Updating Military Life Insurance: Changing Your Beneficiary Details

Life insurance is a crucial step in financial planning, especially for those serving in the military. The owner of a life insurance policy can designate a beneficiary, who will receive the proceeds of the policy upon the insured's death. It is important to ensure that the beneficiary information is up-to-date, as this will make it easier for family members to file a claim and receive the benefit quickly. Servicemembers' Group Life Insurance (SGLI) is a popular option for military personnel, offering low-cost term coverage to eligible service members. SGLI beneficiaries can now be conveniently managed through the SGLI Online Enrollment System (SOES), allowing servicemembers to make changes to their beneficiary information at any time without completing a paper form. This article will explore the process of updating beneficiaries for military life insurance, specifically focusing on SGLI, and provide valuable insights for those seeking to protect their loved ones financially.

How to change beneficiaries for Servicemembers' Group Life Insurance (SGLI)

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all eligible military members. If you meet the eligibility criteria, you will be automatically signed up for SGLI.

How to Change Your Beneficiaries for SGLI:

If you are in any uniformed service, except the Public Health Service, and have full-time SGLI coverage, you can now manage your SGLI coverage and change beneficiaries using the SGLI Online Enrollment System (SOES). SOES allows Servicemembers to make fast and easy changes to their life insurance coverage and beneficiary information at any time without completing a paper form or making a trip to their personnel office.

To access SOES:

• Sign in to www.dmdc.osd.mil/milconnect.
• Go to the Benefits Tab, Life Insurance SOES- SGLI Online Enrollment System.
• Check your coverage and beneficiary information and make any needed updates.
• You can log in with your CAC or DS Logon as soon as you receive a notice that you can start using SOES.

If you are in the Public Health Service or have part-time SGLI coverage, you will need to use the SGLV 8286 form to make SGLI coverage and beneficiary changes. Submit your completed form to your branch of service personnel office.

Additional Information:

• You can choose your level of coverage or even refuse coverage completely.
• You do not need consent to change your beneficiary. However, if you are married and name a beneficiary other than your spouse, your spouse will be notified.
• You should review your beneficiary information at least once a year and after any major life events, such as marriage, divorce, or the birth of a child.
• It is a good idea to name more than one beneficiary, in case your primary beneficiary dies before you.
• If you have a beneficiary designated by a court order, you will need an amended court order to make any changes.
• If you are naming a minor as a beneficiary, be aware that many life insurance companies will not pay the proceeds directly to minors. You may need to set up a trust or designate a guardian.

How to change beneficiaries for Veterans' Group Life Insurance (VGLI)

To change the beneficiaries for Veterans Group Life Insurance (VGLI), you must first ensure that you are the policy owner and are competent to make changes. Only the policy owner is authorized to designate and change beneficiaries.

If you are the policy owner and are competent, you can change your beneficiary information in one of the following ways:

• Access your policy online: Find your policy through the Prudential Life Insurance Company of America.
• Fill out a VGLI Beneficiary Designation form: Download and complete the SGLV 8721, VGLI Beneficiary Designation/Change Form. Fax your completed form to 1-800-236-6142, or mail it to OSGLI, P.O. Box 41618 Philadelphia, PA 19176-9913.

It is recommended that you review your beneficiary information at least once a year to ensure it is up to date. Certain life events, such as marriage, divorce, or the birth of a child, should also trigger a review of your beneficiary information.

It is important to note that a beneficiary can be an individual, a group of individuals, or an entity. You can also name more than one beneficiary and stipulate contingent beneficiaries in case your primary beneficiary does not outlive you. If you are naming a minor as a beneficiary, be aware that many life insurance companies will not pay the proceeds directly to minors, so you may need to set up a trust or designate a guardian.

How to change beneficiaries for Other VA Life Insurance

The owner of a life insurance policy is the only one who can change beneficiaries. The owner can change the beneficiary at any time before the insured person passes away and without the consent or knowledge of the beneficiaries. The owner may designate any individual, legal entity, or estate as a beneficiary. Certain policies may require a notarized signature to change beneficiaries, so it is best to check with your insurance provider.

If you have a beneficiary designated by a court order, you must obtain an amended court order to make any changes and present this to your insurance company. If you are naming a minor as a beneficiary, be aware that many insurance companies will not pay proceeds directly to minors. In this case, you must set up a trust or designate a guardian. Otherwise, the court will appoint a guardian, which can be an expensive and time-consuming process.

It is recommended to have more than one beneficiary, in case your primary beneficiary passes away before you or if you both pass away together. You should review your beneficiary information at least once a year and after significant life events, such as marriage, divorce, or the birth of a child.

If you have an Other VA Life Insurance policy number beginning with V, RH, J, RS, K, or W, you can update your beneficiary online through the VA's Online Policy Access website. First, create an online account, then log in and update your beneficiary. Your update will be sent immediately to the VA's office to be added to your records.

Alternatively, you can download form 29-336, Designation of Beneficiary and Optional Settlement, complete the form, and mail it to:

VARO&IC (B&O)

P.O. BOX 8638

PHILADELPHIA, PA 19101

Naming a minor as a beneficiary

If you wish to name a minor as a beneficiary, you must assign a custodian for the child. A custodian is responsible for claiming the death benefit on the child's behalf and will manage the money until the child turns 18. The custodian will be able to use the money if it is in the child's interest, such as to pay for tuition or necessities. It is important to name a custodian you trust to act in your child's best interest.

Another option is to set up a trust for your child and name the trust as the beneficiary of your life insurance policy. A revocable trust, also known as a living trust, is a popular estate planning tool that allows you to indicate who will receive your assets when you die. A trustee manages the trust and ensures the correct individuals receive their benefits in the event of your death. You can also create an irrevocable life insurance trust if you wish to reduce estate taxes and leave a larger inheritance for your loved ones.

Primary and contingent beneficiaries

When setting up a life insurance policy, it is important to designate both primary and contingent beneficiaries. A primary beneficiary is the first person or entity in line to receive the assets or benefits from your life insurance policy, retirement account, or estate upon your death. This individual or group has the primary claim to the inheritance and receives the proceeds directly, bypassing the need for probate, provided all conditions are met.

You can name more than one primary beneficiary and specify how the assets should be divided. You can change your primary beneficiary designation at any time, provided you are of sound mind and not under duress.

A contingent beneficiary, also known as a secondary beneficiary, is the person or entity that stands to inherit the assets if the primary beneficiary is unable or unwilling to do so. This ensures that your assets are passed on according to your wishes, even if the primary beneficiary predeceases you or cannot be located.

Contingent beneficiaries are essentially a backup to the primary beneficiaries. They only receive the assets if the primary beneficiary is deceased or otherwise unable to claim the inheritance. You can designate multiple levels of contingent beneficiaries to ensure a clear line of succession.

For example, if you have two children and name your son as the primary beneficiary and your daughter as the contingent beneficiary, only your son would inherit the assets upon your death unless he predeceases you or can't be found. In that case, your daughter would inherit the full sum. If you name them both as primary beneficiaries, they would split the assets according to the percentages you have decided on.

It is important to name both primary and contingent beneficiaries to ensure comprehensive estate planning. Properly designated beneficiaries can help avoid the lengthy and costly probate process and ensure that your wishes are fulfilled. Clear designations also prevent disputes among potential heirs and provide peace of mind, knowing that your loved ones are taken care of.

Frequently asked questions