Best Life Insurance for Veterans (2026)

USAA is the best permanent life insurance for veterans, especially those recently separated from active duty. It waives premiums if you become totally disabled while serving and includes a $25,000 severe injury benefit for line-of-duty incidents. It holds an A++ A.M. Best rating , which shows superior financial strength. USAA has a 0.12 NAIC complaint index, which shows it received fewer customer complaints than the national average.

Banner Life has the lowest term rates for most ages we priced, at $37 a month for a 40-year-old woman and $46 for a man for $500,000 of 20-year coverage. Nationwide is the top no-exam option: it approves no-exam coverage up to $1.5 million and returns decisions in as little as 24 hours. Pacific Life has the most competitive rates for senior veterans in their 60s and 70s, with term coverage available up to age 80. Physicians Mutual covers veterans who can't qualify for traditional policies, with guaranteed acceptance from age 45 to 85 and no health questions.

*Average monthly rates are based on 40-year-old applicants with $500,000 in coverage for a 20-year term, whole and universal life policies. Guaranteed whole life rates reflect 65-year-olds buying a $15,000 policy. Senior term rates assume a $250,000, 10-year term policy for a 65-year-old. Rates vary by age, health and underwriting factors.

Veterans have three life insurance programs available through the VA: Servicemembers' Group Life Insurance (SGLI), Veterans' Group Life Insurance (VGLI) and Veterans Affairs Life Insurance (VALife).

Servicemembers' Group Life Insurance (SGLI)

SGLI provides automatic coverage up to $500,000 while you're on active duty, in the Ready Reserve or National Guard. The program charges low monthly premiums: $0.05 per $1,000 of coverage, or $25 a month for the full $500,000 policy ($26 including traumatic injury protection). These are deducted from your military pay. 

Your spouse and dependent children can also get coverage through Family SGLI. Coverage continues for 120 days after separation at no cost, giving you time to arrange other insurance.

Veterans’ Group Life Insurance (VGLI)

VGLI picks up where your military coverage (SGLI) left off. It's term life insurance that renews every five years, with premiums that go up as you get older. You don't need a medical exam to sign up, which makes it a good fit if you want flexible coverage for the near to mid-term. 

You can convert your SGLI to VGLI within one year and 120 days after separation. VGLI then converts to a private policy within five years of your VGLI coverage start date.

Veterans Affairs Life Insurance (VALife)

VALife works like whole life insurance. It covers you for your entire lifetime and builds cash value along the way. It's made for veterans with service-connected disabilities, and there's no medical exam or health screening required. Your premiums stay the same, so it's easier to plan long-term. 

VALife includes a two-year waiting period for non-accidental deaths. If you die from illness or natural causes during the first two years, your beneficiaries receive only premiums paid plus interest, not the full death benefit. Accidental deaths receive the complete benefit amount immediately. Apply for VALife at va.gov/life-insurance/. Applications are accepted within two years of receiving a service-connected disability rating.

VA programs work best for veterans with service-connected disabilities or health conditions that raise private insurance costs. VGLI and VALife don't require a medical exam, and service-connected conditions don't affect your rates. SGLI provides the lowest rates available during active duty at $0.07 per $1,000 of coverage.

For healthy veterans, private coverage is almost always cheaper. A healthy 30-year-old veteran pays 30% to 50% less through a private insurer than through VGLI. Private policies also offer more flexibility. It has longer-term options and critical illness riders. You can also get long-term care coverage that VA programs don't include.

Private life insurance costs less than VGLI for healthy veterans at every age MoneyGeek analyzed. VGLI works better for veterans with service-connected health conditions, since it guarantees acceptance regardless of health status.

VGLI rates are from U.S. Department of Veterans Affairs data and reflect the VA's premium reductions of 2% to 17% effective July 1, 2025 (average reduction: 11%). Private term rates are based on MoneyGeek's analysis of quotes for healthy, nonsmoking 40-year-old male applicants. Rates are for $500,000 in coverage. Actual prices vary by insurer and health rating. For the current full VGLI rate schedule by age and coverage amount, visit va.gov/life-insurance/options-eligibility/vgli/.

The price gap is largest at age 60, where private term costs $171 less per month than VGLI. VGLI and VALife don't require a medical exam, and service-connected conditions don't affect your rates. SGLI offers the lowest rates available while on active duty.

Keep VGLI when a service-connected health condition would raise your private insurance premiums or lead to a denial. You can enroll without a medical exam within 240 days of separation, regardless of your health, and pay the same age-based rates as healthy veterans. That coverage guarantee matters most for veterans with PTSD, chronic injuries or other service-connected conditions that private insurers rate differently or decline.

For veterans in good health, private term costs less than VGLI. A healthy 40-year-old man pays $55 a month for $500,000 of 20-year private term coverage. The private rate stays flat for 20 years; VGLI rates increase every five years. 

You can carry both policies at the same time. VGLI serves as the no-exam coverage; private term covers income replacement at lower cost.

Term life costs $55 a month for a healthy 40-year-old man buying $500,000 of 20-year coverage, based on MoneyGeek's analysis. The same coverage through a whole life policy costs $667 a month at that age, which is more than 12 times the term rate. By age 65, the same 20-year term policy costs $591 a month for a man. Age and policy type affect costs. Other factors insurers consider include your health, coverage amount, lifestyle and smoking status.

The table below shows the average cost of life insurance for veterans of different ages, coverage amounts and term lengths.  quotes.

Term, no-exam term, whole and universal life rates are for a $500,000 policy for nonsmokers with average health, based on MoneyGeek's rate analysis. Guaranteed whole life rates are for a $10,000 policy and are available only to applicants ages 45 to 85. No-exam term rates are based on carriers that offer accelerated underwriting; availability varies by insurer. Actual rates vary by insurer, age, health and underwriting factors. 

These are sample rates for illustration only and don't constitute guarantees. Veterans should consult a licensed insurance professional for personalized advice and current rates.

SGLI ends at separation. Your two options are converting to VGLI or buying new private life insurance. Conversion guarantees continued coverage, sometimes without a medical exam, but VGLI's renewable term structure means premiums rise every five years. Private coverage offers lower long-term costs if you're healthy but requires underwriting. 

The right path depends on your health, how long after separation you're applying and whether you have service-connected conditions.

• Within 240 days of separation with health issues: Converting SGLI to Veterans' Group Life Insurance (VGLI) guarantees coverage with no medical underwriting. VGLI rates are based on age, not current health, making it the safer path for veterans with medical concerns.
• Within 240 days and in good health: Private life insurance runs 30% to 50% cheaper than VGLI for healthy veterans. Locking in private rates before your 120-day free SGLI extension ends saves money long-term.
• After 240 days: Medical underwriting applies to both VGLI and private life insurance. Private insurers offer lower premiums and more flexible term lengths than VGLI.
• Service-connected disabilities rated 50% or higher: VA-backed life insurance options provide better value. Private insurers often charge higher premiums or decline coverage for service-related conditions. No-exam life insurance policies are worth reviewing as an alternative, though rates run higher than policies with standard underwriting.
• Good health with no service-connected disabilities: Private life insurance offers the lowest costs, plus optional riders like critical illness or long-term care that VA programs don't include.
• Short-term coverage needs: VGLI works as a temporary solution while you improve your health or reassess long-term needs. Switching to a private policy later remains an option.
• Permanent coverage with disabilities: VALife provides guaranteed acceptance, level premiums and cash value growth with no medical screening, making it the most reliable permanent coverage option for veterans with severe service-connected conditions.
• Maximizing cash value growth: Private whole life insurance builds cash value faster and offers more customization than VALife, but premiums are higher. Compare quotes directly against VALife rates before deciding.

We answer common questions about veterans’ life insurance.

Veterans deal with underwriting challenges most applicants don't, like service-connected disabilities, deployment history and conditions like PTSD that standard insurers rate inconsistently. Our ratings reflect what veterans actually encounter when they're trying to find coverage, not just general life insurance quality metrics.

Our Rating System

We evaluated each company across three categories weighted by what veterans consistently tell us matters most:

• Affordability: 50%
• Customer Experience: 30%
• Coverage Options: 20%

What We Analyzed

Our evaluation incorporates multiple data sources:

• Cost analysis from thousands of life insurance quotes across multiple coverage amounts, term lengths, ages and health ratings
• Financial strength ratings from AM Best and years in business
• Customer satisfaction data from the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power and online customer reviews
• Application efficiency and buying process tools, such as online resources and underwriting processes
• Product variety and coverage features, such as term lengths, coverage amounts and policy options

Sample Veteran Profile

We used this standard profile to gather consistent pricing data:

• 40-year-old male
• Nonsmoker
• 5 feet 9 inches tall, 160 pounds
• Average health rating

We modified the profile by age, gender, health status and lifestyle to understand how different backgrounds affect rates.