Life Insurance Options for Service Members and Veterans in 2025
As of early March 2025, service members have several life insurance options to consider, each with its own set of benefits and eligibility requirements. Making informed decisions about these programs is essential to securing the financial future of military families. Here’s a guide to the key programs:
Servicemembers’ Group Life Insurance (SGLI)
All service members are automatically enrolled in Servicemembers’ Group Life Insurance (SGLI) with $500,000 in coverage, although they have the option to decline or reduce this amount. Currently, about 2 million active duty, reserve, and National Guard members are covered under SGLI.
The monthly premium for SGLI is deducted from service members’ paychecks. A significant change is coming in Spring 2025: the SGLI premium will decrease from $31 to $26 per month. This reduction does not require any action from the service member; it will update automatically.
The rate change translates to 5 cents per $1,000 of insurance coverage. The monthly premium includes $1 for Traumatic Injury Protection coverage (TSGLI).
SGLI coverage is available in increments of $50,000. The premium is constant, regardless of the service member’s age or other factors.
Those who wish to decline or decrease their SGLI coverage can use the SGLI Online Enrollment System. Reservists with part-time SGLI coverage who want to adjust their policies should use Form SGLV 8286 and submit it to their personnel office.
Family SGLI
For the estimated 870,000 active-duty spouses covered by the Family SGLI program, premiums will also decrease between 11% and 22%, depending on the spouse’s age, with an average discount of 13%. Dependent children receive $10,000 worth of coverage at no cost.
Veterans’ Group Life Insurance (VGLI)
Veterans with existing insurance under the Veterans’ Group Life Insurance (VGLI) program will also see a decrease in their premiums in the spring of 2025. These premium reductions will range from 2% to 17%, correlated to the veteran’s age, with an average decrease of approximately 11%. Around 450,000 veterans are insured under VGLI.
It is important to note that there are time limits for purchasing VGLI policies after leaving the service. Therefore, troops should perform cost comparisons before separating from the military. SGLI coverage does not automatically transfer to the VGLI, and VGLI tends to be more expensive than SGLI.
VALife
In 2023, the Department of Veterans Affairs introduced a new life insurance program called VALife, designed to expand life insurance options for veterans with service-connected disabilities. It is available to veterans aged 80 and younger who have a VA service-connected disability rating, regardless of the rating’s percentage (even 0%).
There is no time limit to apply for VALife after receiving the disability rating.
Veterans can secure up to $40,000 in whole life insurance coverage in $10,000 increments. The policy builds cash value from two years after the VA approves the application.
The amount of the monthly premium depends on the veteran’s age at the time of application as well as the amount of coverage. Importantly, the premium will remain constant as long as the veteran maintains the VALife policy.
For example, a veteran who is 18 when applying for the policy will pay $43.60 per month for the maximum $40,000 coverage. A veteran of 41 will pay $91.20 monthly for the same maximum coverage.
Additional Resources
More information on VA life insurance options can be found on the VA website.
