Private Life Insurance vs VA Benefits: What You Should Know

Posted on May 26th, 2025

Let’s face it—figuring out life insurance isn’t exactly a thrilling ride, especially when you're juggling VA benefits and private options.

For vets and their families, it's not just paperwork—it’s about making sure life after service comes with some peace of mind.

Civilian life brings different rules, and while Uncle Sam does offer support, it doesn’t always cover all the bases.

VA benefits might feel like a decent safety net, but they aren’t a one-size-fits-all fix. That’s where private life insurance starts to look pretty tempting.

Mixing the two can be the key to a setup that actually works for your real-life plans—not just the government’s checklist.

Before locking anything in, it's worth sizing up your options.

Because whenever it comes to protecting your people and your peace, the fine print matters more than you'd think.

 

What Are The VA Benefits for Veterans

VA life insurance benefits aren’t exactly headline news at family dinners, but they’re a big deal—especially if you're trying to figure out how to protect the people who’ve had your back the whole way.

Veterans have access to several insurance options through the Department of Veterans Affairs, and while these benefits offer a good start, they’re not always the full picture.

The most well-known is Servicemembers’ Group Life Insurance (SGLI), a solid term policy that kicks in automatically for most active-duty members, reservists, and National Guard personnel.

It offers up to $500,000 in coverage—plus built-in extras that go beyond the basics. One of those extras is Traumatic SGLI (TSGLI), which steps in with short-term financial help after serious injury.

It's practical, it’s affordable, and, best of all, it requires zero effort to enroll. Just don’t forget to keep your information current—outdated details can derail a claim faster than you’d expect.

Once you’re out of uniform and into civilian life, you’ve got a shot at Veterans’ Group Life Insurance (VGLI), which lets you convert your SGLI policy into ongoing term coverage.

There’s a catch, though—timing is everything. Apply within 240 days of separation and skip the medical questions. Miss that window, and you’ll have a year and 120 days total, but health screenings could be part of the deal.

And unlike SGLI, VGLI premiums climb with age, so the longer you wait, the more you'll pay.

Here’s a quick look at some key VA life insurance offerings:

• SGLI: Low-cost, automatic term coverage during active duty

• TSGLI: Financial help after traumatic injuries

• VGLI: Post-service coverage with guaranteed acceptance if you act fast

• Family SGLI (FSGLI): Optional coverage for spouses and dependent children

These programs cover essentials, but they’re not built for every situation. VGLI, for example, only offers term coverage and typically ends at age 75.

If you're aiming for lifelong protection—or want to build cash value—VA benefits alone might fall short. For many veterans, that’s the signal to start looking at private life insurance to fill in the gaps and lock in something more personal.

Bottom line: VA life insurance is a great foundation. But if your goals stretch beyond what’s standard issue, you’ll want to explore additional options that keep pace with your life—not just your service record.

 

Why Consider Private Life Insurance Options

VA benefits do a decent job of covering the basics, but whenever it comes to life insurance, “just enough” doesn’t always cut it.

That’s where private life insurance steps in—not to compete, but to cover the cracks. Veterans looking for more control, more flexibility, and longer-term peace of mind often find private policies give them options the VA can’t.

The beauty of private life insurance is choice. You’ve got two main players here: term and whole life insurance. Term life is the no-frills, no-fuss option—it covers you for a set number of years and tends to be easy on the wallet.

It’s ideal if you’re planning around big milestones like paying off a house or making sure your kids are financially covered if something happens to you. It’s straightforward protection without all the bells and whistles.

Then there’s whole life insurance—the lifelong ride. This policy sticks with you for the long haul and even builds up cash value over time.

That means as you pay into it, you're not just buying protection; you're growing a small savings account that you can tap into down the road.

Need extra cash later in life? You can borrow against it. Want to leave something more than just a payout? This type of policy doubles as a legacy tool.

Private policies also offer something VA benefits don’t—customization. Add-ons (called “riders”) can let you tweak your coverage for things like critical illness, disability, or accidental death.

These little extras can make a big difference if your life doesn’t follow the standard playbook.

Now, some folks worry private insurance will be picky about their military past. And yes, some insurers see certain service experiences as higher risk.

But here’s the good news: plenty of companies specialize in working with veterans and know the lifestyle inside and out. Competition among them keeps pricing competitive, so even with a more complex history, you can still lock in a fair deal.

If you want coverage that grows with you, private life insurance might be the missing piece. When paired with your VA benefits, it turns a basic safety net into a full-on financial plan.

It’s not about replacing what you’ve earned—it’s about building on it so you and your family can live with fewer question marks and more confidence.

 

Comparing Private Life Insurance and VA Benefits

Comparing private life insurance to VA benefits isn’t a matter of picking a winner—it’s about knowing which one plays better at different stages of life. Your needs at 25 don’t look much like your priorities at 55, and your insurance shouldn’t be stuck in the past either.

Early on in civilian life, most veterans are juggling student loans, young families, or a first mortgage. In that case, term life insurance makes a lot of sense. It gives you high coverage for a low cost, covering big financial risks during the years when your wallet’s still catching its breath. VA benefits like VGLI add a layer of support tied to your time in service, but they come with caps and conditions that don’t always match up with real-world needs.

Midlife hits differently. You’re no longer just guarding against the “what ifs”—you’re building something.

Kids might be heading off to college, retirement is starting to peek over the horizon, and suddenly, you’re rethinking whether that old policy still does the trick. This is where whole life insurance starts looking smart. It lasts for life, builds cash value, and doubles as a backup plan for emergencies or long-term goals.

Meanwhile, VGLI starts to climb in cost, and what seemed affordable at 30 may now be eating more of your monthly budget than you’d like.

Later on, the name of the game is legacy. You’re not just covering bills—you’re making sure what you built gets passed on cleanly. Whole life insurance offers permanent protection, something VGLI can’t promise past age 75. It also locks in benefits that can help cover estate costs or leave behind a meaningful inheritance, without the stress of rising premiums or expiring coverage.

Some key points to keep in mind:

• Term life can bridge early financial risks affordably

• Whole life builds value and sticks with you for good

• VGLI is convenient post-service but gets pricier over time

• Private insurance gives you the power to tailor policies as your life changes

Pairing VA coverage with a customized private policy gives you the best of both worlds. It’s not about replacing one with the other—it’s about using each where it fits best. With the right strategy, you’re not just covered; you’re in control.

 

Why You Should Speak To a Professional To Help You Figure Out The Best Fit

Choosing the right life insurance as a veteran isn’t just about policies—it’s about protecting what matters most as your life evolves. VA benefits give you a strong starting point, but they’re not built to cover everything forever.

Adding private life insurance into the mix lets you shape a plan that actually fits your needs—now and decades from now.

No matter if you're just stepping into civilian life or fine-tuning your retirement game plan, your insurance choices should reflect where you are and where you're headed. Term life can keep costs down while covering major expenses early on.

Whole life can build long-term security and even grow value over time. The key is knowing how to balance these tools with your VA coverage so nothing slips through the cracks.

That’s where we come in. At GenWealth Builders, we specialize in helping veterans design insurance strategies that work both with and beyond VA benefits.

If you’re wondering if need the extra coverage—or what kind—our Veteran's Life Insurance Consultation breaks it all down for you. No jargon, no pressure—just clear advice tailored to your life.

You’ve taken care of others through your service. Now it’s time to guarantee your family’s future is just as protected. If you're ready to explore your options, give us a call at 336-602-4331 or email us at [email protected].

Let’s build something that honors your past and secures your future—one smart move at a time.