Types of Insurance Military Families Need

Military life comes with its own set of risks. If you don’t have the right insurance in place when you move frequently, or if you deploy, you may find yourself either not prepared or not maximizing your policy’s perks for military families. 

This guide walks through insurance benefits that the military already gives that you may not fully understand or know about. It also touches on the insurance types that matter most for military families, explains what SGLI and TRICARE actually do, and points out where military life creates gaps that civilian insurance guides usually miss.

Insurance Priority Order for Military Families

Start with the coverage that protects you from a true financial disaster. In order, that means:

1. Auto insurance
2. Renters or homeowners insurance
3. SGLI, your military life insurance
4. Disability insurance
5. TRICARE, your military health insurance

Everything else on this list is optional or situational. Let’s go through each one.

Car Insurance Coverage Every Servicemember Needs

Every state requires auto insurance, and if you are stationed somewhere new, your car is often the only way you get to work. If you cause an accident, medical bills and property damage can wreck your finances fast.

Shop around before you renew a policy. Several major insurers offer military discounts, and USAA specializes in coverage for servicemembers and their families. 

Note: Compare a few quotes each year. Rates change, and loyalty does not always pay off.

Servicemembers Group Life Insurance (SGLI)

If you are on active duty, you are likely already enrolled in SGLI, or Servicemembers Group Life Insurance. It is a low-cost life insurance program run by the VA. Unless you opted out, the government automatically signed you up, and the premium comes straight out of your paycheck.

SGLI can provide up to $500,000 in coverage for just a few dollars a month. That is one of the best insurance deals you will find anywhere. Commercial life insurance at that coverage level would cost most young, healthy people far more.

But automatic enrollment does not mean the coverage fits your life. Check these three things:

Topic/Question	Information
What’s your coverage amount?	Is $500,000 enough to replace your income and support your family long term? A common guideline is 10 to 12 times your yearly income, but the exact amount depends on your debt, your kids, and whether your spouse works.
Who are your beneficiaries?	SGLI does not update itself when your life changes. If you got married, had a baby, or went through a divorce, log into milConnect and confirm who is listed.
What happens when you separate?	SGLI does not follow you into civilian life. When you leave the military, you can convert to VGLI, or Veterans Group Life Insurance, but you have a limited window to do it, and rates go up with age.

If you have significant debt, a stay-at-home spouse, or kids with long-term needs, it may be worth considering additional life insurance in addition to SGLI.

Renters or Homeowners Insurance Needs for Military Families

Most military families need one or the other. If you rent, your landlord’s insurance only covers the building itself, not your belongings. If a pipe bursts or someone breaks in, that policy pays for nothing that belongs to you. Renters insurance often costs less than $15 a month and covers your stuff.

If you own your home, homeowners’ insurance helps pay for repairs, temporary housing if you cannot live there during repairs, and liability if someone gets hurt on your property.

Military life adds a few wrinkles here. PCS moves, deployments, and renting out a home while you are stationed somewhere else can all affect what your policy actually covers.

Disability Coverage for Service Members and Veterans

About 1 in 4 people become disabled before they retire. That includes short-term injuries, not just permanent ones. If you could not work for a month, or three months, or six months, would your family be okay?

The average Social Security Disability Insurance payment ranged from $1,500- $1,600 last year. For most families, that is not enough to cover the bills. Disability insurance replaces part of your income if an injury or illness keeps you from working. It matters most if you are the main earner in your household.

Before you buy a policy, check what counts as a disability, how long you have to wait before payments start, and how much of your income the policy actually replaces. Most policies make you wait at least 30 days before benefits kick in, so an emergency fund still matters even with coverage in place.

TRICARE: The Military’s Health Insurance Program

TRICARE is the health insurance program for active-duty servicemembers, retirees, and their families. It is run by the Defense Health Agency. If you are on active duty, you are already covered, and most of your medical care costs very little out of pocket.

The real decisions come in for your family. You may need to choose between TRICARE Prime, which costs less but limits the providers you can see, and TRICARE Select, which costs more but offers more choice. The right plan depends on how often your family sees specialists and where you are stationed.

Watch for coverage gaps during transitions. Separating from the military, changing duty stations, or a spouse losing a job can all create a short window where coverage lapses if you are not paying attention. 

Note: Dental and vision are usually separate enrollments, not part of your standard TRICARE plan.

If you are on active duty, you almost never need to buy separate health insurance. TRICARE is the better deal. Your job is just making sure your plan and enrollment match what your family actually needs.

Travel Insurance Guidance for Military Families

Travel insurance only makes sense if you have already spent a lot of money on a trip you cannot easily recoup, such as flights and hotels booked months in advance. If something forces you to cancel, travel insurance protects that money.

If you are driving somewhere for a weekend, skip it. If you are spending thousands of dollars on a trip and would hate to lose that money, it is worth getting a quote for a policy. Paying an extra $100 or so on a several-thousand-dollar purchase may be worth it if there is some uncertainty about your status when planning that vacation. 

Insurance Policies Military Families Do Not Need

Not every policy sold to you is worth the money. Here are four you can usually skip.

Life insurance for kids. Life insurance replaces income. Kids do not earn income for the household, so a policy on them does not serve that purpose. Put that money into an emergency fund or a college savings account instead.

Mortgage life insurance. This pays off your mortgage if you die. But if your SGLI or other life insurance is sized correctly, it already covers your mortgage along with everything else your family needs. You rarely need a separate policy just for the house.

Credit card insurance. This pays your credit card bill if you cannot. The benefits are usually limited and capped, so you end up paying a monthly fee while still carrying debt. Put that money toward your balance instead. You will save more on interest than you would ever get from the policy.

Disease-specific insurance. Cancer insurance and similar policies have become popular due to coverage gaps in some health plans. But these policies are narrow. Many cancer insurance policies do not even cover skin cancer, the most common form of the disease. If you are worried about gaps in your coverage, review your TRICARE plan instead of stacking on a separate policy.

Putting Together Your Military Family Insurance Plan

Every military family’s insurance needs look a little different depending on rank, family size, and duty station. But the order stays the same. Cover the things that would financially wreck you first: your car, your home or rental, your life, and your ability to earn an income. Lean on the benefits you already have through SGLI and TRICARE instead of duplicating them. Skip the narrow policies that mostly benefit whoever is selling them.

If home or rental insurance is the piece you are still working out, check out our guides on home insurance or renters insurance for a deeper look at coverage levels, PCS moves, and how to handle a policy when you are renting out a home from a distance.