If you have Service Members Group Life Insurance (SGLI) coverage, you typically pay a monthly premium that is automatically deducted from your base salary. According to Veteran Affairs, the average SGLI cost is 6 cents for every $1,000 of coverage. The coverage options include:

• $400,000 of coverage for $24 per month
• $350,000 of coverage for $21 per month
• $300,000 of coverage for $18 per month
• $250,000 of coverage for $15 per month
• $200,000 of coverage for $12 per month
• $150,000 of coverage for $9 per month
• $100,000 of coverage for $6 per month
• $50,000 of coverage for $3 per month

Included in SGLI is Traumatic Injury Protection (TSGLI), which adds one dollar to your monthly premium regardless of which coverage you’ve selected. Unless you opt out, you are automatically covered by SGLI for a maximum of $400,000 in coverage. So, for most people, SGLI costs $25 per month. 

Is SGLI Worth It If I Have No Dependents?

If you’re a servicemember who is single and you have children, you may wonder if it would be wiser to opt out of SGLI or reduce your coverage amount to save money. The answer is: Yes, the SGLI cost is worth it. If you decide to receive or increase coverage later, you’ll have to apply — and you aren’t guaranteed to be approved if your health changes.

By declining/reducing SGLI, you also decline/reduce the different kinds of coverage that fall under it, which are:

• Family SGLI, which covers your (future) spouse and dependent children. If your spouse isn’t in good health, they may not be able to get coverage.
• Traumatic Injury SGLI, which would provide you short-term financial support as you recover from a severe injury.

Does SGLI Coverage Offer Enough Protection?

Though the SGLI cost is attractive, $400,000 in coverage is not enough for many military families, especially if the sole breadwinner is a servicemember. Many choose to have an additional life insurance policy to fill the gaps left by SGLI.

Work with AAFMAA’s Military Life Insurance Experts

In summary, SGLI’s cost is low but its benefits are high. AAFMAA’s Life Insurance policies are designed to take those benefits even higher, ensuring your family’s future is protected.

To learn more, contact the Life Insurance team at 866-533-0521.