Understanding the Benefits of SGLI vs. Private Life Insurance

Choosing the right life insurance coverage is a big decision — one that depends on a variety of factors, including your individual circumstances, financial goals, and the level of coverage you require. Below, you’ll find what you need to understand about both Servicemembers’ Group Life Insurance (SGLI) and private life insurance.  

What to Know About SGLI  

As an active-duty military servicemember, you are automatically enrolled to purchase $500,000 of SGLI coverage, with the option to reduce the amount or decline coverage entirely. SGLI is a great way for servicemembers to secure affordable life insurance with basic coverage. 

SGLI: Servicemembers’ Group Life Insurance  

• Provides up to $500,000 of life insurance  
• Required in order to receive TSGLI or FSGLI (see below) 
• Coverage ends 120 days after you leave service. 

Current servicemembers are also automatically enrolled in the following (pending any personal selections or decisions you’ve already made): 

TSGLI: Traumatic SGLI  

• Costs $1/month to provide up to $100,000 in the event that the servicemember suffers a traumatic injury, including loss of limb, sight, or other trauma 

FSGLI: Family SGLI  

• Provides up to $100,000 of coverage on military spouses  
• Costs rise as spouses age 
• Includes $10,000 coverage for each child at no cost until the child is 18 years old or meets specific requirements  

The Benefits of Private Life Insurance  

Some current servicemembers in good health may think that SGLI is sufficient, but it may not be enough to support their family if something happened to them. So, many opt to supplement SGLI with private insurance, which can offer comprehensive coverage with competitive rates and benefits. This option is great for those who:  

• Are planning for the long term 
• Need more coverage for daily living expenses, a mortgage, or college tuition 
• Want more flexible protection once they leave the military  

AAFMAA provides level term insurance for the American Armed Forces, with:  

• $50,000-$800,000 of coverage 
• Premiums that never increase 
• And — unlike SGLI — its protection that stays with you after you leave the military  

As an AAFMAA Member, you can secure life insurance coverage for any of your direct family members as well, no matter their age, even if they are not in the military. Most importantly, Membership benefits, include: 

• Access to AAFMAA’s Learning Hub for guidance from subject matter experts on topics related to the military community 
• Your own secure, online Digital Vault to store essential documents with 24/7 access 
• Exclusive Survivor Assistance Services, which provide the Member’s family with guidance and support to claim military and other benefits of a lost servicemember  

We Can Help 

When it comes to deciding what life insurance coverage is right for you and your family, it’s important to explore your options to ensure you’re getting the best value for your money. AAFMAA offers several life insurance policy options to help meet your specific needs at a price you can afford. To learn more, contact an AAFMAA Membership Coordinator at 877-398-2263 or visit aafmaa.com/getaquote. 

The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.  Photo by Cpl. Tyler Wilson. U.S. Marine Corps Capt. Will Thomas, a joint terminal attack controller with Marine Rotational Force-Southeast Asia, participates in an amphibious planning subject matter expert exchange during exercise Cooperation Afloat Readiness and Training Malaysia 2024 on Lumut Naval Base, Lumut, Malaysia, Oct. 31, 2024. Courtesy photo.