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It is never a comfortable topic to think about one’s own mortality and what will happen to your family once you have passed on. Individuals in their later years often confront numerous decisions, such as their funeral preferences, the idea of living wills, and securing life insurance for their surviving family members to cover unforeseen expenses and life events post-death. Many people postpone getting life insurance until later in life, citing their daily expenses as a better use of the monthly premiums. However, individuals serving in the military, who frequently encounter hazardous conditions and potentially life-threatening situations, should consider life insurance from the outset. The Veterans Administration offers Servicemembers Group Life Insurance (SGLI) as a low-cost form of coverage to eligible Servicemembers. If you meet the eligibility criteria, the Veterans Administration may automatically sign you up for SGLI coverage. This article covers the basics of SGLI insurance for Servicemembers and information on SGLI coverage and SGLI costs. If you have questions about how military life insurance can benefit your family, read on to learn more. You can also speak to a resource officer at your base, or at your local VA regional office if you have further questions.
What is SGLI, and Who is Eligible?
SGLI coverage is available to any Servicemember who meets the following criteria:
- You are a member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard on active duty.
- You are a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the US Public Health Service.
- You are a cadet or midshipman of a US Military Academy.
- You are participating in training or practice cruises as a member, cadet, or midshipman of the reserve officers training corps.
- You are a member of the Ready Reserve or National Guard assigned to a unit and scheduled to perform at least 12 periods of active training per year.
- Volunteer In the individual reserve mobilization category.
- You are a member of the Ready Reserve or National Guard scheduled for 12 periods of active training and drilling for points rather than pay.
SGLI coverage amounts and SGLI costs vary depending on your chosen plan and monthly premiums, though typically SGLI cost amounts are in line with civilian plans, and occasionally even lower. The SGLI coverage amounts paid to your beneficiaries is also dependent upon the type of payout you select.
SGLI Coverage Options and Policy Amounts
SGLI covers a variety of benefits paid out towards your beneficiaries or survivors in the event of your death under certain circumstances. Some of these benefits in SGLI military coverage include:
- SGLI coverage up to $500,000 in $50,000 increments
- You will receive 120 days of free coverage from the date you leave the military.
- The ability to extend free coverage for up to two years if you were totally disabled when you left the military under the SGLI coverage disability extension.
- Part-time military coverage is available if you are a reserve member who does not qualify for full-time coverage or wants to decrease your SGLI coverage amounts.
SGLI military coverage amounts depend heavily upon your service, your category, length of time in the military, and a variety of other factors. Your beneficiaries may not get the same amount as another Servicemember in SGLI coverage amounts if you had different service records.
Understanding Costs and Premiums for SGLI
Your beneficiary can receive either monthly payment payouts or a lower amount in one lump sum in SGLI coverage benefits. There are often cost adjustments based on policy amounts. You will automatically deduct a monthly premium from your base pay if you have chosen to remain enrolled in SGLI coverage. The current premium rate is six cents per $1000 of insurance SGLI military coverage, which includes an additional $1 per month for traumatic injury protection coverage (TSGLI). The current coverage amount is $500,000, with the monthly premium rate of $30. If you choose TSGLI, the total monthly premium SGLI cost deduction from your base pay is $31. You can select lower coverage amounts based on your needs. A full description is available at this link, including a chart of different coverage amounts based on monthly premiums. SGLI premiums are quite cost-effective when compared to private life insurance and civilian insurance policies, and the premiums deducted from your paycheck pale in comparison to the security your beneficiaries receive in the event of your death. Simply put, SGLI costs are well worth it for many, and SGLI coverage is comparable to many excellent civilian plans.
How to Enroll and Manage Your SGLI Policy
Your service branch automatically enrolls you if you qualify for SGLI coverage life insurance and deducts the SGLI cost amount from your monthly pay. To learn more about this process and confirm your enrollment in SGLI military coverage, contact your personnel office. If you want to make changes to your benefits, you can choose your level of coverage or even refuse it. You can choose your beneficiary or the people you pick to get the money from your life insurance policy. You can modify these choices as needed. To make changes to your coverage through the SGLI milConnect system, log into SGLI milConnect and select the “military SGLI form” option. The steps are as follows:
- Go to SGLI milConnect.
- Sign in with your established credentials.
- Select “Manage My SGLI.”
- Review your coverage and beneficiary information. It is here that you can make any needed updates to your SGLI military coverage. You can also adjust your SGLI coverage amounts as well.
To claim payment after the Servicemember has died, the beneficiary must claim death benefits with Form SGLV-8283 uploaded to SGLI milConnect. To receive payment for a qualifying traumatic injury, complete the application for T-SGLI benefits, SGLV Form 8600, as required. To request an advanced payment for a Servicemember who is terminally ill, file Form SGLV-8284 at SGLI milConnect to claim for accelerated benefits under SGLI coverage. SGLI military coverage is quite versatile and allows you to make changes to the system as your military situation changes. SGLI costs less than many private life insurance policies and is a cost-effective way to ensure security for your beneficiaries. If you need to adjust your SGLI coverage amounts at any time, it is an easy process online.
Frequently Asked Questions: SGLI for Active-Duty Members
SGLI insurance is a low-cost life insurance policy that provides military families with a sense of financial peace. Should the worst happen and military service result in the death of a loved one, SGLI benefits are a financial lifesaver for some military families. Below are some of the more commonly asked questions about SGLI insurance.
You can transfer your Service Member Group Life Insurance coverage to a commercial policy within 120 days of separation. They can do this without providing proof of good health. To do so, select a company from the participating companies listing, apply to the local sales office of the selected company, and provide a copy of the separation document DD214 or NGB22 or written reserve orders, along with a copy of the last leave and earning statement. Within the first 240 days of separation, you can convert this coverage to Veterans Group Life Insurance (VGLI). You can also retain SGLI coverage if you were totally disabled at the time of discharge for no cost for up to two years in a process called disability extension coverage. Log into SGLI MilConnect to ensure your SGLI military coverage is set up the way you want it.
You can transfer your Service Member Group Life Insurance coverage to a commercial policy within 120 days of separation. They can do this without providing proof of good health. To do so, select a company from the participating companies listing, apply to the local sales office of the selected company, and provide a copy of the separation document DD214 or NGB22 or written reserve orders, along with a copy of the last leave and earning statement. Within the first 240 days of separation, you can convert this coverage to Veterans Group Life Insurance (VGLI). You can also retain SGLI coverage if you were totally disabled at the time of discharge for no cost for up to two years in a process called disability extension coverage. Log into SGLI MilConnect to ensure your SGLI military coverage is set up the way you want it.
Once registered in the DEERS system, spouses and children are automatically covered unless the military member declines coverage by filing Form SGLV–8286A with the personnel office. SGLI coverage amounts also vary with family members, so ensure your beneficiaries and family are set up properly in SGLI milConnect. You can also speak in person with the VA resource officer at your base or at your local regional office.
The maximum amount is $500,000. SGLI coverage amounts vary based on the plan you selected upon enrollment and the SGLI cost of premiums reflect this in your monthly base pay. Your beneficiaries receive either monthly payments or a onetime lump sum.
To do this, log into milConnect and access the benefit section. Navigate to “life insurance” to review and modify your coverage and beneficiary details.
It is indeed, but it is an extra monthly payment of one dollar in addition to monthly premiums. It is not automatically included. Log into SGLI milConnect to add this feature to your SGLI military coverage.
