Servicemembers' Group Life Insurance (SGLI). SGLI is a program of low cost group life insurance for servicemembers on active duty, ready reservists, and members of the National Guard. SGLI coverage is available up to the maximum of $400,000.
Sounds like more than enough to take care of the family in the event the servicemember dies.
Or is it?
An E-5 with six years of service earns $49,860 a year which includes BAQ and BAS. Assuming no other significant income, that $400,000 would provide for about 8 years of income to the surviving spouse and children.
An O-3 with six years of service earns $82,296 a year which includes BAQ and BAS. Again, assuming no other significant income, that $400,000 would provide for less than 5 years of income to the surviving spouse and family.
Obviously you can stretch the $400,000 longer but the surviving family risks a significant reduction from their current standard of living. If the death benefit is used to pay off the house mortgage, will there be enough remaining money to cover property taxes, car payments, children college tuition and other family expenses? See the attached video for a testmonial.
http://www.lifehappens.org/reallifestories/hecker
Supplementing SGLI is a strategy to ensure your family is more fully protected in the event of a tragedy. And since premiums are low and military members often qualify for the best insurance rating, this could be a blessing to your family's well-being.
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