There are many schools of thought on taking the SGLI term insurance with that size policy. It is indeed very cheap.
When you’re married, with spouse, kids, home mortgage, debt, college to plan for, that’s an understandable size policy. Many do not see the need for it as a single person of your age with none of the life events attached as yet.
There are some who look at it as a gift to parents and siblings in the case of an earlier than usual death. One of our USNA sponsor mids knew his parents struggled financially, and he planned to help them once he was commissioned, as well as be there for them in their end of life days. He figured if he took it as a mid, if something happened to him, his parents and siblings would benefit, even if he was no longer there to help them out for the next 50 years.
I believe you can take a lesser amount and go up to the full amount later if desired. Or you can go to your cadet personnel office later on and start it, or even wait until post-commissioning. Read the fine print. Note I said “think.” This is the way I always knew it worked, but things can change.
Term group life insurance is the simplest. If you die, the person you specify as beneficiary gets the funds. It’s “group,” because it’s available for the asking to cover an entire group, as compared to an individual policy held in your own name that covers only you.
The SGLI does not have a “combat-exclusion” clause. You are covered no matter where you are and what dangerous, high risk-stuff you are doing on behalf of the nation. Most “civilian” life insurance policies exclude high-risk locations (combat zones) and activities (military pilot, etc.). That means that civilian policy would not pay if the death occurred in an excluded situation. Down the road, you will learn which military-friendly companies offer individual life insurance policies with no combat exclusions.
