Because military life insurance coverage is automatic, many service members don’t spend much time thinking about it. From day one, eligible service members are covered by Servicemembers’ Group Life Insurance (SGLI), which provides up to $500,000 in life insurance coverage, along with Traumatic Injury Protection (TSGLI), for a relatively low monthly premium.
While that coverage may be sufficient for many young, single service members, it may not be enough once you begin building a family and taking on greater financial responsibilities. If you have a spouse, children, a mortgage, significant debt, or future education expenses to consider, additional life insurance coverage may be worth exploring.
You May Need Additional Coverage If:
- You have a spouse or children who rely on your income.
- You provide financial support to parents or other family members.
- You own a home and have a mortgage.
- You plan to help pay for private school or college expenses.
- You want to leave financial security or an inheritance for your loved ones.
How Much Supplemental Life Insurance Do You Need?
A good starting point is to estimate how much money your family would need to maintain their current standard of living if your income were no longer available.
In addition to funeral and final expenses, your survivors may be responsible for outstanding debts, mortgage payments, and everyday living expenses. Long-term needs may include replacing your income and funding future goals, such as your children’s higher education.
Military survivors may also be eligible for benefits such as:
When determining how much additional life insurance you need beyond SGLI, consider your family’s monthly expenses and subtract any survivor benefits they would receive.
When Should You Buy Supplemental Coverage?
The best time to purchase life insurance is typically when you are young and healthy. Premiums are generally lower, and you are more likely to qualify for coverage. For example, purchasing a policy at age 30 can result in significantly lower premiums than waiting until age 40. In addition, if you develop a medical condition later in life, obtaining new coverage could become more difficult or more expensive.
Planning ahead also provides more flexibility as you prepare for life after military service. Having coverage in place before leaving the military can help ensure your family remains protected when military insurance benefits eventually end.
Understanding SGLI and VGLI After Separation
When you leave military service, your SGLI coverage continues for 120 days at no cost. After that period, coverage ends unless you convert to Veterans’ Group Life Insurance (VGLI) or obtain coverage elsewhere.
Veterans who apply for VGLI within 240 days of separation can do so without providing evidence of good health. After that window, medical underwriting may be required.
While VGLI offers valuable continuity of coverage, premiums increase as you age. For many veterans, private life insurance may provide a more affordable long-term option, particularly if coverage is purchased while still healthy and insurable.
Private insurance policies may also offer additional flexibility, including:
- Adjustable coverage amounts
- Coverage options for family members
- Policy conversion features
- Permanent insurance options that build cash value
Special Considerations for Military Families
Deployments
If you are preparing for deployment or are currently deployed, it is important to understand that not every insurance company treats military service the same way. Some insurers may impose restrictions related to deployment locations or combat duties, while others specifically design policies for military members. Carefully comparing policies can help ensure you receive coverage that fits your needs.
Major Life Events
Marriage, homeownership, and the birth or adoption of a child are all good reasons to review your life insurance needs. As your financial obligations grow, additional coverage can help protect your family’s future. Many families choose to supplement SGLI with an individual term life insurance policy that provides a higher death benefit at a competitive cost.
What About Military Spouses?
Family Servicemembers’ Group Life Insurance (FSGLI) allows service members to purchase life insurance coverage for their spouses and dependent children.
FSGLI provides:
- Up to $100,000 in coverage for eligible spouses
- $10,000 in coverage for dependent children at no additional cost
Spousal premiums vary based on age and coverage amount.
For many families, however, $100,000 may not be enough. If a working spouse passes away, the death benefit should help replace lost income. If a stay-at-home parent dies, the family may face significant child-care and household expenses that could exceed the coverage provided by FSGLI.
Like SGLI, FSGLI coverage ends when the service member leaves the military. Having an individual life insurance plan in place before separation can help ensure there is no gap in protection.
Make Sure Your Family Is Fully Protected
Military life insurance benefits provide an excellent foundation, but they may not be enough for every family. Taking time to evaluate your financial obligations, future goals, and survivor benefits can help you determine whether supplemental coverage makes sense. Protecting your family starts with having the right coverage in place. Explore life insurance options from USAA and find a policy that fits your family’s needs today—and in the years ahead.
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