Gold Star Families: Life Insurance Coverage Explained

Gold Star Families are the immediate family members of a military member who died in the line of duty. The Gold Star title is meant to honour the life, service, and sacrifice of the military member, as well as acknowledge the immense loss and sacrifice of the family. Gold Star Families are provided with benefits and resources to support them through their grief, including financial counselling services and life insurance.

Servicemembers' Group Life Insurance (SGLI)

Servicemembers Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. If you meet the criteria, you will be automatically signed up for SGLI.

Eligibility

To be eligible for full-time SGLI coverage, you must meet at least one of the following requirements:

• You are an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• You are a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• You are a cadet or midshipman of the U.S. military academies.
• You are a member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• You are a member of the Ready Reserve or National Guard, assigned to a unit, and are scheduled to perform at least 12 periods of inactive training per year.
• You are a volunteer in an Individual Ready Reserve (IRR) mobilization category.

If you are in nonpay status with the Ready Reserve or National Guard, you may still be eligible for full-time SGLI coverage if you meet both of the following requirements:

• You are scheduled for 12 periods of inactive training for the year.
• You are drilling for points rather than pay.

Note that you must pay your premiums directly if you fall under this category.

Benefits of SGLI

If you qualify for SGLI, you will be automatically signed up through your service branch. You can then access benefits such as:

• Coverage up to the top limit of $500,000—in $50,000 increments.
• 120 days of free coverage from the date you left the military.
• Extension of free coverage for up to 2 years (if you are totally disabled) when you leave the military.
• Part-time coverage (if you are a Reserve member who doesn’t qualify for full-time coverage).

Managing your SGLI coverage

You can choose your level of coverage or even refuse coverage completely. You can also choose your beneficiaries (the people you pick to receive the money from your life insurance policy if you die) and change them as needed.

To make changes to your beneficiaries or coverage, submit your changes online through the SGLI Online Enrollment System (SOES).

Cost of SGLI

If you have SGLI coverage, you’ll pay a monthly premium that will be automatically taken out of your base pay. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage. The premium includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI).

Additional life insurance

Gold Star Families are the immediate family members of a fallen service member who died while serving in any time of conflict. The military provides Gold Star Families with benefits and resources to help them cope with their loss and stabilize their finances. One such benefit is additional life insurance.

Gold Star Families have access to Servicemembers' Group Life Insurance (SGLI), which pays out $500,000 to the families of service members who die on or off duty. This insurance is provided by the Department of Veterans Affairs. In addition, the Heroes Earnings Assistance and Relief Tax Act of 2008 (Public Law 110-245, §109) allows beneficiaries of a $100,000 death gratuity or an SGLI payment to contribute to a Roth IRA or an education savings account. This law waives the normal rules limiting contributions to these accounts.

The military also often provides Gold Star Families with financial counselors to help them manage their money. These counselors can assist families in deciding how to best utilize their insurance payouts and other benefits. However, as seen in a 2023 case involving Army Reserve officer Caz Craffy, it is important for families to be cautious and well-informed when it comes to managing their finances with the help of counselors. Craffy was charged with defrauding Gold Star Families by losing $3.4 million of their money while making $1.4 million in commissions for himself.

It is important for Gold Star Families to be aware of their rights and entitlements, including those related to life insurance, and to seek help when needed. By understanding and utilizing their benefits, they can better navigate the financial and emotional challenges that come with the loss of a loved one.

Traumatic injury protection benefits

Gold Star Families are the immediate family members of a fallen servicemember who died while serving in any conflict. The military provides Gold Star Families with benefits and resources to support them as they recover financially and emotionally.

The Department of Defense (DoD) and the Department of Veterans Affairs (VA) work together to ensure that Gold Star Families receive the support they need. The DoD's Casualty Assistance Program provides casualty assistance, transportation, burial expense coverage, legal assistance, relocation assistance, and emotional and spiritual support to the primary next of kin. Each family is assigned a casualty assistance officer to help them indefinitely or until they no longer require assistance.

Long-term case management programs are also available to Gold Star Families, offering access to counselors and case managers for ongoing support in the years following a servicemember's death. These programs can assist with grief counselling, support groups, milestone management, and financial counselling, especially if the fallen servicemember was the primary earner.

The exact benefits available to Gold Star Families may vary depending on the specific circumstances, and it is recommended to consult with a Veterans law attorney or a casualty assistance officer for personalised advice.

Gold Star Lapel Button

The Gold Star Lapel Button is an official decoration, created by an Act of Congress, that is issued to the direct next of kin of service members who died during World War I, World War II, and subsequent armed conflicts involving the US Armed Forces. The button was established in August 1947, after World War II, to honour widows and parents of armed forces members who lost their lives during the war.

The Gold Star Lapel Button is a symbol of the country's appreciation for the sacrifice of the military member and their family's loss. It consists of a gold star surrounded by a wreath of gold laurel leaves on a purple background. On the reverse, it is inscribed with "United States of America, Act of Congress, August 1966" and has space for engraving the recipient's initials.

The button is typically presented to eligible next of kin before the funeral or interment service of the deceased service member. Eligible survivors include the widow or widower, each parent (including adoptive and foster parents), each child (including stepchildren and adopted children), and each sibling (including half-siblings and stepsiblings). One button is furnished to each eligible family member, free of cost.

The Gold Star Lapel Button is a continuation of the tradition that began in World War I, where families displayed banners with a blue star for each family member serving in the armed forces. If a service member died, the family replaced the blue star with a gold star to inform the community of their loss. This tradition evolved into the formal recognition of Gold Star families and the presentation of the Gold Star Lapel Button.

Bereavement programs

• Birthday Card Program: AGSF sends personalized birthday cards to children of fallen service members, letting them know they are not forgotten.
• Fallen Hero Ornament: Unique ornaments representing fallen heroes across the USA who died while on active duty.
• Scholarships for Children of the Fallen: AGSF awards $1,000 scholarships to eligible military dependent family members.
• Hometown Hero Banners: Creating Walls of Honor in retail stores to recognize fallen heroes.
• Renaming Highways after Fallen Heroes: Working with local legislators to rename highways and erect Gold Star Highway/ByWay markers.
• Grief Counseling: AGSF underwrites grief counseling for Illinois residents and employs highly qualified counselors.

In addition to the support provided by organizations like AGSF, the US military, the Department of Veterans Affairs, and the Department of Defense offer various resources and benefits to Gold Star Families. These include:

• Casualty Assistance Program: This program ensures that military families receive support, including transportation and burial expense coverage, benefits and entitlements, legal assistance, relocation assistance, and emotional and spiritual support. Each family is assigned a casualty assistance officer to help them indefinitely or until they no longer need assistance.
• Long-Term Case Management Programs: These programs provide access to counselors and case managers to help families in the years following a service member's death. This includes grief counseling, support groups, milestone management, and financial counseling.
• Online Survivor Benefits Report: Gold Star Families can access an online report to view their current and estimated future benefits, enabling them to make informed financial decisions.
• Tax Benefits: Surviving family members may be eligible for tax benefits under the HEART Act or the Heroes Earnings Assistance and Relief Tax Act of 2008.
• Life Insurance and Retirement Plan Benefits: Gold Star Families may receive additional life insurance benefits and vesting in retirement plans.
• Funeral and Burial Entitlements: The Department of Veterans Affairs provides funeral and burial entitlements to surviving family members.
• Death Gratuity Benefit: A one-time, lump-sum payment of $100,000 that is completely tax-exempt.
• Survivor Benefit Plan (SBP): Monthly death benefits provided at no cost to surviving children or spouses of service members who perish in the line of duty.
• Dependency and Indemnity Compensation: Flat monthly payments made to survivors of active-duty service members, independent of the fallen service member's original pay grade.
• Social Security Payments: Monthly Social Security payments are available to spouses or divorced spouses with children of the deceased service member until the children turn 16.
• Education Benefits: Gold Star Families may have access to various education benefits, such as the Montgomery G.I. Bill and the Post-9/11 G.I. Bill.
• VA Home Loans: Surviving spouses who have not remarried may be eligible for VA-backed home loans to build, improve, purchase, or refinance a home.
• Continuation of TRICARE Benefits: Gold Star Families can continue to receive TRICARE benefits for up to three years after the death of a service member.
• Exchange and Commissary Privileges: Surviving spouses can continue to shop at the exchange and commissary indefinitely unless they remarry.

Frequently asked questions