24 Jun What is FSGLI? A Guide to Family Servicemembers’ Group Life Insurance
FSGLI, or Family Servicemembers’ Group Life Insurance (FSGLI), is available to spouses and dependent children of full-time SGLI-covered service members. You need to know how much coverage you may qualify for to manage your benefits.
What is Family Servicemembers’ Group Life Insurance?
FSGLI (Family Servicemembers’ Group Life Insurance) provides term life insurance coverage to eligible Spouses and dependent children insured under Servicemembers’ Group Life Insurance (SGLI). The Servicemember pays for spousal coverage, and child coverage is free. Spouses are eligible for up to $100,000 of insurance coverage, not exceeding the SGLI amount of the service member, and dependent children are eligible for up to $10,000.
Who’s Eligible for FSGLI?
If you are a service member’s SpouseSpouse or dependent child who meets one of these requirements, you may qualify for FSGLI.
It must be one of these:
- Active duty service members are covered by full-time SGLI, or
- SGLI covers a service member in the National Guard or Ready Reserve with full-time status
Your status as an active or retired military member or civilian may not matter if you qualify for FSGLI coverage as the SpouseSpouse of someone with SGLI coverage.
How many people are covered?
- Members of the SGLI’s spouses
- SGLI provides coverage for dependent children of service members
In addition to SGLI, FSGLI coverage is automatic for spouses covered under SGLI. The maximum amount is covered for spouses unless they decline or reduce it in writing. In addition to the Spouse’s SGLI, an additional range of up to $100,000 is available. This payment is taken directly from their paycheck. As your spouse ages, the life insurance premium increases.
FSGLI premiums depend on how much coverage is selected and the age of the SpouseSpouse. As shown in the following table, FSGLI premiums are an additional charge to SGLI premiums:
Premium per $10,000 of Insurance
Both FSGLI and SGLI cover service members and their spouses to a maximum of $500,000.
The FSGLI is no longer applicable to service members married to other members, and the SGLI is unchanged. Changes do not apply to members whose enrollment occurred before January 2, 2013, or married members.
What Happens to the Benefit if the Service Members Retire
One hundred twenty days after a service member retires or separates from the military, the Family Servicemembers Group Life Insurance coverage ends. During this period, a spouse (along with their service member) may convert their regular family life insurance coverage into a private whole life insurance policy, providing permanent protection at a significantly higher monthly cost.
Converting FSGLI to Private Life Insurance
If you are not getting enough benefits from FSGLI as a veteran, you can convert to a private life insurance policy and get premium benefits. Ratings and reviews of veterans’ life insurance companies are positive, and they have a history of serving veterans and their families. There are also multiple policies available, including whole life policies, excluding PTSD and mental health issues.
Protect Your Family with FSGLI
As with regular SGLIs, this is a government-sponsored life insurance plan that includes features and benefits (as well as limitations) not typically found in civilian programs. In addition, FSGLI applications are “negative options,” which means your SpouseSpouse automatically covers you. An SGLI member may choose a lesser coverage, but they are guaranteed $400,000 per year.
You will automatically be covered for $100,000 or less if your spouse enrols through DEERS (Defense Enrollment Eligibility Reporting System).
For example, if the member chooses $50,000 for spousal coverage, that is the maximum amount available, and that amount will be automatically applied unless a lower amount is selected. In addition, dependent children will receive free coverage of $10,000.
The FSGLI coverage for spouses is affordable, especially for younger members, but not free. Members below age 35 pay just $4.50/month for the $100,000 range, with premiums deducted from their pay. The rates start to rise at age 35: From 35 to 39, spouse coverage of FSGLI costs $5.30/month for $100,000; every five years, rates increase until age 60, when spouse coverage costs $45/month for $100,000.