veterans · VGLI · Texas

Beyond VGLI: Life Insurance Options for Texas Veterans

By Richard Parslow · Mar 15, 2026 · 8 min read
Quick Answer

VGLI starts cheap but premiums step up every five years and exceed civilian term by age 45 for most veterans. Healthy Texas veterans typically save $1,200–$4,000/year by converting to a 20- or 30-year level term before age 50.

The VGLI premium curve no one shows you at separation

VGLI for $400k at age 30 is around $32/month. Same coverage at age 50 is $144/month. At 60, $432/month. At 70, $1,200/month.

Civilian 30-year term for a healthy 30-year-old veteran is roughly $24/month and stays flat for the entire term.

Texas-specific considerations

Texas does not levy state income tax, so insurance proceeds remain federally tax-free with no state offset — a clean planning environment.

Combat-related disability ratings do not automatically affect civilian underwriting; the carrier looks at current health, not service connection.

FAQ

Should I keep VGLI as a safety net?

Only if you have an uninsurable condition. Otherwise the dollars are better spent on permanent civilian coverage.

What about SGLI to VGLI conversion deadlines?

You have 485 days from separation. Compare civilian quotes during that window — don't wait until day 484.

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