Life Insurance Coverage for U.S. Military Personnel in 2017

Coverage Overview for 2017

In 2017, all active‑deployed U.S. military members received a base life insurance policy of $40,000 through the Servicemembers' Group Life Insurance (SGLI) program. This policy is automatically enrolled and costs a fixed premium based on service status, not income.

Premium Structure and Eligibility

Premiums for the $40,000 base policy were set at a flat rate of $3.92 per month for active‑deployed personnel. Reserve members and those with dependents could elect to purchase additional coverage, but the base amount remained $40,000. Eligibility required active deployment and a valid service ID; no medical exam was necessary for the base policy.

Optional Riders and Supplemental Insurance

Service members could add the SGLI Riders: a $200,000 additional death benefit and a $50,000 accidental death benefit. The $200,000 rider cost $4.90 monthly, while the $50,000 accidental rider cost $3.29 monthly. These riders were optional and required a separate application. The accidental rider covered accidental death or dismemberment, while the additional death benefit provided a larger lump sum to beneficiaries.

Comparing SGLI to Private Insurance

Private life insurance policies could offer higher coverage but required a medical exam and could be more expensive. For many service members, SGLI's low cost and automatic enrollment made it a practical baseline, though those with families or higher financial obligations often purchased supplemental private policies to exceed the $40,000 base.

How to Increase Coverage

To raise coverage beyond the base policy, members could purchase the $200,000 rider or explore private insurers. Private policies could range from $100,000 to $5 million, depending on health and age. Some private insurers offer military discounts, but rates vary by provider and coverage level.

Key Takeaways

• Base SGLI coverage: $40,000 for all active‑deployed personnel.
• Optional riders: $200,000 additional death benefit ($4.90/month) and $50,000 accidental death benefit ($3.29/month).
• Premiums are fixed and do not depend on income or health.
• Supplemental private insurance is available for higher coverage needs.