Military Life Insurance Death Benefits

As a servicemember in the military, you and your family face a unique set of challenges, including the risk of injury or death during service. While it can be difficult to plan for the worst-case scenario, it’s important to understand the various life insurance options available to you and your family in the event of your death. In this article, we’ll explore the basics of military life insurance death benefits, including who is eligible, the types of coverage available, and how to apply for coverage.

Who is Eligible for Military Life Insurance Death Benefits?

Most servicemembers in the military are automatically enrolled in the Servicemembers’ Group Life Insurance (SGLI) program, which provides life insurance coverage to active-duty, reserve, and National Guard members. To be eligible for SGLI coverage, you must be a member of the military and under age 60. In addition to SGLI, there are other life insurance options available to military members and their families, including Veterans’ Group Life Insurance (VGLI) and Family Servicemembers’ Group Life Insurance (FSGLI).

Servicemembers’ Group Life Insurance (SGLI)

SGLI is a low-cost group life insurance program that provides coverage to eligible servicemembers in the military. The program offers up to $400,000 in coverage, with premiums deducted from your paycheck. In the event of your death, your beneficiaries will receive the amount of coverage you selected. SGLI coverage is automatic for most military members, but you can decline coverage or change your coverage amount at any time.

There are a few exceptions to SGLI eligibility. For example, if you are a member of the Coast Guard or a Reserve Officer Training Corps (ROTC) cadet, you may not be eligible for SGLI coverage. Additionally, if you are a member of the National Guard or Reserves, you may only be eligible for SGLI coverage while you are on active duty. If you are not eligible for SGLI coverage, you may still be able to apply for other types of life insurance through the military or a private insurer.

Veterans’ Group Life Insurance (VGLI)

VGLI is a life insurance program that provides coverage to veterans who were enrolled in SGLI and are no longer serving in the military. When you leave the military, you have the option to convert your SGLI coverage to VGLI coverage, which can provide up to $400,000 in coverage. The cost of VGLI premiums is based on your age and the amount of coverage you select. You can apply for VGLI coverage within 1 year and 120 days after your separation from the military.

Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI is a life insurance program that provides coverage to eligible family members of servicemembers in the military. If you are eligible for SGLI coverage, you may also be eligible for FSGLI coverage for your spouse and dependent children. The amount of coverage available through FSGLI varies depending on your status and the status of your dependents. Premiums for FSGLI coverage are deducted from your paycheck, and the cost of coverage is based on the amount of coverage you select and the ages of your dependents.

Types of Military Life Insurance Death Benefits

In addition to the life insurance programs discussed above, there are several other types of military life insurance death benefits available to eligible servicemembers and their families. These include:

Death Gratuity

The Death Gratuity is a one-time payment of $100,000 that is paid to the designated beneficiary of a servicemember who dies while on active duty or within 120 days of separation from active duty. The Death Gratuity is tax-free and is intended to help the family of the deceased cover immediate expenses.

Survivor Benefits Plan (SBP)

The Survivor Benefits Plan (SBP) is a life insurance program that provides a monthly payment to eligible beneficiaries in the event of a servicemember’s death. SBP coverage is available to retired servicemembers and, in some cases, to active-duty or reserve members who have elected to participate in the program. The monthly payment provided by SBP is based on a percentage of the servicemember’s retirement pay.

Dependency and Indemnity Compensation (DIC)

Dependency and Indemnity Compensation (DIC) is a tax-free payment made to eligible survivors of a servicemember who dies while on active duty or as a result of service-connected disabilities. DIC is available to surviving spouses, children, and parents of the deceased servicemember.

How to Apply for Military Life Insurance Death Benefits

If you are eligible for military life insurance death benefits, you can apply for coverage through the appropriate program or through a private insurer. To apply for SGLI or FSGLI coverage, you will need to complete a form through your military service branch. To apply for VGLI coverage, you will need to complete an application through the Department of Veterans Affairs. To apply for SBP coverage, you will need to complete the appropriate form through your military service branch. To apply for DIC, you will need to complete an application through the Department of Veterans Affairs.

FAQ

Overall, it’s important to understand the various life insurance options available to you and your family as a servicemember in the military. By taking the time to review your coverage options and ensuring that you have adequate life insurance in place, you can provide peace of mind for your loved ones and ensure that they are taken care of in the event of your death.