Updating Military Insurance Beneficiaries: A Step-By-Step Guide For Service Members

Changing the beneficiary on military insurance is a straightforward process that can now be done online at any time through the SGLI Online Enrollment System (SOES). This system has been implemented to make it more convenient for service members to update their life insurance information, removing the need to visit the personnel office during business hours. To access SOES, service members can log in to milConnect with their common access card or DS Logon using Internet Explorer. From there, they should navigate to the Benefits tab and click on Life Insurance SOES-SGLI Online Enrollment System. It is important to keep beneficiary information up to date to ensure that the policy owner's wishes are fulfilled upon their death and to avoid legal complications.

The policy owner is the only one who can change beneficiaries

When it comes to military insurance, specifically Servicemembers' Group Life Insurance (SGLI), only the policy owner is authorised to designate and change beneficiaries. This is a critical aspect of the policy, as the owner of the policy wants to ensure that their wishes are fulfilled upon their death and that legal complications are avoided. The owner may designate any individual, legal entity, or estate as a beneficiary, and they can make changes at any time before the death of the insured without needing the consent or even notifying the beneficiaries. This means that the policy owner has the flexibility to make adjustments as needed without any restrictions.

For those with full-time SGLI coverage, the SGLI Online Enrollment System (SOES) provides a convenient way to manage beneficiary information. Service members can access SOES through milConnect and make changes at any time without having to complete paper forms or visit a personnel office. This system streamlines the process, saving time and effort for service members.

If a service member is in the Public Health Service or has part-time SGLI coverage, they will need to use the SGLV 8286 form to make changes to their beneficiary designation. This form needs to be submitted to the respective branch of service personnel office. It's important to note that while the service member may name anyone as their beneficiary, their spouse will be notified if they choose someone else.

Additionally, certain situations may require additional steps for changing beneficiaries. For example, if there is a beneficiary designated by a court order, an amended court order must be obtained and presented to the insurance company to make any changes. In the case of incompetent veterans, only a court-appointed guardian can change the beneficiary designation, and they must obtain a specific court order authorising the change.

You can change beneficiaries at any time without their consent

It is important to keep your beneficiary information up to date. This will make it easier for your family members to file a claim and receive the benefit quickly. You should review your beneficiary information at least once a year to ensure everything is current. Certain life events, such as marriage, the birth of a child, or divorce, should also trigger a review of your beneficiary information.

If you are in any uniformed service, except the Public Health Service, and have full-time Servicemembers' Group Life Insurance (SGLI) coverage, you can manage your SGLI coverage and beneficiary information at any time without completing a paper form or visiting your personnel office. To do this, use the SGLI Online Enrollment System (SOES). If you are in the Public Health Service or have part-time SGLI coverage, use the SGLV 8286 form to make changes to your beneficiary.

It is a good idea to name more than one beneficiary, in case the primary beneficiary dies before you. You can also name a group of individuals, such as your "children," as beneficiaries. However, when designating a group of individuals, it is important to clarify who is included. For example, does the designation include adopted children or children from a former spouse? Additionally, if your children are minors, you may need to set up a trust or designate a guardian to receive the proceeds, as many insurance companies will not pay proceeds directly to minors.

Designate a guardian if naming a minor as a beneficiary

Designating a guardian if you're naming a minor as a beneficiary is an important step when buying life insurance. Here are some key considerations and steps to take:

Understanding the Consequences:

If you name a minor as a beneficiary, they won't be able to directly receive the proceeds of your life insurance policy. Instead, a legal guardian will need to be appointed to manage the money on their behalf until they reach legal adulthood. This can be a lengthy and costly process if not planned properly.

Selecting a Trusted Adult:

To avoid the complexities of probate court, you can name a trusted adult, such as a spouse, adult child, or other close relative, as the beneficiary. This person will then act on behalf of the minor, ensuring that the funds are used for the minor's benefit.

Creating a Trust:

Another option is to establish a trust and appoint a trustee to manage and disburse the funds according to your wishes. This allows you to specify conditions, such as the age at which the minor will receive the inheritance or certain milestones they need to reach. While this option may delay the minor's immediate access to the funds, it ensures that your exact wishes are followed.

UGMA or UTMA Account:

You can also consider opening a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account. These are specific types of trust accounts that allow you to leave life insurance money and other assets to minors. A trusted adult will be appointed to manage these assets until the minor reaches the age of termination, which is typically 18 or 21, depending on the state.

Assigning a Custodian:

When naming a minor as a beneficiary, you will likely be required to assign a custodian. This person will serve as the guardian of the money and assets intended for the minor, making decisions in their best interests. Once the minor reaches legal adulthood, the assets will be turned over to them, and the custodian's role will end.

Estate Planning:

Creating an estate plan is crucial when designating beneficiaries. This allows you to outline your wishes for your assets, including life insurance policies, savings accounts, and retirement accounts. By creating an estate plan, you can ensure that your beneficiaries receive their benefits without unnecessary delays or legal complications.

Remember to review and update your beneficiary information regularly, especially after major life events such as marriage, the birth of a child, or divorce. By taking these steps, you can ensure that your minor beneficiaries are well-provided for and that your wishes are carried out.

Review beneficiary information at least once a year

It is essential to review your beneficiary information at least once a year to ensure it is up to date. This is because your beneficiary's details may change over time, even if the designated person remains the same. For example, they might have moved to a new address. Conducting a yearly review ensures that you capture these changes and helps your family members file a claim and receive benefits quickly if needed.

Life events such as marriage, the birth of a child, or divorce should also trigger a review of your beneficiary information. This proactive approach will save your family members unnecessary grief in the future.

To update your beneficiary information, you can use the SGLI Online Enrollment System (SOES) if you are a service member with full-time SGLI coverage. SOES allows you to make changes to your life insurance coverage and beneficiary information at any time without completing a paper form or visiting a personnel office. To access SOES, sign in to www.dmdc.osd.mil/milconnect, go to the "Benefits" tab, and click on "Life Insurance SOES-SGLI Online Enrollment System."

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 changes to your beneficiary information. Submit the completed form to your branch of service personnel office.

Use the SGLI Online Enrollment System (SOES) to change beneficiaries

Service members can now update their life insurance information online at any time of the day or night through the SGLI Online Enrollment System, or SOES. This system was implemented to replace the need for service members to go to the personnel office during business hours to make changes to their Servicemembers' Group Life Insurance (SGLI).

To access SOES, service members must sign into www.dmdc.osd.mil/milconnect and go to the Benefits Tab, Life Insurance SOES- SGLI Online Enrollment System. They can log in with their common access card or with their DS Logon using Internet Explorer.

SOES allows service members with full-time SGLI coverage to make changes to their life insurance coverage and beneficiary information without completing a paper form. They can also use the system to change the amount of SGLI coverage or Family SGLI coverage. They can view, save, print or email a SGLI coverage certificate.

SGLI provides up to $400,000 in life insurance coverage, while Family SGLI provides up to $100,000 in coverage for the spouse and $10,000 for dependent children.

Frequently asked questions