Life Insurance for Veterans: What You Actually Need to Know
If you served, you know the VA and military system provides some life insurance coverage. What most veterans don't know is how limited that coverage actually is — and what it's costing them in the long run. I'm Kelvin De La O, a U.S. military veteran and founder of Legacy Shield. This is the guide I wish someone had handed me when I transitioned out.
What the VA Offers — And Where It Falls Short
SGLI — Servicemembers' Group Life Insurance
- ·Coverage up to $500,000 while on active duty
- ·Cost: $0.06 per $1,000 of coverage (very affordable while serving)
- ⚠The problem: Coverage ends 120 days after separation. Then you're on your own.
VGLI — Veterans' Group Life Insurance
- ·The continuation of SGLI after you leave service
- ·Coverage up to $500,000
- ⚠The problem: Term insurance that gets more expensive every 5 years — and never builds cash value. By age 65–74, premiums hit $1,950/month. By age 75–80, they hit $3,900/month.
S-DVI — Service-Disabled Veterans Life Insurance
- ·Available to veterans with a service-connected disability rating
- ·Coverage up to $10,000 (supplemental up to $30,000 for totally disabled veterans)
- ⚠The problem: Coverage amount is far too low to provide meaningful financial protection for most families.
The Best Life Insurance Options for Veterans
Term Life Insurance — The Starting Point
Most AffordableTerm life is the most affordable option for veterans who need high coverage at low cost. A healthy 30-year-old veteran can often get a $500,000 20-year term policy for $25–$35/month. Best for veterans who need maximum coverage at minimum cost right now. Think of it as Phase 1 — a bridge while you build your financial foundation.
Indexed Universal Life (IUL) — The Long Game
Most PowerfulIUL is the strategy I build most veteran plans around. It provides permanent coverage that never expires, cash value that grows tax-free with a 0% floor, tax-free retirement income via policy loans, and living benefits for critical illness. Best for veterans earning $75k+ who are thinking long-term.
Whole Life Insurance
Most GuaranteedPermanent coverage with guaranteed cash value growth. More predictable than IUL but grows slower. Best for veterans who want guaranteed, conservative growth and permanent coverage — often used in estate planning or final expense strategies.
VGLI vs. IUL: Side-by-Side
| Feature | VGLI | IUL |
|---|---|---|
| Coverage type | Term (expires) | Permanent (for life) |
| Premium trend | Increases every 5 years | Fixed at policy issue |
| Cash value | None | Grows tax-free |
| Tax-free retirement income | No | Yes |
| Living benefits | No | Yes |
| Cost at age 70 ($500k) | ~$840/month | Set at policy issue |
Frequently Asked Questions
What life insurance is best for veterans?
For maximum immediate coverage at low cost, term life is the starting point. For long-term wealth building, tax-free retirement income, and permanent protection, Indexed Universal Life Insurance (IUL) is the most powerful option.
Does military service affect life insurance rates?
In most cases, past military service does not negatively affect rates for veterans who have separated. Many veterans actually qualify for preferred health ratings due to physical fitness culture during service.
Can veterans with disabilities get life insurance?
Yes. A VA disability rating does not automatically disqualify a veteran from civilian life insurance. Many conditions are insurable — sometimes at standard rates — and an experienced agent can shop multiple carriers.
Is VGLI worth it?
VGLI is convenient immediately after separation, but its costs escalate significantly over time and builds no cash value. Most veterans are better served by securing permanent private life insurance early.
What happens to SGLI when you leave the military?
SGLI ends 120 days after separation. Veterans have 1 year and 120 days to convert to VGLI without a medical exam. After that window, underwriting is required for new coverage.
Built for Veterans. Built for Families.
I serve veterans virtually across 12 states. No office visit required — most policies are in place within days. Let me show you what your coverage should actually look like.
Book Your Free Veteran Consultation →Kelvin De La O
U.S. Military Veteran · Life Insurance & Annuity Specialist · KD Legacy Shield