Active-duty service members and veterans can absolutely pay less for life insurance — but the biggest savings usually come not from commercial discounts but from dedicated government programs: SGLI while serving and VGLI after separation. This guide maps out what’s available, what it costs, and where the traps are.
- Eligible service members are automatically covered by SGLI; federal civilian employees get FEGLI basic coverage by default.
- After separation, you receive a notice (about 20 months out) that SGLI-DE is ending — this opens the window to convert to VGLI.
- Federal law requires insurers to reinstate coverage for returning service members who request it within 30 days.
- Commercial insurers vary widely in how they treat deployment — ask before you buy.
- Government Programs: SGLI, FEGLI, VGLI
- Commercial Policies: What to Ask Before Deployment
- How Much Coverage Do You Actually Need?
- FAQ
- Do veterans get discounted commercial life insurance?
- What happens to my private policy when I deploy?
- Can I get my old coverage back after service?
- Is FEGLI worth keeping after leaving federal service?
Government Programs: SGLI, FEGLI, VGLI
| Program | Who qualifies | Key features |
|---|---|---|
| SGLI (Servicemembers’ Group Life Insurance) | Active-duty and qualifying reserve members | Group rates, no pre-existing condition limits; options extend to family coverage |
| FEGLI (Federal Employees’ Group Life Insurance) | Federal employees in eligible positions | Automatic basic enrollment from the first pay period unless you opt out |
| VGLI (Veterans’ Group Life Insurance) | Veterans after separation | Converts SGLI into a renewable group policy; no proof of health if you act within the window |
The critical moment is separation: about 20 months after you leave service, you receive notice that your SGLI-DE coverage ends and that you may elect VGLI by paying premiums. Miss the window and you lose the guaranteed conversion. Questions go to the Office of Servicemembers’ Group Life Insurance (OSGLI), administered by Prudential.
Commercial Policies: What to Ask Before Deployment
If you carry a private policy — or are shopping for one — ask the agent directly how the company handles issues that arise while you are deployed:
- Can premiums be paid automatically from a bank account, or the policy renewed early?
- Does the policy contain a war-zone or aviation exclusion? (Many older commercial policies do; most modern ones aimed at military buyers do not.)
- Will the insurer suspend or reinstate coverage during active duty? Federal law requires insurers to reinstate coverage if a returning service member requests it within 30 days; some professionals — doctors, lawyers — can even request in writing that their professional liability policy be suspended while on active duty.
Note that related coverage behaves differently: homeowners insurance typically covers personal property you take while traveling, but most policies exclude damage occurring in a war zone.
How Much Coverage Do You Actually Need?
Life insurance replaces income for the people who depend on you. If you are single with no children and no dependents, you may only need enough to cover debts, taxes, and burial expenses — a small policy or the default SGLI minimum may suffice. With a family, size coverage to the years of income they would need; see our calculation guide below.
FAQ
Do veterans get discounted commercial life insurance?
Some insurers offer military affinity discounts, but the most reliable savings come from converting SGLI to VGLI — guaranteed acceptance at group rates with no medical exam if done on time.
What happens to my private policy when I deploy?
It depends on the contract. Ask about automatic premium payments, renewal options, and any war-related exclusions before you leave.
Can I get my old coverage back after service?
Yes — federal law requires insurers to reinstate coverage if you request it within 30 days of returning.
Is FEGLI worth keeping after leaving federal service?
FEGLI is tied to employment; on separation you typically convert to an individual policy or replace it. Compare conversion rates with the open market before accepting.
Program details reflect VA/OSGLI and OPM published rules for SGLI, FEGLI, and VGLI, plus federal reinstatement protections for service members. Program terms change — verify current details at va.gov and with OSGLI before making decisions.
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