How Much Does Military Life Insurance Cost?

Military life insurance programs, sponsored by the government, offer specific coverage options and premium structures for service members, veterans, and their families. These benefits differ from traditional civilian insurance policies in cost and accessibility, aiding informed decisions about coverage needs and overall financial strategy.

Servicemembers’ Group Life Insurance (SGLI)

Servicemembers’ Group Life Insurance (SGLI) provides low-cost term life insurance to eligible uniformed service members. This program automatically covers:
Active-duty service members
Members of the Ready Reserve or National Guard
Commissioned members of the National Oceanic and Atmospheric Administration (NOAA)
Commissioned members of the U.S. Public Health Service (USPHS)
Cadets and ROTC members engaged in authorized training

Upon entry into service, individuals are automatically enrolled for $500,000 coverage. Service members can reduce coverage in $50,000 increments or decline it.

SGLI premium costs are uniform across all service members, regardless of age or health. Effective July 1, 2025, the premium rate for SGLI is $0.05 per $1,000 of coverage. This makes the maximum $500,000 coverage $25 per month, plus $1 for Traumatic Injury Protection (TSGLI), totaling $26 monthly. These premiums are automatically deducted from the service member’s pay.

Traumatic Injury Protection (TSGLI) is an automatic feature of SGLI coverage, providing financial support for service members who sustain certain traumatic injuries. This benefit offers payments ranging from $25,000 to $100,000, depending on injury severity, and is included in the SGLI premium.

SGLI coverage is managed through the SGLI Online Enrollment System (SOES), accessible via the milConnect portal. Service members can use SOES to view their current coverage, increase or decrease their elected amount, or decline coverage. The system also allows for the designation or updating of beneficiaries. Paper forms can be submitted if online access is unavailable.

Veterans’ Group Life Insurance (VGLI)

Veterans’ Group Life Insurance (VGLI) allows service members to convert their SGLI coverage into a renewable term life insurance policy after separating from military service. Eligibility requires prior SGLI coverage and application within one year and 120 days of separation. Individuals applying within 240 days of separation are guaranteed acceptance without needing to provide evidence of good health.

The amount of VGLI coverage is tied to SGLI coverage held at separation, up to $500,000, available in $10,000 increments. Veterans can increase VGLI coverage by $25,000 every five years, up to $500,000, until age 60, without a medical exam.

VGLI premium costs are age-based, increasing every five years as the policyholder ages. For example, a veteran under age 29 might pay $35 per month for $500,000 in coverage, while older age brackets cost significantly more. Starting in spring 2025, VGLI premiums will see reductions from 2% to 17%, averaging 11%.

VGLI applications can be completed online through the Office of Servicemembers’ Group Life Insurance (OSGLI) website, managed by Prudential. Veterans can also apply by mail or fax by submitting form SGLV 8714. Applications must be submitted within specified timeframes to ensure guaranteed acceptance.

Family Servicemembers’ Group Life Insurance (FSGLI)

Family Servicemembers’ Group Life Insurance (FSGLI) extends life insurance coverage to eligible spouses and dependent children of SGLI-insured service members. Eligibility requires the service member to be on active duty or a member of the National Guard or Ready Reserve, and to be covered by full-time SGLI. Spouses and dependent children must also be registered in the Defense Enrollment Eligibility Reporting System (DEERS).

Spouses can receive coverage up to $100,000, not exceeding the service member’s SGLI coverage, in $10,000 increments. Dependent children automatically receive $10,000 coverage at no additional cost to the service member.

The premium structure for FSGLI differs between spouses and children. Spousal premiums are age-based and increase with age, similar to VGLI rates but generally lower. For instance, a spouse under age 35 might pay $4.50 per month for $100,000 of coverage, with rates rising in subsequent age brackets. Dependent children’s coverage is provided at a flat, zero monthly premium. Starting in spring 2025, FSGLI spousal premiums are expected to decrease by 11% to 22%, averaging 13%.

For civilian spouses of SGLI-insured service members, FSGLI coverage is generally automatic for the maximum amount, unless declined or reduced by the service member. If a service member is married to another service member, FSGLI coverage is not automatic for marriages on or after January 2, 2013; enrollment is required via the SGLI Online Enrollment System (SOES). Service members can manage FSGLI coverage through SOES or by submitting a paper form.