The 240-day no-medical window — exactly how it works
SGLI does not just turn off the day you out-process. There is a built-in runway, and inside that runway you have a specific window where VGLI will take you with no medical questions. The timeline:
- Day 0 — Separation. Your DD-214 date. SGLI ends as a paid product, but coverage continues.
- Day 0 to Day 120 — SGLI free extension. Same coverage, no premium. If you die during this window your beneficiary still gets the SGLI face amount.
- Day 120 to Day 240 — VGLI no-medical conversion window. Apply now and VGLI takes you regardless of health, rated conditions, or anything that came up during your service.
- Day 240 and beyond. You can still apply for VGLI for up to 1 year and 120 days after separation, but you must provide evidence of insurability — meaning medical questions, and conditions can knock you out. At that point you are effectively going through civilian-style underwriting with the VA.
Most vets do not get told this clearly. They assume VGLI just rolls over automatically, or they figure they will deal with it later. Later is when the no-medical guarantee quietly expires and a service-connected diagnosis turns into a denial.
VGLI cost curve at 35, 45, 55, 65
VGLI premiums step up every 5 years. The product is priced like a 1-year renewable term that climbs in age brackets — cheap when you are young, brutal by your 50s and 60s. Here is what $500k of VGLI runs by age band on the published schedule:
| Age band | $500k VGLI monthly premium |
|---|---|
| 30–34 | ~$40 |
| 35–39 | ~$52 |
| 40–44 | ~$68 |
| 45–49 | ~$88 |
| 50–54 | ~$144 |
| 55–59 | ~$268 |
| 60–64 | ~$432 |
| 65–69 | $600+ |
Approximate 2024–2025 VGLI rate schedule. Rates increase every 5 years on your age-band birthday. Compare to civilian 20- or 30-year level term, which is locked at the age you bought it.
When VGLI beats civilian — you have rated conditions
VGLI was built for the vets civilian carriers will not cleanly underwrite. If any of these describe you, converting inside the 240-day window is the move:
- Rated PTSD with active treatment. Most carriers either decline or rate up significantly while you are in active care.
- Sleep apnea on CPAP. Treatable, but carrier-dependent — some are fine, others surcharge.
- Multiple service-connected disabilities at higher combined percentages. The accumulated weight changes underwriting math fast.
- Recent medical events civilian carriers will postpone for — surgeries, cardiac workups, anything actively being investigated.
The no-medical guarantee is the entire reason VGLI exists. When you would otherwise be rated up, postponed, or declined, locking VGLI inside the window is genuinely valuable — even at the higher long-term cost.
When civilian beats VGLI — you are healthy
If you separate without rated conditions and you are in normal good health, the math is not close. A healthy 35-year-old veteran can usually lock $500k of 20-year level civilian term for around $24/month — preferred non-tobacco, locked rate, no re-rating. Same coverage on VGLI starts at roughly $52/month and steps up every 5 years until it is over $600/month in your late 60s.
- 20- or 30-year level rates locked. The premium you start with is the premium you finish with. No 5-year step-ups.
- Fully portable. No connection to the VA, your service, or any rating. Your coverage moves with you regardless.
- Higher face amounts. VGLI caps at what your SGLI was — $500k max. Most vets with a mortgage and kids actually need $750k to $1.5M to replace income and clear debt.
The hybrid play — keep VGLI as backup, layer civilian on top
Most vets are not fully healthy and not fully rated. They have one or two service-connected conditions and otherwise normal health. For that group, the smart move is both.
The play
- Convert SGLI to VGLI inside the 240-day window. That is your no-medical floor — covers what civilian carriers will not cleanly underwrite.
- Layer civilian 20- or 30-year level term on top — sized to fill the gap between VGLI and your actual coverage need ($750k to $1.5M total is typical).
- As civilian rates lock and VGLI age bands climb, you can drop VGLI later if your civilian coverage is enough — or keep it as a permanent backstop for rated conditions.
- Total cost over 20 years is usually lower than VGLI-only — and you get a higher face amount the whole time.
Step-by-step conversion checklist
- 1
Confirm your separation date and current SGLI coverage amount on your LES.
- 2
Identify your 240-day deadline. Mark it on the calendar — phone, paper, both.
- 3
Get civilian term quotes BEFORE deciding — ideally within the first 90 days of separation, while your records are still clean.
- 4
If healthy: lock the civilian term, decline VGLI conversion, ride out the SGLI free extension.
- 5
If rated: convert SGLI to VGLI before day 240, then layer civilian on top for whatever face amount underwriters will give you.
- 6
Set a calendar reminder for every 5-year VGLI rate-increase anniversary so the step-up is not a surprise.
Common mistakes
- Defaulting to VGLI without comparing civilian rates first. The product is fine — being the default is not the same as being the right call.
- Missing the 240-day window and losing the no-medical guarantee. After that, anything that came up during service shows up at underwriting.
- Forgetting VGLI premiums increase every 5 years. Budgeting today's premium against tomorrow's salary is how vets get squeezed at 55.
- Not layering. VGLI alone caps at your old SGLI amount, and that is rarely enough for a family with a mortgage and kids.