Military Life Insurance: Claiming And Payout Process Explained

Life insurance is a benefit provided to active-duty military members and veterans. The Department of Veterans Affairs (VA) offers Servicemembers' Group Life Insurance (SGLI) to active-duty members, which provides up to $500,000 of coverage at a low cost. SGLI is supervised by the VA and administered by the Prudential Insurance Company of America. Upon joining the military, service members are automatically provided with this coverage, which can be reduced in $50,000 increments or cancelled entirely. SGLI also includes Traumatic Injury Protection (TSGLI), which provides financial assistance to members injured during their service. After leaving the military, service members can convert their SGLI to Veterans' Group Life Insurance (VGLI), which offers term life insurance benefits of up to $500,000.

Servicemembers' Group Life Insurance (SGLI)

To be eligible for SGLI, you must meet at least one of the following requirements:

• Be an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• Be a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• Be a cadet or midshipman of the U.S. military academies or the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• Be a member of the Ready Reserve or National Guard, assigned to a unit, and scheduled for at least 12 periods of inactive training per year.
• Be a volunteer in an Individual Ready Reserve (IRR) mobilization category.

If you are in non-pay status with the Ready Reserve or National Guard, you may still be eligible for full-time SGLI coverage if you meet the following two requirements:

• You are scheduled for 12 periods of inactive training for the year.
• You are drilling for points rather than pay, and you must pay your premiums directly.

SGLI offers several benefits, including:

• Coverage of up to $500,000 in $50,000 increments.
• 120 days of free coverage from the date you leave the military.
• Extension of free coverage for up to 2 years if you are totally disabled when you leave the military.
• Part-time coverage if you are a Reserve member who doesn't qualify for full-time coverage.

You can manage your SGLI coverage through the SGLI Online Enrollment System (SOES), where you can change your level of coverage, choose your beneficiaries, or refuse coverage. When you leave the military, you have the option to convert your SGLI coverage to Veterans' Group Life Insurance (VGLI) or an individual insurance policy within 120 days of your discharge.

Veterans' Group Life Insurance (VGLI)

To be eligible for VGLI, you must meet at least one of the following requirements:

• You had SGLI coverage while in the military and apply within 1 year and 120 days of being released from active duty.
• You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING). This includes members of the U.S. Public Health Service Inactive Reserve Corps (IRC).
• You are within 1 year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).
• You had part-time SGLI coverage as a member of the National Guard or Reserve and suffered an injury or disability that disqualifies you from standard premium insurance rates.

The amount of coverage provided by VGLI depends on the level of SGLI coverage you had when you left the military. VGLI offers term life insurance benefits ranging from $10,000 to $500,000. If you had less than the maximum coverage under SGLI, you can increase your VGLI coverage by $25,000 one year after obtaining VGLI and then every five years until you turn 60, up to a total of $500,000.

To obtain VGLI benefits, you must apply within 1 year and 120 days of leaving the military. If you apply within 240 days, you are not required to provide proof of good health. However, if you apply after this period, you must submit evidence of your health status. You can apply for VGLI through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail or fax.

VGLI premium rates are determined by your age and the desired amount of insurance coverage. You can choose your beneficiaries and modify them as needed. Additionally, you have the option to convert your VGLI coverage to an individual insurance policy by selecting a participating company and applying at their local sales office.

Traumatic Injury Protection (TSGLI)

If you are signed up for full-time Servicemembers' Group Life Insurance (SGLI), you are automatically covered by TSGLI. This includes active-duty members, reservists, National Guard members, funeral honours duty, and one-day muster duty.

To be eligible for a TSGLI payment, you must meet the following requirements:

• You must be insured by SGLI when you experience a traumatic injury.
• You must incur a scheduled loss, and that loss must be a direct result of a traumatic injury.
• You must suffer the traumatic injury before midnight of the day you separate from the uniformed services.
• You must suffer a scheduled loss within two years (730 days) of the traumatic injury.
• You must survive for a period of not less than seven full days from the date of the traumatic injury.

The coverage amount ranges from $25,000 to $100,000, depending on the nature of the injury. TSGLI benefits can be used for expenses connected to recovery and rehabilitation, including:

• Limb reconstruction surgeries.
• Inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities.
• Care to help transition from an inpatient facility to living at home (therapeutic pass).

To file a claim for TSGLI benefits, download and complete form SGLV 8600 Application for TSGLI Benefits. If your claim is denied, you can appeal the decision by completing the SGLV 8600A TSGLI Appeal Request Form.

The premium for TSGLI is a flat rate of $1 per month for most service members. This is included in the SGLI premium, which is automatically deducted from the base pay of service members.

Family Servicemember's Group Life Insurance (FSGLI)

Family Servicemembers Group Life Insurance (FSGLI) is a program designed by the Department of Veterans Affairs to provide life insurance coverage for the spouses and dependent children of service members who are insured under Servicemembers' Group Life Insurance (SGLI). This program offers valuable financial protection for the families of those serving in the military. Here is a detailed overview of FSGLI:

Eligibility for FSGLI:

To be eligible for FSGLI, one of the following criteria must be met:

• The service member is on active duty and covered by full-time SGLI.
• The service member is a member of the National Guard or Ready Reserve covered by full-time SGLI.

Spouses of service members covered under SGLI, regardless of their status (active duty, reserve, guard, retired, or civilian), may qualify for FSGLI. Additionally, dependent children of service members covered under SGLI are also eligible.

Coverage Amounts and Costs:

FSGLI provides a maximum coverage of $100,000 for spouses, which cannot exceed the service member's SGLI coverage. Spousal coverage costs are based on the spouse's age and coverage amount, and the premium is automatically deducted from the service member's pay. On the other hand, dependent children are covered at no additional cost, with a benefit of $10,000 per child. This coverage is provided until the child turns 18, with possible extensions if the child is a full-time student between 18 and 22 years old or becomes permanently and totally disabled before the age of 18.

Applying for and Managing FSGLI:

If the service member is signed up for full-time SGLI, their civilian spouse will be automatically insured under FSGLI. However, if the spouse was married on or after January 2, 2013, the service member will need to enrol them through the SGLI Online Enrollment System (SOES). The service member can manage their FSGLI coverage through SOES, including reducing or cancelling spousal coverage. It is important to note that dependent coverage cannot be turned down, reduced, or cancelled.

Converting Spousal FSGLI Coverage:

Spouses have the option to convert their FSGLI coverage to a permanent, individual insurance policy (e.g., whole life) within 120 days from the date of the service member's separation from the military or their written election to end spousal or SGLI coverage. After conversion, the spouse becomes solely responsible for all aspects of the policy, including premium payments.

In summary, FSGLI is a valuable benefit offered by the Department of Veterans Affairs to provide financial protection for the families of service members. It offers coverage for spouses and dependent children, with varying costs, eligibility criteria, and conversion options.

Service-Disabled Veteran Insurance (S-DVI)

Service-Disabled Veterans Life Insurance (S-DVI) is a type of life insurance offered by the Department of Veterans Affairs (VA). It provides permanent life insurance plans as well as term life insurance to veterans with service-connected disabilities. The VA stopped accepting new applications for S-DVI after December 31, 2022, but existing beneficiaries can keep their plans.

To qualify for an S-DVI policy, veterans must meet the following criteria:

• Released from active duty without a dishonorable discharge on or after April 25, 1951.
• Rated for a service-connected disability.
• In good health, with the exception of service-related conditions.
• Application submitted within two years of receiving the disability rating.

Under S-DVI, veterans who are granted a service-connected disability rating can apply for up to $10,000 in life insurance coverage at standard insurance rates. This must be done within two years of the VA notifying them of their service-connected disability. Veterans who are totally disabled may be eligible for a waiver of the monthly premiums. Additionally, an extra policy of up to $30,000 is available for those who qualify for the premium waiver, but premiums for this supplemental coverage must be paid.

The premium rates for S-DVI plans depend on the amount of insurance, the coverage plan, and whether payments are made monthly or annually. Veterans are advised to compare the premium rates offered by the VA with those of commercial insurance companies, especially if their disability is not serious, as better rates may be available elsewhere.

Frequently asked questions