Hey everyone, my older brother is in the army and we've been discussing various aspects of his financial planning. One thing that came up was life insurance. He's not really sure about the details, can anyone provide some insight on life insurance for someone in the military? Appreciate any help you can offer!
It's a thoughtful question. For a member of the military like your brother, life insurance is something to consider, and there are some unique options available. The primary form of life insurance that military personnel often opt for is Servicemembers' Group Life Insurance (SGLI).
Servicemembers' Group Life Insurance is a low-cost life insurance program for servicemembers. The coverage amount can be up to $400,000, and premiums are deducted directly from the servicemember's pay. For total coverage, as of early 2024, the monthly premium is $31, regardless of the person's age or health status, making it quite cost-effective. One important note is that SGLI coverage expires 120 days after separation from service, but it can be extended if the servicemember is disabled at separation.
Another insurance option servicemembers can consider is Veterans' Group Life Insurance (VGLI), which is a similar policy that they can transition to after leaving the military. One important note about VGLI is that servicemembers have one year and 120 days from their separation date to apply. However, if they apply within 240 days from separation, they won't need to prove that they're in good health. So, it may be advantageous to apply as early as possible.
Lastly, though SGLI and VGLI are valuable resources, they may not be the only life insurance your brother needs, depending on his circumstances. If your brother has dependents, a mortgage, or other financial obligations, he might want to consider additional private life insurance.
All these aspects should be considered carefully, and it might be beneficial to consult with a financial planner or insurance expert to discuss them in more detail. It's important to remember that everyone's needs and circumstances differ so what works for one person might not for another.
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