Life Insurance for Military Families: SGLI and Beyond

Life Insurance for Military Families: SGLI and Beyond

Military families face unique financial risks that civilian families do not. Deployments to combat zones, frequent relocations, and the operational demands of military service all increase the importance of having adequate life insurance coverage. The government provides Servicemembers' Group Life Insurance (SGLI) as a baseline benefit, but many military families need additional coverage to fully protect their finances.

This guide explains how military life insurance works, where the gaps are, and how to build a comprehensive coverage plan for your family.

Understanding SGLI

Servicemembers' Group Life Insurance is a group term life insurance program administered by the Department of Veterans Affairs and underwritten by Prudential. It is available to all active duty members of the uniformed services, Ready Reserve and National Guard members, cadets and midshipmen at military academies, and members of the Reserve Officer Training Corps.

SGLI provides coverage up to $500,000 in $50,000 increments. As of 2026, the monthly premium for $500,000 in coverage is approximately $25, which is automatically deducted from military pay. This rate is the same regardless of age, health, or Military Occupational Specialty, making it an exceptional value for service members in hazardous occupations.

Coverage is automatic unless the service member specifically declines it or elects a reduced amount. This opt-out design ensures that the majority of service members have at least some coverage.

SGLI Coverage During and After Service

SGLI coverage remains in force during active duty including combat deployments. There are no war exclusions, no aviation exclusions, and no hazardous duty exclusions. This is one of the most significant advantages of SGLI. A service member deployed to an active combat zone has the same coverage as one stationed at a training base in the continental United States.

When a service member separates from active duty, SGLI coverage continues for 120 days after separation at no cost. After that 120-day period, the coverage ends unless the veteran converts to Veterans' Group Life Insurance (VGLI).

Veterans' Group Life Insurance

VGLI is available to veterans who had SGLI coverage and want to continue their life insurance after separating from the military. Unlike SGLI, VGLI premiums are based on age and increase every five years. The coverage can be maintained for life without a medical exam, which is a significant advantage for veterans with service-connected health conditions.

However, VGLI premiums become expensive as veterans age. A 45-year-old veteran pays approximately $80 per month for $400,000 in coverage. By age 55, the same coverage costs roughly $200 per month. By 65, it can exceed $500 per month. At these rates, a private term or whole life policy purchased while the veteran is still relatively young and healthy is often a better long-term value.

Why $500,000 May Not Be Enough

The maximum SGLI coverage of $500,000 sounds like a substantial amount, but for many military families it falls short of their actual needs.

Consider a typical military family. The service member earns $60,000 to $80,000 per year in base pay plus allowances. The spouse may have limited earning potential due to frequent relocations that disrupt career progression, a well-documented challenge for military spouses. There may be a mortgage, car payments, and the educational needs of two or three children.

Using the standard recommendation of 10 to 12 times annual income, a service member earning $70,000 should carry $700,000 to $840,000 in coverage. SGLI at $500,000 leaves a gap of $200,000 to $340,000.

Use our coverage calculator to determine your family's specific needs based on your income, debts, number of dependents, and financial goals.

Supplementing SGLI with Private Insurance

The most cost-effective way to close the coverage gap is to purchase a private term life insurance policy to supplement SGLI. Here is how to approach it.

Calculate the gap. Determine your total coverage need using the coverage calculator, then subtract your SGLI amount. The difference is what you need from a private policy.

Choose the right term. If you plan to serve 20 years and retire with a military pension, you may need supplemental coverage only for your remaining years of service plus a few years beyond. A 15 or 20-year term policy often fits well. If you plan to separate earlier, consider a longer term to cover the years until your children are financially independent.

Apply while healthy. Military service members are generally in good physical condition, which translates to favorable underwriting classifications. Applying for private insurance while you are young and fit secures the best possible rates.

Disclose your occupation honestly. Most private insurers will issue policies to active duty military members, but some have restrictions for certain specialties or deployment situations. Work with an insurance agent who has experience with military clients.

Special Military Benefits to Know

Traumatic Injury Protection (TSGLI). This rider is automatically included with SGLI at a nominal additional cost. It provides a one-time payment of $25,000 to $100,000 for qualifying traumatic injuries suffered in service, such as loss of limbs, paralysis, severe burns, or traumatic brain injury. This is not life insurance but rather a disability-like benefit for catastrophic injuries.

Family SGLI (FSGLI). Spouses of service members can purchase up to $100,000 in coverage through Family SGLI. Children are automatically covered for $10,000 at no cost. FSGLI spouse premiums are based on the spouse's age and are competitive with private market rates for younger spouses but can become expensive for older spouses.

Service-Disabled Veterans Insurance (S-DVI). Veterans with service-connected disabilities who are otherwise uninsurable may be eligible for S-DVI, which provides up to $10,000 in government life insurance. An additional $30,000 in supplemental coverage is available for veterans who are totally disabled.

After Military Service

Transitioning from military to civilian life requires a careful review of your life insurance portfolio.

Do not let SGLI lapse without a plan. You have 120 days of free coverage after separation. Use this time to apply for and secure a private policy. Do not rely solely on converting to VGLI, as private policies often offer better long-term value.

Factor in your VA benefits. If you receive a VA disability rating, your family may be eligible for Dependency and Indemnity Compensation (DIC), which provides approximately $1,612 per month to surviving spouses. While this is not life insurance, it is a meaningful benefit that can reduce the amount of private coverage needed.

Consider your new civilian income. If your civilian salary differs from your military compensation, recalculate your coverage needs accordingly. The income replacement calculation should be based on your current earnings, not your former military pay.

Getting Started

Whether you are currently serving or recently separated, the best time to evaluate your life insurance coverage is now. Military families deserve the same financial security as any other family, and the unique risks of military service make it even more important.

Get a free quote to see how affordable supplemental coverage can be. Our team understands the specific needs of military families and can help you build a coverage plan that works alongside your SGLI and other military benefits.

For more coverage guidance tailored to specific life situations, visit our life insurance for resource hub.