When you leave the service, your life insurance coverage through your Service members' Group Life Insurance (SGLI) will eventually end. However, you have the option of continuing your coverage with a Veteran's Group Life Insurance Policy (VGLI). While the Department of Veterans Affairs (VA) oversees VGLI, the program is administered by the Office of Servicemembers' Group Life Insurance (OSGLI).
You can enroll for the same amount of coverage you had under your SGLI plan, or a lesser amount if you prefer, and you'll have the opportunity to increase your coverage every five years. Coverage is offered in $10,000 increments with $400,000 being the maximum amount of coverage available under a VGLI policy. As long as you pay your premiums your policy will never expire, however, your premiums will increase as you get older.
With VGLI, you won't be subject to a medical exam and no proof of good health is required to enroll in the plan. It's important to note that you only have one year and 120 days to decide to convert your SGLI over to a VGLI.1 If you want to get an idea of how much your future VGLI premiums may cost, you can review this VGLI premium rate chart provided by the U.S. Department of Veterans Affairs.
If for any reason you decide that VGLI coverage isn't for you, there are other options available through the VA. In addition, there are a wide variety of commercial life insurance policies and coverage options you can choose from.
Red more about life insurance, as well as tips on how to buy coverage that isn't VGLI.