SGLI: Servicemembers' Group Life Insurance
Every active-duty servicemember is automatically enrolled in Servicemembers' Group Life Insurance (SGLI) unless they opt out. Key facts:
- Maximum coverage: $500,000
- Premium: $25/month for the full $500,000 — regardless of age, rank, health status, or MOS/rate
- Additional coverage: $1/month per $10,000 unit (coverage adjustable in $50K increments down to $50K)
- Traumatic SGLI (TSGLI): Provides short-term financial support for servicemembers suffering severe injuries — covers limb loss, blindness, and other traumatic outcomes
- Spouse coverage (FSGLI): Up to $100,000 for spousal coverage, dependent children covered for $10,000 at no cost
SGLI is one of the best insurance values available anywhere — $25/month for $500K of coverage. If you're active duty and haven't maximized your SGLI coverage, do it immediately.
VGLI: Veterans' Group Life Insurance After Separation
When you separate from active duty, your SGLI coverage ends. You have a 1-year and 120-day window to convert to Veterans' Group Life Insurance (VGLI) — no medical exam required regardless of your health status if you apply within the first 240 days. After 240 days, you must pass a health questionnaire.
VGLI rates increase by age group and are considerably more expensive than SGLI. Here's a VGLI monthly rate table:
| Age Group | $100,000 | $200,000 | $300,000 | $400,000 | $500,000 |
|---|---|---|---|---|---|
| Under 30 | $8 | $16 | $24 | $32 | $40 |
| 30–34 | $9 | $18 | $27 | $36 | $45 |
| 35–39 | $13 | $26 | $39 | $52 | $65 |
| 40–44 | $19 | $38 | $57 | $76 | $95 |
| 45–49 | $29 | $58 | $87 | $116 | $145 |
| 50–54 | $43 | $86 | $129 | $172 | $215 |
| 55–59 | $64 | $128 | $192 | $256 | $320 |
| 60–64 | $93 | $186 | $279 | $372 | $465 |
VGLI vs. Private Term Insurance: Rate Comparison
For veterans under 40 in good health, private term insurance is almost always significantly cheaper than VGLI. Here's a side-by-side for a $500,000 20-year term, non-smoker male in Preferred health:
| Age | VGLI Monthly (500K) | Private Term Monthly (500K) | Annual Savings with Private |
|---|---|---|---|
| 30 | $45 | $22 | $276 |
| 35 | $65 | $28 | $444 |
| 40 | $95 | $46 | $588 |
| 45 | $145 | $80 | $780 |
VGLI has one major advantage: no exam required, making it valuable for veterans with service-connected conditions like PTSD, TBI, or physical disabilities that might impair their ability to get private coverage. But for healthy veterans, the savings from private insurance are substantial.
Combat Exclusions: The Truth
A common myth is that private life insurance won't pay if you die in combat. This is false for the vast majority of policies. Most major private life insurers do not exclude war/combat deaths for individual policies issued to civilians and veterans. The combat exclusion primarily applies to group policies issued directly to military units and is not typical for individual term policies issued through a broker or agent. Always read your specific policy contract, but Banner Life, Protective, Pacific Life, and Lincoln Financial do not have combat exclusions on their standard individual term policies.
PTSD, TBI, and Mental Health Underwriting
Veterans with PTSD, traumatic brain injury (TBI), or mental health history face more scrutiny during underwriting, but coverage is still available at most carriers. Key points:
- PTSD: Most carriers want 2–3 years of stable treatment with no hospitalizations or medication changes. Mild-to-moderate PTSD managed with therapy or medication typically qualifies for Standard to Standard Plus.
- TBI: Mild TBI (concussions) with full recovery typically won't affect your rate. Moderate-to-severe TBI with ongoing cognitive symptoms will result in higher rates or possible decline.
- Most lenient carriers for veterans with mental health history: Banner Life, Protective Life, and Principal Financial have reputations for favorable underwriting on controlled PTSD cases.
- Agent strategy: Always use an independent broker who can shop multiple carriers simultaneously — underwriting guidelines vary widely.
Deployment and Hazardous Duty Considerations
If you're active duty at time of application, some carriers will add a war/aviation exclusion rider during underwriting. This rider would exclude payment if death occurred in a war zone or military aircraft. This is different from the combat exclusion myth — the rider is attached at underwriting and will be specified in your policy. Always disclose your military status and deployment history. Some carriers are more favorable than others for active-duty applicants; AAFMAA and Navy Mutual specialize in military life insurance with no war exclusion riders.
Best Life Insurance Carriers for Military Members and Veterans
| Carrier | Type | Why Best for Military |
|---|---|---|
| Banner Life (Legal & General) | Private Term | No combat exclusion, lenient PTSD underwriting, competitive rates |
| Protective Life | Private Term/GUL | Strong rates for veterans, no war exclusion on standard term |
| Pacific Life | Term/GUL/IUL | Favorable underwriting for veterans with controlled health conditions |
| AAFMAA | Military Specialty | Association for Army — no war exclusion, serves active duty and veterans |
| Navy Mutual Aid Association | Military Specialty | Non-profit, no war exclusion, serves all military branches (not just Navy) |