VGLI vs. private life insurance — the honest comparison

Where VGLI genuinely wins, where it costs you, and the hybrid strategy that keeps every option open.

By Lorenzo Marez, Editor · Reviewed against VA.gov source material

VGLI or a private policy — this single decision, made in the months after separation, can swing six figures over a lifetime of premiums. And most veterans make it by default instead of by math.

I'm going to lay out both sides fairly, because I don't think VGLI is a scam and I don't think private insurance is always better. They solve different problems. By the end you'll know which problem is yours.

What VGLI does brilliantly

VGLI's superpower is access. Inside 240 days of separation: no health questions, no exam, no underwriting. If your service left you with conditions — PTSD, TBI, orthopedic injuries, exposure-related illness — VGLI takes you exactly as you are. It's also renewable for life and backed by a program built for veterans. For a veteran with a complicated health picture, VGLI is often the single best insurance decision available.

Where VGLI costs you

The trade-off is the premium curve. VGLI rates step up every five years in age bands. It starts affordable and compounds. The same face amount that costs modest money in your early thirties can cost several times more by your late fifties — while a level term or whole life policy purchased young locks its premium for the duration. Over a thirty-year horizon, a healthy veteran usually pays substantially less on the private side for the same or greater coverage.

The hybrid move

Here's the strategy almost nobody mentions: this isn't binary. Take VGLI inside the no-questions window as a guaranteed floor. Then shop private coverage. If you qualify at good rates, replace or reduce the VGLI. If underwriting surprises you, you're still fully covered. The window only closes one way — locking VGLI first keeps every option open.

Localize

For veterans here in Central Texas — strong across the region — this decision usually lands in the chaotic first year after separation, buried under job hunting and VA claims. That's exactly why it defaults instead of getting decided.

Empower

So the framework: complicated health, take VGLI and hold it proudly. Clean health, compare level-premium private coverage before the default hardens. In between — floor it with VGLI, then shop. All three are wins. The only loss is the closed window.