Veterans Day, observed each November 11, is a time to recognize the service of veterans across the country. It’s also a practical moment for veterans and their families to review how their life insurance coverage may have changed since leaving active duty, since military life insurance benefits work differently than civilian coverage in a few important ways.
Life Insurance While on Active Duty
While serving, most servicemembers are automatically enrolled in Servicemembers’ Group Life Insurance, or SGLI, a low-cost group term life insurance program available to eligible service members. SGLI coverage generally ends a set period after leaving active duty, which means veterans need to take action to maintain coverage if they want it to continue.
Converting to Veterans’ Group Life Insurance (VGLI)
Veterans’ Group Life Insurance, or VGLI, allows eligible veterans to convert their SGLI coverage into a renewable term policy after separating from service. There’s generally a window of time after discharge to apply for VGLI, and applying within that window, particularly within the first year, often means the veteran can secure coverage without answering health questions. Waiting longer to apply may require proof of good health, which can affect eligibility or cost depending on the veteran’s circumstances at the time.
Why Timing Matters
Many veterans don’t realize that SGLI coverage doesn’t continue indefinitely after separation, which can leave a gap if the transition to VGLI, or to a civilian policy, isn’t handled promptly. Reviewing your coverage status shortly after leaving service, rather than assuming SGLI continues automatically, can help avoid an unintended lapse in coverage.
Considering Civilian Life Insurance Options
Some veterans choose to supplement or replace VGLI with a civilian life insurance policy, particularly if they’re interested in permanent coverage options that VGLI doesn’t offer, or if they find pricing through the private market more favorable based on their age and health. Comparing VGLI against civilian term or permanent life insurance options can help a veteran and their family choose the coverage that best fits their needs and budget.
Other Benefits Worth Reviewing
Beyond SGLI and VGLI, some veterans may be eligible for other insurance programs depending on their circumstances, such as Service-Disabled Veterans Insurance for veterans with a service-connected disability. Because eligibility and terms vary, it’s worth reviewing your DD-214 and VA benefits information to understand which programs may apply to your situation.
A Conversation Worth Having With Family
For military families, understanding how life insurance coverage transitions after service, and confirming that beneficiary designations are current, is a practical way to make sure loved ones are supported as intended. This is worth revisiting after major life events, such as marriage, the birth of a child, or a move.
Coverage Amounts and Life Changes
Life insurance needs generally change over time, and a coverage amount that made sense during active duty may no longer reflect a veteran’s current financial responsibilities, such as a mortgage, a growing family, or new income sources. Revisiting your overall coverage amount, not just which program you’re enrolled in, is a useful part of this same conversation.
Reviewing Your Coverage This Veterans Day
Veterans Day is a fitting occasion to check in on this part of your financial picture, whether you’re a veteran, an active-duty service member planning ahead, or a family member helping a loved one navigate the transition out of service. Taking the time now can help avoid a gap in coverage later.
Southwest Insurance Center can help veterans and military families understand their life insurance options and how coverage may need to change after service. Contact us at (815) 230-3500 or request a quote online.
