How much does SGLI cost?

SGLI costs $0.06 per $1,000 of coverage per month plus a $1 TSGLI premium. The $500,000 maximum costs $31 per month. Lower coverage amounts are prorated, so $250,000 costs $16 per month.

For most servicemembers, yes, mainly because it has no war or combat exclusion and requires no medical exam. Young, healthy members in low-risk jobs may find cheaper private term quotes, but the coverage is not identical.

Does SGLI cover combat deaths?

Yes. SGLI pays regardless of cause of death, including combat and hazardous duty. Many private policies exclude acts of war, which is the key coverage difference to check.

Can I elect less than the $500,000 maximum?

Yes, in $50,000 increments down to $50,000. The premium prorates at $0.06 per $1,000 plus the $1 TSGLI charge. You can also decline SGLI entirely, though that is rarely advisable.

Veterans Group Life Insurance lets you convert SGLI coverage after separation without a medical exam. Premiums rise with age, so it works best as bridge coverage while you arrange private insurance as a civilian.

Do I need private life insurance too?

Many servicemembers carry both: SGLI for combat-proof coverage while serving, plus a private term policy that continues after separation. Compare the 20-year totals above, then read the private policy exclusions carefully.

What happens to my SGLI when I separate?

Coverage ends after separation, with a short free extension. You can convert to VGLI within the conversion window without proving insurability, or replace it with private insurance.

SGLI vs Private Life Insurance Calculator

Compare the true 20-year cost of Servicemembers Group Life Insurance against a private term life quote, with the coverage differences that matter.

How SGLI pricing works

Servicemembers Group Life Insurance charges a flat $0.06 per $1,000 of coverage per month, plus a mandatory $1 per month for TSGLI (traumatic injury protection). At the $500,000 maximum, that is $500,000 / 1,000 x $0.06 = $30, plus $1, for $31 per month. Coverage below the maximum is prorated the same way: $250,000 costs $16 per month. The rate does not change with your age or health while you serve, which is unusual in the insurance world and valuable as you get older.

SGLI monthly cost = (coverage / 1,000) x $0.06 + $1 (TSGLI)
20-year total = monthly cost x 240

The 20-year cost math

At the maximum, SGLI costs $31 x 12 months x 20 years = $7,440 over two decades. That is the number to beat with a private quote. A healthy 25-year-old can often find private 20-year term life at $500,000 for under $30 a month, which would undercut SGLI on pure price. But price is only half the comparison, because the two products cover different risks.

What SGLI covers that private policies often do not

No war or combat exclusion. This is the big one. Many private life insurance policies exclude death from acts of war, and some exclude aviation or hazardous activities common in military service. SGLI pays regardless of how death occurs, including combat. Guaranteed issue means no medical exam and no denial for health conditions; private insurers can decline you or rate you up. TSGLI is bundled in for that $1 a month, paying for severe traumatic injuries. And SGLI is convertible to VGLI (Veterans Group Life Insurance) after separation, so you keep group coverage without proving insurability when you leave service.

Where private insurance can win

Private term life locks in a premium for the full term, while SGLI ends when you separate and VGLI gets expensive with age. If you are young, healthy, and in a low-risk specialty, a private 20- or 30-year term policy bought early can be cheaper over its full term than SGLI plus later VGLI. Private policies also offer riders SGLI lacks, like child term riders or accelerated benefits. The honest answer for many servicemembers is both: keep SGLI for the combat coverage while serving, and layer a private term policy for the years after.

Worked example

A 25-year-old elects the $500,000 SGLI maximum and gets a private 20-year term quote of $28 per month for the same coverage:

SGLI: $31/month x 240 months = $7,440
Private: $28/month x 240 months = $6,720
Difference: private is cheaper by $720 over 20 years

On price alone, the private quote wins. But the private policy must be checked for war, aviation, and hazardous-activity exclusions before it can be called comparable coverage. A $720 savings means little if the policy would not pay in the exact scenarios a servicemember is most likely to face.

How this is calculated: SGLI monthly cost is your coverage divided by 1,000, times $0.06, plus the $1 TSGLI premium (so $500,000 costs $31/month). Both totals are monthly cost times 12 months times your comparison period. The private side uses your entered quote unchanged. The cheaper option is the lower 20-year total; coverage differences like war exclusions are described above, not priced in.

A note on VGLI

After separation you can convert SGLI to Veterans Group Life Insurance without a medical exam, keeping up to the same coverage amount. VGLI premiums rise steeply with age, so it is best treated as bridge coverage while you shop for private insurance as a civilian, not as a permanent plan. Apply within the conversion window after separation or the guaranteed-issue right lapses.

SGLI vs Private Life Insurance

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