Understanding Military Insurance: What's Covered And What's Not

Military personnel and veterans have various insurance options available to them, including health, home, car, and life insurance. Servicemembers' Group Life Insurance (SGLI) is a low-cost term coverage option for eligible active-duty service members and veterans. Additionally, the Transitional Assistance Management Program (TAMP) offers transitional TRICARE coverage to certain separating active-duty members and their families for up to 180 days. However, it's important to note that insurance laws vary by state, and issues such as deployment or separation from service can impact insurance coverage. Before purchasing insurance, military members should research their options, understand their eligibility, and be aware of any potential challenges with reimbursement or coverage limitations.

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Servicemembers’ Group Life Insurance (SGLI)

Servicemembers' Group Life Insurance (SGLI) is a low-cost term insurance coverage option for eligible service members. If you meet the criteria, you will be automatically signed up for SGLI. 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 at a U.S. military academy.
• 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.

If you have SGLI coverage, you will pay a monthly premium that will be automatically deducted from your base pay. The current basic SGLI premium rate is $0.06 per $1,000 of insurance coverage, and this includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI).

When you leave the military, you have the option to convert your SGLI coverage to a permanent, individual insurance policy within 120 days of your discharge date without proof of good health. You may be able to keep your coverage for up to two years after leaving the military at no cost if you meet certain requirements, such as a permanent loss of use of both hands, feet, or eyes. To do so, you will need to apply for the Servicemembers' Group Life Insurance Disability Extension (SGLI-DE) by filling out the SGLI Disability Extension Application (SGLV 8715) and sending it to the OSGLI address.

Additionally, after your SGLI-DE eligibility expires, you may choose to pay a premium for Veterans' Group Life Insurance (VGLI) to maintain your life insurance coverage. If you have questions about SGLI or VGLI, you can contact the Office of Servicemembers' Group Life Insurance (OSGLI) by phone or email.

Health insurance options for veterans

If you are a US military veteran, you have several options for health insurance. These include:

VA Health Care

The Department of Veterans Affairs (VA) provides health care to veterans. This includes coverage for regular check-ups, appointments with specialists, home health and geriatric care, and access to medical equipment, prosthetics, and prescriptions. VA health care is typically limited to conditions that were incurred as a result of military service. However, it is important to note that VA health care does not always cover dependents, and they may need to seek alternative insurance options. Most veterans need to complete a financial assessment to determine if they qualify for free VA health care.

TRICARE

The Transitional Assistance Management Program (TAMP) offers transitional TRICARE coverage to certain separating active-duty members and their eligible family members. TRICARE eligibility under TAMP is valid for up to 180 days. After TAMP eligibility expires, veterans and their families may apply for temporary coverage under the Continued Health Care Benefit Program (CHCBP), a premium-based health care program.

Health Insurance Marketplace

If you are a veteran who is not enrolled in VA benefits or other veterans' health coverage, you can obtain coverage through the Health Insurance Marketplace. Depending on your household size and income, you may be eligible for lower costs on monthly premiums and out-of-pocket expenses.

Medicaid or the Children's Health Insurance Program (CHIP)

Depending on your income, you may qualify for free or low-cost coverage through government-funded programs such as Medicaid or CHIP.

TRICARE eligibility

When it comes to healthcare benefits, active-duty military members and their families have access to TRICARE, a comprehensive health care program. TRICARE eligibility is based on several factors, including the sponsor's military status, the nature of their service, and the relationship of family members to the sponsor. Here is an overview of TRICARE eligibility:

Active Duty Service Members:

• All active-duty service members are automatically eligible for TRICARE and are enrolled in TRICARE Prime, which is the option that provides comprehensive care and the lowest out-of-pocket costs.
• During their service, active-duty members do not pay any premiums or enrollment fees for TRICARE Prime.
• When active-duty members receive care at military hospitals or clinics, there are usually no costs involved. However, some services may require a copayment.

Family Members of Active Duty Service Members:

• Family members of active-duty service members, including spouses and children, are also eligible for TRICARE coverage.
• Spouses and children under 26 years of age are typically covered under the TRICARE Prime option without any enrollment fees or premiums.
• Similar to active-duty members, family members usually receive care at military medical facilities with little to no out-of-pocket costs, although some copayments may apply for certain services.

Reserve and National Guard Members:

• Members of the Reserve and National Guard may be eligible for TRICARE, but their eligibility depends on their duty status and whether they are activated for federal active duty.
• When activated, Reserve and National Guard members transition to active-duty status and gain the same TRICARE benefits as full-time active-duty service members.
• During periods of inactive duty training or annual training, they may be eligible for TRICARE Reserve Select, a premium-based plan that provides comprehensive coverage similar to TRICARE Prime.

Retired Service Members and Their Families:

• Retired service members and their families may continue to receive TRICARE coverage after retirement.
• Those who are eligible for military retirement benefits and have served a minimum of 20 years of qualifying service can enroll in TRICARE Prime or TRICARE Select, which is a fee-for-service option with a preferred provider organization (PPO).
• Retired service members and their families may have monthly premiums and cost-shares associated with their TRICARE plan, but these costs are typically lower than civilian health insurance.

Surviving Family Members:

• Surviving family members of service members who died while on active duty or after retirement may be eligible for TRICARE benefits.
• These benefits are typically available to widows/widowers and dependent children, and they may continue to receive TRICARE coverage for a specified period.

It's important to note that TRICARE eligibility and coverage options can vary based on specific circumstances, and there may be additional criteria to meet for certain plans. For detailed information and to confirm your eligibility, it's recommended to visit the official TRICARE website or contact their customer service representatives.

Home and property insurance

If you own a home, it is recommended to purchase homeowners insurance to protect your investment. Even if you are renting, it is advisable to insure your belongings in case of an emergency. Military families may have different insurance needs, and some home insurance companies may be better able to cater to those needs. For example, if you have special military equipment in your home, you may need a more specialized home insurance policy.

There are several insurance providers that cater specifically to military personnel and veterans. These include USAA, Armed Forces Insurance (AFI), and Lemonade. USAA and AFI policies are only available to qualifying military members, veterans, and their qualifying family members. Homeowners insurance policies from these providers typically include coverage for dwellings, personal belongings, liability insurance, medical payments, and loss of use coverage. USAA also offers extended replacement cost coverage for dwellings, providing an extra cushion for extensive damage, and replacement coverage for military uniforms and equipment with no deductible if damaged by a covered problem.

When choosing a home insurance policy as a military member, it is important to consider your unique circumstances and needs. It is recommended to shop around and get multiple quotes from different providers to find the best fit. Ask the insurance agent how the company will handle issues that may arise while you are deployed and whether they offer any discounts for military members. Additionally, research the company's financial strength and customer service record to gauge the level of service you can expect.

Home insurance rates for military members can vary depending on various factors. According to Forbes Advisor's analysis, Nationwide, USAA, and Westfield offer competitive rates for veterans and military members. It is worth noting that the VA does not sell home insurance directly, but they may be able to direct members to partner organizations that can offer home insurance.

Finally, it is essential to understand the limitations of home insurance coverage for military members. While home insurance typically covers personal property, most policies do not cover damage or loss incurred in a war zone. Therefore, it is crucial to carefully review the policy details and ask the insurance agent about any coverage exclusions or limitations specific to your situation.

Car insurance

Military car insurance is auto coverage for current and former members of the military. Military members, veterans, and their families often qualify for special discounts and rates. Many insurers offer special military car insurance rates, including USAA, GEICO, and Armed Forces Insurance.

If you are preparing for deployment, you should look for insurers with favourable storage coverage rates. You should also consider how easily you can reinstate your policy if you suspend or cancel it. While deployed, you have three options: continuing to pay your auto insurance, cancelling your insurance, or suspending your insurance. Each option has its pros and cons. For example, continuing to pay insurance will benefit you in the long run with reduced rates, but it is the most expensive option. Cancelling your insurance may result in higher rates or a denial of coverage when you return, and you will be liable for any damage to your car. Suspending your insurance is a good option, but not all states or insurance companies allow it, so be sure to check with your insurance company and state insurance department.

It is important to note that car insurance rates can vary significantly based on age, location, and driving history. When moving, consider how your new location might affect your rates (urban vs. rural, crime rates, etc.). Military car insurance can also get tricky when your car is registered in one state but garaged in another. Generally, you should insure your car where it is primarily garaged. However, some states allow active-duty members to keep insurance from their home of record.

Some companies allow active-duty members to cancel policies without penalties, while others offer benefits for vehicles garaged on military bases. USAA, for example, offers active-duty members up to a 60% discount for long-term vehicle storage. GEICO offers up to 15% off for active-duty and retired military.

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