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 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 servicemembers 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 servicemember’s age and the coverage amount selected for the plan. Premiums are automatically deducted from the servicemember’s pay each month.
Who is eligible for FSGLI?
Eligibility for FSGLI is tied to the SGLI coverage of a service member. If a service member is eligible for SGLI, their spouse and dependent children are automatically eligible for FSGLI coverage. However, the servicemember must be enrolled in SGLI to add family members to FSGLI. 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, typically up to $400,000. The coverage amount for spouses is not automatic; they can be insured for up to $100,000, but they must apply for the coverage. For dependent children, the coverage is automatic, offered at no additional cost, and set at $10,000. Service members can elect lesser amounts of coverage or decline coverage altogether for themselves or their dependents.
How to obtain FSGLI coverage
To enroll in FSGLI, servicemembers must log into milConnect and submit the necessary forms to their branch of service. Servicemembers 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 servicemembers 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.
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 insurances, consider the following:
- 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.
- 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.
- 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.
- 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.
- 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.
What are my alternatives to FSGLI?
When service members are no longer eligible for FSGLI, they have 2 options available to them: commercial life insurance and VGLI. 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. Individuals might opt for a commercial life insurance policy over FSGLI for reasons such as higher coverage limits, more customizable options, additional features like cash value accumulation, the potential for lower premiums, and portability beyond military service.
Veterans’ Group Life Insurance (VGLI) is a program offered by the Department of Veterans Affairs (VA). It 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 provides coverage up to the amount of SGLI the veteran had at the time of separation. However, it’s important to note that only the veteran themself is eligible for VGLI coverage, not their spouses or dependents. In other words, FSGLI itself cannot be directly converted to VGLI, but it can be converted to a commercial life insurance policy.
Converting your FSGLI 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:
- Upon leaving the military, explore options for civilian life insurance.
- Look into private life insurance companies for coverage options suited to your needs.
- Choose a provider, complete the application process, and provide the necessary documentation.
- The insurance company will review your application, and upon approval, your coverage becomes effective.
- 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)
AmFi Life Permanent Life Insurance Coverage
Permanent life insurance offers lifelong coverage and includes a cash value component that grows over time, providing a savings or investment element. 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.
