Both are operated for the government by a contractor. This change generally does not affect existing VGLI policyholders because the maximum coverage permitted under VGLI is limited to the amount the service member had under SGLI when he or she separated from active duty or the reserves. Veterans generally must choose VGLI coverage within 120 days of discharge, although with evidence of good health that signup period may be extended another year.
Rules are more liberal for military members who are totally disabled at the time of separation.
Veterans take VGLI coverage in five-year renewable terms. Payments are made through a monthly premium that varies by the amount of life insurance and age at each renewal. Veterans also can convert VGLI to a commercial life insurance policy offered by one of 91 participating commercial insurance policies. The SGLI and VGLI programs supervised by VA provide insurance coverage to approximately 2.7 million veterans, active-duty members, reservists and Guardsmen. Other VA insurance programs for disabled veterans, for mortgage insurance or for veterans who served in earlier time periods have 2.2 million policies in force today.