When it comes to protecting the future of your loved ones, life insurance is one of the most important financial decisions you can make. For military families, this decision carries even more weight due to the unique risks and lifestyle associated with service. In 2025, service members and veterans have more flexible and affordable options than ever before. This guide explores the best life insurance for military personnel and their families, helping you make an informed choice.

Why Life Insurance Is Essential for Military Families

Military life involves high-risk deployments, relocations, and extended periods away from loved ones. Having a solid life insurance policy provides peace of mind, knowing your family is financially protected if the unexpected happens.

Life insurance for military members not only ensures income replacement but can also help with covering mortgage payments, children’s education, and daily living expenses. Military families also have access to exclusive government-sponsored and private insurance programs that offer valuable benefits.

Government-Backed Life Insurance Plans

Servicemembers' Group Life Insurance (SGLI)

SGLI is the default life insurance policy provided to active-duty members, reservists, and members of the National Guard. In 2025, it continues to offer up to $500,000 in coverage at affordable monthly premiums.

Key features:

• Automatic enrollment
• Low monthly premiums (around $31 for full coverage)
• Includes Traumatic Injury Protection (TSGLI)
• Coverage continues for 120 days after separation

While SGLI offers essential coverage, it may not be enough to meet the long-term needs of military families.

Veterans’ Group Life Insurance (VGLI)

After separating from service, you can convert your SGLI into VGLI within one year and 120 days of discharge without a medical exam if done within the first 240 days.

Advantages of VGLI:

• Continued coverage post-service
• No health exam required initially
• Renewable every five years

However, premiums can increase with age, making it more expensive over time.

Private Life Insurance Options for Military Families

While SGLI and VGLI are excellent government options, many military families explore private insurers for more customized coverage. Here are some of the best private life insurance companies offering plans tailored to military needs:

USAA Life Insurance

USAA is widely respected among military families for its strong customer service and military-friendly policies. They offer both term and permanent life insurance with no war clause exclusions.

Why choose USAA:

• Competitive rates for active-duty and veterans
• No deployment restrictions
• Flexible policy options for families

Navy Mutual

Navy Mutual specializes in life insurance for military and federal employees. Their policies are specifically designed to meet the unique needs of those in service.

Benefits:

• No military service restrictions
• Free survivor services for beneficiaries
• Term and whole life options available

AFBA (Armed Forces Benefit Association)

AFBA has provided life insurance for military personnel since 1947. They offer flexible plans and have strong ties with military communities.

Features:

• No combat or terrorism exclusions
• Coverage continues after leaving the military
• Quick approval process

Military Benefit Association (MBA)

MBA provides life insurance with affordable group rates for military personnel and their families.

Highlights:

• Up to $1 million in coverage
• Portable policies after separation
• Available to active-duty, veterans, and federal employees

Comparing Term vs. Whole Life Insurance

When choosing the best life insurance for military families, you’ll need to decide between term and whole life insurance:

Term Life Insurance

• Coverage for a specific period (e.g., 10, 20, 30 years)
• Lower premiums
• Ideal for covering debts or raising children

Whole Life Insurance

• Lifetime coverage
• Builds cash value over time
• Higher premiums but long-term stability

Most military families start with term life insurance due to its affordability and simplicity, especially when supplementing SGLI.

What to Look for in a Policy

When evaluating life insurance options, consider these key factors:

• Deployment and War Clause: Ensure there are no exclusions for combat-related deaths.
• Coverage Amount: Determine how much your family would need for long-term expenses.
• Portability: Look for plans that can continue after leaving the military.
• Affordability: Balance premiums with the amount of coverage you need.
• Additional Riders: Some insurers offer child riders, disability waivers, or critical illness coverage.

Life Insurance for Spouses and Children

Military life insurance isn’t just for the service member. Many companies, including SGLI (through Family SGLI or FSGLI), offer coverage for spouses and children. FSGLI provides up to $100,000 in coverage for spouses and $10,000 for dependent children at minimal cost. Private insurers also offer family plans that provide long-term protection beyond the service years.

Conclusion

Choosing the best life insurance for military families in 2025 involves balancing government benefits like SGLI and VGLI with private sector options tailored to your unique needs. Whether you’re on active duty, transitioning to civilian life, or planning for retirement, the right policy ensures your loved ones are financially secure no matter what the future holds.

FAQs

Is SGLI enough for military families?

SGLI provides up to $500,000 in coverage, which is a solid start. However, depending on your family size and financial obligations, additional private coverage may be necessary for full protection.

Can I keep my life insurance after leaving the military?

Yes, you can convert your SGLI to VGLI or purchase a new private policy that continues into civilian life. Some private insurers offer portable policies tailored to veterans.

Do life insurance policies cover combat-related deaths?

Government plans like SGLI and many military-specific private insurers do cover combat-related deaths without exclusions. Always check for “war clauses” when reviewing private policies.