How Much SGLI Coverage Do You Need
If you are a service member, the right SGLI amount protects your family from financial gaps when your pay stops. The standard starting point is $400,000, but the correct number depends on your debts, income replacement needs, and survivor benefits you already have.
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Why the Default $400,000 May Not Be Enough
SGLI caps at $400,000, yet many families with a mortgage, two incomes, or young children need more. The gap often shows up in mortgage payoff, college costs, and daily living expenses that continue after a service member's death.
A Simple Way to Size Your SGLI
- Add your outstanding debts: mortgage, car loans, credit cards.
- Estimate 5 to 10 years of income replacement for your spouse.
- Include future costs like college for each child.
- Subtract liquid assets, savings, and any other survivor benefits.
- The remainder is the coverage you should aim for, up to the $400,000 limit.
What to Do If $400,000 Is Not Enough
When debts plus income replacement exceed the SGLI cap, layer in a Veterans Group Life Insurance policy or a private term policy. VGLI can supplement the gap, and a term policy lets you match the exact number you calculated without overpaying.
Reviewing Your Coverage Over Time
Your needs change with each promotion, marriage, or home purchase. Re-run the calculation above every few years and adjust your beneficiary designations so the payout goes where it matters most.