SGLI Military Life Insurance: Coverage, Costs & Converting to VGLI

What Is SGLI and Who Qualifies?

Servicemembers' Group Life Insurance (SGLI) is a low-cost group term life insurance program administered by the U.S. Department of Veterans Affairs (VA). It automatically provides up to $500,000 in coverage to eligible military members from the very first day of service, with no medical exam, no health questions, and no underwriting required. The $500,000 maximum was set by the Supporting Families of the Fallen Act (Public Law 117-209), which raised the cap from $400,000 effective March 1, 2023, and it remains the ceiling in 2026. Under the Fairness for Servicemembers Act of 2025, the VA Secretary is now required to report to the House and Senate Veterans' Affairs Committees every five years on how CPI-U inflation and cost-of-living increases compare to the SGLI and VGLI statutory maximums, so future adjustments keep pace with real-world costs.

SGLI is available to the following groups:

• Active duty members of the Army, Navy, Air Force, Space Force, Marines, and Coast Guard
• Ready Reserve and National Guard members assigned to a unit with required drills
• Cadets and midshipmen at U.S. military academies
• ROTC members during authorized training
• Commissioned officers of NOAA and the U.S. Public Health Service

Both full-time and part-time SGLI coverage exist. Reservists and National Guard members who don't qualify for full-time coverage may still be eligible for part-time coverage during active duty or inactive duty training periods, including travel directly to and from that duty. Note that the Retired Reserve SGLI program was eliminated effective January 6, 2025, and all of those policies were automatically exchanged for VGLI coverage, which has now been extended more broadly to reserve component members.

SGLI also includes a built-in Traumatic Injury Protection (TSGLI) rider for a flat $1/month, providing between $25,000 and $100,000 in short-term financial support for severe qualifying injuries such as limb loss, blindness, or other traumatic events. The TSGLI premium was unchanged by the 2025 discount and remains at $1/month in 2026.

SGLI Costs, Coverage Amounts & Family Coverage

Current SGLI Premium Rates (2026)

The VA reduced SGLI premiums effective July 1, 2025, dropping the rate from $0.06 to $0.05 per $1,000 of coverage, and those rates remain in force throughout 2026. The discount was applied automatically, and no action was required by service members. The VA's official SGLI rate page confirms $0.05 per $1,000 is still the operative premium as of August 2026.

Coverage is available in $50,000 increments from $50,000 up to the maximum of $500,000. Here's what you'll pay per month at each level:

For just $26/month (or $312/year), a service member secures half a million dollars in life insurance, a rate that is nearly impossible to match in the civilian market, especially without a medical exam. Prior to July 2025, that same coverage cost $31/month, so members are saving roughly $60 per year under the current schedule.

Family SGLI (FSGLI) 2026 Rates

SGLI also extends to your family through the Family Servicemembers' Group Life Insurance (FSGLI) program. Spouse premiums also received a discount effective July 1, 2025, ranging from 11% to 22% across age brackets (about 13% on average), and those rates carry through 2026. Dependent children remain covered for $10,000 at no additional cost, and stepchildren and children ages 18 to 22 who are still in school are included as covered dependents.

Current spouse premium rates per $10,000 of coverage:

Spouse coverage is capped at $100,000 or the amount of the service member's SGLI, whichever is lower. If you want a broader look at how employer-based and private policies stack up against a plan like FSGLI, our FEGLI federal employee guide walks through similar group-coverage tradeoffs.

What SGLI Covers and What It Doesn't

What SGLI Covers

SGLI provides one of the broadest life insurance protections available. Unlike many private policies, SGLI does not contain exclusion clauses for:

• Pre-existing medical conditions
• War or combat deaths
• Suicide (covered after the first day of coverage)
• Training accidents or hazardous duty
• High-risk military activities

This means your family is protected whether you pass away at home, during a deployment, or in combat. SGLI pays the full benefit tax-free to your designated beneficiary, regardless of how you died.

What SGLI Does NOT Cover

SGLI exclusions are extremely narrow and defined strictly by federal statute. Benefits are denied only in these rare circumstances:

Claim denials are uncommon and typically relate to the member's military status at the time of death (such as being AWOL), not the cause of death itself.

Accelerated Benefit Option (ABO) for Terminally Ill Members

SGLI, FSGLI, and VGLI all include an Accelerated Benefit Option that lets a terminally ill insured receive up to 50% of the policy face value in $5,000 increments before death, provided a doctor certifies a prognosis of 9 months or less to live. Under a VA regulation change finalized in late 2025 and in effect for 2026, an alternate applicant (such as a spouse, guardian, or power of attorney) may apply for the ABO on behalf of a medically incapacitated member. Service members can also apply directly for an ABO on behalf of a terminally ill spouse insured under FSGLI.

SGLI After Leaving the Military & the VGLI Conversion Process

How Long Does SGLI Last After Separation?

When you leave the military through discharge, retirement, or separation, your SGLI coverage does not immediately disappear. Here's what happens:

• 120-day free extension: Full SGLI coverage continues for 120 days after your separation date at no cost.
• Totally disabled extension: If you are rated totally disabled at the time of separation, your coverage can be extended up to 2 years at no cost. You'll receive a notice approximately 20 months after separation offering a VGLI conversion option.

After these periods end, you must either convert to VGLI or obtain private life insurance, or risk going uninsured.

Converting SGLI to Veterans' Group Life Insurance (VGLI)

VGLI is the VA-administered continuation of your life insurance coverage after military service. For a deeper dive, see our full VGLI rates and alternatives guide. Here's a breakdown of the key conversion windows:

You can apply for VGLI online through the VA's portal or by mail using Form SGLV 8714. You'll typically need your DD Form 214 and any prior SGLI documentation. Coverage amounts can match or be lower than your previous SGLI amount (up to $500,000), and VGLI coverage can be maintained as long as premiums are paid. Once enrolled, you can increase coverage by $25,000 at your one-year anniversary, then every 5 years thereafter up to the $500,000 cap until age 60.

SGLI vs. VGLI: How Do the 2026 Rates Compare?

The biggest downside to VGLI is that premiums are age-based and increase every five years, unlike SGLI's flat rate structure. VGLI premiums were discounted by an average of 11% (between 2% and 17% depending on age) effective July 2025, and those rates remain in effect in 2026. Here's a comparison of current VGLI monthly costs for $500,000 in coverage across age brackets:

While VGLI remains valuable for veterans who may have service-related health conditions that would make private insurance expensive or unavailable, it becomes significantly more costly as you age compared to a private level-term policy locked in during your younger years. Our VGLI alternatives guide walks through when it makes sense to keep VGLI versus switch to a commercial policy. Veterans with service-connected mental health conditions should also review our life insurance for veterans with PTSD guide before shopping private carriers.

Should You Supplement SGLI With Private Life Insurance?

SGLI is an outstanding benefit while you're serving, but it has real limitations. Here's when it makes sense to look at additional coverage:

Military financial advisors consistently recommend locking in a private term or permanent life insurance policy while you are still young and healthy, because those premiums are significantly lower than what you'd face after separation. Once you leave the service, your ability to get affordable coverage may be affected by service-related health conditions. A healthy 30-year-old non-smoker can often secure a 20-year, $500,000 term policy from a private insurer in 2026 for roughly the same monthly cost as SGLI, while keeping the coverage that follows you beyond your military career.

SGLI Beneficiary Designation Rules

Managing your SGLI beneficiary is just as important as having the coverage itself. Here are the rules you need to know:

• Designate through SOES: Full-time SGLI members must use the Servicemembers' Online Enrollment System (SOES) on milConnect to make or change beneficiary designations. Paper form SGLV 8286 is only permitted in emergencies or for part-time SGLI and Public Health Service members. Beneficiary changes, coverage increases, and restorations take effect immediately, while coverage reductions and cancellations don't take effect until the first day of the following month.
• Complete an initial election: Service members must sign into SOES and click "Confirm and Certify" to lock in their designations. Until that first election is made, prior paper designations may not be captured in the online system, which can delay claim processing for surviving families.
• Designate by name only: Beneficiary designations "by law" or "by will" are not permitted. You must name each principal and contingent beneficiary specifically. If you name more than one primary beneficiary, SOES requires whole percentages that add to 100% or equal shares.
• Anyone can be named: There are no restrictions on who you name (spouse, child, parent, sibling, trust, corporation, or a non-family member).
• Update after life events: Marriage, divorce, or the birth of a child are all critical times to review and update your designation.
• Default "By Law" order: If no designation is on file, benefits are distributed in a statutory order: spouse, then children, then parents, then siblings, then estate.
• Spousal notification: If you change your beneficiary away from your spouse or reduce/decline coverage, you must notify them in writing.
• VGLI uses a separate form: Once you convert to VGLI, beneficiary changes are made using form SGLV 8721, not SOES. Any SGLI beneficiary designation only transfers automatically to VGLI for the first 60 days after your VGLI policy takes effect, so submit a fresh designation soon after conversion.

Frequently Asked Questions About SGLI

Does SGLI cover suicide?

Yes. SGLI covers suicide, unlike many private life insurance policies that contain a suicide exclusion clause for the first two years of the policy. As long as the service member is eligible and enrolled, SGLI pays the full death benefit to the designated beneficiary regardless of the cause of death, including suicide. This is one of the most important distinctions between SGLI and civilian life insurance options.

What happens to SGLI after retirement?

When a service member retires, their SGLI coverage continues for a free 120-day period. After those 120 days, the coverage ends unless they convert to VGLI. Retirees should apply for VGLI as early as possible, ideally within 240 days of retirement, to secure guaranteed acceptance without a medical exam. If you wait beyond one year and 120 days, the conversion window closes permanently.

Can National Guard and Reserve members get SGLI?

Yes. National Guard and Reserve members are eligible for full-time SGLI coverage if they are assigned to a unit and meet training participation requirements. Those who do not qualify for full-time coverage may still be eligible for part-time coverage during periods of active duty, inactive duty training, or travel directly to and from such duty. As of January 2025, the Retired Reserve SGLI program was eliminated and VGLI eligibility was extended more broadly to reserve component members.

Is VGLI worth it compared to private life insurance in 2026?

It depends on your health and age at separation. VGLI offers the key advantage of guaranteed acceptance within 240 days with no medical exam, a critical benefit for veterans with service-connected conditions. However, VGLI premiums rise every five years and can become expensive in your 40s and 50s (jumping from $70/month at age 40 to $145/month at age 50 for $500K coverage). Veterans in good health may find better long-term value by securing a level-premium private term policy instead of, or in addition to, VGLI.

What is the SGLI death benefit and is it taxable?

The SGLI death benefit is the full coverage amount chosen by the service member, up to $500,000. This benefit is paid tax-free directly to the designated beneficiary in a lump sum. In addition to the SGLI payout, families of service members who die on active duty may also receive the Service Death Gratuity, a separate $100,000 tax-free payment. The HONOR Gold Star Families Act (H.R. 7932) was introduced in the House on March 12, 2026, and would double the gratuity to $200,000 with annual CPI adjustments, retroactive to deaths on or after January 1, 2026, but it remains in the House Committee on Armed Services with no further action, so as of August 2026 the gratuity is still $100,000.