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Life Insurance · Plain-English Guide

Life insurance for veterans

Last updated: May 28, 2026 · Reviewed by Mark Snyder, NPN 22163900

Short answer: Veterans typically have access to VGLI (Veterans’ Group Life Insurance), the post-separation continuation of SGLI. VGLI is simple but expensive at older ages and capped at $500,000. For most veterans, a private whole-life or final-expense policy is a better long-term fit — either to supplement VGLI or to replace it once VGLI rates climb.

The veteran life insurance landscape

  • SGLI (Servicemembers’ Group Life Insurance): $500,000 of term coverage while on active duty. Cheap, automatic, ends with separation.
  • VGLI (Veterans’ Group Life Insurance): post-separation conversion from SGLI, no medical questions if you apply within 240 days. Term coverage, premium rises with age, max $500,000.
  • Private term, whole life, IUL, or final expense: issued by carriers based on age, health, and tobacco use. Requires underwriting but locks in much better rates at younger ages and offers permanent coverage options VGLI can’t.

When VGLI is the right answer

  • You have a serious service-connected health condition that would make private underwriting hard or expensive.
  • You only need short-term coverage and don’t want to deal with underwriting.
  • You’re close to age 60+ and just want simple, no-questions term coverage.

When private coverage beats VGLI

  • You’re young and healthy. Private term rates blow VGLI out of the water if you can pass underwriting.
  • You want permanent coverage that doesn’t expire. VGLI is term only; whole life and IUL are permanent.
  • You want cash value. VGLI has none. Whole life and IUL build cash value.
  • You need more than $500,000 of coverage. VGLI caps; private carriers don’t.
  • You’re hitting an age where VGLI premium jumps. VGLI premiums step up every 5 years — by your mid-60s they’re often higher than a comparable private whole-life premium would have been.

Final expense for veterans

Most veterans I work with don’t actually need million-dollar coverage — they need coverage for funeral costs and final bills so their spouse or kids don’t scramble. Final expense / burial insurance is purpose-built for that: $5,000–$25,000 of permanent whole-life coverage, no medical exam on most plans, rate locked for life, paid directly to the beneficiary within days of a claim.

For service-connected conditions that would complicate private underwriting, final expense is often easier to qualify for than larger policies — and guaranteed-issue is always available as a fallback if your condition is severe.

A note on VA benefits and burial

The VA does pay some burial benefits for eligible veterans — but they’re modest:

  • Service-connected death: up to ~$2,000 toward burial expenses (figure changes; see VA.gov for current rates).
  • Non-service-connected death (with VA pension or compensation): a few hundred dollars toward burial and plot allowance.
  • National cemetery burial: free for eligible veterans and their spouses.

These benefits help but don’t come close to a $10,000–$15,000 funeral. Final expense insurance covers the gap.

Common questions (veteran edition)

Should I keep VGLI or convert to private coverage?

Depends on age and health. If you’re under 50 and in good health, private term or whole life is almost always cheaper and gives you permanent options. If you’re older or have service-connected health issues, VGLI may be the right answer. Run real numbers side by side — that’s the only way to know.

Will service-connected conditions affect my private rates?

Sometimes, depending on the condition. PTSD, sleep apnea, hearing loss, and many other common ratings have relatively minor underwriting impact at most carriers. More serious conditions (TBI, heart disease, kidney issues) need to be matched to a friendly carrier — which is exactly what an independent agent does.

Can I get life insurance during a VA disability claim?

Yes — having a pending claim isn’t a disqualifier. Carriers underwrite based on the actual medical history, not the claim status. If you’re currently in treatment for a condition you’re claiming, the carrier may want documentation.

Does the VA pay for a funeral?

Partially, for eligible veterans. The VA burial benefit covers a portion of funeral costs and national cemetery burial is free for eligible veterans and spouses, but the VA doesn’t come close to covering a $10,000–$15,000 private funeral. Final expense insurance covers the gap.

Get a fair look at veteran life insurance options

I’ll compare VGLI vs. private term vs. whole life vs. final expense for your specific situation — age, health, service-connected conditions — and tell you honestly which is the best fit. Licensed in NV, CA, TX, and AZ.

Schedule a call Call (504) 453-9443

Related: What is IUL? · Final expense · IUL vs. whole life · All guides

This page is general educational information, not insurance, financial, or VA-benefits advice. Mark Snyder Insurance is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, the Department of Defense, or any government agency. VGLI is administered by the Office of Servicemembers’ Group Life Insurance (OSGLI). VA burial benefits and eligibility rules change — confirm current details at VA.gov.