Life Insurance for Veterans [2023]

There are many options when it comes to life insurance for veterans, but knowing what type of policy to get and how to find the best rates can make all the difference. 

In order to find the best policy, you’ll want to know how much it will cost, who is eligible for coverage, and what conversion options are available. Other key factors to look for when shopping for veteran life insurance include researching the financial strength of a company and reading customer complaints and surveys. 

Finding the right life insurance coverage at the right price is an important element of end-of-life planning for veterans and their families, especially after retirement.

Keep reading to find affordable veteran life insurance. Discounts and other company-specific requirements are not always advertised, so use our guide to better understand what kinds of options are available and where to get cheap veteran life insurance rates. 

What life insurance options are available for veterans? 

While you’re an active duty service member, you have the opportunity to obtain service member life insurance, known as Servicemembers Group Life Insurance, or SGLI. This offers very affordable coverage for individuals typically considered high-risk for life insurance.

However, you are no longer eligible for SGLI after you retire, which means you have to seek other coverage or convert your SGLI to a different type of policy.

If you’re a veteran looking for life insurance, take a look at the different options listed below. You might see abbreviations everywhere on the internet, and this guide will explain what they stand for and what kind of life insurance policy it is.

Veterans Group Life Insurance – VGLI

You may see the abbreviation VGLI often offered as coverage for veterans. This stands for Veterans Group Life Insurance and is primarily available if you had SGLI as an active service member. 

VLGI provides a veteran with coverage equal to the amount of SGLI the veteran was receiving before they retired or separated from service, which can be an excellent starting point. 

You’re able to convert SGLI into VGLI, though you must do so within 120 days of retirement or discharge to avoid taking another medical exam. SGLI coverage only stays active for so long after you’ve left the service. 

You’re eligible for VGLI if you fall into any of the following categories: 

• If you were placed on the TDRL, which is the Temporary Disability Retirement List
• If you have retired or were separated from the Ready Reserves or National Guard
• If you suffered an injury or disability with part-time SGLI and weren’t able to use your insurance 

As mentioned above, you need to have SGLI at the time of retirement. It should also be noted that you can apply for VGLI within 485 days of being released or retiring from service. 

Within the first 240 days, you won’t have to report that your health is in good standing. This can help save money on life insurance if you have any outstanding medical conditions that make it complicated to get a standard policy. 

However, after 240 days, you will have to take a medical exam and must meet certain good health requirements to qualify for coverage. 

Private Insurance

Military life insurance for veterans isn’t your only option — you can also convert your SGLI to private insurance.

A few life insurance companies partner with the military to offer standard life insurance to veterans. You still have to make the conversion within 120 days, but you won’t have to undergo a medical exam.

You don’t have to convert your SGLI to private insurance if you would rather let your SGLI expire. This is only recommended if you are in good health and don’t have any pre-existing medical conditions. With a good medical history, you’ll likely find cheaper life insurance with civilian policies.

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What is S-DVI, and who is eligible? 

You may see the abbreviation S-DVI, which stands for Service-Disabled Veterans Life Insurance. Companies will also consider disabilities when underwriting life insurance for military retirees and veterans. 

You qualify if you have a service-related disability and meet the following requirements:

• Your disability must be service-related, as rated by the VA
• Other than your disability, you must be in good health
• You did not receive a dishonorable discharge

Should you meet these qualifications, you can apply online or download and mail a form. Rates will depend on your age and the amount of coverage you want, but the average cost of S-DVI is very affordable.

How much does life insurance for veterans cost? 

As a veteran, VGLI is a very affordable type of permanent life insurance. As long as you are able to afford the premiums and continue to pay them, your coverage will never expire. Learn more about the difference between term and permanent life insurance for veterans.

However, as with most permanent life insurance policies, the price will increase the longer you have coverage. What you pay will also be based on your age and health, factors that are commonly used when determining life insurance rates. 

Trying to find the best life insurance for veterans means you will have to price match and figure out which insurance companies will offer you the best rates. Your individual rates are going to change depending on not just your age but your health and family medical history as well. Learn more about life insurance rating classes and how they impact your rates.

Life Insurance Rates for Retired Military

When you retire from the military, you become a veteran. However, you can be a veteran after a tour without having to retire from the service. This is a very important distinction to make when looking at life insurance rates and policies. 

When you retire from the military, you have many of the same options as veterans, such as VGLI and S-DVI. You’re able to keep your military-provided coverage once you retire, but you have to convert to VGLI within the designated 485 days of your leaving service. 

VGLI may not be the cheapest option. That’s why military retirees should also look into private civilian insurance. It comes down to rates, your current health, and what you’re willing to pay for life insurance when you retire. 

This is why it’s important to comparison shop with at least three different life insurance companies. Doing so quickly affords you the most options when looking at life insurance for retired military. 

What are life insurance rates like for disabled veterans? 

There are a few factors that affect what you pay for life insurance, including age, what sort of insurance you want, and the type of plan you will need. The VA offers a few different types of policies, including permanent life insurance policies and term life insurance coverage. 

According to the U.S. Department of Veterans Affairs (VA), you’ll have up to $10,000 in base coverage and up to $30,000 in additional coverage. As with traditional insurance, the amount of coverage you end up with will determine what you pay. More coverage means a higher cost, especially if you fall within certain age brackets.

You should also keep in mind that if you become completely disabled, taking away your ability to work, you can potentially qualify for a waiver of your premium. This means that the VA might cover 100% of your coverage. 

In order to qualify for additional coverage, you need to apply within one year from the date you’re granted the waiver, and you must be younger than 65.

Read more: Life Insurance for Disabled Veterans

Are you able to purchase life insurance for veterans with PTSD?

PTSD might lead to higher rates or make it difficult for you to find affordable coverage through a private life insurance company. That being said, even if you have PTSD, you will be able to purchase life insurance. You may just end up paying higher monthly rates.

There are a few circumstances where you can lower your rates, and life insurance companies will consider any lifestyle changes you make that parallel your diagnosis. 

For example, showing the insurer that you have been attending therapy and taking medication with a high level of success over a long period of time can better your chances of having a more affordable policy.

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How to Get the Best Veteran Life Insurance

Finding the best veteran life insurance means understanding your choices. You can keep your SGLI coverage and convert it to VGLI or compare quotes from private insurers to get better rates.

If you’re looking into private civilian insurance, you’ll want to look for companies that work with veterans and retired military personnel. You should also remember to look into the various guides that the VA offers.

Case Studies: Exploring Life Insurance Options for Veterans and Retired Military Personnel

Case Study 1: Converting SGLI to VGLI

John, a retired military veteran, wanted to explore life insurance options after leaving the service. He decided to convert his Servicemembers Group Life Insurance (SGLI) to Veterans Group Life Insurance (VGLI).

By converting within the designated 120-day period, John was able to avoid undergoing another medical exam. This allowed him to secure coverage equal to the amount of SGLI he had before retiring.

Case Study 2: Exploring Private Insurance

Lisa, a veteran, decided to explore private civilian insurance options instead of converting her SGLI. She found a few life insurance companies that partnered with the military and offered standard life insurance coverage to veterans.

Since Lisa was in good health with no pre-existing medical conditions, she obtained affordable life insurance coverage through a private insurer without the need for a medical exam.

Case Study 3: Service-Disabled Veterans Life Insurance (S-DVI)

David, a veteran with a service-related disability, qualified for Service-Disabled Veterans Life Insurance (S-DVI). He applied for S-DVI online and received coverage based on his age and desired coverage amount. The average cost of S-DVI was within David’s budget, and he appreciated the affordability of the policy tailored to disabled veterans.

Case Study 4: Life Insurance for Veterans with PTSD

Sarah, a veteran with post-traumatic stress disorder (PTSD), sought life insurance coverage despite potential challenges. Although she faced higher monthly rates due to her condition, Sarah took steps to demonstrate her successful treatment history and lifestyle changes.

By attending therapy and consistently taking medication, Sarah improved her chances of securing a more affordable policy.

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