How Much is Military Life Insurance?
As a military member, you understand the importance of protecting your loved ones in the event of the unexpected. Military life insurance is a vital benefit offered by the Department of Veterans Affairs (VA) and the Department of Defense (DoD) to help ensure that your family’s financial security is not affected by your passing. In this article, we’ll delve into the specifics of how much military life insurance covers and what factors affect your coverage.
Types of Military Life Insurance
Before we dive into the pricing, it’s essential to understand the different types of military life insurance. There are two primary types: Servicemembers’ Group Life Insurance (SGLI) and Veteran’s Group Life Insurance (VGLI).
• Servicemembers’ Group Life Insurance (SGLI): This is a mandatory program for all active-duty servicemembers, National Guard members, and Reservists. SGLI provides coverage up to $400,000 (updated in 2020).
• Veteran’s Group Life Insurance (VGLI): VGLI is available to veterans who are receiving compensation due to a service-connected injury or illness. This policy is optional and offers a maximum coverage of $10,000.
Calculating Your Premium
One of the most critical questions regarding military life insurance is how much it costs. The good news is that SGLI premiums are relatively low and covered entirely by the government. If you’re an active-duty servicemember, your SGLI premiums will be deducted from your salary.
Here’s a breakdown of the SGLI premium rates:
| Military Pay Grade | Monthly SGLI Premium |
|---|---|
| E-1 to O-1 | $12.50 |
| E-2 to O-2 | $14.25 |
| E-3 to O-3 | $16.45 |
| E-4 to O-4 | $18.45 |
| E-5 to O-5 | $20.45 |
| E-6 to O-6 | $23.45 |
| O-7 and above | $25.45 |
Additional Coverage Options
While SGLI coverage is automatic, you have the option to increase your coverage or purchase additional life insurance policies. You can choose from two supplemental options:
• Traumatic Service Members’ Group Life Insurance (TSGLI): This policy provides accidental death and dismemberment coverage up to $25,000.
• Family Servicemembers’ Group Life Insurance (FSGLI): This policy provides life insurance coverage for spouses and eligible children.
What Does Military Life Insurance Cover?
Military life insurance, including SGLI and VGLI, offers comprehensive coverage for:
- Accidental death and dismemberment
- Natural death
- Total disability, including loss of limb(s) or sight in one eye
- Coverage also extends to your dependents, including spouses, unmarried children under 18 (or 23 if still in college), and former spouses
Disbursing Benefits
If you pass away or suffer a total disability, the military life insurance program provides financial support to your designated beneficiaries. The payment amounts vary depending on the situation:
- Accidental death: The insurance coverage amount is paid out.
- Natural death or total disability: A proportional payment is made, which is calculated based on your age and the total duration of your coverage.
- Disability benefits: Payments are made according to the degree of disability (e.g., loss of limb, loss of eyesight, etc.).
Conclusion
Military life insurance is a vital benefit offered to servicemembers, providing financial security for your loved ones in the event of the unexpected. The SGLI program is mandatory for active-duty members, while VGLI is optional for veterans receiving compensation. With low premium rates and comprehensive coverage options, it’s essential to understand the details of your military life insurance policy. If you have any questions or concerns, consult with a military insurance expert or check the official VA and DoD websites for more information.
Additional Resources
- Department of Veterans Affairs (VA): www.va.gov
- Department of Defense (DoD): www.dod.gov
- Servicemembers’ Group Life Insurance (SGLI): www.va.gov/benefit/sgli
- Traumatic Service Members’ Group Life Insurance (TSGLI): www.va.gov/benefit/tsgli
- Family Servicemembers’ Group Life Insurance (FSGLI): www.va.gov/benefit/fsgli
Remember, military life insurance is a vital part of your overall financial planning as a servicemember. By understanding the coverage options and payment structures, you can provide peace of mind for your loved ones and ensure your family’s financial security even in the face of unexpected events.
