What Is SGLI Coverage?
SGLI stands for Servicemembers’ Group Life Insurance. SGLI provides low-cost term life insurance coverage to service members that are eligible. If the service member is eligible, they are automatically issued the maximum in SGLI coverage. They are automatically enrolled and will not have to apply. Service members can however decline the coverage, select a lesser amount than the maximum, designate beneficiaries, or make other changes.
Who Is Eligible for SGLI?
In order to be eligible for SGLI, you need to be one of the following:
- Active duty member of the Army, Navy, Air Force, Marines or the Coast Guard
- Commissioned member of the National Oceanic and Atmospheric Administration (NOAA)
- Commissioned member of the US Public Health Service (USPHS)
- Cadet or midshipman of the US Military academies
- Member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises
- Member of the Ready Reserve or National Guard scheduled to perform at least 12 periods of inactive training per year
- Service member who volunteers for a mobilization category in the Individual Ready Reserve (IRR)
What Does SGLI Cover?
- SGLI is available in $50,000 increments up to the maximum amount of $400,000.
- Those who are covered will receive 120 days of free coverage from their date of separation.
- Coverage can also be extended for up to two years if the service member is totally disabled when separated.
- Reserve members who do not qualify for full-time coverage can get part-time coverage. Those who are covered part-time do not receive the free 120 days of coverage.
- Service members can apply for the SGLI Disability Extension if totally disabled at the time of their separation and unable to work. This will provide free coverage for up to two years from the date of separation. At the end of that period, they will automatically become eligible for VGLI, and subject to premium payments.
What About Those in the Ready Reserve and the National Guard?
Service members in the Ready Reserve or National Guard can still be covered by SGLI. They must be in non-pay status and scheduled to perform at least 12 periods of inactive training per year. They must be drilling for points, rather than pay. The SGLI premium rates are the same as those drilling for pay. Know that each branch of the military does handle payment of premiums during the non-pay period differently.
What Are the Costs of Having SGLI?
There is a monthly premium that is automatically deducted from base pay. The current basic SGLI premium rate is 7 cents per $1,000 of insurance. The premium includes an additional $1.00 per month for TSGLI (Traumatic Injury Protection Coverage.) For an example, if a service member has a coverage amount of $400,000 they would pay $29 a month. For $100,000 in coverage they would pay $8 a month.
Can SGLI Be Converted to Something Else?
Yes, SGLI can be converted to VGLI within one year and 120 days from discharging from the military.
If this is done within 240 days of discharge, veterans do not have to submit evidence of good health.
If it is more than 240 days, they will have to answer questions about their health.
SGLI can also be converted to a Commercial Policy. Service members have the option of doing so within 120 days from the date of separation from the military.
How Do Service Members Make Changes to Their SGLI?
There are a few different ways to make changes to SGLI. Those in an uniformed service can manage their SGLI coverage using the SGLI Online Enrollment System called SOES. Service members can access SOES through their website. They must have full-time SGLI coverage and must not be a part of the Public Health Service.
Those in uniformed service that have part-time SGLI coverage will need to use the SGLV 8286 to make changes. This also applies to those in those in Public Health Service.
What Is the Latest SGLI Update?
SGLI will now be automatically increased to $400,000 if a service member is deployed to a combat zone.
Can You Ever Forfeit Your SGLI?
Yes, the coverage will be forfeited if an insured member is guilty of the following:
- Refuses, because of conscientious objections, to perform service in the Armed Forces
- Refuses to wear the uniform of such force
No insurance will be payable for death inflicted as a lawful punishment for a crime or military or naval offense. There may be an exception when death is inflicted by an enemy of the United States.
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