How VA Military Life Insurance Is Sold
The Department of Veterans Affairs (VA) offers life insurance programs such as Servicemembers' Group Life Insurance (SGLI), Veterans' Group Life Insurance (VGLI), and Service-Disabled Veterans Insurance (S-DVI). These policies are not sold through traditional insurance agents; instead, they are administered directly by the VA or through approved VA‑approved brokers. Service members enroll during specific windows—SGLI during active duty, VGLI within a year after separation, and S‑DVI when a disability rating is granted. The process is largely online or via VA regional offices, and premiums are deducted from pay or billed directly.
More from this site
Keep reading the latest coverage
Eligibility and Enrollment Windows
Eligibility hinges on service status and timing. SGLI is available to anyone on active duty, with automatic enrollment at the start of service and optional coverage up to $400,000. VGLI requires a former servicemember to apply within 12 months of discharge; coverage can be converted up to the original SGLI amount. S‑DVI is limited to veterans with a service‑connected disability rating of 10% or higher, and the amount of coverage depends on the rating and age.
Cost Structure and Premium Calculation
VA life insurance premiums are fixed by law and do not vary with health status. For SGLI, the rate is $0.06 per $1,000 of coverage per month, meaning a $100,000 policy costs $6 monthly. VGLI premiums increase with age, starting at $0.07 per $1,000 for those under 30 and rising to $0.28 per $1,000 for ages 70‑79. S‑DVI rates are similarly age‑based, with a minimum premium of $0.03 per $1,000 for younger veterans. Because premiums are set, there are no hidden fees or underwriting costs.
Role of VA‑Approved Brokers and Agents
While the VA does not employ private agents to sell its policies, it does maintain a network of VA‑approved brokers who can assist with paperwork, answer questions, and help veterans compare VA options with commercial policies. These brokers must disclose that they receive no commission from the VA; any compensation comes from the veteran's own payment of premiums. Their primary value is expertise in navigating VA forms, eligibility nuances, and the transition from SGLI to VGLI.
Key Differences from Commercial Life Insurance
VA policies differ in three major ways: (1) No medical underwriting for most eligible members, (2) Fixed, often lower premiums, and (3) Coverage limits tied to service status rather than market demand. Commercial policies may offer higher face amounts, flexible riders, and cash‑value accumulation, but they typically require health exams and can be more expensive.
Comparison Table
| Program | Eligibility | Maximum Coverage | Premium Rate (per $1,000) |
|---|---|---|---|
| SGLI | Active duty | $400,000 | $0.06/month |
| VGLI | Within 12 months of discharge | Up to original SGLI amount | $0.07–$0.28/month (age‑based) |
| S‑DVI | Service‑connected disability ≥10% | $10,000–$100,000 (rating‑based) | $0.03–$0.15/month (age‑based) |
Steps to Secure Coverage
- Confirm eligibility based on service status and timing.
- Log in to eBenefits or visit a VA regional office to start the application.
- Select desired coverage amount within program limits.
- Review premium costs; for VGLI and S‑DVI, note age‑based rates.
- Submit required documentation (DD Form 214 for VGLI, disability rating letter for S‑DVI).
- Set up automatic payroll deduction (SGLI) or direct payment (VGLI/S‑DVI).
Common Misconceptions
Many service members assume that VA life insurance is "free" or that it automatically continues after separation. In reality, premiums must be paid, and VGLI requires proactive enrollment; otherwise coverage ends. Additionally, S‑DVI coverage is not guaranteed for all disabilities—only those meeting the rating threshold qualify.