Life in the military comes with unique challenges—long deployments, frequent relocations, and the constant risk of danger. That’s why having the right life insurance is so important for military families. It’s not just about financial security, but peace of mind, knowing your loved ones are protected if the unexpected happens.
But here’s the tricky part: not all life insurance plans are designed with service members in mind. Many civilian policies include exclusions for combat or deployment, leaving gaps in coverage. Military families need plans that account for their lifestyle and risks.
This guide walks through why life insurance matters for service members, the best options available in 2025, and how to choose the right mix of coverage for your family.
Why Life Insurance Matters for Military Families
Unlike most civilian jobs, military service involves higher risks:
- Deployment to combat zones
- Training accidents
- Frequent relocations that disrupt income stability
- Potential long-term disabilities or fatalities
Yes, the military does provide basic life insurance through the Servicemembers’ Group Life Insurance (SGLI) program. But SGLI alone may not cover the full financial picture—things like:
- Mortgage and housing costs
- Children’s education expenses
- Spouse’s retirement planning
- Long-term family stability after service
That’s why many military families layer private life insurance on top of their SGLI coverage to create a more complete safety net.
Top Life Insurance Options for Military Families
Here’s a breakdown of the best options military families should consider in 2025:
1. Servicemembers’ Group Life Insurance (SGLI)
- Coverage Amount: Up to $500,000
- Cost: Very affordable premiums (deducted from paycheck)
- Pros:
- No medical exam required
- Covers combat-related deaths
- Automatic enrollment for active duty and Ready Reserve
- Cons:
- Coverage ends when you leave active duty (unless converted to VGLI)
💡 Best for: Active duty personnel who want reliable, low-cost coverage with no exclusions.
2. Veterans’ Group Life Insurance (VGLI)
- Coverage Amount: Up to $500,000 (based on previous SGLI coverage)
- Pros:
- Guaranteed acceptance if you apply within 1 year and 120 days of leaving service
- Renewable for life
- Cons:
- Premiums increase with age
- Can become very expensive later in life
💡 Best for: Veterans who want to keep coverage after leaving the military without undergoing medical exams.
3. USAA Life Insurance
- Coverage Options: Term and whole life policies
- Pros:
- Affordable rates for military members and families
- Some policies include deployment and wartime coverage without exclusions
- Excellent customer service and financial strength
- Cons:
- Membership required (limited to military members, veterans, and eligible family)
💡 Best for: Military families looking for flexibility and long-term private coverage options.
4. Navy Mutual Aid Association
- Eligibility: Active duty, retired, and reserve members from all military branches
- Pros:
- No war or aviation exclusions
- Affordable term and permanent policies
- Survivor benefits and free financial planning services
- Cons:
- Smaller provider compared to big insurers
💡 Best for: Families who want combat-inclusive policies and extra financial planning support.
5. Military Benefit Association (MBA)
- Coverage Amount: Up to $1,000,000
- Pros:
- Group rates that reduce premiums
- No exclusions for combat or deployment-related deaths
- Flexible options for families
- Cons:
- Requires MBA membership
- Less widely recognized than USAA or Navy Mutual
💡 Best for: High-coverage seekers who want more than the $500,000 SGLI cap.
Quick Comparison Table
| Provider / Plan | Coverage Amount | Key Benefit | Best For |
|---|---|---|---|
| SGLI | Up to $500,000 | Automatic coverage for service members | Active duty personnel |
| VGLI | Up to $500,000 | Guaranteed acceptance post-service | Veterans |
| USAA | Varies (Term & Whole Life) | Deployment-friendly, military-focused policies | Families needing flexibility |
| Navy Mutual | Flexible | No war exclusions, survivor benefits | All military branches |
| MBA | Up to $1,000,000 | High group coverage with no exclusions | Families seeking maximum coverage |
Pro Tips for Military Families Choosing Life Insurance
- Stack Your Coverage
Use SGLI as your foundation and add private coverage for long-term needs. - Think Beyond Today
Consider future expenses like college tuition, retirement income, or aging parents. - Watch for Exclusions
Many civilian insurers exclude combat deaths or overseas deployment. Stick to providers that don’t. - Plan for Transition
If you’re leaving the military soon, ensure your coverage continues seamlessly with either VGLI or private insurance. - Revisit Coverage Regularly
Military families’ needs change with every deployment, PCS move, or career milestone. Update coverage every few years.
Real-Life Scenarios
Case 1: Active Duty Soldier with Family
- SGLI provides $500,000.
- Adds $250,000 USAA term policy for extra mortgage and education protection.
👉 Total coverage: $750,000. Affordable, flexible, and combat-inclusive.
Case 2: Retiring Veteran, Age 45
- Converts SGLI into VGLI for $400,000.
- Later adds a Navy Mutual whole life policy for permanent coverage.
👉 Ensures spouse has lifelong financial security even after retirement.
Case 3: Dual-Military Couple
- Both spouses carry SGLI.
- Add MBA coverage for $1,000,000 combined protection.
👉 Guarantees financial stability even if both face deployment risks.
FAQs: Life Insurance for Military Families
Q: Is SGLI enough on its own?
A: For young, single service members, yes. But families with children or large financial commitments often need more.
Q: Can I keep my SGLI after leaving the military?
A: No, but you can convert it to VGLI within 1 year and 120 days after leaving service.
Q: Do private insurers cover combat-related deaths?
A: Not always. That’s why providers like USAA, Navy Mutual, and MBA are better for military families.
Q: How much coverage should I have?
A: A common rule is 10–12x your annual income, plus enough to cover debts, education costs, and long-term expenses.
Q: Can both spouses in the military carry SGLI?
A: Yes. Dual-military families often stack SGLI and private policies for higher total protection.
Bottom Line
For military families, life insurance isn’t just a financial product—it’s a safeguard against uncertainty. SGLI provides a strong foundation, but it often isn’t enough on its own. Pairing it with private coverage from USAA, Navy Mutual, or MBA ensures your family is protected in every scenario, from deployments to post-service retirement.
The best plan depends on your situation:
- Active duty? Stick with SGLI and layer on private coverage.
- Transitioning to civilian life? Look into VGLI or USAA.
- Already a veteran? Permanent policies from Navy Mutual or MBA can fill the gap.
👉 Key takeaway: Don’t rely on one policy alone. Stack coverage, think long-term, and choose providers that understand military life. That’s how you ensure your family is never left vulnerable—no matter where service takes you.
