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Life insurance for military and veterans
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With more than 18 million American veterans and approximately 1.3 million active-duty members, people who are serving or have served in the United States military make up a sizable population. If you’re one of these individuals, you may be aware of your options for life insurance. The Department of Veterans Affairs can facilitate these policies, or you could purchase them from private insurers. Regardless of where you go for your life insurance policy, there are several critical details to know. Bankrate’s insurance editorial team—with nearly 50 years of combined insurance industry experience—can help answer your questions and help guide you on how to find the best life insurance for military families.
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Military life insurance
SGLI policies include important terms and limitations every military member may benefit from learning about.
Military-provided Servicemembers’ Group Life Insurance (SGLI)
If you are an active-duty member of the military, one of the benefits you could receive is life insurance through the Department of Veterans Affairs (VA) Servicemembers’ Group Life Insurance (SGLI) program. The policies are underwritten by Prudential, one of the largest U.S. life insurers, and can provide free coverage for 120 days after you leave the military.
The recently passed Supporting Families of the Fallen Act increased SGLI’s maximum coverage amount from $400,000 to $500,000. Service members are able to determine their specific amount of SGLI coverage, with options available in $50,000 increments, up to $500,000. SGLI has a standard coverage rate, which is six cents for every $1,000 in coverage. If you qualify for a life insurance policy, it is possible to have your premium deducted from your military pay as opposed to paying SGLI directly.
As a part of SGLI coverage, service members may be eligible for Servicemembers’ Group Life Insurance Traumatic Injury Protection (TSGLI) benefits. Should you experience certain losses during active duty, such as blindness or an amputation, you could receive payments through this policy. TSGLI is billed as part of the SGLI premium and is a flat rate of $1 per month.
Service members who are totally disabled, as defined by military qualifications, at the time of discharge may be eligible for a Servicemembers’ Group Life Insurance Disability Extension. This disabled veterans life insurance allows an SGLI member to keep their life insurance coverage for up to two years after discharge at no additional cost.
SGLI premium rates
| Coverage amount | Monthly premium | Total monthly premium deduction (including TSGLI) |
|---|---|---|
| $500,000 | $30 | $31 |
| $450,000 | $27 | $28 |
| $400,000 | $24 | $25 |
| $350,000 | $21 | $22 |
| $300,000 | $18 | $19 |
| $250,000 | $15 | $16 |
| $200,000 | $12 | $13 |
| $150,000 | $9 | $10 |
| $100,000 | $6 | $7 |
| $50,000 | $3 | $4 |
Qualifications for SGLI
To qualify for SGLI coverage, you must meet qualifications under at least one of the following categories:
- Active-duty members of the Army, Air Force, Navy, Marines, Space Force or Coast Guard
- Commissioned members of the U.S. Public Health Service (USPHS) or the National Oceanic and Atmospheric Administration (NOAA)
- Members, cadets and midshipmen of the U.S. military academies, Reserve Officers Training Corps (ROTC), the Ready Reserve or National Guard
- Volunteers in the Individual Ready Reserve (IRR) mobilization category
If you are considered non-pay status with the Ready Reserve or National Guard, there are two requirements for full-time SGLI coverage you must meet. You must be drilling for points instead of pay and must be scheduled for 12 periods of inactive training during the year. In this case, you will also pay your premium directly to your SGLI policy rather than having it automatically deducted from your military pay.
USAA, one of the nation’s largest insurers, could offer some of the best life insurance for active duty military, extending a variety of options to military members, veterans and their eligible immediate family. These products include term life, simplified whole life and universal life. USAA’s life insurance policies may be more limited compared to other companies, but they do offer potential riders that may include the option to add $100,000 term life coverage when you get married, buy a house or have a baby, if you meet eligibility requirements. Not to mention, the company is also a highly rated home and auto insurance carrier, tying for the best overall home insurance company in the 2024 Bankrate Awards.
American Armed Forces Mutual Aid Association also offers a broad selection of life insurance policies for active-duty military members, veterans and qualifying spouses. Each policy type has multiple plan options depending on the beneficiary, coverage amounts, medical circumstances and even payment structures. With AAFMAA, the company offers coverage whether you are training or deployed, and survivor benefits may offer additional support for your spouse or dependent child.
Life insurance options for veterans
Veterans may have several different life insurance options when they leave the military:
Veterans’ Group Life Insurance (VGLI)
Veterans’ Group Life Insurance (VGLI) is a group life insurance policy available for veterans from The U.S. Department of Veterans Affairs (VA). When you leave the military, you have up to one year and 120 days from your discharge to apply for a VGLI policy. This covers up to the amount of coverage that you carried with your SGLI policy while you were enlisted and continues as lifetime renewable term coverage. Policyholders who held part-time SGLI coverage may be eligible for VGLI coverage if they sustained an injury or disability that disqualifies them from standard premium life insurance rates.
Service-Disabled Veterans’ Life Insurance (S-DVI)
Service-Disabled Veterans’ Life Insurance (S-DVI) is also offered by the VA and is life insurance coverage that is designed for veterans with a service-connected disability. To qualify for an S-DVI policy, you must meet all of the following qualifications:
- Release from active duty without a dishonorable discharge on or after April 25, 1951.
- Rated for a service-connected disability
- Good health status, with the exception of service-related conditions
- Application within two years of receiving your disability rating
Veterans’ Mortgage Life Insurance (VMLI)
The Veterans’ Mortgage Life Insurance (VMLI) program offers mortgage protection insurance to disabled veterans who are eligible for a VA Specially Adapted Housing (SAH) grant. With a VMLI policy, you have the option to add mortgage life insurance coverage up to $200,000. Your coverage amount is determined by the amount you still owe on your mortgage and will decrease as you pay off your loan. If paid out, the money will go directly to the lender that holds your mortgage. In addition to having a severe disability related to service and receiving an SAH grant, veterans must hold the title of their home and be under 70 years old to qualify for coverage.
Other life insurance options for military families
Family Servicemembers’ Group Life Insurance (FSGLI) is a VA program designed for spouses and dependent children of SGLI policyholders. FSGLI may provide a term life insurance benefit of up to $100,000 for a member’s spouse and $10,000 for dependent children. Members pay a monthly premium for coverage for a spouse, but dependent children may be insured at no additional cost.
How to determine the right policy for you
Navigating the variety of VA benefits and life insurance policies can be overwhelming with so many options and acronyms to decipher. To simplify the process, Bankrate has created a guide that breaks down the different types of life insurance policies and highlights which might be best suited for you and your family. This way, you can more easily identify the best life insurance for military members.
Active-duty
| Type of policy | Who may receive benefits | Policy coverage |
|---|---|---|
| Servicemembers' Group Life Insurance (SGLI) |
Active-duty military
Commissioned members of NOAA or USPHS Members, cadets or midshipmen of ROTC Ready Reserve or National Guard Volunteers for IRR mobilization |
Up to $500,000 available in $50,000 increments |
| Traumatic Injury Protection Under SGLI (TSGLI) | SGLI members who experience a qualifying traumatic event or loss | $25,000-$100,000 in short-term financial support |
| Family Servicemembers' Group Life Insurance (FSGLI) | Spouses and dependent children of a military service members covered by SGLI | Up to $100,000 for coverage as a spouse, not to exceed your service member’s SGLI coverage. Dependent children, up to age 18, can receive $10,000. |
Veterans
| Type of policy | Who may receive benefits | Policy coverage |
|---|---|---|
| Veterans' Group Life Insurance (VGLI) |
SGLI policyholders who have been discharged from active duty within one year and 120 days of applying for coverage
Part-time SGLI policyholders who suffered a disability that disqualifies them from standard premium insurance rates Temporary Disability Retirement List members who were placed on the list within one year and 120 days |
Between $10,000 and $500,000; Term life insurance benefits match the amount of coverage you held as an SGLI policyholder. VGLI members may be able to increase coverage by $25,000 every five years until age 60. |
| Service-Disabled Veterans' Insurance (S-DVI) |
Veterans rated for a service-connected disability who were discharged honorably from active duty on or after April 25, 1951
Must be in good health except for any service-connected conditions Must apply within two years of receiving a disability rating. This program ceased taking new members after December 31, 2022, but it continues to honor pre-existing plans. |
Up to $10,000 of coverage and up to $30,000 of supplemental coverage |
| Servicemembers' Group Life Insurance Disability Extension (SGLI-DE) | Veterans who are totally disabled at the time of discharge and apply within two years of separation. | Free coverage eligible for up to two years from the date of separation |
| Veterans' Mortgage Life Insurance (VMLI) |
Veterans or service members who are:
Younger than age 70 Have a severe disability that was caused or made worse by service Have received SAH grant Own or co-own property with a mortgage |
Up to $200,000. Coverage is determined by the amount still owed on a mortgage loan. Coverage decreases as you pay off your loan. |
What are military members saying about life insurance?
When it comes to life insurance, service members often have unique perspectives based on their experiences and specific needs. We’ll look into the thoughts and opinions shared by active-duty service members, veterans and their families in various online forums, including Reddit. By exploring these real-life discussions, we gain valuable insights into what military personnel consider important when choosing life insurance, the challenges they face and the advice they offer to others in similar situations. Whether you're already familiar with life insurance or just starting to explore your options, these firsthand accounts can provide a deeper understanding of what truly matters to those who serve.
The feedback from military members highlights several key takeaways when it comes to choosing life insurance. First, it’s important to plan ahead and potentially secure a policy with another company while you're still in the military, as some VA-backed policies can become significantly more expensive after leaving active duty. Additionally, while cost is an important factor, it’s equally important to consider the quality of customer service and the specific benefits offered by the provider, especially those tailored to the unique needs of military families. Choosing a provider that understands and caters to the military lifestyle and comparing quotes from several providers can make a significant difference in ensuring long-term satisfaction and protection for your loved ones.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
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