Do Military Spouses Have Life Insurance?

Life insurance provides security to families by offering a payout to designated beneficiaries upon the death of the insured individual. For military spouses, understanding available life insurance options is a key component of comprehensive financial planning. These policies help protect a family’s financial future by providing funds that can cover immediate expenses, ongoing living costs, and long-term financial goals. Securing appropriate life insurance coverage is a proactive step toward ensuring financial stability.

Family Servicemembers’ Group Life Insurance (FSGLI)

Family Servicemembers’ Group Life Insurance (FSGLI) is a government-sponsored program extending life insurance coverage to eligible spouses and dependent children of service members. This coverage requires the service member to have full-time Servicemembers’ Group Life Insurance (SGLI) coverage for their family to be eligible. FSGLI offers low-cost term life insurance, offering financial protection to military families.

Military spouses can receive up to $100,000 in FSGLI coverage, but this amount cannot exceed the service member’s own SGLI coverage. Spousal coverage is available in increments of $10,000, allowing for flexibility in coverage amounts. For dependent children, FSGLI provides $10,000 of coverage at no additional cost, which remains in effect until they turn 18, or potentially longer if they are full-time students or become permanently disabled.

Premium costs for spousal FSGLI coverage vary based on the spouse’s age and the chosen coverage amount. For example, a spouse under 35 years old with $100,000 in coverage might pay around $4.50 per month, with rates increasing for older age groups. These premiums are automatically deducted from the service member’s pay.

Enrollment in FSGLI is generally automatic for civilian spouses of service members enrolled in full-time SGLI. However, for military-to-military marriages, automatic enrollment for the spouse is not guaranteed. The service member may need to apply for coverage through the SGLI Online Enrollment System (SOES) via milConnect. Service members can also use SOES to reduce, decline, or make changes to their spouse’s FSGLI coverage. Declining coverage may require submitting a specific form.

Additional Life Insurance Options for Military Spouses

Beyond government-sponsored programs like FSGLI, military spouses have access to a variety of commercial life insurance policies. These policies can supplement existing FSGLI coverage or serve as primary protection. Two common types are term life insurance and whole life insurance. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, and offers a death benefit without building cash value. Whole life insurance, a form of permanent life insurance, provides lifelong coverage and includes a cash value component that can grow over time.

Many military spouses may also have access to employer-sponsored life insurance plans. These plans are often offered as a benefit package. The specifics of these policies, including coverage amounts and premiums, vary by employer. Spouses interested in this option should consult their human resources department for details.

In some cases, a spouse rider may be added to a service member’s existing commercial life insurance policy. A rider is an add-on that provides additional benefits or modifies the policy’s terms. While FSGLI is designed for military spouses, separate commercial policies or riders can offer additional financial protection, especially if the desired coverage amount exceeds FSGLI limits. If considering commercial options, it is advisable to contact a licensed insurance agent or financial advisor to explore suitable policies and obtain quotes, which can vary based on factors like age, health, and coverage amount.

Considerations for Choosing Life Insurance

Selecting appropriate life insurance coverage involves assessing a family’s financial landscape and future needs. A primary consideration is determining the necessary coverage amount, which should account for existing debts such as mortgages, student loans, or credit card balances. Future financial obligations, including education costs for children and the need to replace lost income, also play a significant role in this calculation. Evaluating the financial impact of a spouse’s absence, whether they are an income earner or provide valuable household contributions, helps quantify the required coverage.

Designating beneficiaries is another important step. It is possible to name primary and contingent beneficiaries, providing a backup if the primary beneficiary cannot receive the funds. This designation should be reviewed regularly to reflect changes in family circumstances.

Life insurance needs are not static; they evolve with significant life events. Periodic review of coverage is essential following events such as marriage, the birth of a child, a new job, or a permanent change of station (PCS) move. These life changes can alter financial responsibilities and necessitate adjustments to existing policies to ensure adequate protection.