In the military, the primary life insurance program for active-duty service members is Servicemembers’ Group Life Insurance (SGLI). Here’s a breakdown of the coverage amounts:
1. Servicemembers’ Group Life Insurance (SGLI)
Maximum Coverage: $500,000
Minimum Coverage: $50,000 (in $50,000 increments)
Cost: The premium rate for SGLI is $0.06 per $1,000 of coverage. For the maximum coverage of $500,000, the monthly premium is $30.
Service members are automatically enrolled in SGLI for the maximum coverage amount ($500,000), but they can choose to reduce the coverage in increments of $50,000 or decline it altogether.
2. Family Servicemembers’ Group Life Insurance (FSGLI)
Spouse Coverage: Up to $100,000 (coverage is in increments of $10,000, and premiums are based on the spouse’s age).
Child Coverage: $10,000 per dependent child (no cost for this coverage).
3. Veterans’ Group Life Insurance (VGLI)
After leaving the military, service members can convert their SGLI coverage to Veterans’ Group Life Insurance (VGLI), which allows them to retain life insurance coverage. The maximum coverage available is the same as their SGLI coverage at separation (up to $500,000), but the premiums will increase based on the veteran’s age.
These life insurance programs provide financial security for service members and their families, with customizable coverage amounts to suit different needs.
