Defence Personnel Term Life Guide 2025

Protecting Those Who Protect Us: Your 2025 Guide to Term Life Insurance for Defence Personnel

Serving in the defence forces demands immense sacrifice, courage, and commitment. Whether you are active duty, a reservist, or a veteran, you understand the inherent risks and the importance of ensuring your loved ones are financially secure, no matter what happens. While the military provides essential benefits like Servicemembers’ Group Life Insurance (SGLI), is it truly enough to safeguard your family’s future? For many service members, the answer is no.

This comprehensive guide, updated for 2025, delves into the specifics of term life insurance for defence personnel. We will explore why SGLI might fall short, the significant advantages of private term life insurance, crucial factors military members must consider, and how partnering with an independent agency can make all the difference in finding the right protection.

At Insurance By Heroes, we understand the unique challenges and needs of the military community because we are part of it. Founded by a former first responder and military spouse, our agency is staffed by professionals with backgrounds in public service. We are not tied to any single insurance company. Instead, we leverage our independence to work with dozens of top-rated carriers across the country. This allows us to shop the market extensively on your behalf, comparing options to find the coverage that truly fits your specific situation and budget. Our mission is simple: to serve those who serve.

Understanding Term Life Insurance Basics

Before diving into the specifics for defence personnel, let’s clarify what term life insurance is. In essence, it is straightforward, affordable life insurance designed to provide coverage for a specific period or “term.”

• Defined Term: You select a term length, commonly 10, 15, 20, 25, or 30 years. The policy provides coverage only during this period.
• Death Benefit: If the insured person passes away during the term, the policy pays out a tax-free lump sum (the death benefit) to the designated beneficiaries. This money can be used for anything – replacing lost income, paying off a mortgage, funding education, covering final expenses, or handling daily living costs.
• Level Premiums: Most term policies today have level premiums, meaning your payment amount remains the same for the entire term. This makes budgeting predictable.
• No Cash Value: Unlike whole life insurance, term life typically does not build cash value. Its primary purpose is providing the maximum death benefit for the lowest cost, making it an efficient protection tool, especially during years when financial obligations (like raising children or paying a mortgage) are highest.

Think of it as renting protection for the years you need it most. Because of its simplicity and affordability, term life insurance is often the most practical choice for families, including those in the military.

SGLI: A Valuable Benefit, But With Limitations

Servicemembers’ Group Life Insurance (SGLI) is a program supervised by the Department of Veterans Affairs (VA) and administered by Prudential. It provides low-cost group term life insurance to eligible service members.

Key Features of SGLI:

• Automatic Enrollment: Most active duty members are automatically enrolled for the maximum coverage amount.
• Coverage Amount: As of 2025, the maximum SGLI coverage available is $500,000. Service members can elect lower amounts or decline coverage.
• Low Cost: Premiums are very affordable, currently 6 cents per $1,000 of coverage per month (or $30/month for the maximum $500,000).
• Includes TSGLI: Traumatic Injury Protection Rider (TSGLI) is automatically included, providing payments for qualifying severe injuries.
• Family Coverage (FSGLI): Eligible spouses ($100,000 max) and dependent children ($10,000 per child) can also be covered under Family SGLI (FSGLI).
• Combat Coverage: SGLI provides coverage even in combat zones, with no war clauses.

Critical SGLI Limitations to Consider:

While SGLI is an excellent starting point, relying solely on it can leave significant gaps in your family’s financial safety net.

• Coverage Cap: Is $500,000 enough? Consider your family’s long-term needs: replacing your income for potentially decades, paying off a mortgage (which could easily be $300,000+), funding college for children (potentially $100,000+ per child), covering childcare costs, and managing future inflation. For many families, especially those with young children or significant debts, $500,000 may not stretch far enough to truly secure their financial future.
• Coverage Ends Upon Separation: SGLI coverage typically ends 120 days after you separate or retire from the military. While you can convert SGLI to Veterans’ Group Life Insurance (VGLI), this option comes with significant drawbacks. VGLI premiums increase every five years based on age and can become very expensive over time compared to locking in a level premium with a private policy while you are young and healthy. Furthermore, VGLI has the same $500,000 coverage limit. You can also convert to a private whole life policy, but this is often much more costly than term life.
• Not Portable (as SGLI): The specific SGLI policy and its low rates do not follow you into civilian life. Securing private coverage while still serving ensures you have continuous protection without interruption or potentially higher costs later.
• Potential Coverage Gap: If you wait until separation to seek private insurance, you might face a coverage gap between SGLI ending and a new policy becoming active. Applying while healthy and serving can prevent this.
• Spousal Coverage Limit: The $100,000 FSGLI limit for spouses may also be insufficient, especially if the spouse is the primary caregiver or contributes significantly to household income.

SGLI is a valuable group benefit tied to your employment (military service). Private term life insurance is an individual contract that you own, offering greater control, often higher coverage amounts, and portability beyond your service years. Understanding these differences is crucial, and it highlights why comparing options through an independent agency like Insurance By Heroes is so beneficial – we can assess your SGLI alongside dozens of private carrier options to identify any potential gaps.

Why Supplement or Replace SGLI with Private Term Life Insurance?

Given the limitations of SGLI, many defence personnel wisely choose to supplement or even replace their SGLI coverage with a private term life insurance policy. Here is why this strategy makes sense:

Higher Coverage Amounts

Private policies allow you to purchase significantly more coverage than the $500,000 SGLI cap. Financial experts often recommend life insurance coverage equal to 10-15 times your annual income, or enough to cover all major debts (mortgage, loans) plus future income needs and educational goals. A private policy makes achieving this level of protection possible and affordable.

Portability: Coverage After Service

Perhaps the most significant advantage. A private term life policy belongs to you, not your employer (the military). It stays with you when you transition to civilian life, regardless of your future career or health changes, as long as you continue paying the premiums. This ensures continuous protection for your family without the hassle or potentially higher costs associated with VGLI or applying for new coverage when you might be older or less healthy.

Locking in Lower Rates

Life insurance premiums are primarily based on age and health at the time of application. By purchasing a private level term policy while you are young and generally healthy during your service years, you can lock in significantly lower premiums for the entire term (10, 20, 30 years). Waiting until after separation means applying at an older age, potentially with new health issues, which will inevitably result in higher costs.

More Choices and Customization

SGLI is a one-size-fits-most group plan. Private insurance offers a vast array of choices. You can select the exact term length (10, 15, 20, 25, 30 years, or even longer) and coverage amount that aligns perfectly with your family’s needs (e.g., until the mortgage is paid off or the kids graduate college). You can also add optional riders for enhanced benefits, such as:

• Waiver of Premium Rider: Waives premiums if you become totally disabled.
• Accelerated Death Benefit Rider: Allows access to a portion of the death benefit if diagnosed with a qualifying terminal illness.
• Child Rider: Provides small amounts of term coverage for your children.

Not every carrier offers the same riders or defines them identically. This is another area where working with Insurance By Heroes helps, as we can compare rider availability and costs across multiple companies to tailor the policy precisely.

Potential for Better Value (Depending on Health)

While SGLI rates are low due to group pooling, if you are young, in excellent health, and a non-tobacco user, you might find private term life insurance rates from some carriers are surprisingly competitive, especially when considering the advantages of portability and locking in rates long-term. Comparing quotes is essential to determine the best value for your individual profile.

Supplementing SGLI with a private policy provides a layered approach to protection, ensuring comprehensive coverage both during and after your military career. For some, replacing SGLI entirely with a larger private policy might even be a consideration, depending on individual circumstances and cost comparisons.

Key Considerations for Defence Personnel Seeking Term Life Insurance

Applying for private life insurance as a member of the defence forces involves some unique considerations that civilians typically do not face. Insurance underwriters assess risk, and certain aspects of military life require careful attention.

War and Terrorism Clauses

A common concern is whether a private policy will pay out if death occurs due to acts of war or terrorism, especially during deployment. Historically, some policies included exclusions for these events. However, the good news is that most modern individual life insurance policies issued in the United States today *do not* contain war or terrorism exclusions. This means they generally provide coverage even if death occurs in a combat zone or due to terrorism. SGLI explicitly covers these scenarios. While private policies usually do too, it is absolutely critical to verify this with the specific carrier and policy language. Assumptions should never be made. An independent agency like Insurance By Heroes is crucial here, as we know which carriers have the most favorable (or no) exclusions related to military service and can ensure you understand the fine print before you apply.

Deployment Status and Travel

Your deployment status or pending orders can impact the application process:

• Applying Before Deployment: The best time to apply for private life insurance is well *before* you have deployment orders. Most carriers can approve policies without issue if deployment is not imminent.
• Applying with Pending Orders: If you have orders for deployment to a hazardous area, many insurance companies will postpone approving your application until you return. Some may offer limited coverage or charge higher premiums.
• Applying While Deployed: Getting coverage while already deployed in a high-risk area is very difficult, if not impossible, with most standard carriers.

This underscores the importance of proactive planning. Secure your private coverage early in your career or as soon as you recognize the need, well ahead of potential deployments.

Aviation and Hazardous Duties

If your military role involves activities insurers consider high-risk, such as:

• Military pilots or aircrew
• Paratroopers / Airborne operations
• Explosive Ordnance Disposal (EOD)
• Special Forces
• Deep-sea diving

You may face special underwriting considerations. Some carriers might charge a higher premium (a “flat extra”) or place exclusions on the policy related to that specific activity. However, different insurers assess these risks differently. Some carriers are known to be more lenient or specialized in covering military personnel with hazardous duties, often without extra premiums, especially for experienced personnel with good safety records. Comparing how various carriers underwrite your specific Military Occupational Specialty (MOS) or duty is vital. Insurance By Heroes has experience navigating these nuances and identifying carriers that are more favorable for specific military roles.

Health Ratings and Military Service

Your health is a primary factor in life insurance underwriting. Documented injuries or conditions related to military service (e.g., PTSD, Traumatic Brain Injury, physical injuries) will be reviewed. It is essential to be completely honest on your application. While some conditions may lead to higher premiums or declined applications with certain carriers, others may still offer affordable coverage, especially if the condition is well-managed. Underwriting guidelines vary significantly between companies. An independent agent can help position your application effectively and approach carriers known to be more understanding of service-related health issues.

Tobacco Use

As with civilian applicants, tobacco use (including cigarettes, cigars, vaping, chewing tobacco) will result in significantly higher premiums compared to non-tobacco users. Be honest about your usage, as insurers will verify through medical exams or records. If you quit, most carriers require you to be tobacco-free for at least 12 months (sometimes longer) to qualify for non-tobacco rates.

Navigating these military-specific factors requires expertise. Because each insurance carrier has its own underwriting rules and risk tolerance, the company that is best for your buddy might not be the best for you. This is precisely why comparison shopping through an independent agency is not just helpful, but often essential for defence personnel to find the right coverage at the best possible price.

Finding the Right Carrier: The Power of Comparison Shopping

There is no single “best” life insurance company or policy for every member of the defence forces. The ideal choice depends entirely on your individual circumstances, including:

• Your age and health status
• Tobacco use
• Your specific military duties (e.g., pilot, infantry, support staff)
• Deployment status or history
• The amount of coverage you need
• The term length you desire (10, 20, 30 years)
• Your budget
• Any specific riders you need

Insurance carriers evaluate these factors differently. For example:

• Carrier A might offer the best rates for young, healthy non-tobacco users but be strict about hazardous duties.
• Carrier B might have slightly higher base rates but be much more lenient with pilots or those with certain managed health conditions.
• Carrier C could offer competitive rates for tobacco users compared to others.
• Carrier D might have the most favorable underwriting for specific service-related health conditions like well-managed PTSD.
• Carrier E may offer a specific rider important to you that others do not.

If you only approach one insurance company directly (a “captive” agent), you only get one quote and one perspective on your risk profile. You have no way of knowing if another top-rated company could offer you the same or better coverage for significantly less cost, or approve you if the first company declines.

This is where the value of an independent agency like Insurance By Heroes becomes crystal clear. We are not bound to promote any single carrier. Our loyalty is to you, the client. We have access to dozens of highly-rated insurance companies across the nation. Our process involves:

1. Understanding Your Needs: We take the time to learn about your specific situation, family needs, budget, and military service details.
2. Shopping the Market: We use our knowledge and technology to compare quotes and underwriting guidelines from numerous carriers simultaneously.
3. Identifying Best Fits: We identify the companies most likely to offer you the best coverage options and rates based on your unique profile.
4. Presenting Options: We explain the pros and cons of the top choices in clear, easy-to-understand language, empowering you to make an informed decision.

This comparison shopping process routinely saves our clients time, hassle, and significant amounts of money over the life of their policy. It also greatly increases the chances of finding coverage, even if you have factors (like hazardous duties or health conditions) that might make securing a policy more challenging.

How Insurance By Heroes Serves Defence Personnel

Insurance By Heroes was founded on the principle of service. Our founder, a former first responder and military spouse, experienced firsthand the unique insurance needs and challenges faced by those in uniform and public service. This personal connection drives our commitment to providing honest, expert guidance to military members, veterans, first responders, and their families.

Our team includes professionals with backgrounds in service, giving us an intrinsic understanding of your world – the demands, the risks, and the importance of reliable protection for your loved ones. We speak your language and appreciate the sacrifices you make.

Our Commitment to You:

• Independent Advocacy: We work for you, not an insurance company. Our advice is unbiased, focused solely on finding the best solution for your needs among the many carriers we represent.
• Expertise in Military Cases: We understand the nuances of underwriting military personnel, including issues related to deployment, hazardous duties, and service-related health conditions. We know which carriers tend to be more “military-friendly.”
• Access to Top Carriers: We partner with dozens of A-rated or better insurance companies, ensuring you have access to a wide range of competitive options.
• Tailored Solutions: We do not believe in one-size-fits-all. We take the time to understand your individual circumstances and tailor coverage recommendations accordingly.
• Simplified Process: We strive to make the insurance application process as smooth and straightforward as possible, guiding you every step of the way.
• No Pressure, No Obligation: Our goal is to educate and empower you. We provide quotes and information freely, allowing you to decide what is right for you without any sales pressure.

Choosing Insurance By Heroes means partnering with an agency that respects your service, understands your needs, and has the independence and expertise to find you the most suitable and affordable term life insurance protection available.

Steps to Getting Covered

Securing the right term life insurance involves a few key steps:

1. Assess Your Needs: Determine how much coverage you realistically need and for how long. Consider income replacement, debts (mortgage, loans), education costs, and final expenses. Online calculators can help, but discussing with an advisor is often beneficial.
2. Get Quotes: This is where Insurance By Heroes shines. Instead of contacting multiple companies yourself, simply reach out to us or use our online quote tool. We will gather quotes from numerous carriers based on your information.
3. Choose a Policy & Apply: Review the options presented. We will help you understand the differences and select the policy that best fits your needs and budget. Then, you will complete the formal application, which asks detailed questions about your health, lifestyle, and military service. Honesty is paramount.
4. Undergo Underwriting: The insurance company reviews your application, often requiring a free medical exam (paramed exam) which usually includes height, weight, blood pressure, and blood/urine samples. They may also review medical records and prescription history. Some policies may offer simplified underwriting without an exam, but these often have coverage limits or higher costs.
5. Receive Approval & Activate Policy: Once underwriting is complete, the insurer will approve your policy, potentially assigning a health class (e.g., Preferred Plus, Preferred, Standard) which determines your final premium. If you accept the offer, you make your first premium payment to activate the policy.

The entire process can take anywhere from a few days (for no-exam policies) to several weeks (for fully underwritten policies). Starting early, especially before deployments, is key.

Secure Your Family’s Future Today

Your service to the nation provides invaluable security to others. Ensuring your own family’s financial security is just as critical. While SGLI offers a foundation, it often falls short of providing the comprehensive, long-term protection your loved ones deserve.

Private term life insurance offers higher coverage amounts, crucial portability after service, and the ability to lock in affordable rates for decades. However, navigating the market as a defence member requires careful consideration of military-specific factors and understanding how different insurance carriers view them.

Do not leave your family’s future to chance or settle for a one-size-fits-all solution. Let the dedicated team at Insurance By Heroes put our independence and expertise to work for you. As professionals with service backgrounds, we are uniquely positioned to understand your needs and shop the market effectively across dozens of top carriers.

Ready to find the best term life insurance protection for your specific situation? Take the first step towards peace of mind. Fill out our quick and secure online quote form now, or give us a call. We are here to answer your questions and help you secure the coverage your family deserves. Thank you for your service.