Army Life Insurance: Suicide Coverage Explained

Military life insurance covers suicide, but the circumstances are limited. Servicemembers' Group Life Insurance (SGLI) pays out to beneficiaries in the event of suicide, but not within the first two years of the policy. This is known as the contestability period. If a veteran with mental health-related PTSD commits suicide, their survivors will not qualify for Dependency and Indemnity (DIC) unless the veteran filed a claim and was granted service-connected disability compensation.

Servicemembers' Group Life Insurance (SGLI) covers suicide

Servicemembers' Group Life Insurance (SGLI) is a form of life insurance offered to eligible service members, including those in the Army, Navy, Air Force, Space Force, Marines, and Coast Guard. It provides low-cost term coverage, with premiums automatically deducted from the base pay of service members. While SGLI typically covers various causes of death, there are certain circumstances under which the program will not pay a claim.

One such circumstance is suicide. SGLI does cover suicide, but there is a limitation to this coverage. The program will not pay a claim if the suicide occurs within the first two years of the policy being in effect. This is known as the "contestability period." After this initial two-year period, SGLI will cover suicide and provide benefits to the designated beneficiaries or next of kin.

The coverage provided by SGLI is significant, with a maximum death benefit of up to $400,000, which is higher than what is typically offered by private insurance policies. Additionally, SGLI offers 120 days of free coverage from the date of separation or release from duty, and this can be extended for up to two years if the service member becomes totally disabled.

While SGLI provides valuable financial protection for service members and their families, it is important to note that life insurance is just one factor to consider when addressing the complex issue of military suicides. Other factors, such as pre-existing risk factors, deployment experiences, and mental health conditions, also play a significant role in understanding and preventing suicides among service members.

If you or someone you know is struggling with suicidal thoughts or mental health issues, it is crucial to seek help. Resources like the Veterans Crisis Line are available to provide support and assistance.

SGLI doesn't cover suicide within two years of issue

Servicemembers' Group Life Insurance (SGLI) is a low-cost group life insurance program for active-duty and reserve members of the armed forces and members of the National Guard. SGLI coverage is automatic for active-duty service members who qualify.

SGLI does cover suicide, however, there are certain conditions under which the SGLI program will not pay a claim. These include suicide within two years of issue, death while committing a felony, or if the service member lied about their health on the application and died within the first two years of the policy, known as the "contestability period".

The "contestability period" is a standard clause in life insurance policies, including private insurance policies in the US, which typically do not cover suicide for the first two years a policy is in effect. This is an important distinction to make, as SGLI is distinct from Traumatic Injury Protection (TSGLI), which is an additional insurance program with different conditions.

The exclusion of suicide within the first two years of issue is an important consideration when it comes to life insurance policies. It is worth noting that research has indicated that restrictions on coverage can influence suicide rates among policyholders. For instance, a 2004 study at the University of Chicago found that the suicide rate quadrupled after the initial two-year exclusion period.

While SGLI does include suicide within its coverage, it is important to be aware of the limitations and conditions that may apply.

Suicide within the first two years of policy is part of the contestability period

Suicide within the first two years of a Servicemembers' Group Life Insurance (SGLI) policy is part of the contestability period. This means that if a service member commits suicide within two years of taking out the policy, their beneficiaries will not receive a payout. This is in contrast to private insurance companies, which typically exclude suicide coverage for the first two years of a policy.

The SGLI policy is a great deal for service members, offering up to $400,000 of term life insurance at a low premium. The government subsidizes the premiums, so they are much cheaper than an equivalent amount of insurance on the private market. However, SGLI does not offer permanent coverage, and once a service member leaves the military, they must transition to Veterans Group Life Insurance (VGLI), which has higher premiums.

The SGLI policy covers all causes of death except execution for treason and death inflicted as a lawful punishment for a crime or military offense (unless inflicted by an enemy of the United States). While cause of death is generally not relevant for SGLI, suicide within the first two years of the policy is an exception, and it is important to be aware of this exclusion.

Some have questioned whether the SGLI policy's coverage of suicide may play a role in military suicides. The suicide rate among service members began to rise sharply in 2005, the same year that Congress raised the standard coverage from $250,000 to $400,000. Researchers have found that restrictions on suicide coverage in private insurance policies can influence suicide rates, with a spike in suicides once the exclusion period is over. While no expert has suggested that insurance is a major driver of military suicides, it may be a factor for those who are already distressed, as knowing that their families will be financially provided for could provide extra motivation.

Suicide by execution for treason is not covered by SGLI

Servicemembers' Group Life Insurance (SGLI) is a form of term life insurance available to eligible service members at subsidised prices. The government covers the premiums, making term premiums much cheaper than an equivalent amount of insurance in the private market.

SGLI covers all causes of death except for execution for treason. This means that if a service member is found guilty of treason and executed as a result, their beneficiaries will not receive the insurance payout.

The exclusion of treason from SGLI coverage is in line with the law, which states that no insurance shall be payable for death inflicted as a lawful punishment for a crime or military or naval offence (except when inflicted by an enemy of the United States).

While suicide is generally covered by SGLI, there are some circumstances in which a claim may be denied. For example, SGLI will not pay a claim if the member was Absent Without Leave (AWOL) at the time of death. Additionally, there is a two-year clause for new policies, where SGLI will not pay out if the member dies by suicide within two years of the policy being issued.

The two-year clause for suicide is consistent with private insurance policies in the US, which typically do not cover suicide during the first two years of the policy. However, military life insurance differs in that coverage for suicide begins immediately upon enlistment, whereas private insurance policies often have an initial exclusion period.

Survivors may not qualify for Dependency and Indemnity (DIC) if the veteran died by suicide

The Department of Veterans Affairs (VA) provides Dependency and Indemnity Compensation (DIC) to the surviving spouse and/or minor children of a veteran who dies on active duty or of a service-connected disability. However, in the case of suicide, there are specific criteria that must be met for survivors to qualify for DIC.

Firstly, it is important to distinguish between mental health-related suicide and other causes of suicide. If a veteran dies by suicide due to mental health issues, their survivors will only receive DIC if the veteran had previously filed a claim and been granted service-connected disability compensation for their mental health condition. For example, if a veteran was service-connected for post-traumatic stress disorder (PTSD) but did not file a claim for this condition before their death by suicide, their survivors would not be eligible for DIC.

On the other hand, if a veteran dies by suicide due to reasons other than mental health issues, their survivors may still be eligible for DIC, but it is not automatic. In such cases, it is crucial to consult with an experienced veterans service officer to understand the specific circumstances and determine eligibility for DIC.

It is worth noting that military life insurance policies, such as Servicemembers' Group Life Insurance (SGLI), generally cover suicide. However, there may be a clause in some policies that excludes suicide within the first two years of the policy, known as the "contestability period." Therefore, it is important for service members and their families to carefully review the terms and conditions of their specific life insurance policies to understand the coverage provided in the event of suicide.

While life insurance can provide financial support to families in the event of a veteran's suicide, it is important to recognise the complex nature of suicide and the need for comprehensive suicide prevention efforts within the military.

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