Sgli Life Insurance: How Does It Measure Up?

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all military members. SGLI offers a maximum coverage of $500,000, which was raised from $400,000 in March 2023. This insurance is available to active-duty service members, reservists, and other eligible individuals. SGLI also includes Traumatic Injury Protection (TSGLI), which provides additional coverage for losses due to traumatic injuries. While SGLI is a valuable benefit for service members, it may not be sufficient to meet all their needs, and they may need to explore additional life insurance options. Veterans' Group Life Insurance (VGLI) is an alternative program with features such as no health review, discounted rates for advance payments, and special benefits for the terminally ill.

Cost: SGLI offers low-cost coverage, with a basic premium rate of 6 cents per $1,000 of insurance coverage

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group insurance to all military members. The basic premium rate for SGLI is 6 cents per $1,000 of insurance coverage. This means that for $500,000 worth of coverage, the monthly premium is $30.

The low-cost nature of SGLI is one of its key benefits, and it is designed to be affordable for service members. The premium is automatically deducted from the base pay of service members.

In addition to the basic premium, there is a $1 monthly charge for Traumatic Injury Protection (TSGLI) coverage, which provides financial protection in the event of a traumatic injury. This brings the total monthly premium for $500,000 worth of coverage to $31.

SGLI offers a range of coverage options, from $50,000 to $500,000, in $50,000 increments. The monthly premium increases by 6 cents for each additional $1,000 of coverage. For example, $450,000 worth of coverage costs $27 per month, while $400,000 costs $24 per month.

It is important to note that SGLI participants can choose to reduce their coverage or decline it entirely. However, SGLI is designed to provide financial support in the event of an injury or death, and service members should carefully consider their insurance needs before making any changes to their coverage.

Eligibility: SGLI is available to active-duty service members, reservists, cadets, and more

Servicemembers' Group Life Insurance (SGLI) is available to a wide range of individuals serving in the United States Armed Forces.

Firstly, active-duty members of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard are eligible for SGLI. This also extends to those serving in the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS) as commissioned members.

Additionally, cadets and midshipmen of the U.S. military academies and the Reserve Officers Training Corps (ROTC) are also eligible, provided they are engaged in authorized training and practice cruises.

Members of the Ready Reserve or National Guard who are assigned to a unit and scheduled for at least 12 periods of inactive training per year are also covered. This includes volunteers in an Individual Ready Reserve (IRR) mobilization category.

In certain circumstances, those in nonpay status with the Ready Reserve or National Guard may also be eligible for full-time SGLI coverage if they meet specific requirements, such as being scheduled for 12 periods of inactive training and drilling for points. However, it is important to note that these individuals must pay their premiums directly.

SGLI provides low-cost term coverage to eligible service members, with a maximum coverage amount of $500,000, which was increased from $400,000 in March 2023. This insurance is automatically provided to eligible service members, and they can choose their level of coverage or even refuse it entirely. SGLI also includes Traumatic Injury Protection (TSGLI), which provides additional coverage for losses due to traumatic injuries.

Upon leaving the military, SGLI coverage remains in effect for 120 days, and individuals have the option to convert their SGLI to Veterans' Group Life Insurance (VGLI), a similar program offered by the Department of Veterans Affairs.

Coverage: SGLI offers a maximum coverage of $500,000, with the option to reduce in $50,000 increments

Servicemembers' Group Life Insurance (SGLI) offers a maximum coverage of $500,000, with the option to reduce coverage in $50,000 increments. This means that service members can choose to be covered for $450,000, $400,000, $350,000, $300,000, $250,000, $200,000, $150,000, $100,000, $50,000, or $0. The monthly premium for $500,000 of coverage is $31, which includes $1 for Traumatic Injury Protection (TSGLI) coverage. The premium decreases by $3 for each $50,000 reduction in coverage. For example, the monthly premium for $450,000 of coverage is $28, and the monthly premium for $400,000 of coverage is $25.

SGLI is a Department of Veterans Affairs program that provides low-cost group life insurance to all military members. It is a term insurance policy for active-duty service members, Ready Reservists, National Guard members, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, cadets and midshipmen, and Reserve Officer Training Corps (ROTC) members.

SGLI is automatic for service members who meet certain criteria, and they are insured for the maximum amount of $500,000 unless they choose otherwise. Service members can choose their level of coverage or even refuse coverage completely. They can also choose their beneficiaries and change them as needed.

Traumatic Injury Protection: SGLI includes TSGLI, providing additional protection against traumatic injuries

Servicemembers' Group Life Insurance (SGLI) includes TSGLI, which stands for Servicemembers' Group Life Insurance Traumatic Injury Protection. TSGLI provides additional protection against traumatic injuries and pays service members who have a qualifying injury to help with expenses connected to their recovery and rehabilitation. This includes limb reconstruction surgeries, inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities, as well as care to help transition from an inpatient facility to living at home.

TSGLI provides short-term financial assistance of up to $100,000 to severely injured service members and veterans, aiding their recovery from traumatic injuries. It is important to note that TSGLI covers not just combat injuries but also includes injuries incurred on or off duty. The premium for TSGLI is a flat rate of $1 per month for most service members and is automatically deducted from the base pay.

To be eligible for TSGLI payments, individuals must meet specific requirements. Firstly, they must be insured by SGLI when they experience a traumatic injury. Secondly, they must incur a scheduled loss that is a direct result of the traumatic injury. The injury must occur prior to midnight on the day of separation from the uniformed services, and the scheduled loss must be suffered within 2 years (730 days) of the traumatic injury. Lastly, the individual must survive for a period of at least seven full days from the date of the traumatic injury.

TSGLI also offers retroactive benefits for service members who incurred severe losses due to traumatic injuries between October 7, 2001, and November 30, 2005, regardless of the location or whether SGLI coverage was in effect at the time.

Conversion: SGLI can be converted to VGLI after leaving the military

Servicemembers' Group Life Insurance (SGLI) can be converted to Veterans' Group Life Insurance (VGLI) after leaving the military. This conversion must take place within 120 days of discharge from the military, or within 1 year and 120 days of discharge. This conversion does not require proof of good health.

To convert SGLI to VGLI, you must:

• Apply through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website, or by mail or fax.
• Fill out the Application for Veterans' Group Life Insurance (SGLV 8714).
• Submit your application within 240 days of leaving the military to avoid a health review.

VGLI coverage can be managed online and offers flexible payment options. It is important to note that VGLI coverage will not increase automatically and must be purchased in increments of $25,000.

Frequently asked questions