Life insurance is a cornerstone of financial readiness for military families — and unlike most financial decisions, the stakes of getting it wrong are irreversible. The good news is that the military provides access to some of the most affordable life insurance available anywhere. The challenge is understanding how the programs work, what they don’t cover, and what to do when you separate from service.
This guide walks through every major life insurance option available to service members, veterans, and their families in 2026: what each program covers, what it costs, and how to decide what’s right for your family.
USMilitary.com is an independent educational resource and is not affiliated with the Department of Veterans Affairs, the Department of Defense, or any government agency. For official program information, visit VA.gov Life Insurance.
Key Takeaways
- SGLI provides up to $500,000 in coverage for active duty service members at just $26/month (including TSGLI) — one of the best deals in life insurance, period.
- VGLI is the post-separation continuation of SGLI. You must apply within 240 days of separation for guaranteed acceptance — no medical exam required.
- FSGLI covers military spouses up to $100,000 and dependent children at $10,000 each (free). Premiums vary by spouse age and were reduced 11–22% effective July 2025.
- VALife is a newer VA program for veterans with a service-connected disability rating, offering whole life coverage up to $40,000 with no medical exam, available through age 80.
- For healthy veterans who separate before age 45, private term life insurance often provides comparable or better coverage at lower cost than VGLI — especially at older age brackets.
- The $500,000 SGLI maximum may not be sufficient for families where the service member is the primary income earner — supplemental coverage is worth considering.
Table of Contents
- SGLI: Life Insurance for Active Duty Service Members
- FSGLI: Coverage for Military Spouses and Dependents
- TSGLI: Traumatic Injury Protection
- VGLI: What Happens When You Separate
- VALife: For Service-Connected Veterans
- VGLI vs. Private Term Life: The Decision Every Veteran Faces
- Is $500,000 Enough? Planning Around Coverage Gaps
- The Survivor Benefit Plan (SBP)
- Life Insurance Checklist for Military Families
- Frequently Asked Questions
SGLI: Life Insurance for Active Duty Service Members
Servicemembers Group Life Insurance (SGLI) is the foundational life insurance program for active duty military. Most service members are automatically enrolled upon entry into service.
Coverage and Cost
SGLI provides term life insurance in coverage amounts from $50,000 up to the maximum of $500,000 (increased from $400,000 in March 2023). As of the July 2025 premium reduction announced by the VA, the current rate is $0.05 per $1,000 of coverage per month — meaning the maximum $500,000 in coverage costs $25/month. Adding the $1/month TSGLI (traumatic injury) rider brings the total to $26/month for $500,000 in coverage.
This is an extraordinarily low premium for the coverage amount — comparable private term life insurance policies typically cost $30–$60/month or more for healthy young service members, and significantly more for those with health conditions.
Who Is Covered
- Active duty members of the Army, Navy, Air Force, Marines, Coast Guard, and Space Force
- Ready Reserve and National Guard members on active duty for more than 30 days
- Ready Reserve members under certain other qualifying conditions
- Commissioned Corps of NOAA and the U.S. Public Health Service
Adjusting Your Coverage
You can reduce your SGLI coverage in $50,000 increments or decline coverage entirely, though declining is almost never in your financial interest given the cost. You can also increase coverage back to the maximum during open enrollment periods.
Managing Your Beneficiaries
Service members can update their SGLI beneficiary designations through the SGLI Online Enrollment System (SOES) on milConnect. Keeping this current — especially after marriage, divorce, or the birth of a child — is a critical financial planning step that often gets overlooked during busy duty schedules.
When SGLI Coverage Ends
SGLI coverage continues for 120 days after separation at no cost, automatically. After that window closes, coverage ends — unless you convert to VGLI.
FSGLI: Coverage for Military Spouses and Dependents
Family Servicemembers Group Life Insurance (FSGLI) provides life insurance for the spouses and dependent children of service members insured under SGLI.
Spouse Coverage
FSGLI provides up to $100,000 of coverage for the service member’s spouse, in increments of $10,000. The maximum cannot exceed the service member’s own SGLI coverage amount. Monthly premiums vary by the spouse’s age and were reduced 11–22% effective July 2025. As an example, premiums range from approximately $0.40 to $4.00 per $10,000 of coverage increment based on the spouse’s age — a spouse in their 30s with $100,000 of coverage pays a small fraction of what comparable private coverage would cost.
Dependent Children
Dependent children of SGLI-insured service members are automatically covered for $10,000 at no cost. There is no premium for this coverage.
Is FSGLI Enough?
For many military families, $100,000 may not fully reflect the financial contribution of a military spouse. Whether through direct income, childcare responsibilities, household management, or all three — the economic value of a spouse’s contributions often exceeds a $100,000 benefit. Military families should evaluate whether additional private coverage is appropriate for the spouse, particularly if the spouse is employed or manages childcare that would need to be replaced.
TSGLI: Traumatic Injury Protection
The Traumatic Injury Protection rider (TSGLI) is automatically included with SGLI at a cost of $1/month. TSGLI pays a lump-sum benefit — ranging from $25,000 to $100,000 — if a covered service member suffers a qualifying traumatic injury that results in a specified loss.
Qualifying losses include loss of sight, hearing, speech, limbs, and certain other severe injuries. The benefit is designed to help service members and families manage financial hardship during recovery from catastrophic injuries — it is not a disability compensation program and does not replace VA disability compensation.
More information on TSGLI is available through the VA’s TSGLI program page.
VGLI: What Happens When You Separate
Veterans Group Life Insurance (VGLI) allows service members to convert their SGLI coverage to renewable term life insurance after separation — without a medical exam, as long as they apply within the required window.
The 240-Day Window
This is the most critical deadline in military life insurance planning:
- Apply within 120 days of separation: Guaranteed acceptance, no medical exam required.
- Apply between 121 and 240 days: Still guaranteed acceptance, no medical exam.
- Apply after 240 days (up to 1 year and 120 days total): Acceptance is no longer guaranteed — you’ll need to submit evidence of good health.
- After 1 year and 120 days: VGLI is no longer available.
For veterans with service-connected health conditions or other factors that might make private coverage difficult to obtain, the 240-day guaranteed-issue window is especially valuable — and easy to miss during a chaotic transition period.
Coverage Amounts
VGLI coverage can match your SGLI coverage amount — up to the $500,000 maximum. Once enrolled, veterans under age 60 can increase coverage by $25,000 at each one-year anniversary and every five years thereafter, without proof of good health.
VGLI Premiums in 2026
VGLI premiums were reduced 2–17% across all age brackets effective July 1, 2025. Unlike SGLI’s flat per-thousand rate, VGLI premiums are age-banded — they increase every five years. Current 2026 monthly rates per $1,000 of coverage:
| Age Bracket | Monthly Rate per $1,000 | Monthly Cost for $500K |
|---|---|---|
| Under 30 | $0.60 | $300 |
| 30–34 | $0.80 | $400 |
| 35–39 | $1.00 | $500 |
| 40–44 | $1.40 | $700 |
| 45–49 | $1.90 | $950 |
| 50–54 | $2.90 | $1,450 |
| 55–59 | $5.00 | $2,500 |
| 60–64 | $8.50 | $4,250 |
| 65–69 | $13.80 | $6,900 |
| 70–74 | $21.50 | $10,750 |
| 75+ | $38.50–$44.00 | $19,250+ |
Source: VA.gov VGLI program, rates effective July 2025. Costs shown are approximate for the maximum $500,000 coverage amount.
VALife: For Service-Connected Veterans
VALife is a newer VA whole life insurance program launched in 2023, specifically for veterans with a service-connected disability rating of any level (0%–100%). Unlike VGLI, VALife is permanent (whole life) insurance — it doesn’t expire as long as premiums are paid — and builds cash value after two years.
Key features:
- No medical exam required — eligibility based on having any service-connected disability rating
- Available through age 80
- Coverage up to $40,000
- Cash value accumulates after two years, accessible as a loan
- Designed primarily for veterans who may have difficulty obtaining private coverage due to service-related health conditions
VALife is not a replacement for VGLI or private term life for most veterans — the $40,000 maximum is relatively modest. It’s best understood as a supplemental or final-expense policy for veterans with service-connected conditions. More information is available at VA.gov VALife.
VGLI vs. Private Term Life: The Decision Every Veteran Faces
When you separate from service, you’ll face a decision most civilians never have to navigate: convert your SGLI to VGLI, or shop the private market. The right answer depends on your age, health, and how long you need coverage.
When VGLI Is the Better Choice
- You have health conditions that would make private coverage expensive or unavailable. VGLI’s guaranteed-issue window within 240 days of separation is uniquely valuable for veterans with service-connected conditions, PTSD, or other health factors that trigger underwriting scrutiny.
- You need immediate coverage with minimal paperwork. VGLI can be activated quickly and without the underwriting timeline of private policies.
- You’re uncertain about your long-term plans. VGLI is renewable with no coverage expiration as long as premiums are paid, so you won’t age out of coverage at the end of a fixed term.
When Private Term Life Is the Better Choice
- You’re young and healthy. For a healthy 35-year-old veteran, a 20-year private term life policy for $500,000 may cost $30–$50/month — comparable to VGLI’s rate at separation, but locked in for 20 years. VGLI’s rate for the same veteran will increase to $700/month by age 55–59.
- You want rate certainty. Private term policies lock in your rate for the full term — 10, 15, 20, or 30 years. VGLI rates step up every five years, making long-term cost projections unfavorable.
- You need coverage beyond $500,000. VGLI’s maximum is $500,000. Private insurers frequently offer $1 million or more in term coverage, which is relevant for higher-income veterans or those with significant financial obligations.
A Practical Approach: The Hybrid Strategy
Many veterans use VGLI initially — taking advantage of the guaranteed-issue window at separation — while simultaneously shopping for private term coverage. If they qualify for private coverage at competitive rates, they convert their coverage and let VGLI lapse. This avoids the risk of having no coverage while navigating the private market during a busy transition period.
Is $500,000 Enough? Planning Around Coverage Gaps
For many military families — particularly those where the service member is the primary or sole income earner — $500,000 in SGLI may not fully replace the financial support the family would lose. A common financial planning guideline is 10 to 12 times your annual income as a death benefit. For a service member earning $70,000 in base pay and allowances, that suggests $700,000–$840,000 in total coverage — more than SGLI’s maximum.
Supplemental coverage options include:
- Private term life layered on top of SGLI (permitted while on active duty)
- AAFMAA (American Armed Forces Mutual Aid Association) — a military-focused nonprofit offering life insurance, including term and whole life products for service members and veterans
- USAA and Armed Forces Benefit Association — both offer supplemental life insurance products specifically for military members
The Survivor Benefit Plan (SBP)
Life insurance and the Survivor Benefit Plan (SBP) serve related but distinct purposes. SGLI and VGLI provide a lump-sum death benefit. The SBP — available to retiring service members — provides a monthly annuity to a surviving spouse (or other eligible beneficiary) equal to up to 55% of the service member’s retired pay.
The SBP election is made at retirement and is permanent. It’s funded through a monthly premium deducted from retired pay. The decision of whether to elect SBP — and at what coverage level — is one of the most consequential financial decisions a retiring service member makes, and it interacts directly with life insurance needs.
A spouse who would receive monthly SBP income may need less lump-sum life insurance than one who wouldn’t. The Defense Finance and Accounting Service (DFAS) provides official SBP resources and calculators.
Life Insurance Checklist for Military Families
- ☐ Confirm your SGLI coverage amount is at the maximum ($500,000) unless you have a specific reason to reduce it
- ☐ Update your SGLI beneficiary designation — especially after any major life change (marriage, divorce, birth of child)
- ☐ Confirm your spouse is enrolled in FSGLI and the coverage amount reflects your family’s needs
- ☐ Evaluate whether supplemental private life insurance is appropriate given your income and family obligations
- ☐ If separating: apply for VGLI within 240 days for guaranteed acceptance, even if you plan to shop private coverage afterward
- ☐ If you have a service-connected disability: review VALife as a supplemental option
- ☐ If retiring: make an informed SBP election decision before your retirement date — it’s permanent
- ☐ Revisit your coverage annually or after any major financial change
Frequently Asked Questions
SGLI coverage continues automatically for 120 days after separation at no cost. After that window, coverage ends unless you convert to VGLI. You must apply for VGLI within 240 days of separation to receive guaranteed acceptance without a medical exam. After 240 days, you can still apply up to 1 year and 120 days after separation, but you’ll need to demonstrate good health.
Yes. There’s no restriction on holding SGLI alongside a private life insurance policy. Many financial planners recommend this for service members whose family obligations exceed the $500,000 SGLI maximum. Private coverage can be purchased at any time and continues independently after separation.
VGLI is the VA’s post-separation renewable term life insurance program for veterans. It’s a strong option for veterans with health conditions that make private coverage difficult or expensive, because VGLI offers guaranteed acceptance within 240 days of separation. For healthy veterans who separate early in their careers, private term life insurance often offers lower long-term costs and rate certainty that VGLI’s age-banded pricing structure doesn’t provide.
Yes. SGLI covers death from any cause — combat, non-combat, accident, illness, and off-duty incidents. There are very limited exclusions, primarily related to intentional self-inflicted harm. For official details on coverage terms and exclusions, visit VA.gov SGLI.
You have up to 1 year and 120 days (approximately 16 months) from your separation date to apply for VGLI. However, guaranteed acceptance — with no medical exam required — is only available within the first 240 days. After 240 days, you can still apply but must provide evidence of good health.
This article is provided by USMilitary.com, an independent educational resource. We are not affiliated with the Department of Veterans Affairs, the Department of Defense, or any government agency. For official program information and enrollment, visit VA.gov Life Insurance. Life insurance needs vary by individual and family circumstances — consider speaking with a financial advisor familiar with military benefits.
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