Effective July 2025, service members across all components saw a change to their LES. Premiums for the Servicemembers’ Group Life Insurance (SGLI) program and Family Servicemembers Group Life Insurance (FSGLI) program decreased.
SGLI premiums (the amount you pay each month for your insurance coverage) decreased from six cents per $1,000 of coverage to five cents per $1,000 of coverage.
FSGLI premiums decreased across each age bracket from 11%-22%, with an average discount of 13%.
These are the SGLI premium rates, effective July 1, 2025:
| Coverage amount (in U.S. $) | Monthly premium rate (in U.S. $) | TSGLI premium (in U.S. $) | Total monthly premium deduction (in U.S. $) |
|---|---|---|---|
| 500,000 | 25.00 | 1.00 | 26.00 |
| 450,000 | 22.50 | 1.00 | 23.50 |
| 400,000 | 20.00 | 1.00 | 21.00 |
| 350,000 | 17.50 | 1.00 | 18.50 |
| 300,000 | 15.00 | 1.00 | 16.00 |
| 250,000 | 12.50 | 1.00 | 13.50 |
| 200,000 | 10.00 | 1.00 | 11.00 |
| 150,000 | 7.50 | 1.00 | 8.50 |
| 100,000 | 5.00 | 1.00 | 6.00 |
| 50,000 | 2.50 | 1.00 | 3.50 |
*TSGLI is Traumatic Injury Protection coverage
Source: Veterans Affairs
Here are the FSGLI premium rates:
| Increases in FSGLI Premiums for Spouses as They Age. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Spouses’ Age | <35 | 35-39 | 40-44 | 45-49 | 50-54 | 55-59 | >60 | |||||
| Premium per $10,000 of Insurance | $0.40 | $0.47 | $0.62 | $0.85 | $1.35 | $2.30 | $4.00 | |||||
Source: Veterans Affairs
These programs already made obtaining life insurance coverage affordable and ensured that if the unthinkable happened, many service members’ spouses and families would have a financial cushion through what many financial planners call the “adjustment period”.
While we can all be thankful for a few extra dollars in our pocket at the end of the month thanks to the new premium schedule, it is an apt reminder for each Soldier, Airman, Sailor, or Marine to review the amount of life insurance coverage they have under these programs and ask: Is it enough?
Why Life Insurance Is Important
No one likes to think about death. However, if you have a spouse, children, or dependents who rely on your income for support, you need to plan for an unexpected tragedy.
If suddenly you weren’t there, what income source would those you care for use for day-to-day expenses, making the monthly mortgage payment, paying for a child’s college education, or ensuring a spouse’s secure retirement?
Everyone’s situation will be unique, but a commonly cited rule of thumb by financial planners and insurance agents is having ten to twelve times your income in life insurance coverage.
Therefore, if you add up your basic pay, BAH, BAS, and consider things like subsidized healthcare, legal services, and an exceptional retirement plan, that maximum amount of $500,000 in SGLI coverage may not be enough if you were to pass unexpectedly.
How Much Life Insurance Coverage Do You Really Need?
An alternative, and a more specific approach, to determining how much life insurance coverage you may need is what is often referred to as the goal-based or “DIME” approach.
Under the DIME method, you consider:
- Outstanding debt (excluding your home mortgage)
- Income replacement for a specified number of years
- Remaining mortgage balance on your home
- Education funding goals
You may also want to consider adding retirement funding for a spouse and funeral expenses into the calculation.
Utilizing this method will help tailor a service member’s insurance coverage to their unique life circumstances. It will also likely lead him or her to the realization that the $500,000 coverage under SGLI may be insufficient.
As a result, they may need to seek additional coverage through the private market.
In addition, don’t forget about coverage for your spouse even if he or she stays at home and takes care of children or loved ones!
If he or she unexpectedly passed away and you still needed to work, would you need funds to cover new childcare costs or hire someone to do work in the home that your spouse previously took care of?
Here is an example of a married E7 (14 years of service) with two children (age 8 and 5) stationed at Fort Bragg, NC. Using the DIME method, you can see in the breakdown that $500,000 is not enough coverage to meet the need.
| Income (Annual) | Expenses/DIME | |||
|---|---|---|---|---|
| Basic Pay | 67,456.80 | 5 Years Replacement Income | $509,563.75 | |
| BAH | 24,732.00 | College Funding | $70,000.00 | |
| BAS | 5,589.24 | Mortgage Pay Off | $125,000.00 | |
| Tax Advantage | 4,134.71 | Car/Other Debt | $25,000.00 | |
| Total | 101,912.75 | Retirement Funding for Spouse | $100,000.00 | |
| Funeral Expenses | $15,000.00 | |||
| Total Life Insurance Need | $ 844,563.75 | |||
*Compensation Figures From: Regular Military Compensation (RMC) Calculator
Considerations for Single Service Members
What about single service members?
Active-duty personnel are automatically enrolled at the maximum $500,000 level of coverage, unless they proactively opt out through their respective benefits portal.
While the rock bottom premiums make the monthly payment for this coverage relatively small, it is worth single service members considering whether they need this maximum amount of coverage. If you don’t own a home and no one is relying on your income for support, you may want to carry a lower amount of coverage and not pay $300 a year in premiums.
Even as a single service member, you may still want coverage to cover funeral expenses, leave a charitable bequest, or provide funds to family members.
Consider your own goals and situation before making a decision.
Don’t Wait to Reevaluate Your Coverage
The pleasant surprise of lower premiums and a bump in our take-home pay is a reminder for us to take a moment and ensure our loved ones would be taken care of if we passed unexpectedly.
It isn’t an enjoyable conversation, but it is important!
If you think you might be underinsured, most experts recommend purchasing a term-life policy (providing coverage for a set number of years). Under certain circumstances, other forms of life insurance may be warranted.
If you aren’t sure where to start or are feeling overwhelmed, don’t forget that most military installations have free financial readiness programs and financial counselors available.
Nobody likes to think about death, but neglecting to plan will only compound the grief and stress that comes from losing a loved one.
With life insurance, don’t succumb to the often-cited quote, “Failing to plan is planning to fail”.
Sources:
- N.A. (2025, June 21) SGLI/FSGLI Premium Discount FAQs. Retrieved from https://www.benefits.va.gov/INSURANCE/spring2025-discount-faqs.asp
- N.A. (2025, July 1) Servicemembers’ Group Life Insurance (SGLI). Retrieved from https://www.va.gov/life-insurance/options-eligibility/sgli/
- N.A. (ND) Regular Military Compensation (RMC) Calculator. Retrieved from https://militarypay.defense.gov/Calculators/RMC-Calculator/
- Camp, R. (2024, April 25) 5 Types of Insurance to Protect Your Income, Wealth and Family. Retrieved from https://www.letsmakeaplan.org/financial-topics/articles/insurance-planning/5-types-of-insurance-to-protect-your-income-wealth-and-family