What Happens If SGLI Is Not Converted to VGLI in Time?

Many families first learn about Veterans Group Life Insurance only after a loved one has passed away and a life insurance claim is denied. One of the most common reasons for denial is that Servicemembers Group Life Insurance was never converted to VGLI within the required time period.

Understanding what happens when SGLI is not converted on time helps explain why these denials occur and why they often come as a shock to surviving family members.

How SGLI Coverage Ends After Separation

SGLI provides automatic life insurance coverage while a servicemember is on active duty or otherwise eligible. That coverage does not continue indefinitely after separation.

In most cases:

SGLI coverage ends shortly after separation from service

Coverage may continue for a limited extension period depending on separation circumstances

Once SGLI ends, coverage stops unless action is taken

At that point, VGLI becomes the primary option for continuing federal life insurance coverage.

The Deadline to Convert SGLI to VGLI

Federal law provides a specific window to convert SGLI to VGLI.

In general:

Veterans have one year and 120 days from separation to apply for VGLI

Applications submitted within the first 240 days do not require proof of good health

Applications submitted after day 240 may require medical underwriting

Applications submitted after the full deadline are typically rejected

The conversion is not automatic. It requires an application and ongoing premium payments.

What Happens If the Conversion Deadline Is Missed

If SGLI is not converted to VGLI within the allowed timeframe, federal coverage usually ends permanently.

When this happens:

There may be no active federal life insurance coverage at the time of death

Survivors may file a claim believing coverage existed

The insurer may deny the claim based on lack of coverage

In many cases, the veteran believed coverage continued or was unaware that any action was required.

Why Families Often Discover the Problem After Death

Missed conversion issues often remain hidden for years.

This happens because:

Veterans receive separation paperwork during a stressful transition period

Address changes can disrupt notices

Premium payments are not required unless VGLI is elected

Families assume military life insurance continues automatically

As a result, beneficiaries may not learn of the missed conversion until a claim is filed.

Are There Ever Exceptions or Disputes?

Although conversion deadlines are strict, disputes sometimes arise over whether:

The veteran actually applied within the deadline

Enrollment was approved but not properly recorded

Incorrect or incomplete information was provided at separation

Administrative errors occurred during processing

These issues are fact specific and depend on records, correspondence, and payment history.

What to Do If a Claim Is Denied Based on Missed Conversion

If a life insurance claim is denied because SGLI was not converted to VGLI, the denial is usually based on eligibility rather than policy exclusions.

At that point:

The denial letter should be reviewed carefully

Enrollment and separation records should be gathered

Timing and processing issues should be examined

Detailed information about denied VGLI claims and available options is addressed on our Denied VGLI Claim page.

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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: Dec 26, 2025 | Contact 800-330-2274