Your Guide to Military Life Insurance: SGLI, VGLI and Supplemental Coverage
Learn more about military-specific coverage like SGLI and VGLI, as well as supplemental insurance choices.
Bottom Line Up Front
- Servicemembers’ Group Life Insurance (SGLI) provides up to $500,000 in coverage while you’re on Active Duty, offering automatic enrollment when you join the military.
- When you leave service, you can convert your SGLI to Veterans’ Group Life Insurance (VGLI) within 1 year and 120 days without a health exam.
- Beyond government options, private life insurance can offer additional protection for your family as well as long-term financial security.
Time to Read
6 minutes
December 23, 2024
As a member of the military community, there’s always a lot to be prepared for. Whether you’re deployed overseas, training in high-risk scenarios or transitioning to civilian life, you deserve the peace of mind that your family has financial security—no matter what happens.
Life insurance is an asset that can help you protect your family’s financial future. As a servicemember or Veteran, you have access to many insurance options specifically designed for military families.
Why life insurance matters for servicemembers and Veterans
Life insurance is an important factor in servicemembers’ and Veterans’ financial planning. It’s designed to help their families in the event of their death. This includes maintaining their standard of living and achieving long-term financial goals.
Your military career comes with different insurance needs than most civilian jobs. Whether you’re conducting special operations, flying aircraft or serving in combat zones, comprehensive coverage helps protect your loved ones while you serve.
Moving from Active Duty to civilian life will alter your insurance needs as well, especially if you’re starting a new career or growing your family. Getting the right coverage earlier on may lead to better rates and more options.
Life Insurance 101
Want to learn more about how life insurance works? Read our guide on life insurance basics to better understand your coverage options and get more information on what you need to do to get a policy that’s right for you.
Understanding military life insurance options and benefits
There are two main types of life insurance: term life and whole life. Term life provides coverage for a specific period, while whole life insurance offers protection if you pay premiums. Both options provide your loved ones or beneficiaries with a cash benefit to help cover funeral costs, ongoing expenses, debt payments and more.
Servicemembers’ Group Life Insurance (SGLI)
When you join the military, you’re automatically enrolled in Servicemembers’ Group Life Insurance (SGLI)—a low-cost term life insurance option that provides up to $500,000 in coverage. With SGLI your premiums are deducted directly from your military pay, making it a low-hassle insurance option for new active duty servicemembers.
Veterans’ Group Life Insurance (VGLI)
After leaving service, you can convert your SGLI to Veterans’ Group Life Insurance (VGLI) without a medical exam if you apply within 1 year and 120 days. The amount of VGLI coverage you can get is tied to how much SGLI coverage you had at the time of leaving the military, ranging from $10,000 to $500,000. VGLI generally costs more than SGLI, but it can be valuable if you have a service-connected disability or other medical issue.
| Feature | SGLI | VGLI |
|---|---|---|
| Who's eligible | Active Duty servicemembers and reservists | Veterans who had SGLI and are leaving service |
| Maximum coverage | Up to $500,000 | Up to the amount of SGLI coverage you had when leaving service |
| Enrollment | Automatic when joining service | Must apply within 1 year and 120 days after leaving service |
| Health requirements | No medical exam needed | No medical exam if enrolled within 240 days of discharge |
| Cost | Same low rate for everyone; premiums deducted from military pay | Rates increase with age; you pay premiums directly |
| Coverage period | During military service | Can keep for life if you pay premiums |
| Family coverage | Can add FSGLI for spouse and children | No family coverage available |
| Premium changes | Fixed rate | Increases every 5 years based on age |
Did You Know?
Your family members can receive coverage too! The Family Servicemembers’ Group Life Insurance (FSGLI) program offers term life insurance for spouses up to $100,000 and automatic coverage of $10,000 for dependent children. Plus, if you experience a traumatic injury, Traumatic Servicemembers’ Group Life Insurance (TSGLI) provides short-term financial support to help your family during recovery.
Supplemental life insurance coverage
While SGLI and VGLI provide valuable protection, you might need more coverage depending on your circumstances. Supplemental policies are designed to provide term life insurance benefits that extend beyond the basic coverage offered by SGLI and VGLI. Here are some reasons why many servicemembers and Veterans may opt for a supplemental life insurance policy:
- Coverage beyond military service. When you leave the military, some benefits like SGLI will expire. But even with VGLI, you may need coverage to encompass major expenses like college tuition, medical bills or mortgage payments. Getting supplemental coverage while you’re young can help you lock in better rates for the long term.
- Support growing family needs. As your family grows, you might need more than the standard SGLI or VGLI coverage. Supplemental insurance may help make sure your family maintains their standard of living and covers the mortgage if something happens to you.
- Policies that grow with you. Private life insurance stays with you regardless of your military status or career changes. This consistency can be valuable during the transition to civilian life, when you’re between jobs or starting your own business.
Navy Federal Credit Union’s Life Insurance Partners can help you find the right amount of supplemental coverage. Whether you’re Active Duty, transitioning or already a Veteran, we’ll work with you to protect what matters most.
Smart Money Tip
Not sure how much coverage you need? Calculate your life insurance needs based on your family’s unique circumstances.
Common Misconceptions About Military Life Insurance
"I already have SGLI or VGLI, so I don't need additional insurance."
While SGLI and VGLI provide good basic coverage, they might not be enough to cover your family's long-term needs.
"Private life insurance is too expensive."
Private insurance rates may be comparable to VGLI, especially if you're young and healthy when you enroll.
"I'm young and single, so I don't need life insurance."
Getting coverage early in your military career may help you lock in better rates and establish your insurability before service-related health conditions develop.
"I only need life insurance if I have children."
Life insurance can help cover any debts, funeral costs and financial obligations you might leave behind, regardless of whether you have children.
"Private insurers won't cover active duty servicemembers."
Some insurance companies offer coverage to Active Duty personnel, and some have special military programs with deployment coverage.
Factors to consider when exploring life insurance options
Before choosing a life insurance policy, consider the key factors that may affect your coverage and costs. These include the following:
- Coverage amount. Think beyond your current salary. Consider your total military compensation package, including Basic Allowance for Housing (BAH) and other allowances. Factor in future expenses like college tuition, mortgage payments and retirement plans for your partner.
- Health and military service history. Health, service-related conditions and deployment history can all impact your insurability and rates. Getting private coverage while you're young may lead to better options and lower premiums.
- Policy features. Look for features that match your lifestyle. Some policies offer war clauses that protect you during deployment. Others include riders for disability or terminal illness. Make sure you understand what's covered and what's not.
- Portability and conversion. Choose coverage that carries you through your career changes. Consider whether you can convert your policy to permanent insurance later and what that might cost.
Smart Money Tip
When comparing policies, consider any policy feature offerings that may enhance the value of the policy such as elements such as conversion, cash value or chronic illness options.
Navy Federal Can Help Protect Your Family's Future
Military life brings unique challenges, but protecting your family's future doesn't have to be one of them. From SGLI to private coverage, you have life insurance options that fit your goals. Explore life insurance options today to get the right coverage for your family.
Disclosures
This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.