Do Retired Military Personnel Get Life Insurance? An Evergreen Guide

Quick Answer

Yes—retired military members can obtain life insurance through several avenues, including the Department of Veterans Affairs (VA) Veterans' Group Life Insurance (VGLI), private insurers, and sometimes continued coverage from former service‑related plans. Eligibility, costs, and benefits vary, so reviewing each option helps you pick the best fit for your financial goals.

Why Life Insurance Matters for Retirees

Even after leaving active duty, service members often have financial obligations such as mortgage payments, college tuition for dependents, or support for a surviving spouse. Life insurance provides a tax‑free death benefit that can protect those loved ones and preserve wealth.

Key Types of Life Insurance Available to Retired Military

1. Veterans' Group Life Insurance (VGLI)

VGLI is a VA‑administered term policy that lets former service members convert their Servicemembers' Group Life Insurance (SGLI) coverage into civilian life insurance within one year of discharge.

• Coverage amounts: $10,000 to $400,000 in $10,000 increments.
• Premiums: Based on age at conversion; rates increase annually.
• Renewability: Up to age 85, provided premiums are paid.

2. Service‑Connected Life Insurance (SCLI) and Other VA Plans

Veterans with a service‑connected disability may qualify for SCLI, which offers up to $10,000 of coverage with no medical underwriting. This is a supplemental option, not a replacement for VGLI or private policies.

3. Private Life Insurance

Retirees can shop the open market for term, whole, or universal life policies. Insurers may consider military service as a positive factor, often offering favorable rates, especially for those with a clean health record.

Eligibility Requirements

Each program has specific criteria:

Cost Considerations

Premiums depend on age, health, coverage amount, and policy type. Below is a typical range for a 65‑year‑old retired veteran seeking $250,000 term coverage:

• VGLI: $150‑$250 per month (age‑based rates).
• Private term (non‑smoker, good health): $90‑$130 per month.
• Whole life (cash value component): $300‑$500 per month.

Note: Exact figures vary by insurer and underwriting outcomes.

How to Choose the Right Policy

Follow these steps to match coverage to your needs:

Application Process Overview

1. Gather Documents: DD‑214, current VA benefits statement, recent medical records.

2. Apply for VGLI: Complete VA Form 20‑0995 online or by mail within 365 days of discharge.

3. Request Private Quotes: Use online comparison tools or work with an insurance agent familiar with military clients.

4. Undergo Medical Examination (if required by the private insurer).

5. Review and Sign the policy contract; set up premium payments.

Common Questions

Can I keep my SGLI after retirement?

No. SGLI terminates on the last day of active duty. VGLI is the only way to continue comparable coverage through the VA.

What happens if I miss the VGLI enrollment window?

Missing the 1‑year window means you must apply for new coverage as a private applicant, potentially facing higher premiums or medical underwriting.

Is VGLI taxable?

The death benefit from VGLI is generally tax‑free for the beneficiary, similar to other life‑insurance proceeds.

Bottom Line

Retired military members have multiple pathways to secure life insurance, with VGLI offering a convenient transition from SGLI and private policies providing broader options and potentially lower costs. Evaluate your financial needs, compare rates, and act promptly to ensure continuous protection for your loved ones.