FSGLI Spouse Coverage Ends at Separation: The 120-Day Window

Most separating service members focus on their own life insurance — SGLI to VGLI to private term. They forget that their spouse's life insurance under FSGLI also ends at separation, and the conversion window is much shorter than VGLI's: just 120 days.

If your spouse has any health issue that would affect underwriting, this window matters.

What FSGLI Is

Family SGLI (FSGLI) is the spouse and child life insurance program tied to your active SGLI coverage. While you're in:

• Spouse coverage: $100,000 maximum (you choose any amount up to that in $10K increments)
• Each child: $10,000 free for each dependent child up to age 18 (or 23 if a full-time student)

Premiums for spouse coverage are age-banded:

Spouse age	$100K monthly
Under 35	$4.50
35-39	$5.50
40-44	$6.50
45-49	$9.50
50-54	$14.00
55-59	$25.00
60+	$45.00+

Child coverage is free regardless of how many children.

What Happens at Separation

When the service member separates, all FSGLI coverage terminates. There is no equivalent of VGLI for spouses. The free child coverage simply ends.

Spouses have 120 days from the service member's separation to convert their FSGLI coverage to a private whole life or term policy with one of the participating commercial insurers (Prudential is the underlying FSGLI carrier; conversion is to a Prudential individual product).

The conversion:

• Does not require medical underwriting
• Does not have rate-class screening
• Does require continued premium payment at private rates

Private rates after age 35 are dramatically higher than FSGLI's group rates. Conversion is generally only economical if the spouse can't qualify for ordinary private term life at standard rates.

When to Convert vs Buy New

Convert FSGLI to Prudential whole life if:

• The spouse has a serious diagnosis (cancer history, recent hospitalization, chronic condition)
• The spouse has been declined for private term in the past
• The spouse smokes and would face heavy ratings on private term
• The spouse is over 55 and private rates are climbing

Buy private term insurance instead if:

• The spouse is under 50 and healthy
• The spouse is a non-smoker
• You want longer guarantees (20-30 year level term)
• You want coverage above $100,000

Skip FSGLI conversion AND skip private term if:

• The spouse is independently wealthy (death benefit isn't needed for the surviving family)
• The spouse has employer-provided life insurance equal to or better than what you'd buy
• The decedent's death wouldn't materially impact household finances

The most common path: spouse buys private term insurance during the same window the service member is converting SGLI to VGLI. Both shop the market simultaneously.

Why the 120-Day Window Is Easier to Miss

Compared to the VGLI 240-day window, FSGLI conversion gets ignored because:

1. The service member is the one in TAP. The spouse may not attend the briefings or hear about FSGLI conversion.
2. The dollar amounts are smaller. $100K of spouse coverage feels less critical than $500K on the service member.
3. The form is separate. SGLV-8285 (FSGLI Conversion form) goes to Prudential directly, not through the VA.

If your spouse has an underwriting risk that's relevant, set the 120-day deadline as a calendar event the day you separate. Don't let it slip.

How to Convert

Two steps:

1. Submit SGLV-8285 (Family SGLI Conversion Notice) to Prudential within 120 days of separation. Form is at Prudential's FSGLI page.
2. Choose a Prudential individual product (whole life, universal life, or term). Prudential will send you policy options based on the converted coverage amount.

Prudential is the only carrier you can convert to from FSGLI. If you want to insure with a different carrier, you'll need full medical underwriting on a new policy.

Private Term Life Comparison

Private term for healthy non-smoker spouse, $250,000 of coverage (since FSGLI caps at $100K, the natural private comparison is at a higher amount):

Spouse age	$250K, 20-year term
30	$15-20/mo
35	$18-25/mo
40	$25-35/mo
45	$40-55/mo
50	$65-90/mo
55	$110-150/mo

Notice the math: at age 35-40 a healthy spouse can get 2.5x more coverage ($250K vs $100K) for 3-5x the monthly cost of FSGLI's $100K. Private term is usually better when health and price both work in your favor.

What If Your Spouse Has Health Issues?

This is where conversion becomes valuable:

• If conversion is worth it: the converted Prudential policy provides coverage despite the underwriting issue. Premiums will be expensive (whole life rates), but coverage is in force.
• If you're not sure if conversion is worth it: apply for both. Private term medical underwriting is free to apply for. If approved at acceptable rates, take the private. If declined or rated badly, convert FSGLI before day 120.

The 120-day window is too short to wait on private underwriting in many cases. Apply for private term within the first 30 days of separation so you have an answer by day 90.

Children's $10K Coverage

The free $10K-per-child coverage simply ends at separation. Most parents don't replace it because:

1. The amount is small ($10K covers funeral expenses and not much more)
2. Children's life insurance is not generally recommended for income-replacement reasons (kids don't generate income)
3. Most life insurance experts argue child policies are emotional rather than financial

If you do want child life insurance — typically as a small policy that locks in insurability for adulthood, useful if there's a family history of conditions that affect underwriting — get it through a private carrier. USAA, Globe, and most major carriers offer guaranteed-issue child policies up to age 18.

What If the Service Member Dies While Coverage Is Active?

FSGLI is on the spouse and children — not the service member. If the service member dies, FSGLI is unaffected (the spouse and children still have their own coverage). The service member's SGLI/VGLI death benefit pays separately.

If the spouse dies while FSGLI is active (during service member's active duty), FSGLI pays out to the service member as the named beneficiary.

After separation, if FSGLI was converted to private Prudential coverage and the spouse dies, the private policy pays per its terms.

Free Resources

• Prudential FSGLI customer service: 1-800-419-1473 (same number as VA insurance)
• OSGLI website: benefits.va.gov/insurance/fsgli.asp
• Term life shopping: Compare USAA, Liberty Mutual, Northwestern Mutual, Lincoln Financial, and similar carriers. Use a fee-only insurance broker rather than a commission-based agent if you can.

Related

• VA Life Insurance Center — VGLI countdown calculator
• VGLI 240-Day Window — service member's deadline
• SGLI vs VGLI vs Private Term — comparison by age