Life Insurance & Military Families: What You Need to Know

A webinar hosted by ACLI and Blue Star Families

Overview

The American Council of Life Insurers (ACLI), Blue Star Families, the Armed Forces Benefit Network, and Life Happens had a conversation on the unique role life insurance plays in protecting military families—covering everything from the basics of coverage to the real-life impact of planning ahead. Below is a condensed and lightly edited summary of the discussion.

Introduction

ACLI (Jessica Mancari):
As someone who grew up in a military family, this topic is close to my heart. At ACLI, our mission is simple: help families, including military families, achieve financial protection and security. Today, we’re focusing on life insurance, a topic that’s often overlooked, but so important.

Even for those who have coverage, it’s not always enough. In fact, half of Americans say they’d face financial hardship within six months if the primary wage earner passed away. Life insurance can feel complicated, but we’re here to break it down and make it practical for your life.

Life Insurance 101

ACLI (Jessica Mancari):
What is life insurance? What does it cover, and who is it for?

Life Happens (Brian Steiner):
Life insurance is really “love insurance”—it’s about making sure your loved ones are protected if something happens to you. It helps cover costs, keep families in their homes, pay debts, and provides a dignified burial. It makes a difficult time a little easier for families left behind.

ACLI (Jessica Mancari):
Why is it important that military families consider life insurance as part of their financial planning?

Armed Forces Benefit Network (Michael Norquist):
Life insurance is the foundation of any financial plan, not just for military families, but for everyone. It creates an immediate estate for living expenses, education, food, housing, and childcare. You could ask five financial professionals for advice and get five different strategies, but they’d all agree on the importance of having insurance as your foundation.

Why Military Families Need to Think Differently

ACLI (Jessica Mancari):
There are some significant coverage gaps out there, and a lot of people are offered coverage through work or military service. Is that enough? Should people be thinking differently about their needs?

Life Happens (Brian Steiner):
There are significant coverage gaps out there. Many people have coverage through work or military service, but it’s often not enough. People don’t like to talk about getting sick or dying, but it’s crucial to have these conversations and take action.

ACLI (Jessica Mancari):
Military families have different types of life insurance available to them, what are they and how do they work?

Armed Forces Benefit Network (Michael Norquist):
Military families have unique options:

Servicemembers’ Group Life Insurance (SGLI): All active-duty personnel are enrolled, usually at the maximum $500,000 for about $25/month. It’s a great benefit, but it ends 120 days after you leave the service.
Veterans’ Group Life Insurance (VGLI): You can convert SGLI to VGLI within 240 days of leaving, without proof of insurability.
Family SGLI: Covers spouses (up to $100,000) and children ($10,000 each), with premiums based on age. Spouses can now convert this coverage after separation.

These are valuable, but it’s important to review your needs regularly and consider additional individual coverage, especially as your life changes.

Balancing Short-Term and Long-Term Needs

ACLI (Jessica Mancari):
If you’re someone considering these options, how do you balance short-term needs with longer-term planning? And what about the misconception that life insurance is always expensive?

Life Happens (Brian Steiner):
Life insurance needs change as your life changes. Review your policy every year or two—your family might grow, or your liabilities might decrease. The younger you are, the less expensive coverage is. Even if you don’t have a family yet, locking in coverage now gives you flexibility later.

Armed Forces Benefit Network (Michael Norquist):
Term insurance is like renting—you have it for a set period, and it’s affordable when you’re young, but costs go up as you age. Consider your needs now and in the future, and don’t underestimate the value of permanent coverage.

How Much Life Insurance Do You Need?

ACLI (Jessica Mancari):
Often, we hear that people miscalculate how much life insurance they actually need. What are some practical ways people can figure out if they have enough coverage?

Armed Forces Benefit Network (Michael Norquist):
A simple rule of thumb is to have about 10 times your annual salary in coverage. For military families, remember to include the value of your benefits—housing, healthcare, etc.—when calculating your needs. Add up your current coverage, your spouse’s coverage, and your debts and living expenses. There are online calculators, like the one at Life Happens, to help you figure out if you have enough.

Life Happens (Brian Steiner):
It’s not just about covering debts—it’s about replacing income. For example, a $1 million policy might generate $50,000 a year in income. Make sure your coverage matches your family’s needs.

When to Seek Professional Advice

ACLI (Jessica Mancari):
When should people seek advice from a professional?

Life Happens (Brian Steiner): Everyone deserves access to professional advice, no matter your income. It’s never too late to start, but the earlier, the better. Most people need a little push to take action, and there are great resources and advisors out there to help.

ACLI (Jessica Mancari): When you think about working with military families what is your most common financial guidance?

Armed Forces Benefit Network (Michael Norquist):
Military families often underestimate how much coverage they need because so much is provided on base—housing, healthcare, childcare. When you leave the service, those benefits go away, and it can be a shock to maintain the same standard of living. Education is key.

Real-Life Impact

ACLI (Jessica Mancari):
Can you share a moment where you’ve seen life insurance as the key difference?

Life Happens (Brian Steiner):
We’ve seen life insurance make a real difference—helping families stay in their homes, pay for college, or simply giving them space to grieve without financial worry. It doesn’t solve every problem, but it provides peace of mind.

Armed Forces Benefit Network (Michael Norquist):
I’ve seen the consequences of not having enough coverage. One officer had to leave the military just before retirement because his wife passed away and there wasn’t enough insurance to cover childcare. It’s a tough lesson, but sharing these stories helps others plan better.

Special Considerations for Transitioning Out of the Military

Jessica (from audience Q&A):
For families who will be transitioning out of the military in the next 12 to 18 months, do you have any must-dos before they get out?

Armed Forces Benefit Network (Michael Norquist):
If you’re transitioning out of the military, start by calculating your insurance needs. Consider locking in permanent coverage while you’re still healthy and insurable. Don’t be afraid to shop around and ask questions—sometimes a long-term policy is more affordable than you think.

Life Happens (Brian Steiner):
Change can be daunting, but working with a trusted advisor can help you navigate your options and give you peace of mind.

Living Benefits and Critical Illness Coverage

Jessica (from audience Q&A):
Do you recommend critical illness coverage even with access to TRICARE and VA benefits?

Life Happens (Brian Steiner):
Many life insurance policies now include living benefits—riders that let you access funds if you’re diagnosed with a critical illness or need long-term care. These can be powerful tools, especially when paired with VA or TRICARE benefits.

Armed Forces Benefit Network (Michael Norquist):
Living benefits provide immediate cash if something happens, helping you focus on recovery instead of worrying about bills.

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