Hello Fellow Veterans,

During my ETS time there was a whole lot of information thrown at me from multiple different places. There was information about life insurance, their was information about my time in service. There was lot’s of handing in equipment and tons of different papers stamped and given to me to end my service to our country. Half of the information I forgot by the time I stepped foot out of the door and I had so much information thrown at me I felt like I had just rejoined the military service.

Many of you that ended or are ending your military service are in much the same situation. Remembering half of what happened on your way out, or even knowing what to do to begin the ETS process can be overwhelming and nerve racking. Let’s cover a few things on VGLI or Veterans Group Life Insurance. VGLI vs Private Life Insurance can be an extremely valuable conversation to have if you can find the right person after your service to sit you down and tell you what you need to know.

The Application Process: A Critical Difference

The first major point of the VGLI vs Private Life Insurance debate starts with the application process itself. VGLI is designed to be a straightforward continuation of your Servicemembers’ Group Life Insurance (SGLI), and as long as you apply within a strict time limit, you’re guaranteed to get it. Private life insurance, however, operates on a different system. A private company will almost always require a medical exam and a detailed health questionnaire to determine your eligibility and premium. This is the first critical difference in the conversation about VGLI vs Private Life Insurance that veterans need to understand.

This distinction becomes even more important when we look at how health impacts premiums. A key factor in the VGLI vs Private Life Insurance comparison is that VGLI rates are based solely on your age, not your health or lifestyle habits. A veteran with a service-connected disability, a history of PTSD, or a tobacco habit will pay the exact same VGLI rate as a perfectly healthy veteran of the same age. In the private market, these same health factors could lead to significantly higher premiums or even a denial of coverage, making the decision between VGLI vs Private Life Insurance a high-stakes one for many veterans.

A Tale of Three Veterans

Let’s start with 3 different people as examples throughout this post. One will be a perfectly health veteran just leaving the service at age 25, never smoked, no disabilities or issues from his/her time in service. Next, well have a service member who smokes and uses chew (you know there was at least 1 battle buddy that did one or the other), but is otherwise in good health and is age 25 as well. Lastly, let’s say this last veteran experienced a lot during his/her service and has PTSD (a common issue among veterans). Well discuss these individuals and show the differences from VGLI vs Private Life Insurance.

Throughout this post we are going to refer to each of these three individuals. You will see that there can be huge differences between these three when it comes to term life insurance, whether it is private civilian coverage or VGLI coverage. The differences will be discussed in a table below to give you a visualization just how different the premiums (amount paid out of pocket per month) can be paid by each of these three individuals. But first, let’s discuss more on the VGLI coverage and how it can help YOU, the veteran.

The Benefits of VGLI

Beyond a simple safety net, VGLI vs Private Life Insurance comes down to a few key benefits. Most importantly, VGLI offers guaranteed acceptance if you apply within the 240-day window, regardless of your health. This is a game-changer because private insurers would likely penalize a veteran with the disability, or the smoker, making the VGLI vs Private Life Insurance comparison a non-starter. This is why many veterans see VGLI as an invaluable bridge to future coverage.

In addition to guaranteed acceptance, the debate over VGLI vs Private Life Insurance comes down to premiums. For the perfectly healthy veteran, a private policy might be a more affordable choice, at least in the short term, with a level premium for 10 or 20 years. However, for the veteran with a service-connected disability or the tobacco habit, the VGLI vs Private Life Insurance comparison changes dramatically. In these cases, the guaranteed VGLI rate, which is not impacted by health, can be significantly more affordable and provide peace of mind that a private insurer’s expensive “high-risk” rates cannot.

Also, for the smoker, cessation is not the end all to the higher premiums as you have to be nicotine free for 12 months. In some cases the smoker will pay 3x more then the veteran who never smoked and was healthy. This is a prime example of why comparing VGLI vs Private Life Insurance can yield wildly different premiums. Let’s be honest, while we are in the service, EVERYONE went outside to smoke. Most of our jobs were high stress and they all needed that drag to calm their nerves on a long day at the range.

As an individual with PTSD, I personally wish I had known about the benefits of VGLI vs Private Life Insurance as I had searched at one point and found that my condition is a “high risk” disability that puts me in higher risk brackets and premiums. In my case, I was able to get coverage through work. If you are unable to get VGLI before your timer runs out It might be beneficial working for a state/federal entity as the life insurance can be significantly cheaper through their programs.

Let’s say we dive into some of these numbers and get into the nitty gritty of the comparison of VGLI vs Private Life insurance. This will give us a better idea of what these individuals might pay. Keep in mind, these are 25 year olds and everyone will be in a different situation or request a different amount. For this table, let’s assume each individual currently has a coverage of $150,000 in term life insurance through VGLI.

Veteran Profile	VGLI Monthly Premium	Private Insurance Monthly Premium
Healthy Veteran (Age 25, non-smoker, no disabilities)	$9.00	$15 – $20
Tobacco User (Age 25, otherwise healthy)	$9.00	$30 – $40+
Veteran with PTSD (Age 25, non-smoker)	$9.00	$25 – $45+ or higher

As you can see, the debate of VGLI vs Private Life Insurance the premium changes dramatically depending on the individual. For our perfectly healthy veteran, a private policy may be a better option in the long term, as the premiums on VGLI will increase every five years. However, for the veteran who uses tobacco, the VGLI vs Private Life Insurance premium comparison shows an immediate and significant savings with VGLI. For our veteran with PTSD, the private premium could be even higher, and they face the risk of being denied coverage altogether, making the VGLI vs Private Life Insurance choice one of necessity.

I don’t want to get too off into the weeds with the numbers. A comparison between VGLI and Private Life Insurance would be more valuable if you know all the benefits of each. VGLI as mentioned, is GUARANTEED within that 240 days after service. This means, for you smokers and people with disabilities that there is a light at the end of the tunnel. Especially if you stepped off your base, headed home, and walked into an insurance brokers office. You likely discovered that you have tons of paperwork, a health screening, and a health exam to go through.

Our discussion on VGLI vs Private Life Insurance is about to get a bit complicated, I will try not to bring too much dry talk here, but no discussion would be complete without going over all the benefits to each. Let’s start off with an in depth discussion on the benefits of VGLI first as many of you may fall into the later of the 3 veterans we are discussing. VGLI vs Private Life insurance examination will then follow up with a discussion on the benefits of Private Life insurance.

This guaranteed acceptance is not just a detail; it’s a critical safety net. For our veteran with PTSD, or the battle buddy who smokes and chews, VGLI offers the peace of mind of securing coverage without the fear of being denied or charged an astronomical premium due to a health condition or lifestyle choice. This is the single biggest benefit in the VGLI vs Private Life Insurance debate, as it ensures that every veteran has an option to protect their family, even when civilian insurers see them as a high risk.

Beyond the immediate benefit of guaranteed coverage, VGLI also acts as a powerful strategic tool for long-term financial planning. It includes an option to convert your policy to a permanent, private whole life policy at any time, without having to undergo a medical exam. This conversion option is especially valuable for a veteran with a service-connected disability, who may have been able to get into VGLI, but would likely struggle to get a permanent policy in the private market. This feature of VGLI allows you to use your military benefits as a bridge, securing lifelong coverage that builds cash value for your future, making the VGLI vs Private Life Insurance choice a smart long-term move.

Benefits of Private Life Insurance

Keep in mind here that there are multiple benefits to each of these. In our discussion to compare VGLI vs Private Life Insurance. Life insurance has it’s own potential for being a good option, keep in mind there are companies out there that give discounts to vets. While I do not have an exhaustive list, it can be beneficial to call and ask or go to the websites of multiple companies. Keep in mind two things when you consider sitting down and talking to an insurance agent that provides life insurance.

First and foremost, for VGLI vs Private Life Insurance these brokers are there to provide you with information. Ask questions, put a lot of information about your circumstance out there, and most importantly, don’t lie. These people are there to inform you. If you do not give them the right information about your circumstance, the conversation can be dubbed unhelpful. Second, don’t let anyone pressure you into the first insurance you get a quote on. Yes, they are there to sell you insurance, however, most state laws will require that they put you into an insurance situation that benefits BOTH parties.

The great thing about the VGLI vs Private Life Insurance discussion is that it’s not a one-size-fits-all answer, and private insurance has its own unique strengths. For our perfectly healthy veteran, the private market is often an incredible opportunity. These individuals can secure a private term life insurance policy with a level premium that is often lower than the initial VGLI rate. This level premium is a huge benefit, as it means their monthly cost will not increase for the entire duration of the policy, be it 10, 20, or 30 years, giving them predictable costs for a significant portion of their life.

Another key advantage of private insurance is the flexibility to customize your coverage and go beyond the limits of VGLI. While VGLI maxes out at $500,000 in coverage, a veteran with a family or a high income may need significantly more than that. Private insurers can offer millions of dollars in coverage and allow you to add various riders to your policy, such as critical illness or accidental death riders, to meet your family’s specific needs. This ability to tailor a policy to your exact life circumstances is a powerful point of comparison in the VGLI vs Private Life Insurance debate and a strong reason why you should always shop around and get quotes.

Final Thoughts on Your Coverage

As I said, with VGLI vs Private Life Insurance there can be benefits to both right? Always, always, give them all the information they need. Another thing you want to do to ensure you have the right coverage is ensure that all of the things in your life that you need coverage for are covered. For example, you have a worth 19,000 dollars, a house worth $160,000, and a student loan payment for 25,000 dollars. You want to leave your family with 100,000 in benefits? You can not just purchase a 200,000 dollar policy as much of these bills would be a final expense that could be claimed by these lenders if you were to pass.

The right coverage is the most important thing to consider when you are looking at either. The VGLI vs Private Life Insurance policies as your monthly premium is a huge balancing act and getting exactly what you want is important. However, keep in mind your budget when you are trying to play this balancing act. Your family depends on your support, both in the future and right now. Don’t let trying to get a huge policy make it difficult to put food on the table, and don’t get a policy so small it doesn’t cover your final expenses.

With so many variables in the VGLI vs Private Life Insurance debate, the most important takeaway is that there is no single best option for every veteran. The ideal policy is a personal decision based on your health, family needs, and financial goals. For a veteran with a service-connected disability or a history of smoking, VGLI can be a literal lifesaver, providing a safety net that might not be available in the private market.

However, for a young and healthy veteran, a private term life policy can offer more affordable, predictable premiums and greater coverage amounts. The key is to weigh these benefits carefully and choose the path that provides the most secure and affordable protection for you and your family’s future.

I want to stress to you all at this point that VGLI vs Private Life Insurance is something that should not be taken lightly. Because of my own lack of knowledge when I exited the military in 2005, I am now paying for a policy through work. I currently pay for Whole life insurance, but having that life insurance policy at 41 years old provides me the peace of mind. If something were to happen to me, my family will have support for a period of time to allow them to make ends meet after my passing. If you happen to miss that 240 day window, make sure your family is protected by whatever means you can!

Your Battle Buddy,

Andrew Ortiz

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Disclaimer

The content in this blog post has been created through a collaboration between a veteran and an AI assistant. It is intended for informational and entertainment purposes only. The author is not a licensed financial advisor or insurance professional. This post should not be considered as a substitute for professional advice. Always consult with a qualified financial expert or insurance broker who can provide personalized guidance based on your individual circumstances. We strongly recommend that you conduct your own extensive research before making any life-altering financial decisions.