Veterans Life Insurance — SGLI, VGLI, FSGLI, and TSGLI

The federal government operates a suite of group life insurance programs for service members and veterans through a single overarching statute. Servicemembers' Group Life Insurance (SGLI) automatically covers active-duty members for up to $500,000 — at premiums far below commercial rates — and extends for 120 days after separation at no cost. Veterans can then convert to Veterans' Group Life Insurance (VGLI) within one year and 120 days of separation, locking in coverage regardless of health status. Family SGLI (FSGLI) extends life coverage to spouses and dependent children. And Traumatic Injury Protection (TSGLI) pays lump-sum benefits — up to $100,000 — for specific traumatic injuries sustained while on duty.

Current Law (2026)

Legal Authority

• 38 U.S.C. § 1966 — Eligible insurance companies: VA contracts with private insurers; insurer must have ≥1% of total national group life insurance in force; single policy mechanism for entire uniformed services
• 38 U.S.C. § 1967 — Persons insured and amounts: active-duty members automatically insured at $500,000 unless they opt for lower coverage or decline; FSGLI spouse and child coverage; reservists on training duty covered
• 38 U.S.C. § 1968 — Duration and conversion: SGLI continues for 120 days after separation at no cost; terminally ill members may convert to VGLI without health exam; conversion to individual commercial policy also available
• 38 U.S.C. § 1969 — Deductions: premium deducted monthly from member's pay; applies uniformly to all members on active duty 31+ days
• 38 U.S.C. § 1970 — Beneficiaries and payment: benefits paid to named beneficiary; if no beneficiary designated, default order is spouse → children → parents → executor/administrator → next of kin; member can change beneficiary at any time through service branch
• 38 U.S.C. § 1977 — Veterans' Group Life Insurance (VGLI): issued in same amounts as SGLI at separation; convertible to individual policy at any time; premium based on age and coverage amount
• 38 U.S.C. § 1980 — Accelerated death benefit: terminally ill member or veteran (life expectancy < 9 months) may elect up to 50% of face value as lump-sum payment before death
• 38 U.S.C. § 1980A — Traumatic Injury Protection (TSGLI): automatic coverage for active-duty SGLI holders; pays $25,000–$100,000 for qualifying traumatic injuries (loss of limb, sight, hearing, speech, paralysis, hospitalization for 15+ consecutive days, etc.)

SGLI — Coverage During Service

SGLI is the bedrock of military life insurance. Every member on active duty (and most reservists) is automatically enrolled at the maximum $500,000 level unless they affirmatively opt for less. The premium — a few dollars a month regardless of age — is deducted from pay. This is group insurance priced uniformly, meaning a 22-year-old infantry corporal pays the same as a 45-year-old colonel.

Coverage extends for 120 days after separation at no cost. After that free period ends, the member may convert to VGLI or buy an individual commercial policy. There is no free extension for those who complete their service and decline conversion — if you don't act within the conversion windows, you lose the guaranteed-issue privilege.

FSGLI extends death benefits to the member's spouse (up to $100,000) and provides free $10,000 coverage for every dependent child. Spouse coverage requires enrollment and premium payment by the member; child coverage is automatic and free.

VGLI — Conversion After Separation

VGLI is the veteran's option to maintain group life insurance after leaving service. The key advantage: if you convert within the first 240 days of separation, no medical exam is required — you're guaranteed coverage regardless of health status developed during service. After 240 days (up to 1 year and 120 days), you can still convert but must provide evidence of good health.

VGLI coverage cannot exceed what you had under SGLI. Premiums are age-based and increase every 5 years — considerably higher than during service, but often competitive with or better than commercial insurance for veterans who developed health conditions during service that would disqualify them from private policies or trigger exclusions.

Veterans can convert VGLI to a permanent individual commercial life insurance policy at any time with any participating insurer, with no evidence of insurability required.

TSGLI — Traumatic Injury Protection

TSGLI pays a tax-free lump sum for specific traumatic injuries sustained while covered under SGLI. The benefit is automatic — no separate enrollment needed. Qualifying losses include:

• Loss of hand, foot, or sight (one or both)
• Loss of hearing, speech
• Facial reconstruction
• Burns covering 20%+ of body
• Coma from traumatic brain injury
• Hospitalization for 15+ consecutive days for traumatic injuries (pays $25,000)

Payment ranges from $25,000 to $100,000 depending on the severity and type of loss. For the most severe injuries (loss of both hands, both feet, both eyes), the maximum $100,000 applies.

How It Affects You

If you're still on active duty or preparing to separate: Update your SGLI beneficiary designations now — old designations (ex-spouses, deceased relatives) don't update automatically. Log in to milConnect (milconnect.dmdc.osd.mil) or contact your unit's HR office. Your SGLI coverage is automatic up to $500,000 maximum; if you've opted down, consider whether that election still reflects your family's needs before your separation date. The coverage stays active for 120 days after separation at no cost — that's your bridge while you evaluate VGLI or commercial options.

If you separated within the past 240 days and haven't locked in VGLI coverage: Enroll now to get VGLI to get VGLI without a medical exam — no health questions, no underwriting, regardless of any conditions you developed during service. After 240 days, VGLI requires a health exam and insurers can decline you or rate you up. VGLI premiums increase with age (roughly $29–$34/month per $100K of coverage in your 30s, rising to $80+/month per $100K in your 50s), but for veterans with service-connected health conditions, guaranteed issue is often the only coverage available at any price. Apply at valife.va.gov or call OSGLI at 1-800-419-1473.

If you're terminally ill with SGLI or VGLI coverage, the accelerated death benefit lets you receive up to 50% of your coverage as a lump sum while still living if a physician certifies a life expectancy of 9 months or less. A $400,000 policy yields a $200,000 advance — tax-free under federal law — that can fund end-of-life care, pay off debts, or simply be used as you choose. The remaining 50% is paid to your beneficiaries at death.

If you're a surviving family member claiming SGLI or VGLI death benefits: If the member died while on active duty, file through the service branch's casualty assistance officer. For post-separation deaths, file directly with OSGLI (1-800-419-1473 or valife.va.gov). You'll need a certified death certificate and the completed claim form. Federal law requires OSGLI to settle valid claims within 30 days of receiving complete documentation — if you're waiting longer, contact OSGLI and ask for a status update in writing.

Implementing Regulations

• 38 CFR Part 9 — Servicemembers' and Veterans' Group Life Insurance: the VA implementing regulations for the SGLI/VGLI program, defining coverage terms, health standards, beneficiary rights, reinsurance, and policy conversion procedures:

  • § 9.10 — Health standards for disability during active duty: when a service member sustains a disability or aggravates a preexisting condition during active duty or active duty for training, specific health standards determine how that disability affects SGLI coverage and premium — the regulation ensures that service-connected conditions don't disqualify members from coverage
  • § 9.11 — Criteria for reinsurers and converters: specifies the requirements that private life insurance companies must meet to participate in the SGLI reinsurance pool (the mechanism by which risk is distributed among commercial insurers) and to offer conversion policies to veterans converting out of SGLI/VGLI; reinsurer criteria cover financial strength, licensing, and regulatory standing; this ensures that veterans exercising their guaranteed conversion right are converting to financially sound companies
  • § 9.12 — Reinsurance formula: sets the formula for allocating SGLI business among participating reinsurers based on the volume of insurance in force; the reinsurance structure allows VA's primary insurer (currently Prudential/Primerica) to distribute catastrophic risk across the insurance industry — preventing any single event (mass casualty, pandemic) from exhausting the insurer's resources and jeopardizing benefit payments
  • § 9.13 — Policy actions: the Office of Servicemembers' Group Life Insurance (OSGLI) is the operational contact for SGLI and VGLI — the regulation requires OSGLI to furnish the insurer's name and address to any member or beneficiary who requests it; all claims, coverage changes, and beneficiary updates are processed through OSGLI (contact: 1-800-419-1473 / valife.va.gov)

• 38 CFR Part 8 — National Service Life Insurance (NSLI): the VA regulations governing National Service Life Insurance — the individual life insurance program available to veterans who served in the military between October 8, 1940 and January 1, 1957 (World War II and Korean War era). NSLI is a legacy program with a declining but still active policyholder base; unlike SGLI/VGLI (group insurance through commercial carriers), NSLI is a government-issued individual policy administered directly by VA. Key provisions:

  • § 8.1 — Effective date for policies under §§ 1922(a) and 1922B: establishes when NSLI coverage takes effect — coverage begins upon approval of the policy application by VA, subject to payment of the initial premium; § 1922(a) covers veterans who can demonstrate insurable interest; § 1922B creates a special coverage opportunity for veterans with service-connected disabilities who would otherwise be uninsurable commercially
  • § 8.2 — Payment of premiums: NSLI policyholders pay premiums either directly to VA or through allotment from VA compensation or pension benefits; the premium schedule reflects the actuarial cost of a government-managed individual life insurance pool — NSLI premiums are generally lower than commercial rates for the same face value because VA does not need to generate underwriting profit; outstanding loans against a policy's cash value may be deducted from benefit payments
  • § 8.10 — How paid: NSLI death benefits are payable in a lump sum or in equal monthly installments over a period not exceeding 36 years; beneficiaries may select the settlement option at the time of the insured's death; the installment option functions like an annuity and was designed to provide long-term financial stability rather than a one-time payment that might be spent quickly
  • § 8.11 — Cash value: NSLI policies accumulate cash value — a portion of premium payments accrues as a savings component that the policyholder may borrow against (§ 8.13) or receive as a lump-sum surrender value if the policy is discontinued; the cash value, paid-up insurance, and extended term insurance provisions allow veterans who can no longer afford premiums to maintain some coverage or receive the accrued savings component
  • § 8.13 — Policy loans: after the first policy year's premiums are paid, a veteran may borrow up to the policy's loan value (generally 94% of the cash value) at the policy's stated interest rate; the loan does not require repayment, but outstanding loan balances plus accrued interest reduce the death benefit payable to beneficiaries; for the WWII-era veterans still holding NSLI policies, these loan provisions may be relevant for estate planning purposes
  • § 8.19 — Beneficiary and optional settlement changes: the insured may change the beneficiary designation or settlement option at any time before death; the change is effective when received by VA; common estate planning issues arise when veterans have outdated beneficiary designations (naming deceased spouses or ex-spouses) — § 8.19 permits updates but requires proper identification and processing through VA

  NSLI is one of the oldest continuously operated government insurance programs in U.S. history, originating from the National Service Life Insurance Act of 1940. At its peak, NSLI covered approximately 22 million World War II veterans; the active policyholder base has declined to hundreds of thousands as the WWII and Korean War generation ages. Despite the program's small current scale, Part 8 remains important because: (1) some surviving WWII and Korean War-era veterans hold substantial NSLI face values purchased decades ago at low premiums; (2) veterans with service-connected disabilities that would prevent commercial insurance coverage may still be eligible for NSLI through § 1922B; (3) NSLI policies' cash values may be significant assets for elder-care or estate purposes. VA administers all NSLI claims and policy services through the Philadelphia VA Regional Office Insurance Center.

• 38 CFR Part 6 — United States Government Life Insurance (USGLI): the VA regulations governing United States Government Life Insurance — the oldest federal veterans' life insurance program, originally issued to veterans who served in the U.S. military between October 6, 1917 and April 25, 1951, primarily World War I veterans. USGLI predates NSLI (which covered WWII veterans) and SGLI (which covers current service members). As of January 1, 1983, all USGLI policies on premium-paying status became fully paid-up — meaning no further premiums are due and coverage remains in force for life without additional payment. The program's surviving policyholder base is extraordinarily small and aging (WWI veterans born before 1900 would be over 125 years old), but policies may still have beneficiaries, outstanding loan balances, or cash values relevant to estates:

  • § 6.1 — Misstatement of age: if the insured understated their age when taking out a USGLI policy, the amount payable at death is reduced to the amount the premiums paid would have purchased at the correct age; age verification may become relevant when beneficiaries file claims
  • § 6.2 — Premium rate (paid-up status): effective January 1, 1983, all USGLI policies on premium-paying status became paid-up; the regulation is now chiefly relevant for verifying that a specific policy's paid-up status was properly established and for understanding the historical premium schedule for any policy-loan or cash-value calculations
  • § 6.11 — How dividends are paid: USGLI policies earned dividends under certain plans; regular annual dividends are paid on the anniversary of the policy; special dividends declared by VA are paid in cash and may not accumulate at interest; any unclaimed dividends may have accumulated in the policy's account
  • § 6.13 — Policy loans: USGLI policyholders may borrow against the cash value at any time after the first policy year; the loan agreement must be satisfactory to the Secretary; outstanding loan balances reduce the death benefit payable to beneficiaries — a common issue when USGLI policies are discovered in estates without current records of any outstanding loans
  • § 6.14 / § 6.15 — Cash value: USGLI policies accumulate cash value from the end of the first policy year; the cash value schedule depends on the plan type; under the Special Endowment at Age 96 plan (§ 6.15), cash value calculations use a different schedule than standard endowment plans; cash values may be paid to the insured while alive
  • § 6.18 — Disabilities deemed total and permanent: certain conditions are deemed total and permanent disability for USGLI purposes, enabling policyholders to apply for total disability benefits under their policy without additional medical evidence; the list of deemed conditions reflects mid-20th century medical knowledge and was developed for the WWI/WWII generation
  • § 6.20 — Jurisdiction: the VA Insurance Claims Sections have exclusive jurisdiction for determining the liability of the United States and the USGLI program; disputes over USGLI benefits must be resolved through VA rather than through the courts in the first instance
  • § 6.21 — Guardian: a guardian acting for an incompetent USGLI policyholder must be certified by an appropriate Veterans Service Center or other recognized authority; the guardian provision reflects the program's original population — WWI-era veterans who may have needed assistance managing their affairs

  USGLI is functionally a closed historical program: no new policies have been issued since 1951, and the paid-up conversion in 1983 eliminated ongoing premium obligations. Its continuing relevance is almost entirely through: (1) estate and probate situations where heirs discover an ancestor held a USGLI policy with an outstanding cash value or death benefit; (2) loan inquiries where a policy holder or heir discovers an outstanding policy loan that has accrued interest against the death benefit; and (3) historical documentation for veterans' benefit and legal proceedings. VA maintains USGLI policy records indefinitely; policy inquiries can be submitted through the VA Insurance Center in Philadelphia.

State Variations

SGLI and VGLI are federal programs with uniform national terms. However, many states provide supplemental death benefits or property tax exemptions for survivors of service members who die on active duty. These are in addition to federal SGLI benefits. Survivors may also qualify for DIC and educational assistance (DEA).

Pending Legislation

No major structural changes pending as of 2026. Congress periodically reviews SGLI premium rates and maximum coverage amounts. The $500,000 maximum has not increased since 2005, and some advocates argue it should be raised to account for inflation.

Recent Developments

VA has improved the online enrollment and beneficiary designation system through milConnect, reducing the paperwork burden for coverage changes. TSGLI claims processing has been a historical bottleneck — veterans who were injured but whose initial TSGLI applications were denied have seen improved reconsideration processes. The DOD and VA continue to expand outreach to newly separated veterans about the VGLI conversion window, as missed conversions remain one of the most common benefits errors.

• SGLI maximum coverage increase — FY2024 NDAA: The FY2024 National Defense Authorization Act increased the maximum SGLI coverage from $400,000 to $500,000, effective December 2023. Service members who had been at the prior maximum were automatically upgraded to $500,000; those with coverage below $500,000 were notified of the option to increase. The SGLI premium remained at $0.06 per $1,000 of coverage monthly — meaning full $500,000 coverage costs $30/month. The increase was the first SGLI maximum raise since 2005 and reflected life insurance cost inflation and the financial needs of military families.
• VGLI conversion window — missed benefit problem: Studies by the Government Accountability Office (2024) confirmed that approximately 35% of eligible veterans fail to convert SGLI to VGLI within the 240-day window after separation. Veterans who miss the conversion window cannot obtain VGLI and lose access to no-medical-exam life insurance — a particularly significant loss for veterans with service-connected conditions that make private life insurance expensive or unavailable. VA and DOD implemented enhanced outreach at separation counseling, but VSO advocates argue only a statutory extension of the conversion window to 365 days would meaningfully reduce missed conversions.
• TSGLI — traumatic injury benefit modernization: Traumatic Servicemembers' Group Life Insurance (TSGLI) pays $25,000-$100,000 for specific severe injuries (loss of limb, sight, paralysis, TBI). VA updated the TSGLI Schedule of Losses in 2024 to add coverage for hearing loss from blast exposure — addressing a gap identified by wounded warrior advocates. The PACT Act's focus on toxic exposure has increased awareness of TSGLI among veterans who suffered traumatic injuries from combat blast events; TSGLI reconsideration requests have increased as veterans learn of newly covered injury categories.
• DOGE VA and life insurance administration: DOGE's VA workforce review affected the Office of Servicemembers' Group Life Insurance's administrative staffing. OSGLI (administered by Prudential under contract with VA) processes beneficiary claims; VA's oversight functions experienced staffing reductions that slowed contract monitoring and quality assurance for claims processing. Beneficiary payment timelines remained within statutory standards, but VA's ability to audit Prudential's claims decisions and identify systemic errors was reduced during the DOGE staffing transition period.