Life Insurance For Soldiers: What's The Deal?

Soldiers can get life insurance through the military, with active-duty members qualifying for low-cost Servicemembers' Group Life Insurance (SGLI). This insurance is provided by the Department of Veterans Affairs (VA) and underwritten by Prudential, one of the largest life insurers in the US. SGLI offers coverage of up to $500,000, with the option to increase in $50,000 increments. It includes traumatic injury protection, which provides payments for losses such as blindness or amputation sustained during active duty. Soldiers can also purchase private life insurance, depending on their job responsibilities and station of duty.

Servicemembers' Group Life Insurance (SGLI)

Eligibility

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

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

If an individual is in non-pay status with the Ready Reserve or National Guard, they must meet two additional requirements for full-time SGLI coverage: they must be scheduled for 12 periods of inactive training for the year and be drilling for points rather than pay. It is important to note that they will need to pay their premiums directly in this case.

Benefits

SGLI provides several benefits to eligible service members, including:

• Coverage of up to $500,000, with the option to choose the coverage amount in $50,000 increments
• 120 days of free coverage from the date of leaving the military
• Extension of free coverage for up to 2 years if the individual is totally disabled when they leave the military
• Part-time coverage for Reserve members who do not qualify for full-time coverage

Cost

The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, which includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI). For example, for a coverage amount of $500,000, the monthly premium rate is $30, plus $1 for TSGLI, resulting in a total monthly premium deduction of $31.

Managing Coverage

Service members can manage their SGLI coverage through the SGLI Online Enrollment System (SOES). They can choose their level of coverage, select their beneficiaries, and make any necessary changes. If eligible, they will be automatically signed up for SGLI through their service branch.

Veterans' Group Life Insurance (VGLI)

Veterans Group Life Insurance (VGLI) is a group life insurance policy offered by the U.S. Department of Veterans Affairs (VA) to veterans. This policy allows veterans to retain their life insurance coverage after leaving the military, provided they continue to pay the premiums. The amount of coverage provided by VGLI is based on the Servicemembers' Group Life Insurance (SGLI) coverage held by the veteran while they were enlisted, ranging from $10,000 to $500,000.

To be eligible for VGLI, veterans must meet at least one of the following requirements:

• Have had part-time SGLI coverage as a member of the National Guard or Reserve and suffered an injury or disability that disqualified them from standard premium insurance rates.
• Have had SGLI coverage while in the military and be within one year and 120 days of being released from active duty.
• Be within one year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• Be within one year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING).
• Be within one year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

Veterans can apply for VGLI within one year and 120 days of leaving the military. If they apply within 240 days, they are not required to provide proof of good health. However, if they apply after this period, they must submit evidence of good health. VGLI premium rates are determined by the age of the veteran and the desired amount of insurance coverage.

VGLI allows policyholders to choose their beneficiaries and modify them as needed. Additionally, VGLI coverage can be converted into an individual insurance policy, such as a whole life policy, without requiring proof of good health.

Service-Disabled Veterans' Life Insurance (S-DVI)

Service-Disabled Veterans Life Insurance (S-DVI) is a life insurance coverage option for veterans with service-connected disabilities. To qualify for an S-DVI policy, veterans must meet the following criteria:

• Released from active duty without a dishonorable discharge on or after April 25, 1951
• Rated for a service-connected disability
• Good health status, except for service-related conditions
• Application within two years of receiving a disability rating

The S-DVI program stopped accepting new applications after December 31, 2022, but existing policyholders can retain their coverage. The premium amount depends on the insurance amount, coverage plan, and payment frequency (monthly or annually). While the basic S-DVI policy offers a premium waiver for totally disabled veterans, those with supplemental S-DVI coverage must pay premiums even with a waiver for basic S-DVI premiums.

As an alternative, veterans with service-connected disabilities can apply for the Veterans Affairs Life Insurance (VALife) program, which began accepting applications on January 1, 2023. If S-DVI policyholders choose to apply for VALife by December 31, 2025, they can retain their S-DVI coverage during the two-year waiting period for VALife benefits. However, if the application is submitted on or after January 1, 2026, the S-DVI policy will be terminated upon VALife application approval, and only VALife premiums will be payable during the waiting period. It is important to note that VALife does not offer premium waivers, so any existing waiver for S-DVI premiums will not transfer to VALife.

Veterans' Mortgage Life Insurance (VMLI)

To be eligible for VMLI, veterans must meet the following requirements:

• Have a severe disability caused or worsened by their military service.
• Have received an SAH grant to buy, build, or modify a home to live more independently (e.g., installing ramps or widening doorways).
• Hold the title of the home.
• Have a mortgage on the home.
• Be under 70 years old.

VMLI offers up to $200,000 in mortgage life insurance, which is paid directly to the bank or lender that holds the mortgage. The coverage amount equals the outstanding mortgage balance but does not exceed $200,000. It is a decreasing-term insurance, meaning that as the mortgage balance decreases, so does the coverage amount. If the mortgage is paid off, the VMLI coverage ends.

The VMLI premium is calculated based on the current mortgage balance, the remaining number of mortgage payments, and the required VMLI coverage amount. Veterans can use the VMLI Premium Calculator to estimate their premium.

To apply for VMLI, veterans must first apply for an SAH grant. If approved for the grant, the loan guaranty agent will inform them of their eligibility for VMLI. The agent will then assist the veteran in completing the Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that VMLI applications must be submitted before the veteran's 70th birthday.

Family Servicemembers' Group Life Insurance (FSGLI)

Family Servicemembers Group Life Insurance (FSGLI) is a life insurance programme offered by the Department of Veterans Affairs (VA) to spouses and dependent children of service members who are covered under Servicemembers' Group Life Insurance (SGLI). FSGLI provides term life insurance benefits of up to $100,000 for a member's spouse and $10,000 for each dependent child.

If you are the civilian spouse of a service member signed up for full-time SGLI, you will be automatically insured under FSGLI, and your premium will be automatically deducted from your service member's pay. If you are a military spouse married on or after 2 January 2013, you will not be automatically covered and will need your service member to sign you up online through the SGLI Online Enrollment System (SOES).

Your service member will pay a premium for your coverage, which will increase as you age. The premium is automatically deducted from your service member's pay if you are signed up as a spouse in the Defense Enrollment Eligibility Reporting System (DEERS). If you are not signed up in DEERS, your service member will still be responsible for the premiums and back payments of unpaid premiums.

Dependent children are automatically covered and receive free coverage until the age of 18. In some cases, coverage can be extended beyond the age of 18 if the child is a full-time student or becomes permanently and totally disabled before turning 18 and is no longer able to support themselves.

Spouses can convert their FSGLI coverage to a permanent, individual insurance policy within 120 days from the date of their service member's separation from the military, written election to end spousal SGLI coverage, or written election to end their SGLI coverage. The spouse becomes solely responsible for all aspects of the policy, including premium payments.

Frequently asked questions