Unfortunately, what they say is true, "There are only two things in life you cannot avoid, and that is death and taxes!"  As ugly as the subject is, when you have other people who depend on your income to survive, you must consider what to do in the event that the income is lost due to an untimely death.  There are some important things military families should consider when deciding how much insurance they will need.

First of all, consider what benefits you already have in place in the event of the service members death:

• SGLI (Servicemembers' Group Life Insurance) - Active Duty Service members currently have automatic coverage for the maximum amount of life insurance under SGLI (Servicemembers' Group Life Insurance) which is $400,000, unless they elect not to be covered. Service members have the option of electing full coverage, reduced coverage in increments of $50,000, or no coverage at all.  (Payment takes approximately 45 days after death.)

• Death Gratuity - This is a one time lump sum payment of $100,000 to the designated next of kin of a member of the Armed Forces who dies while serving on active duty, active duty for training, inactive duty for training, or within 120 days after release from active duty if the death is due to a service related disability.  (Payment is usually made within 3 days of death)

• DIC - (Dependency and Indemnity Compensation) - This is a flat monthly payment for eligible survivors of active duty Service members and survivors of those veterans whose deaths are determined by the VA to be service related.  It is the same amount regardless of rank, is tax free, and is adjusted annually for cost of living.  This benefit is payable for the life of the spouse, provided the spouse doesn't remarry before the age of 57.  However, should a remarriage end, DIC benefits can be reinstated.  The only requirements are proof of relationship to the deceased Service member and that the Service member’s death was service-connected.  The rate of compensation increases for a spouse with one or more children with the deceased veteran. The 2007 spouse DIC monthly rate is $1,067 and an additional $265 for each child. Children are eligible for this compensation under the following conditions:
  • until they marry or turn 18 (or 19 if still in secondary school)
  • if they are between the ages of 18 and 23 and are attending a VA approved institution of
  higher learning
  • for life, if they are disabled

• Transition Assistance - To help ease your transition, a monthly payment of $250 will be paid to surviving spouses with minor children for the first two years of DIC entitlement or until the last minor child is removed from DIC benefits should that happen before the two years of eligibility are over.

• Housing - When a service member dies on active duty, his or her spouse and children under 18 years old are eligible for one year of rent-free housing in Government quarters.  If they do not live on a military base or in other Government housing, they will receive a lump sum payment equal to one year of (BAH) basic allowance for housing.

• Health Insurance - After a service member dies, the spouse and children under age 18 are eligible for three years of coverage under TRICARE-Standard, the military health insurance plan.

• Relocation - If you choose to relocate within 3 years the government will pay to move you.  (An extension can be requested if needed.)

Next consider what benefits you already have for the spouse and children of the service member:

• FSGLI (Family Servicemembers' Group Life Insurance) - This life insurance coverage is AUTOMATIC for the spouses and dependent children of all service members (Active Duty and Ready Reserve) who have full-time SGLI coverage. A “dependent child” includes naturally born or legally adopted children, stepchildren who reside in the service member's household, children between the age of 18-23 who are full-time students or children who are permanently incapable of self-support before age 18.  The spousal coverage for a maximum of $100,000 and can be in lesser amounts in increments of $10,000, however it cannot exceed the amount of the service member's SGLI coverage.  Dependent child coverage is the set amount of $10,000 for each dependent child.

For additional information read: A Survivor’s Guide to Benefits: TAKING CARE OF OUR OWN.

• War Clause - Normally, insurance companies do not compensate for death due to war or war-related developments. As per this clause, if you are a victim of war, your insurer will not pay out the benefits to you. In its place, your insurer will reimburse the previously paid premiums to your family.
• Aviation Clause - According to this clause, your insurer will not pay compensation to your surviving family due to death on an aircraft.

• Calculator Tool - There are various insurance needs calculators available online.  You may want to use one of these to better determine your coverage needs.