The risk involved in military service makes a life insurance policy especially important for active duty service members. You can get coverage through Veterans Affairs with Servicemembers’ Group Life Insurance (SGLI). However, some families might need an additional policy.
Private life insurance companies will use your deployment status, job responsibilities, station of duty, and physical location to evaluate your application. Here’s how to find the best life insurance plan to protect your family.
What is Servicemembers’ Group Life Insurance (SGLI)?
Full-time service members can enroll in SGLI, which is offered through the military.
SGLI offers coverage in increments of $50,000 up to a maximum of $500,000. [1]
It includes traumatic injury protection so military members receive a payment if they experience amputations, paraplegia, and blindness.
You can make changes to your policy, including changes to your coverage amount and beneficiaries.
You have the option to opt out of coverage, continue your SGLI policy, or convert your coverage into a civilian policy after you’re discharged.
Like other group life insurance plans, SGLI plans might not offer enough life insurance coverage for your family, depending on your income, debt, and expenses. We recommend buying private life insurance to fill any coverage gaps.
→ Figure out how much life insurance you need
How much does SGLI cost?
SGLI premiums are taken out of your pay. Base premiums are $0.06 per $1,000 of coverage you purchase, plus $1 per month for traumatic injury protection.
If you bought the maximum amount of coverage, you’d pay $31 per month for a $500,000 death benefit.
Can military members buy private life insurance?
Yes, military personnel can buy private life insurance policies, but there may be a few additional considerations to be mindful of during the application process. Your duties, your rank, and where you’re stationed will factor into what life insurance policy is best for you. You’ll also need to be in the U.S. to apply for and purchase a U.S. life insurance policy.
Primary questions life insurance companies ask military personnel
Military personnel applying for life insurance need to be aware of two circumstances that could automatically disqualify them from coverage. The two primary questions you can expect from an insurer are:
→ Learn more about how where you live can affect your life insurance options
How does military rank affect your life insurance coverage?
Some insurance companies have specific coverage limits based on your rank, regardless of military branch. The exact coverage limits vary across insurance companies.
Here’s an example of coverage limits by military pay grade, with those with enlisted status having lower limits and commissioned officers having the highest:
$250,000 for pay grades E1 to E5
$500,000 for pay grades E6 to E9 and W1 to W5
$1,000,000 for pay grades O-1 to O-10
However, some insurers will follow the same income guidelines that apply to civilians. These guidelines allow you to buy up to a certain multiple of your income, depending on your age — for example, you can get up to 25 times your income if you are under age 40.
Insurers will apply civilian income guidelines to applications from Reserve or Guard members who are not alerted or mobilized.
How does your military rank affect your insurance risk?
The higher the risk that you’ll die while covered by your life insurance policy, the more expensive your premiums will be and the more likely you might be declined for coverage.
High-ranking officials are often considered lower risk because they’re less likely to see the same sort of combat dangers as lower-ranking service members.
As mentioned above, Special Forces, Rangers, SEALS, Marine Force Recon, Marine Raiders, Delta Force, Air Force Pararescue, and other similar units are more likely to be declined even if they don’t have active deployment orders.
If you’re already approved for coverage, many of Policygenius’ life insurance partners don’t have exclusions within individual policies that void life insurance coverage if the insured is killed while deployed, while in combat, or during a time of war.
Beneficiaries of military members will still get death benefits in this case.
Flat extra fees for pilots and aviation crew members
Flat extra fees are an additional charge per $1,000 of coverage you purchase that insurers charge in circumstances that involve higher insurance risk, like if someone has a hazardous occupation or hobby.
Common examples of flat extras include an extra $2 or $5 per $1,000 — so, if you have a $500,000 policy, you could pay an extra $1,000 to $2,500 per year.
Most pilots get higher life insurance rates due to the occupational hazards involved, but it depends on the insurer, your job duties, and what type of aircraft you fly. Military pilots and crew members are typically required to pay a flat extra fee, ranging from $2 to $12 per $1,000 of coverage.
Non-frontline aviation crew members, including flight nurses and instructors, may get flat extras too, but are unlikely to be charged more than $2 per $1,000 of coverage.
Life insurance for military spouses
Spouses of military personnel who are not service members themselves have the same life insurance options available as other civilians.
The military sponsors Family Servicemembers’ Group Life insurance (FSGLI) policies for spouses and dependent children of those covered with SGLI policies. Spouses should compare FSGLI rates with those from private insurers.
The bottom line
Getting private life insurance coverage involves a few more considerations for military personnel than it does for the average citizen, but getting a policy is well within reach if you’re living in the U.S. when you apply.
Working with an independent broker like Policygenius can be particularly helpful when comparing different private insurance companies.
