Active-duty service members, Reservists and Guard members, eligible veterans and retirees are well covered by military insurance.
Whether it is life insurance, health insurance or dental insurance, each type of coverage comes with several different program options.
You can choose the one that offers the best combination of cost and benefits for you and your family.
Military Life Insurance
Military life insurance is one of the most important service benefits.
The obvious benefit is that life insurance provides benefits for your loved ones in the event of your death. But there is a bigger benefit many servicemembers aren’t aware of – many civilian life insurance policies preclude paying benefits if the cause of death is from an act of war. Some commercial life insurance policies also prohibit certain dangerous activities.
Life insurance purchased through the military will pay out if the member dies during an act of war, a terrorist act, or while participating in dangerous military activities.
However, only a select number of private life insurance organizations will do so. For that reason, life insurance needs to be specifically designed for military service members.
Fortunately, several plans are available.
Servicemembers’ Group Life Insurance (SGLI)
The Servicemembers’ Group Life Insurance (SGLI) program provides low-cost term life insurance to eligible service members.
If you’re eligible, you’re automatically entitled to the maximum benefit if you sign up for SGLI when you join the military. Once you sign up, your plan is in place at the coverage you select until you either change your policy or leave the military.
This is a group life insurance policy, with fixed premiums. This means the premiums are the same for everyone, regardless of age, health, medical conditions, or other factors. Your premiums will only change when they change for everyone.
Better yet, the military cannot take away your SGLI policy if something changes with your health or medical status. You can generally increase your coverage up to the limits without any issues, however, you may be required to undergo approval if something has changed with your health status. So it’s important to keep this in mind when setting your coverage limits.
You are automatically insured under full-time SGLI if you are one of the following:
- Active duty member of the Army, Navy, Air Force, Marines, or Coast Guard
- Commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS)
- Cadet or midshipman of the U.S. military academies
- Member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises
- Member of the Ready Reserve or National Guard and are scheduled to perform at least 12 periods of inactive training per year
- Servicemember who volunteers for a mobilization category in the Individual Ready Reserve (IRR)
The maximum coverage is $400,000, and it’s available in increments of $50,000. Once you leave the service, you’ll continue to be covered – free of charge – up to 120 days after your date of separation.
However, coverage can be extended for up to two years through the SGLI Disability Extension program if you’re totally disabled at separation.
Reserve members are eligible for part-time coverage if you don’t qualify for full-time coverage.
Members of the Ready Reserve or National Guard in non-pay status can still be covered by SGLI if you’re scheduled to perform at least 12 periods of inactive training per year and you’re drilling for points, rather than pay.
There is a monthly premium that’s automatically deducted from your base pay.
The basic SGLI premium is six cents per $1,000 of coverage and includes an additional $1 per month for Traumatic Injury Protection Coverage (see next section). Premium rates, effective July 1, 2019, are as follows:
|SGLI Coverage Amount||Monthly Premium Rate||TSGLI Premium||Total Monthly Premium Deduction|
As you can see from the above table, you can get $400,000 of term life insurance coverage for $25 per month, which is $300 per year.
Depending on your age and health, that could be substantially less than what you would pay for a similar amount of coverage through a civilian life insurance policy.
Converting SGLI to a commercial policy. Once you leave the service you’ll have the option to convert your policy to a commercial policy within 120 days of your separation date.
You’ll need to select which of the participating insurance companies you’ll get coverage through. You’ll then be subject to standard premium rates, which will most likely be higher than the premiums on your SGLI coverage.
However, you can make the conversion without needing to provide proof of good health.
You can also convert your SGLI policy to a Veterans Group Life Insurance (VGLI) Policy (more on this below).
SGLI Traumatic Injury Protection Program (TSGLI)
SGLI Traumatic Injury Protection Program (TSGLI) provides automatic traumatic injury coverage to all servicemembers who are covered under the SGLI program.
The purpose is to provide short-term financial assistance to those servicemembers and veterans who are severely injured, providing them with financial assistance while they are recovering from their injuries.
TSGLI covers combat injuries, but also injuries sustained on or off duty.
As is the case with SGLI, you’re automatically covered by TSGLI. Coverage is available for active duty members, reservists, National Guard members, funeral honors duty and one-day muster duty.
To be eligible to receive benefits from TSGLI you must meet all the following requirements:
- You must be covered by SGLI at the time you experience a traumatic injury.
- You must incur a scheduled loss, and that loss must be a direct result of a traumatic injury.
- You must have suffered the traumatic injury before midnight on the day that you separate from the uniform services.
- You must suffer a scheduled loss within two years (730 days) of the traumatic injury.
- You must survive for a period of not less than seven full days from the date of the traumatic injury.
Once again, the premium cost for TSGLI is $1 per month and is included with your monthly SGLI premium.
What TSGLI Covers
A covered loss is referred to as a “scheduled loss” and can result in a benefit of as much as $100,000. The Department of Veterans Affairs has a very long list of scheduled losses, some of which include:
- Loss of sight: $50,000 for each eye
- Loss of hearing: $25,000 for one ear, $100,000 for both
- Paralysis of all four limbs (quadriplegia): $100,000
- Complete paralysis of both lower limbs (paraplegia): $100,000
- Second-degree burns or worse to at least 20% of the body or at least 20% of the face: $100,000
- Amputation of a hand or foot: $50,000
Veterans Group Life Insurance (VGLI)
Veterans Group Life Insurance (VGLI) allows you to continue your military life insurance after you separate from service. It offers lifetime coverage, as long as you make your premium payments. Best of all, you do not need to provide proof of good health.
You can enroll for the maximum amount of coverage to the SGLI plan you had when you separated from service. You can also opt to take lower coverage in increments of $10,000.
You will also be able to increase your coverage by $25,000 on your anniversary and once every five years thereafter.
The increases can continue until you reach the maximum death benefit of $400,000 or until age 60. Once you separate from service, you will have one year and 120 days to apply for VGLI. If you apply within 240 days of separation, you will not need to answer health questions.
If you have any health conditions that might make you uninsurable, be sure to apply within 240 days.
Note: These deadlines were extended by 90 days due to the coronavirus pandemic for service members who applied for coverage from June 11, 2020 through Dec. 11, 2021. This means that you have one year and 210 days to apply for VGLI, and 330 days to apply without needing to answer health questions.
VGLI premium rates are standard and can be viewed on the VGLI premium rates page.
VGLI premium rates decreased as of April 1, 2021:
|Amount of Insurance||Age 29 and Below||Age 30-34||Age 35-39||Age 40-44||Age 45-49||Age 50-54||Age 55-59||Age 60-64||Age 65-69||Age 70-74||Age 75-79||Age 80 & Over|
As you can see from this table, VGLI is term coverage, and premiums adjust in five-year brackets. Note: the above table only provides a sample of the available options. VGLI is available in $10,000 increments; for space reasons, we only highlighted a few plans.
The primary benefits of VGLI are that you can maintain coverage for life and you can directly transfer your SGLI coverage to VGLI, even if you have medical conditions that may prevent you from purchasing life insurance elsewhere. This can only be done if you convert your SGLI policy directly upon leaving military service.
Pros of VGLI
VGLI can be a great way to seamlessly maintain life insurance coverage when you separate from the military. VGLI is also a good option for those who became ill or injured during their service and may not otherwise qualify for a commercial life insurance policy.
Cons of VGLI
On the other hand, VGLI can become very expensive as you age. Unlike SGLI, VGLI premiums are based on your age and increase significantly as you get older. Many people find that to afford the premiums, they need to decrease their coverage as they age.
Keep this in mind before you transition from the military. It is likely worth buying a term life insurance policy from a commercial company before leaving the military to lock in lower fixed premiums.
Military Health Care Insurance for Active Duty
The basic military health care plan is Tricare, and it comes in two basic forms, Tricare Prime and Tricare Select.
Tricare Prime is for active-duty service members and their families. Active-duty service members are automatically enrolled in the program.
The program has few out-of-pocket costs and has fewer provider options than Tricare Select. Much like private health insurance plans, you are assigned a primary care manager who will be a military or network provider. In most cases, you will first go to your PCM for treatment. Your PCM will refer you to specialists if necessary and will also file your claims.
One of the major advantages of Tricare Prime is that there are no out-of-pocket costs for you or your family. The only time you will incur costs is if you are using a point-of-service option without a referral or prior authorization. In that case, there is an individual deductible of $300 ($600 for a family), and you will have to pay 50% of the cost of the service rendered.
Certain fees depend on when you joined the military.
- Group A: Sponsor’s enlistment or appointment date is before Jan. 1, 2018.
- Group B: Sponsor’s enlistment or appointment date is on or after Jan. 1, 2018.
The 2022 annual enrollment fees for Tricare Prime:
- Group A is $323 if you are single or $647 per year for a family.
- Group B $392 if you are single or $784 per family.
The enrollment fee can be waived if:
- You are a family member of active-duty service member
- You are medically retired or the family member of a medically retired service member
- You are the survivor of an active-duty service member
Like all health insurance policies, there is a maximum out-of-pocket amount, referred to as the catastrophic cap. For 2022, the cap is $1,000 per year for active-duty service members and their families in Group A. Group B members have a $1,058 cap. For retirees, their families and others, the cap is $3,000 for Group A members and $3,921 for Group B.
Tricare Select is available for the following statuses:
- Active-duty family members (active-duty service members themselves are not eligible)
- Retired service members and their families
- Family members of activated Guard/Reserve members
- Non-activated Guard/Reserve members and their families who qualify under the Transitional Assistance Management Program (provides 180 days of premium-free transitional health care benefits after regular Tricare benefits end)
- Retired Guard/Reserve members at age 60 and their families
- Medal of Honor recipients and their families
- Qualified former spouses
Tricare Select has no enrollment fee for the family members of active-duty service members.
For others who are in Group A (sponsor’s enlistment or appointment date is before Jan. 1, 2018), the enrollment fee is $158 annually for an individual plan or $317 annually for a family plan. For others who are in Group B (sponsor’s enlistment or appointment date is on or after Jan. 1, 2018), the enrollment fee is $504 for an individual plan and $1,008 for a family plan.
This enrollment fee is waived for:
- Active-duty family members
- Medically retired retirees and their families
There is also a long list of out-of-pocket payments you can see by visiting the Tricare Select cost page. Deductibles depend on your pay grade and whether you are in Group A or B.
Catastrophic caps are similar to those for Tricare Prime. For active-duty family members, the cap is $1,000 for Group A members and $1,120 for Group B. For retirees, their families and others, the cap for Group A members is $3,706, and for Group B members, it is $3,921.
You must use a Tricare-authorized provider, but referrals are not required for most services.
Military Health Care for Guard and Reserves
If you are a member of the Selected Reserve, you and your family are eligible for Tricare Reserve Select. Eligibility is based on the following circumstances:
- You are not on active-duty orders
- You are not covered under the Transitional Assistance Management Program
- You are not eligible to be enrolled in the Federal Employees Health Benefits program (FEHB)
If you do become activated, you will be eligible to go back to Tricare Prime. With Tricare Reserve Select, you must use a Tricare-authorized provider.
There is an enrollment fee of $46.70 per month for the service member or $229.99 for the member and his or her family. Out-of-pocket costs are similar to those for Group B members of Tricare Select.
Military Health Care for Retirees: Tricare for Life
Active-duty military retirees are eligible for Tricare Prime until they reach the age of 65, at which point they transition to Tricare For Life.
Retired Guard and reserve members in the gray area have different medical coverage options until they reach age 60, at which point they are eligible for Tricare Prime. At age 65, they transition to Tricare for Life.
You must participate in and pay premiums for Medicare Part B. Tricare For Life will pay medical expenses after Medicare. There is no annual or monthly enrollment fee for the program. Treatment must occur in either the U.S. or U.S. territories.
As one of the perks of the program, Tricare For Life will become the first payer if you incur services in overseas locations.
Eligibility: Active duty, retired or members of the Guard or Reserves. Your family members are also eligible if they are registered in the Defense Enrollment Eligibility Reporting System.
There is no cost to enroll in the program. Most medical services will be 100% covered by Tricare For Life, over and above the amount paid by Medicare.
There are certain costs, and you can see them on the TRICARE For Life cost page. There is an annual deductible of $150 for the service member and $300 for his or her family. The catastrophic cap is $3,000 per year.
Retired service members and their families are also eligible for Tricare Prime, Tricare Select, U.S. Family Health Plan (available in limited areas), and Tricare Select Overseas.
Health Care Options After Leaving the Military
- Transitional Assistance Management Program: TAMP is available to military members making an unexpected transition from the military. It is also available for family members.
- Continued Health Care Benefit Program: CHCBP is similar to a civilian COBRA program. It is available to all military members when they leave the service. as well as for family members.
- VA Health Care: This is available to eligible veterans, depending on individual circumstances. It requires enrollment.
- Tricare Prime: Active-duty retirees and their family members are eligible for Tricare Prime.
- Tricare for Life: Military retirees who are eligible for Medicare (age 65 and older) are also eligible Tricare for Life.
You can also look for health care coverage through a civilian employer if your employer offers health care coverage after you leave the military.
Military Dental Care
There are three dental care plans available for current and former members of the military.
Active-Duty Dental Program
The Active-Duty Dental Program covers dental care at both military dental clinics and civilian dental care providers.
To be eligible, you must be one of the following:
- Active-duty service member
- Service member who needs line-of-duty care
- Foreign force member stationed in the U.S.
- National Guard and Reserve member who is:
- On active-duty orders
- Issued delayed-effective-date orders during a pre-activation period
- Covered by the Transitional Assistance Management Program
Civilian dental care is covered when you get a referral from your military dental clinic or you live in a remote location where no military dental clinic is located. There are no out-of-pocket costs for covered dental services.
Tricare Dental Program
TRICARE Dental Program is a voluntary dental plan available to National Guard or Reserve members who are not on active duty and are not covered by the Transitional Assistance Management Program (TAMP). It also covers the service member’s family members.
It’s also available for family members of active-duty service members. Like Tricare Prime, it’s automatic if you’re on active duty.
Covered services include typical dental services, such as exams, cleanings, fillings, oral surgery, orthodontics and braces.
Monthly premiums (effective May 1, 2021-April 30, 2022) depend on your status and are as follows:
- Active Duty: $11.65 for an individual; $30.28 for a family
- Select Reserve and IRR (mobilization only): $11.65 for the sponsor only; $29.12 for an individual; $75.71 for a family; $87.36 for sponsor and family
- IRR (non-mobilization): $29.12 for the sponsor only or an individual; $75.71 for a family; $104.83 for a sponsor and family
Cost-sharing percentages are available on the Tricare Dental Program cost-sharing page. There is no cost-sharing for routine checkups, but more complicated procedures can require a contribution of between 20% and 50% of the total cost. The maximum benefit is $1,500 per person per year.
Until 2019, military retirees were eligible for Tricare Dental. However that changed, and the military transitioned retirees to the Federal Employees Dental and Vision Insurance Program or simply FEDVIP Dental. It is available for the following:
- Retired service members
- Family members of retired service members
- Retired Guard and Reserve members
- Family members of retired Guard and Reserve members
- Medal of Honor recipients
- Family members of Medal of Honor recipients
The program is voluntary and works with 10 different private insurance carriers. For that reason, the fees, cost-sharing and covered procedures vary by company.
You will have to check the details for each carrier through the FEDVIP Dental website.
Advantages and Disadvantages of Military Insurance
- Medical plans provide comprehensive coverage.
- Both medical and life insurance policies are less expensive than their civilian counterparts.
- Medical coverage extends to family members at little or no cost.
- Out-of-pocket medical costs are substantially lower than with civilian health insurance.
- You can get treatment through both military and civilian health providers.
- Military life insurance can either be converted to permanent term coverage through VGLI or to a commercial carrier at favorable premium rates.
- Military medical care may exclude certain types of care, including chiropractic, abortions, nonsurgical treatments for weight loss or obesity, alcohol, smoking and drug cessation products and treatments.
- Paperwork requirements for military medical insurance are often higher than what they are for civilian coverage.
- If you miss the deadline to convert your military life insurance, you will need to medically qualify for a civilian policy.
- Military life insurance is limited to $400,000, which may not be adequate for a service member with a family that includes young children.
If you notice there are more pros than cons with military health and life insurance, that is not a coincidence.
You are almost always better off having military health care coverage than equivalent policies from the civilian market. It is one of the major benefits of being a member of the armed forces.