Military life insurance has undergone several important updates in 2025. These changes affect current service members, veterans, and their families. Whether you’re enrolled in Servicemembers’ Group Life Insurance (SGLI), considering Veterans’ Group Life Insurance (VGLI), or evaluating the new VA Life Insurance (VA Life) program, it’s important to stay informed.
This guide breaks down the differences between the primary life insurance programs offered through the Department of Veterans Affairs (VA) and the Department of Defense (DoD). It will help you make clear decisions based on your service status, financial goals, and long-term family needs.
Service members’ Group Life Insurance (SGLI) Updates for 2025
SGLI remains the primary life insurance program for active-duty members of the military. In 2025, coverage continues to be automatically provided at $500,000 unless service members opt for a lower amount. Monthly premiums are currently set at $31, which includes $1 for traumatic injury protection under TSGLI.
These rates are based on a flat-rate system and not age-dependent, making it a cost-effective option for most active-duty personnel. Enrollment in SGLI is managed through the Defense Enrollment Eligibility Reporting System (DEERS), and updates or changes can be made via the SGLI Online Enrollment System (SOES).
Veterans’ Group Life Insurance (VGLI) Considerations
VGLI allows veterans to continue life insurance coverage after separating from active service. Enrollment must occur within 1 year and 120 days of leaving the military, with guaranteed acceptance if applied for within 240 days of discharge.
Unlike SGLI, VGLI premiums are age-based and can become significantly more expensive as the insured ages, particularly after age 60. VGLI offers up to $500,000 in coverage and allows policyholders to increase coverage in $25,000 increments every five years, up to age 60. While convenient and stable, some veterans may find private insurance alternatives more cost-effective depending on age and health status.
VA Life Insurance (VA Life): A New Option for Disabled Veterans
VA Life, introduced in 2023, is a whole life insurance policy specifically for veterans with service-connected disabilities. It differs from SGLI and VGLI by offering permanent coverage with guaranteed acceptance for eligible veterans, regardless of health conditions.
As of 2025, veterans can apply at any time without a medical exam, though a two-year waiting period applies before full benefits become payable for death by natural causes. The policy provides up to $40,000 in coverage, making it more limited than SGLI or VGLI. Premiums depend on the veteran’s age at the time of enrollment and are fixed for life.
Choosing the Right Life Insurance for Your Situation
The best life insurance plan depends on your current service status, financial responsibilities, and long-term goals. Active-duty members are generally best served by SGLI due to its affordability and automatic enrollment. Veterans who recently separated might benefit from short-term use of VGLI, while they compare other options.
For veterans with service-connected conditions, VA Life can provide guaranteed coverage when other insurers may decline. Each program offers distinct advantages, but reviewing your coverage regularly and reassessing your needs is essential. Consider speaking with a financial counselor familiar with military benefits to explore which combination of coverage best protects your family’s financial future.
Source: Military Times