLI Ever Expire

VGLI coverage does not expire as long as premiums are paid when due. Coverage continues for life unless it lapses due to nonpayment or is canceled by the policyholder.

Beneficiary Designations Under VGLI

Veterans may name any person, trust, or entity as a beneficiary and may change beneficiaries at any time by submitting the proper designation form.

Important beneficiary rules include:

The most recent valid beneficiary designation controls payment
Divorce does not automatically remove a named beneficiary
State laws do not override federal beneficiary rules

Because beneficiary designations control payment, they should be reviewed periodically to ensure they reflect the veteran’s current intent.

Why VGLI Claims May Be Delayed or Denied

Although VGLI is intended to provide reliable coverage, claims may be delayed or denied for several reasons, including:

Alleged lapse due to missed premium payments
Missed conversion deadlines
Enrollment or eligibility disputes
Beneficiary designation issues
Competing claims by multiple parties

Each claim is governed by federal administrative procedures, and outcomes depend on documentation, timing, and compliance with program rules.

If a VGLI Claim Has Already Been Denied

If a VGLI claim has been denied or significantly delayed, additional review may be required. Denied claims are subject to federal administrative appeal procedures, and appeal rights are time sensitive.

Detailed information about denied VGLI claims, appeals, and beneficiary disputes is addressed on our Denied VGLI Claim page.

Frequently Asked Questions About VGLI

Does VGLI cover death by suicide

Yes. VGLI generally covers death by suicide and does not contain a suicide exclusion.

Does VGLI require a medical exam

No medical exam is required if enrollment occurs within the initial conversion period. Applications submitted later may require proof of good health.

Can VGLI coverage be reduced

Yes. Veterans may reduce coverage amounts, which directly affects the benefit payable at death.

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Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: Jan 3, 2026 | Contact 800-330-2274