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Separating? Think About Your Life Insurance Options

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One of the decisions you will make before you leave active-duty service is how to replace the life insurance coverage you will be losing from your financial portfolio. You have several options — including term life insurance, whole life insurance and Veterans Group Life Insurance (VGLI).

Your Servicemembers’ Group Life Insurance (SGLI) coverage is term insurance and will end 120 days after you separate from the military. Veterans Group Life Insurance (VGLI) is an option to replace SGLI; however, you must apply for it within one year and 120 days of separation. VGLI does not require evidence of insurability, if you sign up within 240 days of separation, otherwise, you will then need to submit evidence that you are in good health. In addition, VGLI is not the best choice for all Veterans, as it becomes progressively more expensive over time. VGLI does allow you to reduce your life insurance coverage to maintain an affordable premium. Most Veterans would benefit from exploring life insurance options available from military associations, such as AAFMAA.

Why Should You Replace the Life Insurance You Lose When You Leave the Service?

Life insurance covers essential expenses and provides income for your survivors. Your coverage needs may vary over your lifetime, depending on your family’s needs and where you are in life. Term and whole life insurance serve different purposes, and everyone should consider a combination of both. You will need term life insurance to last as long as anyone depends on your income to cover costs such as mortgage debt, monthly expenses, childcare, and education expenses. At the same time, you’ll want some amount of whole life insurance coverage to protect your loved ones from your final expenses regardless of when you die, and potentially to transfer wealth tax-free to your survivors.

AAFMAA Life Insurance Options

AAFMAA offers life insurance policies for a variety of needs and coverage levels to all members of the military community at all stages of career and life. As part of preparing to separate, you should evaluate coverage needs for yourself, your spouse, and your children, with the assistance of an AAFMAA Membership Coordinator. They can quickly and easily help you understand which policies would be best for you and your family and even take your application online or right over the phone. Don’t wait until after you’ve transitioned, keep your family protected in advance.

For more information on additional topics to consider in preparing for military separation, please see the following:

For more information about life insurance options, or to receive a quote, contact an AAFMAA Membership Coordinator at 888-961-5427 or visit

When you’re ready to retire, or to consider it, check out our 7 Decisions Before You Retire series for information about other choices you’ll need to make.