10 Little-Known Military Insurance Benefits Every Service Member Should Know About
Military service comes with unique responsibilities and sacrifices, not just for the service members but also for their families. In such a demanding lifestyle, insurance plays a critical role in providing financial security and peace of mind. Military insurance programs are designed to address the specific challenges faced by service members, offering a range of protections that safeguard their health, property, and loved ones.
However, while many service members are aware of the more common insurance benefits, such as TRICARE or SGLI, there are numerous lesser-known perks that often go unnoticed or underutilized. These hidden gems can make a significant difference, offering added layers of protection, reducing costs, and easing financial burdens during transitions, deployments, or PCS moves.The purpose of this blog is to shine a light on these little-known military insurance benefits. By understanding and leveraging these opportunities, service members can ensure they’re fully protected and making the most of the programs designed to support them and their families throughout their military journey.
Benefit1: Spousal Coverage through FSGLI
The Family Servicemembers’ Group Life Insurance (FSGLI) is an extension of the Servicemembers’ Group Life Insurance (SGLI) program that provides life insurance coverage for spouses and dependents of active-duty service members. Spouses can receive coverage up to $100,000, while children are automatically covered for $10,000 at no additional cost.
Eligibility and Coverage Limits:
- Coverage is available to spouses of active-duty service members or members of the Ready Reserve.
- The policy premiums are based on the spouse’s age and the selected coverage amount.
Why It’s Valuable:
FSGLI ensures your loved ones are financially protected in the event of an unexpected loss. It complements SGLI by extending coverage to your family, providing peace of mind that their needs will be met if the unthinkable happens.
Benefit 2: Deployment-Specific Auto Insurance Perks
Auto insurance providers often offer special benefits tailored to service members who are deployed. One of the most valuable is the ability to adjust or pause coverage for stored vehicles, significantly reducing premiums.
Key Features:
- Discounts for vehicles stored during deployment.
- Waived cancellation or reactivation fees for adjusting coverage.
Steps to Activate:
- Contact your auto insurance provider before deployment.
- Provide proof of deployment orders and details about the vehicle’s storage location.
This benefit can save service members money while ensuring compliance with coverage requirements during deployment.
Benefit 3: TRICARE Overseas Program (TOP)
The TRICARE Overseas Program (TOP) ensures that service members and their families stationed or traveling abroad have access to quality healthcare.
Benefits:
- Comprehensive coverage for medical services, including routine care, emergency care, and pharmacy benefits.
- Access to a network of international providers familiar with TRICARE policies.
Key Tips:
- Register with TRICARE before leaving the U.S. to avoid delays in accessing care abroad.
- Save receipts and documentation for reimbursement claims.
TOP ensures you and your family are protected, no matter where your service takes you.
Benefit 4: Reimbursement for Personal Property Loss
Frequent relocations during Permanent Change of Station (PCS) moves increase the risk of damage or loss to personal belongings. Military members can file claims for reimbursement under the military’s Liability Claims Policy.
Coverage Details:
- Reimbursement for damaged or lost items during a government-contracted move.
- Items like furniture, electronics, and personal keepsakes are commonly covered.
How to File a Claim:
- Document all damages and losses during the move.
- Submit a claim through the Defense Personal Property System (DPS) or with your transportation office.
This benefit provides financial relief and ensures you’re not left to cover damages out of pocket.
Benefit 5: VA Disability Insurance for Service-Connected Injuries
VA Disability Insurance offers crucial financial support to service members who sustain injuries or illnesses related to their military service.
Key Features:
- Monthly disability compensation based on the VA’s rating system.
- Supplemental insurance options for higher levels of disability or additional coverage needs.
Tips for Maximizing Benefits:
- Apply promptly after leaving service to establish eligibility.
- Provide thorough medical documentation to support your claim.
This benefit ensures long-term financial stability for service members facing health challenges.
Benefit 6: Survivor Benefits Plan (SBP) Premium Refunds
The Survivor Benefits Plan (SBP) provides ongoing income to your spouse after your death. What many don’t realize is that if your spouse passes away before you, you may be eligible for a refund of all premiums paid into the plan.
Eligibility and Application:
- Service members must contact the Defense Finance and Accounting Service (DFAS) to initiate the refund process.
- Maintain updated beneficiary records to prevent delays.
This provision can provide financial relief and underscores the importance of regular policy reviews.
Benefit 7: Free Financial Counseling
Programs like Military OneSource offer free financial counseling tailored to service members. This includes assistance with understanding and optimizing your insurance benefits.
Key Services:
- Guidance on selecting appropriate coverage levels.
- Budgeting for premiums and understanding insurance clauses.
How It Helps:
Accessing expert advice ensures you make informed decisions, avoid gaps in coverage, and save money.
Benefit 8: Special Considerations for Reservists and National Guard Members
Reservists and National Guard members have unique insurance needs, especially when transitioning between civilian and military roles.
Benefits:
- Continuation of coverage during activation for federal duty.
- Eligibility for military insurance programs like TRICARE Reserve Select and SGLI.
Special Rates:
- Supplemental insurance policies often offer reduced premiums for part-time service members.
Planning ahead ensures seamless protection during duty transitions.
Benefit 9: Low-Cost VGLI Conversion Options
Veterans’ Group Life Insurance (VGLI) allows service members to maintain life insurance coverage after leaving active duty.
Features:
- No medical exam required if you convert within 240 days of separation.
- Premiums are based on age and coverage amount, offering flexibility.
Avoiding Lapses:
- Apply as soon as possible after separation to ensure continuous coverage.
This benefit offers a reliable way to maintain life insurance after your military service ends.
Benefit 10: Home Insurance Discounts for Military Families
Many insurers offer exclusive home insurance discounts to military members. These discounts are especially valuable for families renting out homes during PCS moves.
Perks:
- Reduced rates for bundling home and auto insurance.
- Special coverage options for renting out properties temporarily.
Maximizing Savings:
- Research insurers that cater to military families and inquire about bundling discounts.
These discounts help service members manage housing expenses effectively.
How to Access and Maximize These Benefits
- Stay Informed:
- Regularly review your insurance policies and explore additional benefits.
- Check for updates through resources like Military OneSource and your base support office.
- Seek Expert Advice:
- Consult financial counselors to tailor insurance plans to your family’s needs.
- Update Policies Regularly:
- Life changes, such as marriage, childbirth, or transitioning to civilian life, may require updates to your coverage.
By staying proactive and informed, you can unlock the full potential of these benefits, ensuring maximum protection for you and your family.
FAQs
Q: Can I get spousal FSGLI coverage if my spouse is a civilian?
A: Yes! Spouses of active-duty service members are eligible for Family Servicemembers’ Group Life Insurance (FSGLI), even if they are civilians. The coverage amount for a spouse can be up to $100,000, depending on the service member’s election and the spouse’s age. To apply, you must ensure your spouse is enrolled in the program during the initial SGLI election or during reenrollment periods.
Q: Do I need to notify my auto insurance provider if I’m deployed and plan to store my car?
A: Yes, it’s important to contact your auto insurance provider before your deployment. Most companies offer special discounts or adjustments for vehicles stored during deployment. You may also be able to pause coverage or store the vehicle at a reduced rate, depending on your insurance company’s policy. Always provide documentation of your deployment orders to qualify for these perks.
Q: How can I ensure I’m covered under TRICARE if I’m stationed overseas?
A: If you’re stationed abroad, you and your family can enroll in the TRICARE Overseas Program (TOP). This plan provides comprehensive coverage for medical services while stationed outside the U.S. Make sure to register with TRICARE prior to deployment or relocation overseas, and review the specific health care providers and services available in your new area.
Q: What types of property are covered under the military’s liability claims policy during a PCS move?
A: The military’s liability claims policy covers a wide range of personal property, including furniture, electronics, and clothing, that is damaged or lost during a PCS move. However, items like valuable jewelry or rare collectibles might require additional coverage. Always document your possessions before your move to ensure you can easily file a claim if needed.
Conclusion
The unique nature of military service often brings unforeseen challenges, but one thing you can always count on is the array of insurance benefits designed to protect you and your loved ones. From health coverage to life insurance and property protection, the military offers a wealth of resources that can enhance your financial security and offer peace of mind, whether you’re deployed, moving, or transitioning back to civilian life.
While many service members are familiar with some of these benefits, others often go underutilized. By exploring and taking full advantage of these lesser-known perks, you can ensure that both you and your family are thoroughly covered, reducing stress and mitigating financial risks.
We encourage you to take a proactive approach by reviewing your policies regularly and reaching out to available resources such as Military OneSource and your base’s support services. They can help clarify any questions, assist in the application process, and ensure that you’re making the most of your military insurance options.
Remember, your service is invaluable, and these benefits are designed to support you and your family throughout your journey—during both your time in uniform and beyond. Stay informed, stay protected, and continue to take full advantage of what’s available to you.
