Key Military Life Insurance Programs
Service members and their families can rely on three primary government‑backed plans: Servicemembers' Group Life Insurance (SGLI), Veterans' Group Life Insurance (VGLI), and the Family Servicemembers' Group Life Insurance (FSGLI) that covers spouses and children. SGLI offers up to $400,000 of coverage at a low cost while on active duty; VGLI lets veterans extend that coverage for up to 20 years after discharge; FSGLI provides $10,000 for spouses and $5,000 for each child, automatically enrolling them at no extra charge.
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How SGLI Works
SGLI is automatically deducted from a service member's pay, with rates set by the Department of Defense. Coverage can be increased in $50,000 increments up to the $400,000 maximum, and the premium stays the same regardless of age or health at enrollment. Beneficiaries are named directly in the system, ensuring a quick payout to the family if the insured dies while on active duty.
Transitioning to VGLI
When a service member leaves the military, SGLI coverage ends unless they apply for VGLI within one year and 120 days of discharge. VGLI premiums rise with age, reflecting the higher risk of older enrollees, but the plan preserves the same coverage amount chosen under SGLI. If the veteran does not apply within the window, they lose the option to continue that specific coverage and must seek private policies.
Supplementing with Private Life Insurance
Many military families add private term or whole life policies to fill gaps that government plans don't cover, such as higher coverage limits, cash‑value accumulation, or flexible beneficiary structures. Private insurers often offer discounts for active‑duty members, and some policies can be converted without medical underwriting if the service member later develops health issues.
Choosing the Right Mix
Evaluating needs involves comparing cost, coverage amount, and future flexibility. Below is a quick comparison of the three main options.
| Plan | Maximum Coverage | Cost Structure | Key Feature |
|---|---|---|---|
| SGLI | $400,000 | Flat premium, age‑independent | Automatic enrollment, rapid payout |
| VGLI | $400,000 (same as SGLI) | Premium rises with age | Continuation after discharge |
| Private Term | Varies, often $500,000+ | Rate based on health/age | Custom term lengths, conversion options |
Enrollment Tips for Military Families
• Enroll in SGLI during initial training or when receiving your first pay statement.• Review beneficiary designations annually, especially after life events such as marriage or the birth of a child.• If separating from service, set a calendar reminder to apply for VGLI before the deadline.• Shop private quotes at least six months before any anticipated health changes to lock in lower rates.• Consider bundling life insurance with other military‑focused financial products, like the Servicemembers' Group Life Insurance (SGLI) supplemental accidental death and dismemberment (AD&D) rider, for added protection.
Common Questions
Can I have both SGLI and a private policy? Yes. The policies are independent; having both can increase total coverage and provide different payout mechanisms.
What happens to FSGLI if my spouse leaves the military? FSGLI coverage ends for the spouse once they are no longer a dependent; the child coverage continues until age 21 (or 23 if a full‑time student).
Is there a health exam for VGLI? No. VGLI is a continuation of SGLI, so no additional medical underwriting is required.