Life Insurance for Military Personnel and Veterans

Military members and veterans have unique life insurance needs. This guide covers government options (SGLI/VGLI), when they suffice, and when additional private coverage is necessary to fully protect your family. Here’s what you need to know about life insurance for military personnel and veterans.

What Military Personnel Get: SGLI Coverage

Active duty/drilling personnel are automatically enrolled in Servicemembers’ Group Life Insurance (SGLI).

• Coverage: Up to $500,000 for about $27 a month.
• Requirements: No health check or medical exam needed.
• Exclusions: Covers death in combat, training, or other incidents with no war or dangerous activity exclusions.
• Termination: Automatically ends 120 days after separation unless converted to VGLI.
• Coverage for Combat: SGLI covers deaths that happen in combat, training accidents, plane crashes, and any other reason. There are no exclusions for war or dangerous activities.
• Automatic Termination: Your SGLI coverage will end automatically 120 days after you leave the service unless you change it to VGLI (veterans’ group life insurance).

SGLI is good basic coverage for most service members. The premiums are low, the coverage is good, and it covers the most dangerous parts of military service without any gaps. But it’s not always the whole answer.

What Veterans Get: VGLI Coverage

You can change your SGLI coverage to Veterans’ Group Life Insurance (VGLI) when you leave active duty. The government is letting you keep your life insurance even after you leave the military.

You can apply for VGLI within 120 days of separation during the Conversion Window. You don’t have to take a medical exam if you apply within the first 240 days. After that, you will have to demonstrate that you are insurable.

• Benefit: Healthy veterans may find cheaper rates with private term life insurance.
• Premiums: Your age determines how much you pay for VGLI, and premiums increase every 5 years. A 30-year-old might pay $32 a month for $500,000 in coverage. By age 50, that same coverage could cost $130 a month, and by age 60, it could cost $250 or more.
• Lifetime Renewal: You can renew VGLI for life. As long as you keep paying the premiums, you won’t lose coverage.
• Maximum Limit: The $500,000 maximum from SGLI/VGLI is often 10-15 times yearly income.

When Government Coverage Isn’t Enough

SGLI and VGLI are good programs, but they might not be enough to keep your family safe.

• First, the coverage is only for the service member. Family SGLI only covers your spouse and kids a bit. Most of the protection is on you. Your family will get $500,000 if you die. That sounds like a lot, but it might not be enough for you.
• Most financial planners say you should have coverage that is 10 to 15 times your yearly income. If you make $60,000 a year, you should have between $600,000 and $900,000 in coverage. The most you can get from SGLI is $500,000.
• Second, VGLI costs more as you get older. When you’re young, the premiums are reasonable, but when you reach your 50s, you might be paying three or four times what you paid in your 30s for the same coverage. If you’re healthy, buying private term life insurance could save you a lot of money over time.
• Third, VGLI is not flexible. You must reapply and demonstrate you still qualify for insurance if you want more coverage. You might not be able to get it if your health has gotten worse. If you pass underwriting, you can buy a new private term life policy whenever you need more coverage.

Private Life Insurance For Active Duty Military

SGLI’s $500,000 might not be enough for everyone. If you need more coverage or want to lock in low rates while you’re young and healthy, private term life insurance can supplement your SGLI.

Key advantages:

• No war or aviation exclusions (with military-focused insurers). Some companies specifically serve military members and pay out even if you die in combat or a military aircraft crash—not all do, so always ask upfront.
• Affordable rates for young servicemembers. A healthy 30-year-old might pay $40–$60/month for an additional $500,000 in coverage, bringing total coverage to $1 million.
• Fixed premiums for the full term. Unlike VGLI, which increases every five years, a 20- or 30-year term policy locks your rate from day one.
• Coverage continues after separation. Buy a policy on active duty, and it stays active regardless of when or how you leave the military—no conversion deadlines or paperwork hassles.

Private life insurance for veterans

SGLI provides unbeatable hazardous duty exclusions. Crucially, update your SGLI and private policy beneficiaries before deployment, as outdated information can cause legal battles.

• Cost comparison: Private term is usually cheaper than VGLI, especially if you’re healthy and still relatively young. A healthy 40-year-old veteran might pay $60–$80/month for $500,000 in 20-year term coverage. VGLI could start around $60/month but climbs to $100+ by age 50 and keeps rising.
• Flexibility: Private policies let you choose your coverage amount ($250K, $500K, $750K, $1M+) and term length (10, 20, or 30 years) based on your actual needs—not a one-size-fits-all program.
• Service-connected disabilities: These may affect your rates, but don’t automatically disqualify you. Many insurers will cover well-managed, non-life-threatening conditions at slightly higher premiums. Always get quotes to see what’s available.

Veterans’ Mortgage Life Insurance (VMLI): Pays off the mortgage (up to $150,000–$200,000) for veterans with severe service-connected disabilities and a Specially Adapted Housing grant.

Coverage for Military Spouses and Dependents

Beem is a financial app that helps families manage money stress through tools like Safe-to-Spend, Everdraft, and Subscription Monitor. Beem also offers the Beem Life Benefit ($500 or $1,000 of no-exam life insurance) as a small, immediate-crisis protection layer during transitions when long-term coverage (VGLI or private) is being sorted out.

• Why spouse coverage matters: If your spouse dies, you’re facing lost income (if they work), childcare costs, funeral expenses, and the challenge of single parenting while still working or serving. $100,000 might cover one or two years—not the full adjustment period.
• Working spouses need more. A private $250K–$500K term policy ensures you have resources to hire childcare, take leave, and stabilize without immediate financial collapse.

Special Considerations for Combat and Deployment

SGLI’s combat coverage is unbeatable. It pays the full death benefit for combat deaths with zero exclusions—critical for active duty personnel.

Read the fine print carefully. Many private insurers include war, aviation, or hazardous duty exclusions that could deny claims for combat-related deaths. Some waive these for military members; others don’t. Always ask directly.

Update beneficiaries before deployment. Log into SGLI and any private policies to verify your spouse or chosen beneficiary is listed correctly. Many servicemembers set beneficiaries at enlistment and never update them—leading to legal battles if outdated beneficiaries (like parents when you’re now married) are still on file.

VA Life Insurance Programs for Service-Connected Disabilities

If you have a service-connected disability, you might qualify for additional life insurance through the VA. These programs are designed for veterans who might not be able to get private coverage due to their disabilities.

• Service-Disabled Veterans Insurance (S-DVI) provides up to $10,000 in coverage for veterans with service-connected disabilities. The premiums are based on your age and the standard mortality tables, not your disability, so the rates are often better than what you’d get from a private insurer if your condition is serious.
• Veterans’ Mortgage Life Insurance (VMLI) is available to veterans with severe service-connected disabilities who have received a Specially Adapted Housing grant. This program pays off your mortgage if you die, up to a maximum of around $150,000 to $200,000, depending on the year.

These programs won’t replace full income replacement coverage, but they can supplement other policies and provide some protection if private insurers won’t cover you.

What is Beem and Where Does This Fit

Beem is a financial app that helps families, including military families and veterans, manage everyday money stress. If you’re dealing with tight budgets, trying to figure out what you can afford, or juggling bills that don’t line up with your paycheck, Beem has tools that help.

Safe-to-Spend shows you what’s safe to spend after accounting for upcoming bills. Everdraft™ gives you instant cash to bridge short-term gaps without overdraft fees. Subscription Monitor finds recurring charges you forgot about and helps you cut the ones you don’t need. Download the app here.

Beem also offers Beem Life Benefit, which provides $500 or $1,000 in no-exam life insurance coverage as part of your subscription. It’s not a replacement for SGLI or VGLI, but it can serve a purpose during transitions. If you’re in that 120-day window after separation and you’re still figuring out whether to convert to VGLI or apply for private coverage, Beem Life Benefit can provide a small layer of immediate-crisis protection while you sort out your long-term plan.

Transitioning Out: Don’t Let Coverage Lapse

The biggest mistake veterans make is letting their SGLI coverage lapse without having a replacement in place. SGLI automatically terminates within 120 days of your separation date. If you don’t actively convert to VGLI or apply for private insurance before that deadline, you’ll have no coverage at all.

Set reminders as soon as you know your separation date. Apply for VGLI or start shopping for private term life at least 60 days before you separate. Don’t wait until the last minute. If you apply for private coverage and the underwriting process takes longer than expected, you could end up with a gap where you’re completely uninsured.

If you’re not sure which direction to go, apply for VGLI within the first 240 days just to have the option. You can always cancel it later if you find a better private policy. But once that window closes, your no-exam conversion option is gone.

Review Your Coverage Before and After Service

If you’re currently on active duty, pull up your SGLI information and check your beneficiaries. Make sure they’re current. If your family situation has changed since you enlisted, update your beneficiaries today. Then consider whether $500,000 is actually enough coverage for your family’s needs. If it’s not, get quotes for private supplemental term life insurance.

If you’re transitioning out of the military in the next six months, start comparing your options now. Get VGLI premium quotes and compare them to private term life quotes from at least three different insurers. See which option offers the best balance of coverage and cost. Apply before your SGLI terminates.

If you’re a veteran who converted to VGLI years ago, take a look at what you’re paying now and compare it to current private term life rates. If you’re healthy and your VGLI premiums have increased significantly, you might save money by switching to a private policy.

And if you’re a military spouse, make sure you have your own life insurance coverage. Don’t rely solely on FSGLI. Get a private term life policy that actually covers your contribution to the household, whether that’s income or labor.