Fayetteville isn’t just a city; it’s the heartbeat of a massive military community. Whether you’re grabbing coffee at Haymount’s Vagabond Café or heading into the gates at Fort Bragg, the military lifestyle is woven into everything we do here.
As we settle into 2026, many of us are hitting “reset” on our family budgets. While we often talk about the housing market or car insurance, one piece of the puzzle is frequently left “handled” but not truly optimized: life insurance. In a town where deployments and PCS moves are part of the rhythm, ensuring your family is protected isn’t just a financial choice—it’s a commitment to your family’s future peace of mind.
Understanding Your Military Benefits: SGLI and FSGLI in 2026
For many service members, the “default” has always been the Servicemembers’ Group Life Insurance (SGLI). It’s convenient, automatic, and low-cost. But as we head into 2026, it is vital to know exactly what those numbers mean for a modern Fayetteville household.
The Service Member’s Coverage (SGLI)
The maximum SGLI coverage currently stands at $500,000. While this was a welcome increase from previous years, it’s important to view this number through the lens of today’s economy. For a family living in a desirable area like Jack Britt or Southern Pines, where home prices can reach $450,000 to $600,000, a $500,000 payout might only cover the mortgage, leaving little for daily living or future education.
The Spousal Coverage Gap (FSGLI)
The Family SGLI (FSGLI) provides a maximum of $100,000 for a civilian spouse. For a stay-at-home parent who acts as the “invisible backbone” of the family—managing childcare, household operations, and transportation during long training cycles or deployments—this $100,000 limit is often grossly inadequate.
- Key Fact: Spousal coverage cannot exceed the service member’s SGLI amount.
- Automatic Enrollment: Most civilian spouses are automatically enrolled if the service member has full-time SGLI.
The True Cost of Replacing a Homemaker: Why $100,000 Falls Short
We often hear neighbors say, “My spouse doesn’t have an income, so we don’t need much insurance.” This is a dangerous myth. If the unthinkable happened, the service member would suddenly need to hire out the dozens of roles a homemaker fills daily.
Replacing Essential Services
Replacing a homemaker in 2026 involves more than just “help around the house.” Consider these annual costs:
- Childcare: Full-time care for two children can range from $25,000 to $35,000 annually.
- Household Management: Cleaning and meal preparation can easily add $16,000 to $26,000 per year.
- Transportation/Errands: School pickups and grocery runs can cost roughly $5,000 annually in specialized services.
The 5 and 10-Year Replacement Reality
When you add these up, the economic value of a military spouse often exceeds $75,000 per year.
- The 5-Year Cost: Approximately $375,000.
- The 10-Year Cost: Approximately $750,000.
With the standard FSGLI payout of $100,000, a grieving family might run out of funds in less than two years. This is why we recommend at least $600,000 in coverage for a stay-at-home spouse to ensure the family’s lifestyle remains intact.
Income Replacement for the Service Member: A 15-Year Look
Now, let’s look at the service member. Suppose you are a Staff Sergeant (E-6) with over 10 years of service. In 2026, your monthly basic pay is approximately $4,759.50. When you include allowances like BAH—which for an E-6 at Fort Bragg can be around $1,800—the total monthly income is significant.
The 15-Year Income Gap
If a family loses that primary income, they aren’t just losing a paycheck; they are losing a decade and a half of financial stability.
- Annual Base Pay: ~$57,114.
- 15-Year Income Replacement: Approximately $856,710 (not accounting for BAH, future raises, or inflation).
When you factor in the 2026 military pay raise of 3.8%, the $500,000 SGLI payout covers less than 60% of that 15-year income need. This doesn’t even touch the costs of paying off a home or funding a child’s college education.
Planning for Life After the Uniform
The military lifestyle is temporary, but your need for protection isn’t. When you eventually exit the military, your SGLI doesn’t automatically follow you into civilian life—at least not forever.
VGLI Conversion
You have 120 days of free coverage after separation, after which you can convert to Veterans’ Group Life Insurance (VGLI).
- The Window: You must apply within 1 year and 120 days of separation.
- No Health Review: If you apply within the first 240 days, you don’t have to prove you’re in good health—a huge perk for those with service-connected disabilities.
Commercial Options
Many retirees find that commercial term or permanent life insurance policies offer more flexibility or lower long-term costs than VGLI, especially if they are in good health when they separate.
Start Your 2026 with Clarity
Life insurance isn’t about expecting the worst; it’s about making sure your family can grieve and move forward without the crushing weight of financial ruin. Whether you’re living on-post at Fort Bragg or in a quiet Hope Mills neighborhood, taking 15 minutes to review your coverage can change your family’s entire trajectory.
Neighborly Tip: Don’t wait for a “perfect” time to review your policy. In 2026, proactive planning is the only way to stay ahead of rising costs.
Contact Us
Would you like us to help you model your family’s true 2026 insurance needs? Whether you need a second set of eyes on your SGLI/FSGLI or want to explore commercial options that stay with you after the military, our team is here to help you protect what matters most. Reach out today for a no-pressure coverage review.