TRICARE Life Insurance Guide: SGLI, VGLI & FSGLI Explained

*Disclaimer: TRICARE.Com is an independent reference site and is not the official TRICARE program or a government agency. For official policy and plan details, visit TRICARE.mil.*

## Quick answer TRICARE is health insurance, not life insurance. However, military service members and their families are eligible for low-cost life insurance through the Department of Veterans Affairs (VA), primarily Servicemembers' Group Life Insurance (SGLI) and Family SGLI (FSGLI). These programs provide tax-free death benefits that are separate from your TRICARE medical coverage.

In detail

While TRICARE covers your medical bills, the federal government provides life insurance to ensure financial stability for beneficiaries after a death. These programs are managed by the VA but premiums are typically deducted from military pay or retirement checks.

### Primary Life Insurance Programs 1. **SGLI (Servicemembers’ Group Life Insurance):** Automatic for most active-duty members and Reservists. * **Coverage:** Up to $500,000 (standard as of 2026). * **Cost:** Approximately $31 per month for the full $500,000 (includes $1 for Traumatic Injury Protection/TSGLI). 2. **FSGLI (Family Servicemembers’ Group Life Insurance):** Covers spouses and dependent children. * **Spousal Coverage:** Up to $100,000 (cannot exceed member's SGLI amount). * **Child Coverage:** $10,000 per child, provided at no cost if the member has SGLI. * **Spousal Premiums:** Based on age brackets. For example, in 2026, a spouse under age 35 may pay roughly $4.50/month for $100,000 of coverage. 3. **VGLI (Veterans’ Group Life Insurance):** Allows you to convert your SGLI to a renewable term policy after leaving service. * **Timeline:** You must apply within 1 year and 120 days of discharge. If you apply within 240 days, no medical exam is required. 4. **S-PMLI (Service-Disabled Veterans’ Life Insurance):** Replaced by the newer **VALife** program for veterans with service-connected disabilities.

### Death Benefits vs. Health Benefits It is a common misconception that TRICARE provides a "death benefit." TRICARE only pays for medical services rendered. If a beneficiary dies, TRICARE coverage for survivors typically changes (e.g., from Active Duty Family Member status to Transitional Survivor or Survivor status), but it does not pay out a cash sum. Cash payouts come exclusively from the life insurance policies listed above or the military's "Death Gratuity" (a $100,000 tax-free payment to next of kin for deaths on active duty).

## Who this applies to * **Active Duty Service Members:** Automatically enrolled in SGLI at maximum coverage unless they opt out or reduce it in the SGLI Online Enrollment System (SOES). * **National Guard and Reserve:** Eligible if assigned to a unit scheduled to perform at least 12 periods of inactive duty training per year. * **Military Spouses:** Eligible for FSGLI, though premiums increase as the spouse ages. * **Retirees:** Not eligible for SGLI/FSGLI but can convert to VGLI or apply for VALife (if disabled). * **Dependent Children:** Automatically covered for $10,000 under FSGLI at no cost if the parent has SGLI.

Common scenarios

**Scenario 1: The Active Duty Family** An Army Sergeant (E-5) is married with two children. He carries the full $500,000 SGLI and $100,000 FSGLI for his spouse. In 2026, he pays approximately $31.00 (SGLI) + $5.00 (FSGLI for a 34-year-old spouse) = **$36.00 per month**. His children are covered for $10,000 each for $0. If he passes away, his family receives $500,000 and the children remain eligible for TRICARE Select or Prime at retiree rates after a transitional period.

**Scenario 2: The Transitioning Veteran** A Navy Lieutenant separates from service in March 2026. She has 240 days to convert her SGLI to VGLI without a physical. If she waits until day 241, she must prove she is in good health. Her TRICARE coverage ends (unless she uses TAMP or buys TRICARE Reserve Select), but her life insurance continues as long as she pays the VGLI premiums, which will increase every five years based on her age.

## Related terms * **Beneficiary:** The person or entity designated to receive the life insurance payout. * **SOES (SGLI Online Enrollment System):** The portal used to manage life insurance beneficiaries and coverage amounts. * **Death Gratuity:** A one-time $100,000 payment to survivors of those who die on active duty. * **TSGLI:** Traumatic Injury Protection; a rider on SGLI that pays out while the member is still alive if they suffer a severe injury (e.g., loss of limb). * **Survivor Benefit Plan (SBP):** A monthly annuity paid to survivors of retired service members, often confused with life insurance.

## Sources * VA.gov Life Insurance: https://www.va.gov/life-insurance/ * TRICARE.mil Benefit Changes: https://www.tricare.mil/LifeEvents/Death * Defense Finance and Accounting Service (DFAS) SGLI: https://www.dfas.mil/