When you’re serving in the National Guard, life insurance isn’t just a benefit—it’s a crucial layer of financial protection for you and your loved ones. Whether you’re deployed overseas or fulfilling duties at home, it’s essential to know what coverage options are available to safeguard your family’s future. In this blog, we’ll explore the life insurance plans tailored specifically for National Guard members, including the benefits, eligibility, and which might be best for your unique situation.
Why is Life Insurance Important for National Guard Members?
Life insurance is important for National Guard members because it provides financial security for their families in the event of an unexpected tragedy. Serving in the National Guard comes with unique risks, and having life insurance ensures that loved ones are protected from financial burdens, such as funeral expenses, debts, and loss of income. It offers peace of mind, knowing that, whether deployed or fulfilling duties at home, their family’s future is safeguarded, allowing service members to focus on their responsibilities without worrying about what could happen if the worst occurs.
Servicemembers' Group Life Insurance (SGLI) for National Guard
Servicemembers’ Group Life Insurance (SGLI) is the most common life insurance option available to National Guard members. Let’s take a closer look at what SGLI is, its eligibility requirements, and the benefits it provides.
What is SGLI?
SGLI is a low-cost group life insurance program designed specifically for active-duty military personnel, including members of the National Guard and Reserve. Eligibility for SGLI extends to all full-time National Guard members, as well as those in active-duty status or assigned to a Ready Reserve unit. National Guard members are automatically enrolled in the program when they begin service.
One of the main benefits of SGLI is its affordability and flexibility. Premiums are deducted directly from paychecks, making it a convenient and hassle-free option. It also offers the option to convert coverage to a civilian policy through the Veterans’ Group Life Insurance (VGLI) program, ensuring continued protection after leaving service.
Another key benefit of SGLI is the ability to add coverage for family members through the Family SGLI (FSGLI) program. This extension provides life insurance protection for spouses and dependent children at competitive rates, giving service members peace of mind knowing their entire family is financially protected in the event of an unexpected tragedy.
SGLI Coverage Options and Limits
SGLI allows National Guard members to select the level of protection that fits their needs. Coverage is available in $50,000 increments, with the maximum limit set at $500,000. Members are automatically enrolled for the maximum coverage but can choose to reduce their coverage to a lower amount or opt out entirely, depending on their personal financial situation.
In addition to the basic life insurance coverage, SGLI includes Traumatic Injury Protection (TSGLI), which provides financial support in the event of severe injuries sustained during service. This benefit offers lump-sum payments based on the severity of the injury, helping cover medical costs or other expenses during recovery.
State Sponsored Life Insurance (SSLI) for National Guard
State Sponsored Life Insurance (SSLI) is a supplemental life insurance option for National Guard members. We’ve broken down what it covers and its benefits below.
What is SSLI?
SSLI is a supplemental life insurance program specifically designed for National Guard members, offered through individual state National Guard associations. Its primary purpose is to provide additional coverage beyond what Servicemembers’ Group Life Insurance (SGLI) offers, ensuring members have access to a more comprehensive financial safety net. SSLI is particularly beneficial for those who want to increase their life insurance protection to safeguard their family’s future in the event of a tragedy. One of the key advantages of SSLI is its flexibility, as it allows service members to maintain coverage even after they retire or separate from the National Guard. It’s also relatively affordable, making it a cost-effective way to supplement existing life insurance options. Coverage typically includes:
- Death Benefits: Provides financial support to designated beneficiaries in the event of the service member’s death, ensuring their family’s financial security.
- Accidental Death and Dismemberment: Offers additional compensation in the event of accidental death or serious injury, such as loss of limbs or vision.
- Supplemental Coverage: Enhances the total life insurance coverage amount when combined with SGLI, offering more extensive protection.
SSLI Eligibility
SSLI is available exclusively to National Guard members, both current and retired, as well as their families. SSLI is an excellent option for those who already have SGLI but want additional life insurance coverage to ensure their family’s financial security. It’s also ideal for National Guard members who plan to retire or separate from service, as SSLI coverage can continue after leaving the Guard.
Transitioning to Veterans' Group Life Insurance (VGLI)
Once National Guard members leave the service, their SGLI coverage will cease. If they want to continue coverage, they can convert their SGLI policy to a Veterans’ Group Life Insurance (VGLI) policy or a commercial life insurance policy with a private insurer like American Fidelity.
What is VGLI?
VGLI is a life insurance program specifically designed for former National Guard members and other military personnel who are transitioning to civilian life. Its purpose is to provide continued life insurance coverage after separating from service, ensuring that veterans can maintain financial protection for their families without experiencing a gap in coverage or undergoing a medical exam.
VGLI premiums are based on age, and veterans cannot be rejected due to medical issues as long as they apply within the required timeframe.
VGLI Eligibility and Enrollment
To qualify for VGLI, veterans must have had SGLI, and they must apply for VGLI within one year and 120 days (485 days) after leaving the National Guard or active duty. However, to skip a medical examination, members must apply within 240 days (about eight months) of separation. To enroll, veterans must submit an application through the Department of Veterans Affairs (VA) online or by mail.
VGLI is best suited for veterans with pre-existing health conditions who wish to continue coverage after leaving the service. It’s also ideal for those seeking long-term, affordable coverage that allows them to adjust their coverage as they age.
Commercial National Guard Life Insurance Policies
Commercial life insurance policies, such as those offered by AmFi, provide an alternative to military-specific plans like SGLI, VGLI, and SSLI. While SGLI and VGLI are group policies with preset terms and coverage limits, commercial policies give more flexibility in terms of coverage and policy types. With AmFi, National Guard members and veterans can choose between term life insurance, which provides coverage for a specific period (usually 10, 20, or 30 years), or permanent life insurance, which offers lifelong protection with added benefits like cash value accumulation that can be accessed during the insured’s lifetime.
Why You Should Consider a Commercial National Guard Life Insurance Policy
One of the main advantages of commercial life insurance policies is the ability to customize coverage to meet individual needs beyond what military-specific policies like SGLI or VGLI offer. With a wider range of policy types and coverage amounts, commercial insurers offer tailored solutions that can be adjusted to fit long-term financial goals and changing needs. Additionally, commercial life insurance allows individuals to shop around for policies that fit their budget, offering greater control over their life insurance planning than group military policies.
Commercial life insurance policies are ideal for veterans, National Guard members, and their families who want to tailor their policy to specific financial goals, such as protecting their family during key life stages or building long-term wealth with permanent coverage.
Conclusion
National Guard members and veterans have several life insurance options to choose from, each with its own benefits. Whether you opt for SGLI, VGLI, SSLI, or a commercial policy, it’s essential to ensure your family’s financial future is secure.
Ready to discover a policy that works for you? Get a personalized life insurance quote from AmFi today and secure peace of mind for your future.
National Guard Life Insurance FAQs
Do National Guard members have life insurance?
Yes, National Guard members are enrolled in Servicemembers’ Group Life Insurance (SGLI) when they enter service. However, this coverage ends when they leave service.
Does the National Guard qualify you as a veteran?
Yes, having served in the National Guard qualifies you as a veteran and makes you eligible for benefits through the Department of Veterans Affairs (VA), such as Veterans’ Group Life Insurance (VGLI).
Can I insure my spouse and children through the National Guard?
Yes, National Guard members can insure their spouse and children through the Family Servicemembers’ Group Life Insurance (FSGLI) program. However, your coverage options may be more limited than they would be through a commercial life insurance policy.
Why should I consider life insurance in the National Guard?
National Guard members should consider life insurance because it provides financial security for your family in the event of an unexpected tragedy during your service. It ensures your loved ones are protected from financial burdens, such as funeral costs and loss of income, giving you peace of mind while you serve.
