ETS & Separation Money Guide

At a glance

The separation money timeline

The moves that matter are spread across your last year. Here is the rough order.

• About 12 months out: start the Transition Assistance Program (TAP). It is required, and starting early gives you room to plan.
• 6 to 12 months out: decide on terminal leave vs selling leave, start a civilian job search, and line up health coverage for after separation.
• 90 to 180 days out: if you have service-connected conditions, you can file a VA disability claim early through Benefits Delivery at Discharge (BDD).
• Final out-processing: confirm your DD-214 is correct before you sign for it. It unlocks nearly every benefit below.
• The day you separate: your SGLI clock and your VGLI and unemployment windows all start now.
• First weeks out: file for unemployment (UCX) with your state, and lock in life insurance and health coverage before the free windows close.

Your life insurance clock: SGLI to VGLI

This is the deadline people miss most, and once it closes it does not reopen.

• Your SGLI stays active free for 120 days after you separate, then it ends.
• You can convert to Veterans' Group Life Insurance (VGLI), up to the amount of SGLI you carried, to a maximum of $500,000.
• Apply within 240 days and no health questions are asked, guaranteed acceptance. This is the window that matters most, especially if you have any service-connected conditions.
• From 241 days out to 1 year and 120 days, you can still apply but must prove good health, and you can be denied.
• After 1 year and 120 days, VGLI eligibility ends permanently. There are no exceptions.

Source: U.S. Department of Veterans Affairs, va.gov/life-insurance. Apply through OSGLI.

The health coverage cliff

Terminal leave and separation are two different points for your health coverage.

• During terminal leave: you are still active duty, so you and your family keep your normal TRICARE.
• If your separation is involuntary under honorable conditions, you may get the Transitional Assistance Management Program (TAMP): 180 days of premium-free TRICARE after your regular benefits end.
• If you separate voluntarily (a normal ETS), TAMP usually does not apply. Options then include the Continued Health Care Benefit Program (CHCBP), a premium-based plan similar to COBRA, VA health care if you are eligible, or a civilian plan.
• Enroll in VA health care based on your eligibility. Recently separated and combat veterans often qualify for an enrollment window.

Source: TRICARE, tricare.mil/TAMP, and VA health care enrollment at va.gov.

Unemployment after service (UCX)

The Unemployment Compensation for Ex-servicemembers program can provide weekly income while you look for civilian work.

• You generally qualify if you served on active duty, were separated under honorable conditions, and completed your first full term or were released for a qualifying reason. Reservists generally need 180 continuous days of active duty.
• It is a federal program run by each state, so the weekly amount, the number of weeks, and the rules follow the state where you file.
• File with your State Workforce Agency as soon as you can after discharge, and you will need your DD-214.
• You generally cannot draw UCX at the same time as Post-9/11 GI Bill or VR&E allowances.

Source: U.S. Department of Labor, oui.doleta.gov/unemploy/ucx. Amounts and rules vary by state.

Final pay and your leave

You have two ways to handle unused leave, and they are taxed and timed differently.

• Terminal leave: take the leave as time off at the end of service. You stay on active-duty pay and benefits during it.
• Selling leave: cash out unused leave as a lump sum of base pay. You can sell back up to 60 days of leave over an entire career, and the payment is taxable.
• Check your final pay and any leave sell-back on your LES and final settlement, and keep records in case something needs correcting.

Source: Defense Finance and Accounting Service (DFAS). Confirm your leave balance and sell-back options with your finance office.

The DD-214: the one document that unlocks everything

Your DD-214 is the record employers, the VA, states, and lenders rely on. A mistake on it can slow or block a benefit.

• Check every line before you sign, especially your separation date, character of service, and narrative reason. They drive VGLI, UCX, and VA eligibility.
• Keep multiple copies in more than one place, including a digital copy you can reach from anywhere.
• If you ever lose it, you can request a replacement from the National Archives, but it can take weeks, which matters when a deadline is running.

While you transition: a note from StandWatch

Leaving service is a busy stretch, and it is easy to let rates and bills drift while you focus on the move to civilian life. StandWatch can keep an eye on your VA mortgage rate, auto loan, or savings APY for free and let you know if something moves. No cold calls, and we never sell your information as a lead. Setting a Watch is optional, and the decision always stays yours.

Frequently asked questions

When does my SGLI coverage end?
Your SGLI stays active free for 120 days after you separate, then it ends. You can convert to VGLI within 1 year and 120 days, and if you apply within 240 days no health questions are asked.

Can I get unemployment after I leave the military?
You may qualify for UCX if you separated under honorable conditions and meet the service and state rules. It is run by your state, so file with your State Workforce Agency and bring your DD-214.

What happens to my TRICARE when I separate?
You keep active-duty TRICARE during terminal leave. Involuntary separations may get 180 days of premium-free TRICARE through TAMP. Voluntary separators can buy CHCBP, enroll in VA health care if eligible, or move to a civilian plan.

Can I sell my leave when I ETS?
You can sell back up to 60 days of unused leave over a career, paid as a lump sum of base pay and taxable, or take it as terminal leave instead. Confirm your balance with finance.

Does this apply to Guard and Reserve?
Some of it does, with different rules (for example, UCX generally requires 180 continuous days of active duty for reservists). Confirm your situation with your transition office or a military legal assistance office.

Sources

• SGLI and VGLI: U.S. Department of Veterans Affairs
• Unemployment (UCX): U.S. Department of Labor
• Transitional TRICARE (TAMP) and CHCBP: TRICARE
• Transition Assistance Program and VA benefits: DoD TAP and VA

Figures and deadlines verified July 10, 2026. Program terms and state rules change. Always confirm at the official source and with your transition and finance offices. StandWatch is an independent resource for the military community, not affiliated with or endorsed by the VA, DoD, or any government agency. This guide is general information, not financial, tax, or legal advice.