Protecting Your Horizon: SGLI/VGLI/FSGLI Conversions
Transitioning from Active Duty? Keep Your Life Insurance Secure.
The transition from military service to civilian life can be complex. However, one consideration remains constant throughout this process: the need to make sure you and your family are protected. While service members are in the military, they are protected with Servicemembers’ Group Life Insurance (SGLI).
Once service members leave the military, SGLI coverage ends, leaving individuals to decide how to continue life insurance protection with a new policy. Fortunately, several options exist for converting your SGLI after leaving the military.
When You Might Want to Convert From SGLI
Conversion Options: VGLI vs Private
| Standard VGLI | Private Conversion |
|---|---|
| Renewable Term Life | Permanent Universal Life |
| Premium increases every 5 years as you age | Locked-in, level rates that do not increase |
| Death benefit only | Tax-free cash accumulation at guaranteed interest rates |
| Fixed terms and rigid structures | High flexibility to adjust your coverage and premium payments over time |
| Guaranteed acceptance up to 240 days post-separation | Guaranteed acceptance up to 120 days post-separation |
AmFi Advantages: Permanent Protection & Cash Value
Locked-In Rates
Your premiums will not increase later in life.
Tax-Free Cash Accumulation
A portion of every premium payment builds cash value at market-leading, guaranteed interest rates. You can access this cash during your lifetime for emergencies, opportunities, or supplemental retirement income.
Ultimate Payment Flexibility
Universal life insurance allows you to adjust your premium payments and coverage amounts over time to match your changing financial circumstances.
How to Convert SGLI to AmFi in 3 Steps
1 Act Within Your 120-Day Window
To convert your active-duty SGLI to an AmFi permanent policy without a medical exam or proof of good health, you must submit your application within 120 days of your separation date.
(You can still apply up to 1 year and 120 days post-separation, but you will be subject to health questions after the initial 120 days).
2 Tailor Your Coverage
Unlike SGLI, where you might have defaulted to the maximum $500,000, your post-military life might require a different strategy. You can customize your AmFi coverage amount to fit your exact needs and budget.
3 Submit Your Conversion Request
Contact an AmFi transition specialist. We will help you complete the commercial conversion paperwork, coordinate with the VA, and establish your new, locked-in policy.
What About Family Coverage (FSGLI)?
Spousal Conversion
Your spouse has 120 days from your separation date to convert their FSGLI coverage into an individual, permanent commercial policy (like AmFi’s Universal Life) with no medical exam required.
Dependent Children
FSGLI coverage for children is free while you are on active duty, but it cannot be converted. It will naturally expire 120 days after your separation.
Thousands of People Like You
I bought my first policy from American Fidelity in 1978 and subsequently have purchased 8 more policies on myself, children, and grandchildren. We have always had exceptional service from their staff all these many years and have especially cherished talking to a person and not a recording!!
They have updated their site and made it user-friendly.
Frequently Asked Questions
Most adults who are in good health can apply for life insurance. Adults under the age of 59 are eligible for universal life insurance policies. You may not be eligible for life insurance if you have cancer, heart conditions, or other life-threatening medical conditions or lifestyle habits.
Absolutely! We pride ourselves on being there for you when you need us. We process claims in less than 24 hours and typically have the cash in your bank account within 3 days.
Members with SGLI coverage have two options if they want to convert their life insurance after their service ends. The first option is that they can convert their SGLI to VGLI, a renewable term insurance that has no cash value that builds over time and has premiums that can increase over time, making it a more expensive option long-term. The second option is that they can convert their SGLI to an individual commercial policy with providers like American Fidelity. American Fidelity’s coverage is meant to provide a more permanent alternative that keeps your costs low and provides full benefits, including cash accumulation.
SGLI is issued to active-duty service members, and once these service members are discharged, they have 120 days during the military separation period to transfer to either VGLI or a commercial permanent policy. Additionally, Retired Reserve soldiers are typically not eligible for SGLI and must convert to one of these options. You cannot convert SGLI to both VGLI and individual commercial life insurance at the same time. However, there is nothing preventing you from converting to one and separately obtaining the other. Converting your SGLI to a VGLI policy can be cost-effective at first, but over time, it doesn’t provide any living benefits and gets more expensive as you grow older. Our universal life insurance policy allows you to stay covered at a fixed rate and offers living benefits like cash accumulation.
To convert from SGLI to an individual permanent insurance policy with providers from participating companies like AmFi, you must also convert within 120 days of the date of separation from the military. After this period, you still have an additional year to convert, but you would have to show proof of insurance and good health to convert if it’s past the initial 120-day period.
In addition to life insurance coverage, this policy grows cash value that isn’t taxed right away. This cash asset is a tremendous advantage of our universal policies.
Please contact our office or one of our agents to discuss the universal life insurance policy and to see whether this is the best policy for your needs.
Just like with all our policies, the death benefit is completely tax free. The universal policies accumulate cash value that is tax-deferred. Please contact our team to learn more.
The Policy Owner must complete the appropriate form for the requested change. Forms may be downloaded and printed from the Forms Link after logging in. The Policy Owner may also contact a Service Representative at the Home Office or send us a message through our Contact Us page.
You may contact a Service Representative or register online. By registering online you will be able to view premium payments, make withdrawals and much more. Click here to register.
Upon the death of the Insured, you will contact the Home Office Claims Department to report the death. Be prepared to advise us of the insured’s name, the date and cause of death, and the name, address, and telephone number of the person who should be contacted. A Claimant’s Statement and additional information on how to file a death claim will then be sent to the named beneficiary(ies). You may click the “Claims” link at the top of this page to download the Claimant’s Form and instructions.
Please contact our office immediately to update your banking details and ensure that your valuable coverage isn’t lost.