From SGLI to Private Life Insurance: Maximizing Veterans Death Benefits
This article explores how modern solutions like the War Chest Strategy can help career military families maximize their Veterans life insurance benefits, protect their income, and build a secure financial legacy.
Are You a Career Military Family?
Are you a military family concerned about life insurance death benefits? The uncertainties surrounding military benefits like SGLI, VGLI, and traditional options such as the Survivor Benefit Plan (SBP) can leave many veterans unsure about the best way to protect their loved ones.
In this guide, we’ll break down the key options available to veterans and military families, explain the risks of relying solely on government-sponsored insurance, and offer actionable steps to improve your life insurance death benefits. By the end, you’ll have a clear path to securing your family’s financial future.

Understanding Veteran Life Insurance Options
For military retirees and their families, life insurance discussions typically revolve around three main options:

What’s Missing From Your SBP vs Life Insurance Decision?
Most military families leave money on the table because they don’t know their options. Download the guide to discover the War Chest Strategy—the smarter alternative to SBP.
Survivor Benefit Plan (SBP)
The SBP is a government-sponsored life insurance product designed as an annuity. It provides a lifetime monthly income to the surviving spouse or eligible dependents of military retirees.
While SBP offers reliable coverage, it is not without limitations:
- Cost: A percentage of the retiree’s pension is deducted for SBP coverage.
- Fixed Benefits: The payout is tied to the retiree’s pension and does not grow over time.
- Limited Flexibility: SBP does not offer opportunities for wealth accumulation.
Service Members Group Life Insurance (SGLI)
SGLI is a term life insurance policy available to active-duty service members. It is affordable, costing just $372 per year for $500,000 of coverage. However, SGLI has notable drawbacks:
- Expiration: Coverage ends upon leaving active duty.
- Flat Coverage: The $500,000 death benefit may not be sufficient for families with larger financial needs.
Veterans Group Life Insurance (VGLI)
VGLI is the default option for transitioning service members, providing coverage similar to SGLI after military service. Unlike SGLI, VGLI premiums increase with age, and the policy offers no rewards for good health or opportunities for cash value accumulation.
While these government-sponsored options provide a foundation, they may only partially meet the needs of families with significant financial goals. Exploring private life insurance policies can help fill these gaps and offer additional benefits.

Why Veterans’ Life Insurance Needs a Second Look
Upon transition to civilian life, veterans must decide whether to convert this coverage to Veterans Group Life Insurance (VGLI) or seek alternative options.
Here’s the catch: while convenient, VGLI can become cost-prohibitive over time, with premiums increasing drastically every five years. Many veterans find themselves unable to sustain coverage when they need it most.
Common Risks With Traditional Options:
The Importance of Qualifying for Private Insurance Early
When it comes to underwriting a life insurance policy, timing is everything. Many service members put off pursuing private life insurance, assuming SGLI or VGLI will suffice.
However, waiting too long can be costly, particularly if health conditions develop during or after service.
The Risk of Waiting
SGLI ends upon separation from active duty, forcing many retirees to turn to VGLI as the only remaining option. Unfortunately, VGLI’s escalating premiums can strain long-term budgets, especially for retirees with fixed incomes.
Additionally, delaying private life insurance qualification can leave you vulnerable to:
- Health Changes: Medical conditions that arise during service can make private insurance unaffordable or unattainable.
- Higher Premiums: Premiums increase with age, meaning the longer you wait, the more expensive coverage becomes.
- Limited Coverage Options: By the time you leave service, you may have fewer insurance products available.
Qualify While You’re Young and Healthy
Applying for private life insurance during your 20s or early 30s allows you to:
- Lock in lower premiums.
- Qualify for higher death benefits.
- Access more options, including policies that combine life insurance with wealth-building opportunities.
Even if you have a disability rating, many conditions do not disqualify you from coverage. Taking the time to explore your options early can protect your family’s financial future.
Actionable Strategies to Improve Death Benefits
Improving your life insurance death benefits requires a proactive approach. Here are some practical steps to take:
1. Evaluate Your Family’s Financial Needs
Before choosing a policy, assess your family’s current and future financial requirements:
- Income Replacement: How much income will your family need to maintain their lifestyle?
- Debt Coverage: Ensure your policy can cover mortgages, loans, and other debts.
- Legacy Goals: Consider the financial legacy you want to leave for your loved ones.
By calculating these needs, you’ll better understand the coverage required.
2. Explore Private Life Insurance Options
Private life insurance policies often provide more flexibility and benefits than government-sponsored options. Consider:
- Term Life Insurance: Offers affordable coverage for a specific period, ideal for families focused on income replacement.
- Permanent Life Insurance: Combines a death benefit with cash value accumulation, allowing for long-term financial planning.
- Hybrid Policies: Include features such as investment opportunities or long-term care coverage, offering protection and growth potential.
3. Understand Disability Ratings
If you have a VA disability rating, don’t assume you’re ineligible for private life insurance. Many disabilities, particularly those with minimal impact on life expectancy, do not prevent qualification.
4. Consider Supplementing SBP and VGLI
While SBP provides a steady income, it may only cover some of your family’s financial needs. Supplementing SBP with private insurance can:
- Provide a larger death benefit.
- Offer a cash reserve for emergencies or future expenses.
- Allow for greater flexibility in estate planning.
5. Start the Qualification Process Now
Applying for private insurance involves a medical exam and an underwriting process. These do not obligate you to purchase a policy but help you understand your options.
Introducing the War Chest Strategy
The War Chest Strategy, developed by US VetWealth, provides a modern, private alternative to the SBP and VGLI. It is designed to help military retirees protect their income while offering greater flexibility, equity, and growth potential.
Unlike traditional government programs, the War Chest Strategy leverages investment-grade life insurance policies like Indexed Universal Life (IUL) and convertible term insurance.

Benefits of the War Chest Strategy:
Case Study: A Smarter Approach to Military Benefits
Meet Colonel Dave, a retiring O-6 with 30 years of service. Dave initially considered opting into SBP and VGLI, as recommended during his military retirement briefing. However, he realized that the cumulative cost of these programs—over $330,000 in 30 years—would leave his family with limited flexibility and no equity.

The War Chest Solution:
- Defensive Coverage: Dave secured $2.5 million in affordable term coverage to protect his family during their highest-risk years.
- Offensive Strategy: Over 10 years, he allocated $33,000 annually (the same amount as 30 years of SBP deductions) into an Indexed Universal Life policy. This created a liquid, tax-free asset worth over $900,000.

This strategy protected Dave’s income and provided his family with a flexible financial tool they could use during his lifetime. Read the complete SBP decision case study here.
What About Disabled Veterans?
Even with a VA disability rating, you may still qualify for the War Chest Strategy. Many conditions considered “disabling” by the VA do not affect life expectancy or insurance underwriting. Examples include musculoskeletal issues, tinnitus, or sleep apnea.
It’s worth going through the underwriting process to determine your eligibility. Disabled veterans can often secure robust policies tailored to their unique needs.
How to Qualify for the War Chest Strategy
Start Early: The best time to qualify for the War Chest Strategy is while you are still healthy and relatively young. Medical underwriting is required, but don’t let minor health issues or VA disability ratings deter you. Many disabilities that impact daily life do not necessarily affect your life expectancy.
Avoid the VGLI Trap: Transitioning service members often default to VGLI without exploring privatized options. By qualifying for a private plan early, you can lock in favorable rates and higher coverage amounts.
The Process:
Take Action to Protect Your Military Income & Benefits
Choosing the right life insurance is one of a military family’s most important financial decisions. The War Chest Strategy offers a modern, flexible, cost-effective alternative to traditional government programs like SBP and VGLI.
Why Wait? Every year that you delay exploring your options, you risk higher premiums, reduced benefits, and fewer choices.
Schedule a free consultation with US VetWealth today to learn how the War Chest Strategy can transform your financial future.
Protect your income, preserve your legacy, and build a financial future you control. Schedule your free consultation now!


Scott R. Tucker
Scott R. Tucker is an author, speaker, and founder of US VetWealth, a military retirement financial consulting brand dedicated to helping military retirees take control of their financial future. A West Point graduate and former Army officer with over 16 years of experience, Scott has guided thousands of veterans in creating personalized financial strategies prioritizing autonomy, protection, and profitability. Through his books, presentations, and innovative online platform, Scott empowers retirees to maximize their benefits and build a secure, purpose-driven future.
Disclaimer: The views expressed by Scott R. Tucker are for educational purposes only and do not constitute financial, tax, or legal advice. Scott is a licensed insurance professional offering financial services and products. Always consult with a qualified advisor before making financial decisions.