Ensuring financial security for military families is crucial, and the Family Servicemembers’ Group Life Insurance (FSGLI) program plays a vital role. Designed to provide peace of mind to service members, FSGLI offers affordable life insurance coverage to support loved ones in the event of tragedy.
In this article, we explore the features and benefits of Family Servicemembers’ Group Life Insurance (FSGLI), including its significance in safeguarding the welfare of military families.
What is FSGLI?
FSGLI is a life insurance program for spouses and dependent children of active duty service members covered under the Servicemembers’ Group Life Insurance (SGLI) program.
FSGLI premiums can range from less than a dollar to over $40 per month, depending on the insured’s age and the coverage amount selected for the plan. Premiums are automatically deducted from the service member’s pay each month.
Who is Eligible for Family Servicemembers’ Group Life Insurance?
Eligibility for FSGLI is tied to the Servicemembers’ Group Life Insurance (SGLI) coverage of an active duty service member. If a service member is eligible for SGLI, their spouse and dependent children are automatically eligible for FSGLI coverage. However, the service member must be enrolled in SGLI to add family members to FSGLI. Typically, service members are automatically covered by SGLI unless they opt out.
Specific details and regulations may vary, so individuals should refer to their respective military branches or authorities for the most accurate and up-to-date information.
How much Coverage can I Get With FSGLI?
The coverage amount available through FSGLI is equal to the service member’s coverage amount under SGLI. Currently, the maximum amount of coverage offered for full-time SGLI is $500,000, which is the default amount that service members are automatically enrolled with.
However, service members may opt for a lesser amount of coverage under SGLI, in which case the maximum coverage amount for FSGLI would be a more relevant consideration.
FSGLI for Civilian Spouses
Spousal coverage under FSGLI is not automatic; they can be insured for up to $100,000, but they must apply for the coverage. Again, FSGLI spouse coverage can be up to the amount of SGLI coverage the service member has, but cannot exceed $100,000. The monthly premium for spousal coverage under FSGLI is automatically deducted from the service member’s pay.
FSGLI for Dependent Children
Dependent children are automatically covered by FSGLI at no additional cost, with this free coverage set at $10,000. Service members can elect lesser amounts of coverage or decline coverage altogether for themselves or their dependent children.
How to Obtain FSGLI Coverage
To enroll in FSGLI, service members must log into milConnect and submit the necessary forms to their branch of service. Service members can enroll in FSGLI when they initially apply for SGLI, during open enrollment periods, or after experiencing specific life events, such as marriage or the birth of a child.
Dependent children are automatically enrolled, but service members must specify whether or not they would like to add their spouse, as well as obtain their spouse’s consent.
Service members can manage their FSGLI coverage through their branch’s personnel office or online through the Defense Enrollment Eligibility Reporting System (DEERS). This includes updating beneficiaries and coverage amounts.
For more information on obtaining FSGLI coverage, visit milConnect.
Other Life Insurance Options
Service members who retire from the military can convert their Servicemembers’ Group Life Insurance (SGLI) to VGLI or to a commercial life insurance policy with a carrier like American Fidelity Life Insurance.
A Family Servicemembers’ Group Life Insurance (FSGLI) policy can be converted to a commercial life insurance policy, but it cannot be converted to VGLI, which is reserved only for retiring service members rather than their family members.
Veterans’ Group Life Insurance (VGLI)
Veterans’ Group Life Insurance (VGLI) is a program offered by the Department of Veterans Affairs (VA).
VGLI allows veterans to convert their SGLI coverage to a renewable term life insurance policy upon leaving the military without a medical exam, regardless of health changes or age. It offers coverage up to the amount of SGLI the veteran had at the time of separation. The monthly premiums for VGLI are based on the age of the insured veteran, and these insurance payments will increase in cost over time.
However, it’s important to note that only veterans are eligible for VGLI coverage: a civilian spouse covered by FSGLI would not be eligible for VGLI, nor would any dependent children.
Commercial Life Insurance
Commercial life insurance is purchased through private insurance companies. It allows you to customize your coverage based on your specific needs, and you have more flexibility in choosing the coverage amount and policy terms.
Like a service member’s SGLI coverage, FSGLI insurance coverage will expire shortly after the retiring service member’s separation date. So, family members covered under FSGLI must either convert their policies to commercial life insurance at this point.
However, a service member’s spouse might opt for a commercial life insurance policy over FSGLI even before the active duty service member retires or loses their full-time SGLI coverage. Reasons for doing so include higher coverage limits, more customizable options, additional features like cash value accumulation, the potential for lower premium payments, and portability beyond military service.
Convert FSGLI Coverage to Commercial Life Insurance
AmFi is one of the few commercial companies approved by the VA to convert FSGLI policies to commercial life insurance policies. To convert your FSGLI to a commercial life insurance policy, follow these steps:
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Upon leaving the military, explore options for civilian life insurance.
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Look into private life insurance companies for coverage options suited to your needs.
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Choose a provider, complete the application process, and provide the necessary documentation, such as a service member’s separation document, a service member’s proof of SGLI, or a service member’s SGLI declination.
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The insurance company will review your application, and upon approval, your coverage becomes effective.
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Once your civilian life insurance is in place, cancel any military-related policies you no longer need using milConnect’s SGLI Online Enrollment System (SOES)
Term Life Insurance vs Permanent Life Insurance
Commercial term life insurance coverage offers the same basic life insurance protection in the form of a death benefit as Family Servicemember’s Group Life Insurance (FSGLI), SGLI, or VGLI, which are all also considered forms of term life insurance.
Permanent life insurance is a different category of life insurance policies that offer a death benefit in addition to living benefits like a cash accumulation fund. They also provide lifelong coverage, so the death benefit would get paid out regardless of how old the insured is when they die, as long as the monthly premiums for the policies continue to be paid.
There are two main forms of permanent life insurance: whole life insurance and universal life insurance. They share many similarities, with the main difference being that universal life insurance policies offer more flexibility in terms of monthly premiums and coverage amount.
When Should I Consider Switching From FSGLI?
Although FSGLI is a convenient life insurance solution, it may not always be the best option. When choosing between FSGLI and other life insurance, consider the following:
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Customized Coverage: FSGLI coverage may not be sufficient for specific financial needs, and individuals might seek a commercial life insurance policy to tailor coverage amounts and terms to better meet their requirements.
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Post-Military Transition: As service members transition to civilian life, they lose their SGLI and FSGLI coverage. If they want to continue insuring their spouse and dependents, they must switch to a commercial policy.
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Investment Component: Commercial life insurance policies, especially permanent life insurance, offer a cash value component that can grow over time, providing a potential long-term investment, unlike the term-based structure of FSGLI.
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Flexibility and Options: Private life insurance policies often offer more flexibility, allowing policyholders to choose from various types of coverage, riders, and benefit options, providing a more personalized approach than standard FSGLI coverage.
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Affordability Over Time: Term life insurance may be more cost-effective than FSGLI, making it an attractive option for those seeking affordable coverage. FSGLI, while competitively priced, may not offer the same cost-effectiveness over the long term.
AmFi Life Permanent Life Insurance Coverage
Permanent life insurance offers lifelong coverage and includes a cash value component that grows over time. While it tends to be more expensive than FSGLI, the benefits include lifelong protection, potential cash value growth, and the ability to borrow against the policy in certain circumstances.
Our universal life insurance policies are designed to offer peace of mind, ensuring your loved ones are financially protected throughout life’s journeys.
Contact us today to explore the options we provide to secure your future, knowing that with American Fidelity Life Insurance, you can trust in a comprehensive approach to safeguarding what matters most.
