Life Insurance For Soldier's Spouse: Who Qualifies?

Military spouses are often inadequately insured, despite the financial devastation that can be caused by their death. While the military provides Servicemembers' Group Life Insurance (SGLI), this may not be enough to cover a family's needs. SGLI now provides up to $100,000 of coverage for a service member's spouse, but this amount is often insufficient. Military spouses, especially those with young children, should consider additional life insurance to provide an excellent source of funds for quality childcare and to replace lost income.

Military spouses and life insurance

Life insurance is important for military families, as it provides financial security in the event of a family member's death. Military spouses may be eligible for life insurance coverage under the Family Servicemembers' Group Life Insurance (FSGLI) program. FSGLI offers coverage for the spouse and dependent children of service members who are covered under full-time Servicemembers' Group Life Insurance (SGLI).

Under FSGLI, spouses of service members can receive up to a maximum of $100,000 in coverage, which cannot exceed the service member's SGLI coverage. Dependent children are also covered for $10,000 each, and this coverage is provided free of charge. Civilian spouses of service members with full-time SGLI are automatically covered under FSGLI, with the premium deducted from the service member's pay. However, military spouses married on or after January 2, 2013, are not automatically covered and must be enrolled by the service member through the SGLI Online Enrollment System.

It is important to note that SGLI and Veteran's Group Life Insurance (VGLI) may not provide sufficient coverage for all families. Military spouses should consider their specific circumstances and financial needs when deciding on life insurance coverage. Additional life insurance can be purchased to supplement SGLI and VGLI coverage, especially if the spouse contributes to the family's financial security through childcare, meal preparation, and other household tasks.

When choosing life insurance, military spouses should consider factors such as the type of insurance (term or permanent), the amount of coverage needed, and the presence of a ""war clause" that may exclude death resulting from combat duty. Seeking advice from insurance companies or financial advisers can help spouses make informed decisions about their life insurance options.

Child care and income replacement

If access to military-operated child care is limited due to distance or waitlists, active-duty service members, including reservists on active orders, may be eligible for child care fee assistance. Each branch of the military has its own fee assistance program: the Air Force, Army, Marine Corps, Navy, and U.S. Coast Guard all offer support. Additionally, the Department of Defense is funding a pilot program for full-time child care in military families' homes.

Another option for military families is the Dependent Care Flexible Spending Account (DCFSA) program. This program allows families to set aside up to $5,000 in pre-tax earnings to cover dependent care expenses like child care, prekindergarten, and summer camp. This program is available to active-duty service members, active Guard Reserve on Title 10 orders, and DoD civilians.

Now, let's discuss income replacement. The military provides Servicemembers' Group Life Insurance (SGLI) coverage, which offers a maximum of $400,000 in life insurance. Additionally, Family Servicemembers' Group Life Insurance (FSGLI) provides coverage for spouses and dependent children. Spouses can receive up to a maximum of $100,000 in coverage, not exceeding the service member's SGLI amount, while dependent children are covered for $10,000 each. FSGLI coverage is automatic for civilian spouses of service members with full-time SGLI, with premiums deducted from the service member's pay. For military spouses married on or after January 2, 2013, enrollment through the SGLI Online Enrollment System is required.

While SGLI and FSGLI provide a safety net, they may not fully meet a family's financial needs in the event of a service member's death. As such, it is recommended to explore additional life insurance options to ensure adequate coverage. This is especially important for those in high-risk military professions, as some life insurance companies consider their line of work too dangerous for coverage. When choosing a life insurance policy, it is crucial to ensure that it covers death resulting from combat duty.

Civilian spouses and life insurance

Civilian spouses of service members signed up for full-time Servicemembers' Group Life Insurance (SGLI) are automatically covered under Family Servicemembers' Group Life Insurance (FSGLI). The premium for the coverage is automatically deducted from the service member's pay.

FSGLI offers coverage for the spouse and dependent children of service members covered under full-time SGLI. This benefit provides up to a maximum of $100,000 of coverage for a spouse, not exceeding the service member's SGLI coverage, and $10,000 for each dependent child. Dependent children get free coverage.

Military spouses married on or after January 2, 2013, are not automatically covered. Service members need to enrol their spouses through the SGLI Online Enrollment System (SOES).

If you are a civilian spouse, you can qualify to get FSGLI as long as your spouse meets one of the following requirements:

• The service member is on active duty and covered by full-time SGLI.
• The service member is a member of the National Guard or Ready Reserve covered by full-time SGLI.

It is important to note that SGLI and FSGLI may not be enough to cover your family's needs, and you may want to consider additional life insurance options.

Traumatic Injury Protection

Eligibility

To be eligible for TSGLI, you must meet the following requirements:

• You have a scheduled loss that is a direct result of the traumatic injury.
• You suffered the traumatic injury before midnight on the day that you left the military.
• You suffered a scheduled loss within 2 years (730 days) of the traumatic injury.
• You have survived for a period of not less than 7 full days from the date of the traumatic injury.
• You were an active-duty military member, a Reservist, a National Guard member, on funeral-honors duty, or on 1-day muster duty.

In addition, none of the following can be true of your injury:

• Your injury was self-inflicted or the result of an attempt at self-injury.
• Your injury involved the use of an illegal drug or a controlled substance that was taken without the advice of a medical doctor.
• Your injury was the result of medical or surgical treatment of an illness or disease.
• Your injury occurred while you were committing or trying to commit a felony.
• Your injury was the result of a physical or mental illness or disease (excluding illness or disease caused by a wound infection, a chemical, biological, or radiological weapon, or accidentally swallowing a contaminated substance).

Benefits

If you are eligible for TSGLI, you may receive $25,000 to $100,000 in short-term financial support to aid in your recovery from a traumatic injury. TSGLI benefits have been expanded to include the following types of care:

• Limb reconstruction surgeries
• Inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities
• Care to help you transition from an inpatient facility to living at home (therapeutic pass)

Applying for Benefits

To receive TSGLI benefits, you must apply by filling out the Application for TSGLI Benefits (SGLV 8600) and faxing, emailing, or mailing it to your service branch. You can find the address of your service branch on the front page of the form. If your claim is denied, you can appeal the decision by filling out the TSGLI Appeal Request Form (SGLV 8600A) and submitting it to your branch of service.

Cost

If you have SGLI coverage, your SGLI premium (which is automatically deducted from your base pay) includes a $1-per-month flat-rate premium for TSGLI. This is the only cost for this benefit.

Permanent vs term life insurance

Family Servicemembers' Group Life Insurance (FSGLI) offers coverage for the spouse and dependent children of service members covered under full-time Servicemembers' Group Life Insurance (SGLI). This benefit provides up to a maximum of $100,000 of coverage for a spouse and $10,000 for each dependent child.

Now, here's a comparison of permanent and term life insurance:

Permanent vs. Term Life Insurance

The primary purpose of all life insurance is to provide a benefit to people you choose (called “beneficiaries”) upon your death. These are typically people who depend on your income to meet their daily needs. There are two types of life insurance: term and permanent.

Term Life Insurance

Term life insurance is temporary, typically has level premiums, and usually costs less than permanent life insurance. It lasts for a specific amount of time, called a term, typically between one and 30 years, or until a particular age. Term life insurance is a simple, relatively inexpensive way to get life insurance coverage. It's like renting an apartment—you plan to use it only for a limited period of time, and it's often less expensive than purchasing. You don't build equity, and at the end of the lease term, it's gone.

Term life insurance policies do not carry any cash value, meaning they don't accrue savings over time that can be accessed by the policyholder. In general, term life premiums are level, meaning they will not change while the policy is in effect, although there are some policies available where premiums increase or decrease over time. However, prices do rise with age. Some term policies include what’s known as an option to convert, allowing you to switch to a permanent life insurance policy after your term coverage expires without having to take a medical exam.

Permanent Life Insurance

Permanent life insurance lasts your whole life, usually carries a cash value component you can tap into if needed, and is often more expensive than term life. Unlike term coverage, permanent life insurance does not expire, provided you keep making the premium payments. Death benefits are guaranteed, meaning they will be paid regardless of when the insured person dies. Permanent life insurance carries a savings or investment component, also called its cash value. This cash value grows tax-deferred over time and may be withdrawn or borrowed against while you’re still alive, although doing so can decrease the amount of the policy’s death benefit if those funds aren’t repaid.

Permanent life insurance is like the home you purchase and plan to keep for the rest of your life. You own it for life, as long as you pay enough premium to keep your policy in force, you typically pay more for it, and it has equity (called cash value) that grows over time. It’s an asset you can borrow against, and it will benefit your loved ones in the future.

Several types of permanent life insurance are available, including whole life and universal life insurance. Whole life insurance is a simple form of permanent coverage with level premiums. The death benefit will pay a fixed amount when the insured person dies, and cash value grows over time at a set interest rate. Some policies may also pay dividends. Universal life insurance, also known as adjustable life insurance, allows you to modify the premium and the death benefit while the policy is active, providing flexibility if your finances change. The policy’s cash value grows over time at a fixed or market interest rate.

To choose the right type of insurance and coverage amount for your needs, consider your assets, the needs of your loved ones, and your budget. If you need short-term coverage or are on a budget, term life insurance may be a good option. If you need long-term financial protection or want to create an inheritance for your heirs, permanent life insurance may be more suitable.

Frequently asked questions