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Strengthen your financial armor: Supplement your SGLI

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Jessica Evans Avatar
Photo by Staci-Jill Burnley

When you’re in the military, surprises come with the territory. But one thing you don’t want to leave to chance is your family’s financial security. Sure, Servicemembers’ Group Life Insurance (SGLI) is like your basic issue kit — it’s there for everyone, offering up to $500,000 in coverage. But just like your gear, sometimes you must add a few things to ensure you’re fully prepared for whatever is coming next.

What it is (and what it isn’t)

Think of SGLI coverage as a temporary shield instead of a long-term fortress. It kicks in if something happens to you while you’re serving, providing a lump sum to your beneficiaries. But here’s the catch — it’s a term life insurance policy that only covers you while you’re in the military. So, if you’re all about securing your family’s foreseeable future or making big dreams a reality, you’ll want to beef up your financial game plan beyond SGLI. That will likely mean exploring investment strategies, setting up additional life insurance coverage, and creating (and sticking with) a budget and savings plan.

Why SGLI might not be enough

For starters, SGLI comes with a coverage cap of $500,000. That may sound like a lot but it might not stretch as far as you think, especially if you’ve got a big family or significant financial obligations, such as a mortgage or student loans. Plus, SGLI only covers you, not your dependents. In other words, if you’ve got a spouse and kids relying on your income, more than that lump sum might be needed to keep the lights on and pay the bills long-term.

While SGLI provides a death benefit, think about all those regular expenses that crop up when you least expect them. There are funeral costs, medical bills, final debts — the list goes on. SGLI might help soften the blow, but it might not cover all the bases, leaving your loved ones scrambling to pick up the pieces financially. So, while SGLI is a solid foundation, it might not be enough to weather life’s storms without some extra financial backup.

Supplemental Coverage Makes Sense

Adding another life insurance plan to your portfolio, beyond SGLI, will help ensure you’re covered where it might not reach and you’ll still have coverage after you leave the military. Imagine having greater peace of mind knowing that your loved ones are not just covered, but the have an extra layer of financial security in all the ways that will matter most. Additional life insurance can provide that.

With supplemental life insurance, you can also tailor your coverage to fit your family’s unique needs and financial goals. Whether it’s paying off debts, funding education, or ensuring your spouse can maintain their lifestyle, supplemental life insurance gives you the flexibility to customize your coverage to fit your family’s needs.

If you’re serious about safeguarding your family’s financial future, adding supplemental life insurance just makes sense. It’s like giving your loved ones a financial safety net strong enough to weather any storm. Take control, get advice, and pick the coverage that means your family is always looked after. It’s not just smart; it’s how you ensure you’re ready for anything.

AAFMAA’s life insurance options are designed specifically for the military community. To determine how much life insurance you and your family need and the best policy options, contact an AAFMAA Membership Representative at 866-955-3657.

Jessica Evans Avatar

Jessica Evans

Senior Writter

Jessica Evans has more than a decade of content writing experience and a heart for military stories. Her work focuses on unearthing long-forgotten stories and illuminating unsung heroes. She is a member of the Editorial Freelance Association and volunteers her time with Veterans Writing Project, where she mentors military-connected writers.