How to Choose the Right Insurance for Military Families

Insurance decisions confuse many military families. Between TRICARE variations, SGLI, auto insurance requirements that change with PCS moves, and questions about supplemental coverage, the options can feel overwhelming. Making informed choices protects your family without wasting money on unnecessary coverage.

Health Insurance Through TRICARE

Active duty service members and their families receive health coverage through TRICARE. Understanding your options helps you access care effectively.

TRICARE Prime offers the most comprehensive coverage with the lowest out-of-pocket costs. You’re assigned a primary care manager who coordinates your care. Referrals are required for specialist visits. This option works well for families living near military treatment facilities who prefer coordinated care.

TRICARE Select provides more flexibility in choosing providers without referrals. You can see any TRICARE-authorized provider. Cost shares apply for most care, making this option slightly more expensive but more convenient for families who prefer civilian providers or live far from military facilities.

For families with children, dental coverage through the TRICARE Dental Program is separate and requires enrollment. Monthly premiums are reasonable, and coverage includes preventive and basic services. Evaluate whether enrollment makes sense based on your family’s dental needs.

Vision coverage for dependents isn’t included in TRICARE. Consider whether a separate vision plan or paying out-of-pocket for annual exams makes more financial sense for your family.

Life Insurance Decisions

Servicemembers’ Group Life Insurance provides coverage up to $500,000 at rates significantly below comparable civilian policies. Premiums are deducted automatically from your pay. For many families, this coverage forms the foundation of their life insurance strategy.

However, SGLI alone may not provide adequate protection. Financial advisors typically recommend coverage of 10-15 times annual income. For a family relying on a service member’s income, $500,000 may fall short when considering mortgage payoff, children’s education, income replacement, and debt elimination.

Supplemental term life insurance fills this gap. Private policies offer several advantages over relying solely on SGLI:

• Coverage continues regardless of military status
• Rates locked in while young and healthy
• Coverage amounts matched to your specific needs
• No conversion required at separation

When you leave service, SGLI converts to Veterans’ Group Life Insurance, but premiums increase substantially with age. A 30-year-old veteran might pay triple for VGLI compared to a private term policy. Obtaining private coverage while still in service often proves more economical long-term.

Auto Insurance Across State Lines

PCS moves complicate auto insurance. Each state has different minimum coverage requirements, and maintaining proper coverage while moving requires attention.

The Servicemembers Civil Relief Act allows you to maintain vehicle registration in your state of legal residence regardless of where you’re stationed. However, some states require insurance that meets local minimums regardless of where your car is registered. Research requirements before each move.

Military-focused insurers like USAA understand these complexities. They can adjust coverage for each duty station while maintaining continuous policies. Bundling auto and property insurance often provides discounts that reduce overall costs.

Deployment presents special considerations. Some insurers offer reduced rates or storage policies for vehicles not driven during extended deployments. Contact your insurer before deploying to explore options.

Property and Renter’s Insurance

Many military families overlook renter’s insurance, assuming their belongings are protected. Your landlord’s insurance covers the building, not your possessions. A stolen laptop, kitchen fire, or burst pipe could cost thousands without renter’s insurance.

Renter’s insurance typically costs $15-30 monthly and provides substantial protection. Coverage usually includes personal property, liability, and additional living expenses if you’re displaced. Document your belongings with photos or video to simplify claims.

Homeowners choosing to buy at duty stations need appropriate coverage. Standard homeowners policies don’t cover flood or earthquake damage, which require separate policies. If you’re in a flood zone, federally-backed mortgages require flood insurance.

Disability Insurance Considerations

Military service includes some disability protection, but it’s worth understanding gaps. If you’re injured in service, VA disability compensation provides ongoing support. However, this system has its own complexities and timelines.

For military spouses with income, disability insurance protects against loss of earning ability. A spouse’s income often covers significant family expenses. Long-term disability insurance provides income replacement if illness or injury prevents work.

Insurance for Specific Situations

Families with unique circumstances may need additional coverage types:

Umbrella policies provide liability coverage beyond auto and homeowners limits. For families with significant assets or higher risk profiles, umbrella coverage protects against catastrophic lawsuits.

Pet insurance helps families manage veterinary costs. Military families with pets face challenges during PCS moves, and unexpected pet health issues add stress. Evaluate whether premiums versus typical vet costs make sense for your situation.

Identity theft protection monitors for fraudulent use of your personal information. Service members face elevated identity theft risks. Some coverage comes with certain insurance bundles or credit monitoring services.

Making Smart Decisions

Review your insurance coverage annually and after major life changes. Marriage, children, promotions, and PCS moves all potentially change your needs. Don’t assume coverage purchased years ago still matches your current situation.

Compare quotes from multiple insurers, but weight service quality alongside price. During claims, responsive service matters more than a few dollars saved monthly. Military-focused insurers often provide better service for military-specific situations.

Ask about discounts. Military affiliation, bundling policies, safe driving records, and home security systems can all reduce premiums. Insurance companies want your business and often provide savings you won’t receive without asking.

Insurance protects against financial catastrophe, not minor inconvenience. Focus coverage on events that would devastate your finances while self-insuring smaller risks. This approach provides protection where it matters while avoiding excessive premiums.